MANUFACTURING TIDBITS
EMERGING TRENDS:
3PL MARKET IN THE U.S. WORTH $43 BILLION BY 2022‌ $1800 BILLION GLOBALLY BY 2026 by Thomas R. Cutler
According to Technavio Research Report, 3PLs (Third Party Logistics) as a service (transportation, warehousing and distribution, and others) and end-users (retail industry, manufacturing industry, automotive industry, food and beverage industry, and others) will grow to $43 billion at a CAGR of 4% through 2022. 3PL market in the US: Top emerging trend The introduction of blockchain technology in the logistics industry is an emerging 3PL trend in the U.S. The digital platform offers a distributed transaction ledger. Identical copies of the ledger are easily maintained in multiple computer systems controlled by the stakeholders. Blockchain is a system which uses a thread of cryptographically protected records and the details of transactions for all stakeholders in
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Manufacturing Outlook / March 2020
the supply chain. The blockchain technology helps in developing a cost-efficient and effective supply chain. Cost minimization through 3PL services The reduction in cost obtained from 3PL services is a key market driver in the U.S. logistics industry. With the rising increase in operating costs, logistics industries are requiring high capital investment for setting up a structured infrastructure and maintaining large fleet sizes, technology, and labor. Several industries are also focusing on outsourcing logistics services for minimizing the operational costs and maintaining profitability. 3PL service providers are customizing services while meeting the demands of the suppliers.