S&P Global Mobility’s Post

Quick read regarding the 7 factors manufacturers must consider as they navigate the gap between intent and execution shifting to more regionalized hubs; transitioning to a digital-first model of operations; adopting innovative approaches to sustainability; focusing on skills; and improving customer value.

🚛 Cost Reduction Tops the Agenda for 2025 What challenges and opportunities will define the transportation industry in 2025? According to Trimble's Transportation Pulse Report, these three priorities are top of mind for shippers, carriers, and 3PLs: 💰 Cost reduction 🌍 Market expansion 📲 Digitization Here’s why this report matters: 📈 Cost pressures rising: Rates are expected to increase, and environmental regulations are tightening. Shippers are doubling down on efficiency and cost control. 🔄 Shifting priorities: While shippers focus on cutting costs, carriers are looking to expand markets, showing optimism for freight demand. 🤖 Technology gaps: High interest in digitization exists, but many companies are automating only a fraction of their processes. This creates opportunities for competitive advantage. This report also dives into how ♻️ sustainability and 🌐 geopolitical events are reshaping the industry, offering insights into what’s ahead for global supply chains. What do you think? Let’s discuss the opportunities this presents!

As manufacturing and sources change, we in the peripheral industries need to follow these trends to provided continued, seamless transitional support to clients. Insights as these provide a good read on what is happening, why they are happening and how we should relook at our strategies to change with least pain and least wastes. #change #transformation #sustainablechange

As we enter 2025, discussions about efficiency and cost control dominate government and corporate agendas alike. But what about the logistics and supply chain sector, where rising costs and growing complexities are reshaping the landscape? It was hard to narrow it down, but here’s my take on the key cost challenges that will shape logistics and supply chains in 2025: 1. Fuel Costs vs. Green Transition: Diesel engines remain the most efficient for moving large cargo over long distances, particularly in maritime transport. However, the pressure to transition to greener alternatives comes with high costs and limited scalability for certain sectors. 2. Tariff Uncertainty: Geopolitical shifts and the potential for new trade tariffs continue to introduce unpredictability in logistics planning and cost management. Companies must remain agile to adapt to sudden policy changes. 3. Last-Mile Delivery Economics: The rise of e-commerce and consumer expectations for faster deliveries drive up costs, especially in urban areas where congestion and real estate prices are increasing. 4. Global Supply Chain Realignments: Reshoring and nearshoring trends are shortening supply chains, but the need for new regional infrastructure, regulatory compliance, and skilled labor adds significant costs. 5. Technology and Automation: While digital transformation is necessary to stay competitive, the upfront investment in AI, automation, and workforce training remains a challenge, particularly for small and mid-sized businesses. 6. Sustainability Mandates: Governments worldwide are pushing for stricter environmental regulations. Meeting these standards often requires expensive upgrades to fleets, facilities, and processes. What are your thoughts on how logistics and supply chains can tackle these challenges in 2025? Did I miss anything? #Logistics #SupplyChain #CostControl #Sustainability #Innovation #GlobalTrade

Future of Shipping Industry. Shipping and Logistics Beyond 2024 Digitalization: The Covid pandemic accelerated digital transformation in shipping. Digitalization is a reality for many shippers. Major players like Maersk, MSC, and Hapag-Lloyd have already digitized, but even boutique shipping companies are following suit. Expect further advancements in real-time shipment tracking, supply chain visibility, and paperless shipping. Economic Headwinds: While there’s optimism with rising wages and reduced regulations, challenges persist. Inflation remains a concern, impacting costs for shippers. Fuel price volatility, driven by global oil production changes, will continue to affect the industry in 2024. Sustainability: With climate-related disasters on the rise, the industry is embracing greener practices. Expect more sustainable initiatives, including alternative fuels, emission reduction strategies, and eco-friendly technologies. Supply Chain Resilience: The pandemic exposed vulnerabilities in global supply chains. Companies will focus on building resilience through diversification, redundancy, and risk mitigation strategies. In summary, the shipping industry is navigating a dynamic landscape, adapting to technological shifts, economic challenges, and sustainability imperatives. As we sail into the future, these trends will shape how goods move across the world’s oceans. 🌐🌍

📢 The new ‘Pulse Check’ is out! CLEPA and McKinsey & Company unveil the latest insights from our bi-annual survey, shedding light into the European automotive supply industry’s health and sentiment:      - As challenges incl. slowing #EV demand put the industry under pressure, 65% of suppliers currently expect profits to remain low, with approximately 1/4 set to break-even or face losses.   - Suppliers warn of decreasing competitiveness in the EU due to high production cost structure and faster technology implementation in other regions.  - In response to the above, suppliers seek to optimise investment, including in R&D, while accelerating product development cycles.     Read the #CLEPAPulseCheck press release here: https://lnkd.in/eheTkkJh

