From Our Print Edition

An annual report from the Council of Supply Chain Management Professionals (CSCMP) reveals that U.S. business logistics costs jumped nearly 20% from 2021 to 2022, reaching a record $2.3 trillion last year — equal to 9.1% of the national GDP, an all-time high.

Despite the increase, logistics leaders are focused more on building resilient supply chains that can withstand the next disruption than they are on reducing costs, a phenomenon the report’s authors refer to as “the great reset.” As such, third-party logistics providers are investing more capital into their technology offerings than shippers (companies that provide goods and services).

Other notable findings highlighted in the report, which was produced for CSCMP by global consulting firm Kearney, include:

• Warehousing vacancy rates dropped precipitously, leading to higher rents. Robust construction mitigated rising costs somewhat, but companies are hesitant to occupy more space as they attempt to shed excess inventory and use existing space more efficiently. On the plus side, the report expects more favorable warehousing conditions later this year.
• Although consumers are returning to stores, e-commerce sales are not slowing down. In 2022, the U.S. e-commerce market grew 8% from $871 billion to $1.03 trillion, representing 14.5% of the entire U.S. retail market.
• The reshoring movement continues, shifting from a strategic possibility to a market reality. American im- ports of Mexican-manufactured goods have increased 26% since the spring of 2020, according to the Kearney Reshoring Index.