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.
  • ::COVID-19 COVERAGE::
  • 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
    • 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
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Industry growth slows in December
Forward Thinking

Industry growth slows in December

January 7, 2020
Victoria Kickham
No Comments

Economic activity in the logistics sector increased in December, but at its slowest rate in three years, according to the latest Logistics Manager's Index (LMI) report, released today.

The LMI, a monthly survey of logistics industry professionals, registered 54 in December, down slightly from its reading of 54.5 in November, but down considerably from its year-ago reading of 67. An LMI above 50 indicates expansion in the sector; a reading below 50 indicates contraction.

Declining inventory levels helped drive the lower December results.

LMI: Inventory Levels and Costs, Sept. 2017-Dec. 2019
Enlarge

"The drop is really driven by a big decrease in inventory levels ... [which] dropped down to 42.3, [marking] the first time we've seen active contraction in inventory," said LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University. Slowing growth in inventory levels is expected after the holiday shipping rush, but contraction is uncharacteristic, Rogers explained. He said the results point to an overall uncertainty in the marketplace and an expectation of slower economic growth as 2020 gets underway.

The LMI dropped below 60 for the first time last April and has remained there, slowing each month with the exception of last July, but remaining above the 50-point mark indicating growth in the sector.

"... the growth has just been very slow (and has been trending slower)," the researchers wrote in their December report. "It seems to indicate that the U.S. is currently in an uncertain economic time. While it is possible that we are through the 'soft patch' we hit last year, many CFOs are still concerned about a recession due to the ongoing trade wars and weakness in other parts of the world."

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). 

Check the LMI website for past reports and to participate in the monthly survey.

Logistics Strategy
  • Related Articles

    Logistics industry growth slows in April

    Logistics industry growth slows in February

    Logistics industry growth slows in February

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

Trade groups urge Biden to keep port labor talks moving

Inflation, labor challenges top LTL business leaders’ concerns

Logistics industry skeptical of proposed gas tax holiday

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

Report Abusive Comment

Most Popular Articles

  • How to resolve your inventory dilemma

  • Container prices continue to drop

  • Regionalized supply chains: the key to resilience

  • Warehouse vacancy rates sink to 27-year low

  • Empty shipping containers stack up at U.S. port depots

Featured Video

Cccb7d13 710a 4473 8132 da8b6cc286f1

The Sportsman's Guide Case study: Increasing Accuracy & Productivity

Viewer Contributed
Thanks to the Lucas Warehouse Optimization Suite, The Sportsman's Guide has increased productivity, reduced training time, and experienced a boost in accuracy for both full-time staff and seasonal employees. Want to learn how Lucas can help your DC be more efficient, accurate, and safe while reducing labor costs?...

FEATURED WHITE PAPERS

  • Case Study: Peak Teams helps boost headcount quickly on a short-term project

  • Breaking Bad: Conducting Full Truckload RFPs in the Age of Digital Freight Procurement

  • Omnitracs One – Last Mile Solutions

  • The enterprise shipper's guide to building a smarter truckload RFP

View More

Subscribe to Supply Chain Quarterly

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

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing