Outsourcing is the wave of the future, especially when it comes to logistics and packaging. Companies are outsourcing to solve logistics problems with staffing, training, and product quality. But what does the data say? We’ve taken a look at some of the latest statistics that influence the decision to outsource logistics and packaging.
- Sales Increases: One factor that has strained companies logistically is the massive increase in online sales over the past year. In the U.S. online sales have increased 43% year over year, reaching $60.4 billion in 2020. Predictions maintain that sales growth for online products will not top out any time soon, meaning companies should be prepared for demands to continue.
- Unstable Workforce: Making things even more difficult is the instability of the workforce. Not only did the COVID-19 pandemic cause a massive worker shortage, but employed workers are missing more work. In April 2020, nearly 87% of the labor force missed work for reasons related to the pandemic. As the pandemic slows, Americans are returning to a different workforce where opportunities have changed, and expectations are still in flux at many employers. This adds to the difficulties of consistently staffing a warehouse.
- Supply Chain Costs: Increases in supply chain efficiency due to technological advancements and the growth of the contract packaging market have led to a new, higher standard of expectations from consumers. Studies show that 80% of professionals planned to increase logistics outsourcing budgets in 2020. With so many companies realizing the efficiencies and cost-savings of outsourcing, it will be harder for small logistics and packaging departments to keep pace.
The contract packaging market is expected to reach a value of $118 billion by 2024 at a compound annual growth rate of 15.33% from 2020 to 2025. By outsourcing the costs and hassles of machines, labor, assembly, fulfillment, and management, companies can focus on sales, marketing, and product development, ultimately leading them toward a more profitable future.