Los Angeles CA Third Party Logistics

1.  The California Regional Economies Project is trying to organize activities in the logistics industry to address workforce and infrastructure demands. This industry includes: supply chain management (including inventory management and production planning), logistics support (i.e. warehousing and storage) and transportation services (i.e. the physical movement of goods).
2. • The logistics industry has evolved from a series of fragmented activities in the 1960s to total integration in the 1990s and holistic, integrated supply chain management, currently.
3. • Global competition requires sophisticated logistics networks. Reduced inventory and logistical costs create productivity gains. This requires the application of information technology tools.
4. • Over time the inventory to sales ratio has dropped in all manufacturing except semi-conductors, reflecting a major savings in logistics costs through just in time management of inventory, which has been due to information technology and has created a major productivity burst.

Employment Trends

• • Logistics employment has increased in regions of California; however, average wage growth has been mixed.
• • There are four major regions and corridors in California: Southern California, Bay Area, San Joaquin Valley and San Diego. All are growing except the Bay Area and the largest share is in Southern California, which experienced 22% employment growth from 1990 to 2003. The California Business, Transportation and Housing Agency has been assessing infrastructure needs to support goods movement strategies.
• • Transportation services are being outsourced to couriers (UPS, Fed Ex, etc.) and employment far outpaces growth in transportation services. These third party firms provide a wide range of services which now includes assembly and repairs of some products.
• • There is no congestion at the Los Angeles and Long Beach ports currently. There is a need to add a port the size of Oakland every year in the U.S. to keep up with the current and projected pace of growth in trade.
• • Business climate issues continue to be workforce and labor market (skills and ethics), workers comp, electric power rates and congestion. The manufacturing

Credits

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