Auto Logistics Faces Explosive Opportunities but Meagre Profits, Says New Report by Transport Intelligence.LONDON -- Logistics is finally being recognised as a decisive competitive tool by the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , but this is unlikely to help the logistics service providers present in the market. This is one of the main conclusions of Transport Intelligence's new "Global Automotive Logistics" report published today. The report describes how all vehicle manufacturers are getting a tighter grip on the logistics across their supply chain. They are responding to increasingly savage competition with emphasis not only costs but also with exacting standards of customer service. The vehicle manufacturers are also faced with developing systems capable of supporting assembly operations across the globe in regions new to car production. This might sound like a big opportunity for logistics service providers. However in the traditional areas of production - North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and Japan - growth will be meagre mea·ger also mea·gre adj. 1. Deficient in quantity, fullness, or extent; scanty. 2. Deficient in richness, fertility, or vigor; feeble: the meager soil of an eroded plain. 3. at between 2-3%. The pressure to cut costs will not relent re·lent v. re·lent·ed, re·lent·ing, re·lents v.intr. To become more lenient, compassionate, or forgiving. See Synonyms at yield. v.tr. Obsolete 1. . In contrast the new production locations such as China or Russia offer huge opportunities with growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. so high they are difficult to measure, but operations here are difficult to establish. The report describes a huge, sophisticated and complex segment of the logistics business, in part characterised by slow growth and meagre profits, in others by explosive opportunities and uncertain realities. Senior Analyst Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Cullen commented: 'Vehicle manufacturers are still sceptical about outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. all but the simplest of management tasks, yet remain just as enthusiastic about cost cutting. For logistics service providers dealing with the big car makers the market will remain exceptionally difficult despite the opportunities that exist in the developing markets.' About Global Automotive Logistics 2007 Global Automotive Logistics 2007 is packed full of qualitative analysis Qualitative Analysis Securities analysis that uses subjective judgment based on nonquantifiable information, such as management expertise, industry cycles, strength of research and development, and labor relations. and quantitative data which will give you an all-round understanding of the market. It examines the significant trends which are affecting the demand-side of the industry and how these impact the key logistics sectors. It includes market sizing for all major segments and regions as well indicative growth forecasts. In addition it has detailed profiles of the main Vehicle Manufacturers and Logistics Service Providers containing analysis of their strategies and operations. For more information go to www.transportintelligence.com |
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