2008/2009 Employment Market Survey by Logistics Executive

Logistics Executive Recruitment is conducting it annual survey and would like to invite professionals in the industry to participate in the 2008-2009 Global Employment Market Survey. The survey will take 5-7 minutes to complete and your answers will remain completely anonymous. You will only be required to identify yourself if you wish to receive a complimentary copy of the final survey results. Your responses will not be directly linked to you as an individual. http://survey.logisticsrecruitment.com.au/display.php?s=901099c226b520248&inv=367128

Has logistics sector downturn hit the bottom?

There are a few signs that the downward cycle currently being experienced by the global freight and wider logistics industry may be coming to an end. That is not to say that a recovery is due any time soon, just that the bottom of the trough may have been reached. Over the past few weeks a number of positive stories have emerged, which although providing only anecdotal evidence may give a welcome boost to confidence in the industry such as media reports suggesting that container rates in Asia-Europe trades are increasing, as the capacity which shipping lines have taken out of their fleets has finally had an impact. China, which was an important driver of growth in the industry right up until the last quarter of 2008, has also seen encouraging signs. Better than expected economic and export growth figures suggest that the stimulus package announced by the Chinese authorities has started to work. Chinese domestic airfreight is also believed to be picking up. While it may be premature to announce the start of the economic upturn but there is an increasing body of evidence to suggest that the downturn is approaching its nadir.

China’s logistics industry being rationalised

China is undertaking a series of measures to spur its logistics industry, which has such importance to the national economy. Although it was thought worldwide that China met the challenge of last year’s snowstorm pretty well many commentators suggest that under the heavy weight of snow and sleet, the seemingly strong logistics system ground to a halt. Policy-makers have learned a lesson from the transport crunch. The State Council has devised a revitalization program for the next three years in an effort to make the transport system more efficient, and more importantly, boost the entire logistics industry. It is the first time the government has created such a major package, laying out long-term goals for the industry. And analysts say it could serve as a curtain raiser for future policies in the sector.

RFID Market Still Shows Growth

Analysis from ABI Research shows that the RFID market is growing despite the downturn in the economy. ABI’s report, RFID Annual Market Overview, contends that in 2009, the total revenue earned from RFID transponders, readers, software and services will amount to more than $5.6 billion. The study identifies that some companies are reducing or moth-balling some projects, but overall the market is still growing. The ABI study highlights that RFID technology is the best option for cost savings in the supply chain for businesses. This assumption is only valid if vendors of RFID technology persuade customers that the cost of implementation will give them significant long-term benefits. If the current economic downturn continues past 2009 or if global conditions worsen, businesses may forego new technology if the benefits are not as quantifiable as vendors promise.

Hiring Expectations report by Hudson

According to The Hudson Report, China continues to report the highest expectations, with 30% forecasting headcount growth this quarter but the proportion of respondents expecting to cut staff has risen from 8% in Q1 2009 to 21%. Hong Kong expectations to hire are lowest since The Hudson Report began in Q4 1998, to just 14% this quarter. Singapore expectations are also falling less sharply than in recent quarters: 20% will grow headcount in Q2 2009 compared with 23% the previous quarter. Around half of the employers surveyed in all four markets have cut HR-related costs in the last six months. Reducing headcount is the most widely implemented cost-cutting initiative, followed by lower bonus payments.

Ernst & Young releases report on supply chain management

Ernst & Young has released a report, Global Supply Chain: Balancing Cost Reduction and Performance Improvement, which includes responses from 250 supply executives from global companies. Ernst & Young assert that the slower economy demands increased supply chain efficiency. Cost reduction is an essential agenda item for senior executives, explains Ernst & Young, noting that pressure to improve performance originates in profitability, globalization and other factors. Survey results indicate a divide between what executives require of their supply chains and what they see being delivered. More than 60% of respondents report supply chains are expected to play a key role in building credibility with investors by positively impacting the bottom line. Only half of these respondents are confident that their supply chains are capable of managing the business issues associated with this role. The report continues with the statement that cost cutting alone will not provide growth opportunities. Cost reduction efforts succeed less than one-third of the time, Ernst & Young asserts. High-impact initiatives pay off quickly through cost-reduction efforts, and initiatives that optimize and transform the supply chain provide long-term growth and profitability.