The global manufacturing landscape is expected to undergo significant geographic reshaping by 2025 due to several key factors: NEARSHORING AND RESHORING: Companies are increasingly moving their manufacturing operations closer to their primary markets to reduce supply chain disruptions and improve efficiency. This trend is particularly noticeable in North America, with Mexico becoming a key manufacturing hub due to its proximity to the United States. DIVERSIFICATION OF SUPPLY CHAINS: Manufacturers are diversifying their supply chains to mitigate risks associated with geopolitical tensions and trade restrictions. This involves setting up operations in multiple countries to ensure stability and flexibility. FOCUS ON SUSTAINABILITY: Countries with strong sustainability practices and regulations are becoming more attractive for manufacturers. This includes nations with access to renewable energy sources and eco-friendly infrastructure. TECHNOLOGICAL ADVANCEMENTS: Regions that are at the forefront of technological innovation, such as Europe and East Asia, are likely to attract more manufacturing investments. The adoption of Industry 4.0 technologies, including AI and automation, is driving this shift. EMERGING MARKETS: Developing countries with growing economies and improving infrastructure are becoming new manufacturing destinations. These markets offer cost advantages and access to new consumer bases. POLICY CHANGES: Changes in trade policies, tax incentives, and regulatory environments will influence where manufacturers choose to locate their operations. Countries that offer favorable conditions for business operations will see increased investment. These factors highlight the dynamic nature of the global manufacturing industry and the opportunities for growth and innovation in different regions.

Understanding Price Adjustments: Investing in Quality, Innovation, and Sustainability With the new year on the horizon, many manufacturers are preparing for price adjustments—something that can feel like an unwelcome change but is often a necessary part of maintaining quality, innovation, and long-term value. It’s worth taking a closer look at why these increases happen and what they mean for the products we rely on every day. At the heart of these changes is the need to protect innovation. Manufacturers make significant investments in safeguarding proprietary technologies, which enable them to create the advanced products that set them apart. Without these protections, the competitive edge that drives innovation can erode, leaving the industry at a standstill. As Forbes points out, securing intellectual property is essential for fostering growth and differentiation in an increasingly crowded marketplace. The rising costs of production also play a major role. From raw materials and energy to labor and transportation, inflationary pressures have touched every corner of the supply chain. The Wall Street Journal recently reported on how companies are navigating these challenges, with many opting for price adjustments as a way to continue operating efficiently without compromising on quality. But it’s not just about keeping the lights on—there’s a bigger picture. Many manufacturers are doubling down on sustainability, exploring eco-friendly materials, and reducing waste wherever possible. These efforts aren’t cheap, but they’re critical for building a future that aligns with consumer expectations for greener, more responsible products. Ultimately, these price adjustments also serve to protect the value of the product for the end user. By balancing increased costs with strategic pricing, manufacturers ensure that their offerings remain reliable, durable, and worth the investment. Harvard Business Review highlights this balance as essential for maintaining consumer trust and loyalty in a highly competitive environment. While no one looks forward to price increases, they often reflect a commitment to innovation, sustainability, and long-term value. Behind the adjustment is a shared goal: to deliver products that meet today’s challenges while preparing for the opportunities of tomorrow. Forbes: https://lnkd.in/gnNdic4r The Wall Street Journal: https://lnkd.in/gNTbHwHc Harvard Business Review: https://lnkd.in/gFeJz4vE

As we navigate the complexities of modern global trade, it's undeniable that the freight forwarding industry is at a pivotal crossroads. The task at hand? Steering a course towards a greener, smarter logistics future. Imagine a future where the logistics and transportation sector, a major contributor to global carbon emissions, turns the tide and becomes a driving force in the decarbonization of our planet. It's a future where digital technologies transform operations, enabling better shipment consolidation, efficient warehouse management, and reduced energy consumption. A future where resilience is a paramount value, and diversifying supply chains, developing robust risk management strategies, and utilizing data analytics are the norm. Sounds aspirational? Absolutely. But it's not just a pipe dream. In fact, it's the very future that we, as key industry players, are actively shaping. We are embracing the challenges of our times by investing in sustainable and energy-efficient transport, optimizing routes with predictive analytics, and focusing on end-to-end solutions. Our goal is to drive change by enhancing sustainability, digitalization, and resilience. By building robust, future-proof supply chains, we aim to navigate crises and emerge stronger. We're committed to shaping a greener, smarter, and more resilient logistics industry. Together, let's drive substantial change and pioneer the solutions of tomorrow. #DPWorldAmericas #Logistics #SupplyChain

In today's competitive business landscape, companies seek sustainable efforts that enhance supply chain processes. These #double-dipping strategies offer low cost, low risk, and operational efficiencies, driving gains in sustainability and productivity. One strategy is optimizing inventory through better demand forecasting and just-in-time (JIT) practices. Advanced analytics and machine learning align inventory with actual demand, reducing overproduction and waste, enhancing cash flow, and lowering holding costs (NWC). Streamlining transportation and logistics is another approach. Route optimization and shipment consolidation reduce fuel consumption and emissions. Combining small shipments into larger loads maximizes truck utilization and minimizes trips, lowering costs and carbon footprints. Using electric or hybrid vehicles offers further environmental benefits and positions companies as sustainability leaders. Low-cost, low-risk sustainability efforts that enhance supply chain processes offer a compelling value proposition. Optimizing inventory and streamlining transportation achieve environmental benefits while driving efficiencies. These strategies help meet sustainability goals without compromising cost or performance, leading to a more resilient and competitive supply chain. What are you doing to double dip? Share your strategies and successes below!