The tight economy and focus on cost has many organizations cutting logistics spending wherever possible. While this fact is evident to most logistics managers, trying to do more with less, the message came through loud and clear in the 14th Annual State of Logistics report from Cass Information Systems and ProLogis. According to the report, spending on logistics in the U.S. dropped $47 billion in 2002 and transportation overall dropped to 5.5% of gross domestic product (GDP) in the U.S., down from 5.8% in 2001.

The trucking industry might have been the hardest hit. As a point of reference, the report notes that in 2000, trucking costs alone were 5% of the GDP. The report also cites data from AG Edwards analyst Donald A. Broughton which counted 2,345 trucking companies going out of business in 2002, adding to the 3,990 firms that disappeared in 2001.

dhannon@reedbusiness.com