Fall Magazine - Page 43

Chuck Moyer knows there ’ s an opportunity out there that many CLDA members aren ’ t considering – global market trends .
The former CLDA president has spent the last few months responding to inquiries from around the globe from shippers and suppliers interested in setting up or enhancing supply chains in the US . Chuck says that those queries foreshadow new opportunities for CLDA member companies . “ Most of our members are probably not going to be overly excited about playing at the international level or think that they ’ re in a position to take advantage of these opportunities ,” he says . “ But understanding what ’ s driving any trend , and at least considering how ( or if ) it is something that fits into their business plan is important . From the international companies that I ’ m in conversation with there are definite opportunities for CLDA member companies . How our members position themselves in this arena will depend upon how they can take advantage of what ’ s happening with any trend , including the global stage . It won ’ t be for every company . But for that are interested , it could be huge .” the country , they ’ re probably going to face some inventory shortages due to the challenges with today ’ s supply chain ,” says Moyer . Those supply chain disruptions have also caused many large shippers to look for ways to enhance their network of delivery providers .
Companies throughout the world are looking for new ways to meet rising consumer demands , gain market share , and enhance their competitive advantage in all verticals including ecommerce , PPE equipment , electronics , and healthcare . The U . S . is an attractive market that beckons many overseas providers of goods and services . “ The United States is the largest consumer market on earth with a GDP of $ 20 trillion and a population of 325 million . The U . S . household spending is the highest in the world , totally almost one-third of global household consumption . That makes this country very attractive for any company that wants to increase sales and diversify . And those companies are going to be looking for ways to build their supply chains and create a competitive advantage in this country , and our members can help ,” Moyer says .
M & A Leads the Way
Right now , there ’ s a convergence of factors that make international work attractive or potentially necessary for some CLDA members . The just-in-time inventory model is problematic and business plans reliant on that model must adapt or they will see a drop off in business as global supply chain disruptions cause companies to rethink what ’ s required to meet customer expectations . “ Just-in-time inventory doesn ’ t work anymore ,” says Moyer . “ If a manufacturer has just enough inventory on site to get them through the next few weeks , and they ’ re getting product from outside
To emphasize the increasing relevancy of international business , Moyer points to an escalating trend – acquisitions and investments in international companies by U . S . entities . “ Cross-border mergers and acquisitions grew by 192 % from 2020 to 2021 ,” he points out . “ If the financial markets are recognizing that this is a good move , it should tell our members that this trend is going to offer opportunities , and we ’ ve all seen the impact of supply chain disruptions and global factors ” fall 2022 customized logistics & delivery Magazine 43