Manufacturers Keep Logistic Service Providers Profitable

The lion's share of revenue for 3PL companies, $18.3 billion in 2004 to be exact, comes from manufacturing companies. According to a study titled, "Strategic Guide for Logistic Service Providers (3PLs): Industry Trends, Provider Profiles and Maturity Model", by ARC Advisory, 78% of the 3PL industry revenue is attributed to manufacturers in the automotive, high tech and consumer packaged good industries.

Adrian Gonzales, director of ARC's logistics executive council and author of the study says, "The fact that the LSP industry derives most of its net revenues from the manufacturing sector is not surprising... [however] the data highlights industries that are currently under-served, such as chemicals and pharmaceutical/healthcare, which represent growth opportunities for LSPs."

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