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.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • 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.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • 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 reaches all-time low in April

LMI reaches all-time low in April

Following a surge in March, economic growth in the logistics industry slowed in April to a reading of 51.3, according to the latest Logistics Manager’s Index report.

April LMI
May 5, 2020
Victoria Kickham
No Comments

Business activity in the logistics sector slowed in April following a surge in March to reach an all-time low industry reading of 51.3, according to the latest Logistics Manager’s Index (LMI) report, released today. 

The April reading is down 7.6 points compared to March, but still remains in growth territory, indicating expansion in the logistics economy. An LMI reading above 50 indicates growth in the sector; a reading below 50 indicates contraction. LMI researchers said the March surge was due to panic buying of groceries, cleaning supplies, paper products, and the like as state and local stay-at-home orders and business shutdowns took effect in response to the coronavirus outbreak. 

The April results mark a return to the steady decline in activity that industry researchers have observed over the last two years. The LMI reached its high-water mark in April 2018, at 75.7. 

The April 2020 reading indicates that the logistics economy is “basically holding steady,” according to LMI researcher Zac Rogers, assistant professor of supply chain management at Colorado State University. “It’s our lowest reading, but it’s still not showing contraction.”

Rogers described the April LMI as a “tale of two sectors”—transportation and warehousing. Following the surge in consumer panic buying in March, transportation has “dropped like a rock” he explained, pointing to a 15.2-point jump in transportation capacity, a record drop of nearly 28 points in transportation prices, and a more than 10-point drop in transportation utilization. This means that despite there being many trucks on the road making deliveries, “we’ve never used less of the trucks available, and getting a truck has never been cheaper,” Rogers explained.

April LMI, Capacity

The excess capacity in transportation is a “clear indicator that demand for product movement is down,” Rogers said, adding that demand for warehousing is growing as companies deal with the effects of slowing consumer demand for pretty much anything other than groceries and similar essential items. This will lead to an offloading of inventory in the coming months, which coud trigger slowing demand for warehouse space. 

“I wouldn’t be surprised to see warehousing come down over the next few months,” Rogers added.

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 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.

Publications & Associations Supply Chain Strategy Business Management & Finance
KEYWORDS Logistics Manager's Index
  • Related Articles

    Transportation and logistics firms ponder Covid-19 reopening plans

    Take this job and (mostly) love it

    Air industry warns of mail cargo capacity shortage

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

Storms deliver another punch to challenged supply chains

Demand for drivers on the rise in foodservice industry

Tive, FourKites partner to improve shipment visibility

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

Report Abusive Comment

Most Popular Articles

  • Walmart launches plan to build micro-DCs inside dozens of retail stores

  • Relaxed regulations for drone parcel delivery to take effect in March

  • Gartner survey signals increased investment in resilience over the next two years

  • Increasing Urgency for Vaccine Supplies Drives Launch of New Vaccine Manufacturing Resources on Thomasnet.com

  • What Level of Automation is Right for Your Warehouse?

Now Playing on DCV-TV

8d8b16e1 4a2e 4b15 90bf 18232a1f444a

BulkPak® Innovation—The Future of Supply Chain Sustainability

DCV-TV 4: Viewer Contributed
Durable, sustainable packaging is in high demand. ORBIS BulkPak® containers protect product during picking, assembly, processing, storage and distribution applications in a wide variety of industries. Listen to Bob Nussbaum, Director of Engineering, Ryan Klement, Senior Product Manager, and Bill Gregg, VP of...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

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