Continued global uncertainty will characterize the environment in which we conduct business in 2012. A variety of factors is contributing to this uncertainty, including but not limited to Europe’s sovereign debt crisis, the federal deficit debacle in the U.S. and continued volatility in world financial markets.
Add to these complex, splintered supply chains; turbulent trade and capital flows with governments using free trade agreements and currency manipulation to their advantage; and the shift of the global economic center of gravity from the submerging economies of the West to the emerging economies of Asia, Latin America and Africa.
The macroeconomic and political issues undoubtedly will impact our business. Yet within all of this uncertainty we see opportunity to help our customers manage it and meet the ensuing competitive need to transform complex supply chains into more nimble ones; navigate turbulent trade and capital flows; and, of course, by handling noncore functions such as logistics.
But the biggest opportunity for growth lies in the emerging economies. Having recently conducted our semi-annual Global Network Forum in South Africa, I was particularly impressed with that country’s, and indeed the region’s long-term potential for economic prosperity, particularly in the consumer, agricultural, natural resources and infrastructure sectors.
More than 20 percent of our revenue came from emerging markets in 2011. We expect this trend not only to continue, but also to accelerate because these nations and their emerging middle classes are the only growth stories left, at least for 2012.
To capitalize, logistics providers must continue to do what they do best: helping clients take a more holistic approach to reducing costs and cycle times; comply with increasingly complex global trade, security and environmental regulations; and improve visibility — upstream and downstream — to squeeze more value from logistics and transportation spending, all of which ultimately improves productivity and profitability.
We envision growth in spite of uncertainty.