Growth seen for automotive logistics sector

Demand for automotive logistics services is forecast to grow this year by 6 percent in Europe and 5 percent in North America, according to a new report by industry research and analysis firm Transport Intelligence.

The automotive industry in North America continues a broad recovery from the recession, and the industry’s health in Germany and the U.K. is expected tol balance out problems in France and Italy, the report said.

Underlying demand for automotive logistics services is healthy, as a strengthening economy boosts vehicle sales in developed nations and rising prosperity stimulates demand for car ownership in emerging economies.

Global vehicle sales increased year-over-year in July for the 13th consecutive month, and totaled 50.2 million units during the year’s first seven months — a 2.6 percent year-over-year increase, according to WardsAuto.

Asia-Pacific countries accounted for nearly half of the January-July volume, followed by North America with 23 percent and Europe with 22 percent,

China and other emerging markets may post the biggest challenge for the automotive logistics sector, Transport Intelligence said. The report cited lack of openness in China’s growing market, and noted that knowledge of local conditions is essential.

As supply chains become more global and complex, logistics providers can expect increasing demand for their services, especially as systems integrators, the report said.

“Big car companies are now faced with a trend towards networked supply chains, often crossing continents and making life much more expensive and complicated than the ‘local for local’ production model they have always striven to create,” Transport Intelligence said.

Source: http://www.joc.com/growth-seen-automotive-logistics-sector_20140920.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+joc%2Faajm+(Journal+of+Commerce)