3PL Financials for 2005

According to Armstrong & Associates U.S. revenues for the third party logistics industry broke $100 billion for the first time in 2005, breaking all previous records. 3PL gross revenues hit $103.7 billion, a 16.1% increase. EBIT margins improved to 9.3%. The margin for after-tax income was 5.4%.

Domestic Transportation Management (DTM), including freight brokerage, lead third-party logistics segments with an 18.3% gain in net revenues (gross margin). Gross revenues (turnover) were $30.3 billion.

Additionally, total turnover in the 3PL industry for 2005 in the U.S. is estimated at $103.7 billion. $3 billion is included for the logistics software segment. Continued growth in global economic activity and increased supply chain management produced substantial increases in International Transportation Management (ITM), including freight forwarding. Gross revenue increased to $38.2 billion. Net revenue increased 13.6% to $14 billion.

Tight trucking industry capacity made for another good year in asset-based domestic transportation management (Dedicated Contract Carriage, DCC). Growth of 10.2% was double-digit for the second straight year after several years of limited expansion.

Value-Added Warehousing/Distribution (VAWD) expanded to $22.3 billion with 9.5% growth. After-tax profit margins in this segment improved to 4% as industry leaders were more inclined to cull unprofitable business.

The following information is part of a more detailed report that can be obtained by contacting Armstrong and Associates directly @ 3PL Logistics