Businesses today face mounting pressures from rising material costs, volatile transportation expenses, and complex geopolitical dynamics. How can organizations maintain stability and growth in their supply chains amid these uncertainties?
At the recent CSCMP EDGE annual conference, industry experts examined current market trends and critical issues shaping the future of supply chain management. The gathering reviewed key findings from CSCMP's 36th Annual State of Logistics Report, which revealed that U.S. business logistics costs reached $2.6 trillion in 2023—a 5.4% year-over-year increase representing 8.7% of national GDP.
Cautious Optimism for Economic Outlook
Paul Bingham, Transportation Advisory Director at S&P Global Market Intelligence, presented a measured assessment of economic conditions. "The U.S. economy is currently performing below its potential," Bingham noted, projecting slower growth in 2025 compared to 2024 while stopping short of predicting a recession.
He highlighted consumer spending resilience as a key economic driver, alongside encouraging signals from Federal Reserve interest rate reductions and fiscal stimulus measures in the federal budget. However, inflation remains elevated at 3.4%—significantly above the Fed's 2% target—with S&P Global forecasting peak inflation in early 2026 before gradual moderation.
Bingham anticipates 2.3% GDP growth in 2025, with global economic expansion following a similar pattern of modest deceleration followed by slight acceleration. For freight markets, he predicts divergent performance across transportation modes, with ocean container shipping facing overcapacity that should help reduce rates.
The Rise of Nearshoring: Mexico's Advantage
Javier Zarazua, CSCMP's Mexico Regional Manager, analyzed shifting trade patterns through comparative import data. Through June 2024, Mexican exports to the U.S. grew 6% year-over-year while Chinese exports declined 16%. This trend continued in July with 1% growth from Mexico versus 19% contraction from China.
Shipper-3PL Collaboration: Optimization Through Innovation
Andy Moses, Senior Vice President of Solutions and Sales Strategy at Penske Logistics, described transformative changes in freight markets. While carriers face margin pressures from stagnant rates and rising costs, Moses highlighted the third-party logistics sector's potential to deliver value through innovation.
"We're seeing advancements not just in freight movement but in data processing capabilities," Moses observed. "The roles of data scientists and frontline managers are evolving to bridge physical and digital operations—this is truly an era of transformation."
AI's Accelerating Impact on Logistics
Artificial intelligence emerged as a dominant conference theme, with Michael Zimmerman, Partner and Logistics Practice Lead at Kearney, detailing its rapid adoption. "AI is moving beyond experimentation to deliver tangible benefits—from digital brokers automating processes to enhanced visibility in procurement and freight payment," Zimmerman stated.
Penske's Moses noted AI's cross-functional applications: "From operations to finance, safety to engineering—opportunities exist everywhere. Whether through computer vision for trailer loading optimization or machine learning for tracking, these technologies are transforming our leadership discussions and governance approaches."