It can be said that 2017 has certainly been a year of change, growth, and some surprises as it relates to the US markets. The incoming process of a new US administration, the continued strong consumer confidence growth rate, improving overall unemployment rates, and related financial markets all seem to point to possible stabilization and rebounding of the economy. The changes in our own logistics environment continues to be one of innovation, and increased competitiveness, with some continued consolidation of players.
We began the year with the sunset of the US participation in the Trans-Pacific Partnership. The continent closed the year with much uncertainty surrounding the future of the North American Free Trade Agreement. The shifting legal framework of international trade will continue in 2018. Nonetheless, trade will continue with economies building on the 2017 recovery, and opportunities will grow in industries old and new.
Globally, we see 2017 as a year of recovery. Once believed impossible, the Hanjin collapse demonstrated the need for more mutually beneficial relationships between cargo owners and carriers. Continued industry consolidation left shippers with fewer choices. With rate recovery, we feel it is important to bear in mind the needs of the customer and keep a watchful eye on building a future together. Beyond the transactional relationships defined by products and services, it will be these relationships that become the hallmark of the 21st century supply chain industry.
Overall, we look forward to 2018’s challenges with the potential for stable growth. Autonomous vehicles are a reality and their presence in supply chain and our everyday lives will increase. New software combined with web-enabled devices will yield the much discussed “big data.” Additive manufacturing (also known as 3D printing) will alter the cost picture of traditional sourcing patterns.
All these factors set against the familiar rules of supply and demand lead to limitless possibilities. Companies that can understand disruptive factors and how they impact customer business will provide services outside the bounds of traditional supply chain thinking.