We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Logistics economy expands in November
Forward Thinking

Logistics economy expands in November

December 4, 2019
Victoria Kickham
No Comments

Business activity in the logistics sector grew in November, although at the same slow pace of the last few months, according the latest Logistics Manager's Index report, released Tuesday.

The LMI registered 54.5, barely above October's reading of 54.4, the lowest level since the index launched in 2016. A reading above 50 indicates expansion in the logistics sector; a reading below 50 indicates contraction.

LMI researcher and Colorado State University professor Zac Rogers said the industry continues to reflect a mix of strong consumer economic performance and slowing manufacturing growth, putting it in a slow-growth phase. Seven of the LMI's eight metrics were down compared with October.

Transportation prices contracted in November to a reading of 41, down 2.5% compared with October and their lowest level in the history of the LMI. Inventory levels remained in growth territory, but were lower than expected at this time of year, Rogers said. October's inventory levels index registered 54.3, down from 55.1 in October and down nearly 8% compared to a year ago and nearly 17% compared to two years ago. Rogers said the results could indicate a build-up of inventory over the summer to avoid tariffs in the ongoing U.S.-China trade war, but added that the same effect should be occurring now in advance of tariffs scheduled to take effect later this month. 

"For some items, you'd think companies would be building up inventory, so you wonder why that's not happening," Rogers said. "Inventory is still growing, just at a much lower level [than expected]."

On the flip side, the industry continues to show strong demand for warehousing. The LMI warehousing prices index rose 3% to a reading of 68.3 in November while warehousing capacity and utilization levels fell, indicating demand for warehouse space from both retailers and manufacturers, Rogers said.

Despite the current slow growth, logistics professionals said they are optimistic about business conditions over the next 12 months. The LMI future predictions index registered 62.1, well above the 50-point threshold indicating growth and 14% higher than the current LMI reading.

"This month, the future expectations are higher relative to current conditions than we've seen in the past," Rogers said, indicating a positive 2020 outlook industry-wide.

The LMI tracks logistics industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).

Logistics Strategy
    • Related Articles

      Logistics industry growth continued in November

      Logistics industry growth slowed in November

      Logistics Manager's Index shows growth rate slowed in November

    Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.

    Recent Articles by Victoria Kickham

    Survey: Freight brokers unfazed by industry challenges

    Logistics economy slowed in July

    Report: Professional skills lag in post-Covid workplace

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Wabash opens trailer manufacturing facility in Indiana

    • Six defining challenges of omnichannel fulfillment

    • California bill would require large corporations to disclose their greenhouse gas emissions

    • Panorays extends risk management throughout the digital supply chain

    • Orchestrating the new, heterogeneous robot fleet

    Featured Video

    8757b894 244c 4429 b5d8 e6df7b479d82

    Penalties for Wood Packaging Material Violations

    Viewer Contributed
    Our Services Include: Customs Broker Denver Freight Forwarder Denver Global Logistics Denver Cargo Insurance Denver Customs Bond Denver Customs Clearance Denver Customs Duty Denver Isf Filing Denver More details: Phone : 281-445-9779 Email: info@gallaghertransport.com Website: gallaghertransport.com

    FEATURED WHITE PAPERS

    • A Brighter Future: How COVID-19 Continues to Change Freight Procurement Strategies for the Better

    • Five questions to ask before electrifying your indoor forklift fleet

    • Operator assist system myths busted

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing