Logistics
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Indian Institute of Management, Lucknow
Projetc
Report
Analysis of US Logistics Environment
Submitted by
Avichal Agarwal
PGP21014
Kunal Tayal
PGP21127
Airan
PGP22025
TABLE OF CONTENTS
US Economy Overview:
Industry Overview :
Industry Snapshot
Infrastructure Snapshot
Water
Industry in 2005:
Trucking
Ocean
Rail/Intermodal
Market Analysis :
CHRW :
EGL, Inc
FedEX:
Ryder :
BAX GLOBAL
CNF (Conway)
CATERPILLAR LOGISTICS LTD.
Schneider
PENSKE LOGISTICS
References:
US Economy Overview:
The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $42,000. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals home markets than foreign firms face entering US markets.
The onrush of technology largely explains the gradual development of a “two-tier labor market” in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. The rise in GDP in 2004 and 2005 was undergirded by substantial gains in labor productivity. Hurricane Katrina caused extensive damage in the Gulf Coast region in August 2005, but had a small impact on overall GDP growth for the year.
Soaring oil prices in 2005 and 2006 threatened inflation and unemployment, yet the economy continued to grow through mid-2006. Imported oil accounts for about two-thirds of US consumption. Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups.
GDP (purchasing power parity): $12.31 trillion (2005 est.)
GDP – real growth rate:
$3.2% (2005 est.)
GDP – per capita (PPP):
$41,600 (2005 est.)
GDP – composition by setc
agriculture:
industry:
20.4%
services:
78.7%
Industrial production growth rate: 3.2% (2005 est.)
Exports:
$927.5 billion f.o.b. (2005 est.)
Imports:
$1.727 trillion f.o.b. (2005 est.)
Airports:
14,858 (2006)
Railways:
total: 226,605 km
Roadways: total: 6,407,637 km
Waterways: 41,009 km (19,312 km used for commerce)
Ports and terminals:
Corpus Christi, Duluth, Hampton Roads, Houston, Long Beach, Los Angeles, New Orleans, New York, Philadelphia, Tampa, Texas City(290,000,000 tons of cargo annually)
Industry Overview :
The logistics industry includes firms that provide a wide range of services, from asset based activities, such as trucking and warehousing, to increasingly strategic and integrated functions, such as supply chain optimization. In the United States in 2000, the logistics industry was roughly equivalent to 10 percent of the gross domestic product (GDP), and although that share has been declining due to improved efficiency, it remains an important industry with significant size, scope, and effetc
Most cargo transportation in the United States is done by sea, road, and rail; planes are commonly used only for perishables and premium express shipments. Usually cargo is imported in containers through seaports, then distributed by road and rail.
Industry Snapshot
U.S. logistics industry size: $900 billion – almost double the size of the high-tech industry, or more than 10 percent of the U.S. gross domestic product (Source: U.S. Department of Commerce). Global logistics size: $3.43 trillion (Michigan State University – Drs. Donald Bowersox and Calantone).
U.S. contract logistics industry size: $46 billion, with an average annual growth rate of between 10-15 percent