Subscribe to our free, weekly email newsletter!


Automotive logistics may be on the rebound

According to Transport Intelligence, the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.
By Patrick Burnson, Executive Editor
January 11, 2013

While just a few years ago, the global automotive logistics sector was regarded as moribund at best, a new report suggest that demand from emerging markets are changing all of that.

According to Transport Intelligence (Ti) – a London-based think tank – the reversal of fortune may mean a wealth of opportunities for logistics service providers on a global scale.

“The automotive world looks like it is evolving into one dominated by a few large global Vehicle Manufacturers with operations in markets such as China, Brazil, Russia, India and elsewhere integrated into supply chains heavily rooted in North America, Western Europe and Japan,” said Thomas Cullen, Senior Analyst at Ti and author of Global Automotive Logistics 2013.

Cullen added that providing the logistics systems to support this structure will be the main challenge and opportunity for automotive logistics service providers from now on.”

In its new report Global Automotive Logistics 2013,  analysts note that following the global economic crisis of 2009, the automotive sector has recovered dramatically, surpassing the levels of demand witnessed before the crisis. The market is now worth an estimated 57 billion euros annually, rejuvenated by a surge in demand for vehicles in developing markets, in particular China, as well growth in demand such as in the North American markets.

The continued increase in demand in developing countries has resulted in structural changes in the market and created significant opportunities for logistics providers. For example, the explosive growth of vehicle sales in China has also led to a rapid increase in production in the country by global manufacturers.

Rosemary Coates, president of Blue Silk Consulting, and a regular SCMR blogger, has noted that this represents a significant opportunity for global logistics providers operating in the region as manufacturers demand Western standards of logistics service levels.

Ti said It is anticipated that China’s automotive logistics sector will grow by 10% per annum until 2014.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The market for supply chain management software continues to expand, highlighting the importance of software in today’s supply chains.

Amid the talk and coverage about things negatively impacting the trucking industry like increasing regulations, tight capacity, and equipment-related issues and challenges, there is one thing to always remember about the sector: it moves a lot of freight, make that more than a lot, actually.

In an effort to increase territorial coverage, improve transit time, and augment service quality in Brazil, UPS recently announced it has made significant service expansions with the opening of nine new operating facilities in the state of São Paulo.

Even with potential labor gridlock on the horizon, the findings of a Logistics Management reader survey found that there is increased optimism towards a 2014 Peak Season.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA