The 2022 State of Logistics Report was recently unveiled by the Council of Supply Chain Management Professionals. The 33rd annual publication found that U.S.-based supply chains are out of sync, while adjusting to short-term changes and perhaps uncovering long-term solutions.
- The report is produced annually for the CSCMP by global consulting firm Kearney and presented by Penske Logistics.
The publication delivers a snapshot of the American economy through the lens of the logistics sector and its role in overall supply chains. The report is a rigorous compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.
A key statistic that the report generates is the United States business logistics costs, or USBLC. In 2021, USBLC was elevated by 22.4% to $1.85 trillion, representing 8% of 2021’s $23 trillion GDP.
Key report findings revealed:
- Business inventories dropped to near historic lows, but the costs associated with storing, handling and finance for these items rose considerably. Inventory-carrying costs rose by 25.9% in 2021, and transportation costs jumped 21.7%. This led to uneven supply chains and inconsistent product availability for consumers (both in-person and online).
- Efforts to increase multi-shoring are expected to accelerate. Companies are seeking to have operations move closer to the U.S., to respond quicker to fluctuating market demands.
- Last year’s report noted the effects of the pandemic on the supply chain. The residual challenges of the pandemic remain, with some disruptions continuing to deliver damaging effects on capacity.
- Last-mile delivery volume is trending upward. The 2022 report notes that e-commerce sales grew 10% last year (to $871 billion), accounting for 14% of U.S. retail sales.
- Trucking freight continues to see more volume and opportunities. With road freight accounting for the largest segment of the U.S. supply chain spend, it expanded by 23.4%, to a lofty $831 billion spend.