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.
  • 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
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • 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
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Logistics industry growth continued in June

Logistics industry growth continued in June

Strong demand for warehousing and transportation keeps industry humming as the latest Logistics Manager’s Index reaches second all-time high reading.

june21lmi.png
July 9, 2021
Victoria Kickham
No Comments

Economic activity in the logistics industry increased in June, driven by strong consumer demand that continues to put pressure on warehousing and transportation networks.

The Logistics Manager’s Index registered 75 in June, up nearly four percentage points to reach the second-highest level in the history of the five-year index. The quarterly three-month moving average also reached a record level this spring, indicating second-quarter growth as the fastest in the history of the index as well, according to LMI researchers.

The LMI gauges monthly business activity in the logistics industry; a reading above 50 indicates growth and a reading below 50 indicates contraction.

Inventory is moving through supply chains quickly, and tight capacity and high costs remain throughout the channel, the researchers said. Inventory levels and costs continued to grow in June, rising 9 points and more than 5 points, respectively. At the same time, warehousing and transportation capacity continued to contract, registering 40.7 and 34.5.

“The combined lack of capacity makes it difficult to meet consumer expectations. The mismatch between supply and demand has driven logistics costs up, despite the fact that inventory is flowing quickly,” according to the report. “Essentially, the changes to logistics demand over the last year mean that it has become significantly more expensive for supply chains to hold and move each unit of inventory, even in cases where they have less inventory than they did before. This will continue until supply chain networks, which are still configured for pre-pandemic business cycles, can be adjusted to better reflect our post-pandemic reality.”

Looking ahead, respondents predicted a 12-month future growth rate of nearly 70, indicating strong growth and continued tight industry conditions as 2021 unfolds, according to the researchers.

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). An LMI above 50 indicates expansion in the market; an LMI below 50 indicates contraction.

Visit the LMI website to participate in the monthly survey.


Supply Chain Strategy
KEYWORDS LMI - Logistics Managers' Index
  • Related Articles

    Logistics industry growth continued in November

    Logistics industry growth slows in June

    Logistics sector growth surges in June

Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.

Recent Articles by Victoria Kickham

Leading with speed

Logistics industry growth slows in April

Demand for piece-picking robots gains steam

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

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

Now Playing on DCV-TV

D991bf51 52ad 4867 98ff b56f4fe5dd93

State of the Industry: Fluctuations & Normalcy

DCV-TV 4: Viewer Contributed
In this second of a four-part State of the Industry video series, Greg Orr shares insights on the shifting fortunes of a cyclical truckload market and what passes for normalcy in this economy. The truckload market is famous for its boom-and-bust cycles. A downturn in the economy sends the market reeling with too...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

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

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing