What's Happening?
The U.S. third-party logistics (3PL) market experienced significant growth in 2025, as reported by Armstrong & Associates, a supply chain consultancy based in Brookfield, Wisconsin. The report, titled 'Reshaping: Third-Party Logistics in a Decade of Structural
Change,' highlighted a 5.1% increase in net revenues, reaching $138.2 billion. This growth surpassed the 1.8% increase seen in 2024. The report detailed the performance across four key segments: Dedicated Contract Carriage (DCC), Value-Added Warehousing and Distribution (VAWD), International Transportation Management (ITM), and Domestic Transportation Management (DTM). Each segment showed varying degrees of growth, with ITM leading with a 7.7% increase in gross revenue. The report also noted that the freight recession, which began in late 2022, is nearing its end, with growth expected to continue through 2027.
Why It's Important?
The growth in the 3PL market is a positive indicator for the U.S. logistics industry, suggesting a recovery from the freight recession. This expansion is crucial for businesses relying on logistics services to manage supply chains efficiently. The increase in revenues across different segments indicates a robust demand for logistics services, driven by factors such as tariff complexities and tight carrier capacities. This growth benefits freight brokers and logistics providers, who play a critical role in managing transportation and warehousing needs. The report's findings also suggest that the logistics industry is adapting to structural changes, including shifts in tariff policies and evolving tenant requirements for warehouse space.
What's Next?
Looking ahead, Armstrong & Associates forecasts continued growth in the U.S. 3PL market, with total gross revenue expected to rise by 5.6% in the coming year. The DTM segment is projected to lead this growth, driven by tight capacity and regulatory changes. The report anticipates a stabilization in warehouse vacancy rates and a steady demand for large-scale facilities, fueled by e-commerce and data center needs. The logistics industry will likely continue to adapt to global trade dynamics and domestic transportation challenges, positioning itself for sustained growth.
