says capacity in an improving economy will struggle to keep up with higher consumer, industrial demand
The new State of Logistics report says U.S. companies have kept inventory costs tamped down tightly since the 2008-2009 recession. ENLARGE
The new State of Logistics report says U.S. companies have kept inventory costs tamped down tightly since the 2008-2009 recession. PHOTO: BLOOMBERG NEWS
By PAUL PAGE
Updated June 23, 2015 10:13 a.m. ET
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Costs for everything from hiring truck drivers to storing goods in warehouses are primed to rise, driven higher by an improving economy, reduced capacity and coming interest-rate increases, said Rosalyn Wilson, author of the Council of Supply Chain Management Professionals’ annual State of Logistics report.
The report, which measures the total transportation and logistics spending by U.S. companies, shows businesses have kept supply chain costs tamped down tightly since 2009 as the economy has moved forward in fits and starts. But the industry is about to pay for its lack of investment, as improving growth drives up demand for consumer goods, industrial equipment and other products. Shipping volumes will soar, and capacity will struggle to keep up, particularly in the trucking business, which already faces a driver shortage, Ms. Wilson said.