The new year brings new opportunities as well as challenges. This is especially true for the logistics sector. With the pandemic still a concern, the transportation and logistics industry constantly confront changes. In the past years, this sector has dealt with changes in industry demands, new customer expectations, and disruptions in the smooth flow of operations.
If you are a business owner, you will be interested to know what the logistics industry outlook is for 2022. What is there for you to look forward to? To give you an overview, here’s an infographic that shares some of the industry forecasts that are expected to evolve this year.
7 Logistics Industry Outlook to Look Forward to
1. Infrastructural Growth and Development Will Impact the Logistics Industry
The government’s “Build, Build, Build” program intends to boost the economy. But aside from that, multiple infrastructure projects under this program will also impact the logistics industry and are expected to break the weak supply and demand. These include:
- 3 Bus Rapid Transits
- 4 Seaports
- 6 Airports
- 9 Railways
- 32 Roads and Bridges
2. Inter-Island Connectivity is Expected to Improve
In connection with the government’s infrastructure programs, it is anticipated that inter-island connectivity will improve once linked bridges are completed and reduce transport time.
DID YOU KNOW:
With RORO facilities and linked bridges, around 30% reduction in transportation costs would be possible.
3. The Logistics Sector Will Help Create Jobs
According to Gov.ph, the Philippine logistics sector may contribute to creating 7.5 million jobs and achieve 5% employment this year.
4. Warehousing Services and Technologies Will Be Crucial
Advanced technologies and initiatives will help address the increasing demand in the logistics industry and mitigate supply chain disruptions. Warehouse management technologies are now available to provide benefits that can help accommodate shifts in demand.
- Lower labor costs
- Increased production
- Reduced processing errors
- Better productivity and efficiency
- Improved inventory management
5. The Express Delivery Market in the Philippines Will Continue to Flourish
The e-commerce industry in the Philippines is a thriving sector in the country. The pandemic has further stressed the importance of efficiency in the delivery of goods and this has paved the way for the express delivery market to also thrive along with the e-commerce boom.
Some of the factors that will support this growth include
- The transition of retailers online to sustain their operations.
- A faster delivery time across markets in different regions.
- Advanced shipment technologies such as delivery tracking facilities
DID YOU KNOW:
Data shows that 71% or 76 million of the country’s population are estimated to be internet users. 70% of those internet users are Online shoppers.
6. Logistics Will Remain a Highly Competitive Industry
Along with the increasing demand is tighter competition among freight and logistics companies in the Philippines. Local and international logistics service providers are expected to coexist to support the trade activities in the country.
7. Expect a Huge Demand for Logistics Services
As the pandemic restrictions are loosened, logistics services will remain to be in demand. The logistics and warehousing industry will continue to have an indispensable function in the “new normal” in various sectors including:
- Clothing and accessories
ALSO READ: HOW TO REDUCE LOGISTICS AND SUPPLY CHAIN COSTS
Logistics plays a crucial role in the success of many businesses. At this point when e-commerce and retail operations continue to thrive, you’d be relieved to know that freight management, warehousing, and logistics management are among the industries that continue to evolve to meet changing demands.
If you need help in meeting the challenges of your business through cost-efficient logistics management services, Worklink Services, Inc. can help you. Reach out to us so we can present to you the services that can help your business grow.