One of the fastest growing segments of the third-party logistics (3PL) segment over the next three years will be big and bulky last-mile delivery, according to a study done by consulting firm Armstrong & Associates (A&A) and the National Home Delivery Association (NHDA). Wisconsin-based A&A estimates the sector experienced a compound annual growth rate (CAGR) of 18.2 percent from 2017 through 2021 and will have a CAGR of 11.8 percent from 2022 through 2025. Much of that growth is driven by rising e-commerce retail sales for product categories such as furniture and appliances, A&A said. But as opposed to the parcel carriers that transport the small packages purchased through typical e-commerce orders, those large items are hauled over the last mile by 3PLs with fleets of independent contractors and freight brokerage operations. Other groups currently expanding their last-mile services for big and bulky items include less-than-truckload (LTL), last-mile, household goods, and truckload (TL) carriers.

The U.S. auto industry is entering one of its biggest factory-building booms in years, a surge of spending largely driven by the shift to electric vehicles and new federal subsidies aimed at boosting U.S. battery manufacturing. Through November, about $33 billion in new auto-factory investment has been pledged in the U.S., including money for the construction of new assembly plants and battery-making facilities, according to the Center for Automotive Research, a nonprofit organization based in Michigan. The 11-month total adds to the $37 billion in new auto-factory spending committed in 2021, when a number of new projects were revealed in states such as Tennessee, Kentucky and Michigan. The annual figure is up from $9 billion in 2017 and a more than eightfold increase from two decades ago, the center found.

That’s all for this week. Enjoy the weekend and the song of the week, Radiohead’s High and Dry.

The post This Week in Logistics News (December 31 – January 6) appeared first on Logistics Viewpoints.