Why you should invest in logistics in 2017
Logistics is a booming business that transport shipment everyday back and forth across the globe to reach customers and business owners. 21st century bring the technology that enable e-commerce and globalization, business of all types and sizes are taking advantage of the convenience of utilizing logistics franchise companies for their shipping services.
Moreover, customer service is becoming increasingly important. Logistics companies get to work directly with individual business owners and offer viable solutions to shipping needs and challenges which have a major contribution in the logistics industry.
If you’re looking to make a lucrative change in your career in the coming year, it may be time to consider investing in logistics franchise ownership. Why?
- Upward Trends in Shipping Expansion
- Recession-Resistant Growth
- Low Barriers (and Plenty of Space) for Market Entry
Sounds promising, right? Let’s take a closer look.
TRENDS IN SHIPPING EXPANSION
The technology is ever evolving and quick-fix solutions being readily available therefore the need for shipping also increase. Nowadays, more and more companies are joining in the consumer goods market. People demand is increasing and they want their product to arrive sooner than before. These high expectations for speed and volume are part of what will drive up demand for a logistic franchise.
And according to the Ibis World Report, total trade value increased at an annual rate of close to 2.9%. This tells the market that more products require transportation, which boosts a demand for additional carriers.The IPI is also rising at 0.8%. IPI growth increases trucking demands due to the fact that the manufacturing industry makes up for about 50.0% of trucking that covers long distances.
GROWTH AFTER RECESSION
As economies recover from a recession, retailers and manufacturers begin to rebound, driving up the demand for logistics services. Add to this the fact that trucking is still the chosen method of shipping commercial goods, and you have a win-win outlook for a logistics franchise business.
LOW BARRIER FOR ENTRY
The logistic franchise industry still boasts a low barrier for entry, even with a high demand for services. Since the logistic franchise business requires a rather low investment to enter the market, business owners can get loans, buy required merchandise, and be in business with little effort (compared to most other franchise options).
In addition, there are no major added (or hidden) costs for someone in the logistics business. Costs like fuel surcharges (and other additional shipping charges) are passed on to the buyer. [Along with keeping overall business costs down, this provides volatility in price and service, allowing a quality logistics franchise to stand out.]