The United States Logistics Industry
Logistics is an integral part of almost every business sector. It includes the resource management of a variety of goods ranging from materials and equipment to gas, liquid products, perishables, information and more. The logistics industry in the United States contributes approximately 8.5% to the country’s Gross Domestic Product and employs over 4 million people. Employees in the US logistics industry assist in the facilitation of 684 million domestic airline passengers, $200 billion worth of truck transport services and $1.48 trillion in US exports.Â
Statistics: Modes of Goods Transportation in the US
72% of the country’s coal, 58% of its raw metal ores and 31% of its grain accounts for approximately one third of all US exports and they are transported via rail. Maritime freight accounts 78% of US goods export in terms of weight and 36.9% in terms of value. Trucks transport approximately 8.8 billion tons of freight which represent about 68% of the total weight of all freight and the goods it transport is valued at a total of $544 billion equivalent to 81.9% of total revenues generated/earned by all domestic transport modes. Air, water, and pipeline revenues declined in 2011, while railroad, truck and forwarders experienced revenue growth.
Emerging from the Global Economic Downturn
The global economic downturn severely impacted the US logistics industry and caused an acute decline in revenues. In February 2009, the US government implemented an American Recovery and Reinvestment Act which provided new funds to enhance the efficiency of transportation of goods. These funds were divided in this following manner: $8 billion for high-speed rail, $1.3 billion for Amtrak upgrades, $27.5 billion for highway infrastructure and $1.1 billion in new airport grants. In 2011, the local industry experienced a revenue increment of 6.6%, equivalent to $79 billion, generating a total of $1.28 trillion by the end of the year. This substantial increase is an indication that the US logistics industry has generally recovered from the global economic downturn and has in fact returned to highly positive levels equivalent to figures in 2003.
For a global outlook on the logistics industry, you may read our blog article entitled “Industry Insight: The Global Logistics Industry.” BusinessVibes also offers factsheets on various other industries and more articles on the B2B market in the United States.