What's Happening?
A report on global supply chain trends highlights challenges in parcel spend and shifts in manufacturing. Logistics expenses average 22% of organizations' operating costs, with parcel shipping consuming a significant portion. Many companies lack insights into shipping costs and demand forecasting. Meanwhile, rural America is poised for a manufacturing boom, with $1 trillion in investments expected to create jobs and boost wages. However, a potential worker shortfall in manufacturing roles could impact growth.
Why It's Important?
The report underscores the complexity and cost-intensity of parcel shipping, which can strain organizational budgets. Companies need better tools and strategies to manage these expenses effectively. The manufacturing investments in rural America present opportunities for economic growth, but addressing the workforce gap will be crucial. Companies that invest in workforce development and education may secure a competitive advantage.
What's Next?
Organizations may need to expand their carrier networks and optimize packaging to reduce shipping costs. In rural America, collaboration between schools and industries will be essential to build a skilled workforce. Companies should focus on integrating workforce development into their expansion plans to ensure sustainable growth.
