We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Subscriptions
    • Podcast
    • Webcasts
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • The Logistics of Defense
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » LMI up slightly in January
newsworthy

LMI up slightly in January

February 4, 2020
Victoria Kickham
No Comments

The logistics industry continued its slow, steady pace of growth in the first month of 2020, according to the latest Logistics Manager's Index (LMI) report, released today.

The LMI registered 54.1 in January, up marginally compared with December's reading of 54, but still above the 50-point mark indicating growth in the sector. The index has remained near 54 since September, indicating a holding pattern of sorts, according to LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University.

"It seems like we've hit a plateau," Rogers said, pointing to steep drops in the index from November 2018 to April 2019 before it leveled off at around 56 for much of the spring and summer. "Now, we've been hovering around 54 for the fall and winter. That tells us there's stability. Basically, [we're seeing] really slow, sustained growth."

January's reading is down more than 9 points compared to a year ago, and Rogers said the slower growth pattern appears here to stay. Inventory levels rose in January, in line with seasonal expectations as companies restock following the holiday rush, but remained well below year-ago levels. January's inventory index was 54.2 compared with a reading of 66.3 a year ago. Ongoing uncertainty over global trade and the impact of the coronavirus on the supply chain may have an effect on inventory levels moving forward, Rogers added.

Transportation metrics continue to be the most dynamic measures of the LMI, Rogers added. Both transportation prices and transportation capacity remained in growth mode while transportation utilization slowed during the month, indicating an overall slowing of the sector.

"It seems to be difficult to get a lot of traction right now. Transportation seems like it's pretty slow," Rogers said, adding that the industry outlook on transportation capacity is negative. "Looking forward at the next 12 months, the predicted transportation capacity index is 46.7, down very minimally (-0.4) from December's future prediction of 47.1. This indicates that respondents are not expecting much slack [in] transportation capacity going forward."

Logistics managers are more positive about the overall industry outlook; January's overall future prediction index registered 62.8.

The LMI tracks logistics industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50 percent indicates that logistics is expanding; a reading below 50 percent indicates a shrinking logistics industry. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).

Visit the LMI website to participate in the monthly survey.

Transportation Supply Chain Services Publications & Associations Business Management & Finance Coronavirus Coverage
KEYWORDS Arizona State University Colorado State University coronavirus Council of Supply Chain Management Professionals covid-19 lmi Logistics Managers Index Rochester Institute of Technology Rutgers University University of Nevada, Reno
  • Related Articles

    Logistics sector posts strong growth in March

    September LMI reaches highest level in two years

    LMI improves in May

Victoria kickham headshot
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.

Recent Articles by Victoria Kickham

Logistics industry growth reaches two-year high

Texas storms battered on-time-delivery rates

Going remote with WMS

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Roadrunner Freight bolsters LTL capabilities with $50 million in new backing

  • Southeastern Freight Lines Promotes Marty Cox to Service Center Manager in Cincinnati, Ohio

  • Pull back or go deeper—how the pandemic influenced shipper-3PL engagement

  • Boston Dynamics trials box-lifting robot for unloading trucks

  • The growing crisis in agriculture exports: interview with Peter Friedmann

Now Playing on DCV-TV

Ae46f19c 518e 4be0 a8b7 0fdf8f1f806c

PlastiCorr: Reusable, Sustainable Brown Box Replacement

DCV-TV 4: Viewer Contributed
PlastiCorr is a drop-in replacement for single-use corrugated fiber boxes with identical functionality and enhanced features. Its patented design offers repeatable, reliable performance for re-use up to 70 times.

FEATURED WHITE PAPERS

  • Special Report: Supply Chain Trends in Retail & Consumer Goods

  • Fortify Your Operational Resilience

  • Cold Storage Automation: Leveraging Advanced Technologies to Meet Increasing Demand

  • The modern warehouse: Maximizing productivity and capacity

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing