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 » 3PL chiefs worry about price pressure, talent shortage
Forward Thinking

3PL chiefs worry about price pressure, talent shortage

November 23, 2010
Supply Chain Quarterly Staff
No Comments

Continued downward pressure on pricing has become the most important problem facing the third-party logistics (3PL) industry in North America. That concern was cited most often by chief executives at 16 of the largest contract logistics service providers, as outlined in the new report, "The North American Third Party Logistics Industry in 2010: The Provider CEO Perspective." Northeastern University professor Robert C. Lieb and Emerson College professor Kristin Lieb conducted the 2010 version of the long-running multi-part study, which included the 17th annual survey of third-party logistics CEOs.

Although 10 of the 16 executives said they believed that the economic recovery was already underway, overall they expected continued resistance by customers to raising prices for their services. Price hikes could be a matter of survival for some: Only three CEOs described their companies as "very profitable," 10 termed them "marginally profitable," two "broke even," and one said the company was marginally "unprofitable." Their average projected revenue growth for next year was 10.4 percent.

The second most important problem facing the 3PL industry, in the CEOs' view, is a shortage of professional talent at a time when contract logistics service providers are starting to rebuild their workforce. Nearly all—15 of the 16 CEOs—said they had begun rehiring workers. Only 7 percent of the new hires were former employees, and 43 percent were former employees of other 3PLs. Another 20 percent were recent college graduates, and consulting firms furnished an additional 5 percent. The remaining 25 percent were hired from such sources as customers, the military, and other industries. As for the future of the third-party logistics industry, most of the CEOs still think that it has not fully stabilized and are predicting further consolidation.

  • Related Articles

    Supply chain chiefs worry about the future

    High-tech companies worry about supply chain risk

    Supply chain chiefs wary about the future

Recent Articles by Supply Chain Quarterly Staff

Cargo volume down in Oakland

Safety experts to headline National Forklift Safety Day 2022 program on June 14

FedEx and Aurora expand autonomous trucking pilot

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

Report Abusive Comment

Most Popular Articles

  • Logistics pros warn of business impact from Russia-Ukraine war

  • Container prices continue to drop

  • How to resolve your inventory dilemma

  • 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

  • Omnitracs One – Last Mile Solutions

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

  • Fixed vs. Flexible Automation: Which Option is Better for 3PLs?

  • Enhancing Relationships in Logistics through Data & Collaboration

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