Global Trade Opportunity
Global Logistics Market Needs Top Talent
Recent headlines illustrate a world of employment opportunities in global trade and logistics. Touching nearly every transaction in global and domestic commerce, trade and logistics involve movements of supplies, parts and products, information, people, and money in communities and regions around the world. Consider just how big an industry logistics is:
Huge & Growing Global Industry
The global ‘spend’ on logistics by companies all around the world is more than $8Trillion (Source: CSCMP Annual 3PL Market Study). Companies spend 8% of that amount on outsourced logistics, or having companies other than the (first party) seller and (second party) buyer of product manage aspects or all of the logistics. Clearly, a huge and growing global industry!
US World’s Largest Economy: $1.3 Trillion Transportation & Logistics Spend
In the United States, companies spent more than $1.3 Trillion on logistics and transportation in 2012, or 8.5% of Gross Domestic Product (GDP). Imported supplies, components, parts and products support domestic consumption and exported products in the highly dynamic global trade environment. Highly integrated supply chain networks in the United States links producers and consumers through multiple transportation modes, including air and express delivery services, freight rail, maritime transport, and truck transport. Whole service industries such as Customs brokerage, freight forwarding, warehousing and distribution, specialized finance, insurance, software have grown to support the ever increasing complexity of global trade and logistics.
San Francisco Bay Area a Leader in Global Trade; Exporter of Technology
California is a top exporter in the nation of computers, electronic products, and sales of food and kindred products. Computers and electronic products are California’s top export, accounting for 25.2 percent of all the state’s exports. According to a study conducted by Tech America in February 2014, California is the second largest tech exporting state after Texas. Global demand for the Bay Area’s technology products and services helps drive economic growth and supports California’s role as the nation’s largest technology exporter.
Bay Area ports and airports are among the largest in the nation and serve as major gateways for trade. Trade volumes fell during the recession but are recovering. The Port of Oakland is investing in infrastructure upgrades that will enable it to better compete with other West and East Coast ports.
People: The Biggest Challenge in Logistics
In leading companies around the world, it is the logistics and supply chain management departments and function that direct sourcing of materials from multiple countries around the world, relationships with those suppliers, movement of the goods through manufacturing, configuration of consumer-ready packages, labeling and distribution to ensure products are simultaneously released on a particular day throughout the world, or available on-demand at or as needed in a manufacturing line. When it’s pharmaceuticals or refrigerated food, it’s logistics that manages maintenance of the correct temperature throughout the chain of distribution and hand-offs among players in the ‘chain.’
It’s not simple and requires integrated management of technologies, processes, supplier relationships and understanding of tactics and ‘big picture’ clarity. For this reason, TALENT (Recruiting, developing, and retaining skilled personnel) capable of the dynamic work involved in global trade and logistics is one of the biggest concerns of logistics leaders.
This finding is reinforced in numerous studies – and clarified in this 2014 interview by industry icon, founder of the Distribution Centers of America, recipient of the International Warehousing Logistics Association (IWLA) Distinguished Service Award in 2013 Jere Van Puffelen, “People: The Biggest Challenge in Logistics Industry.”
Which makes global trade and logistics one of the greatest career opportunities!
Top Exports from California:
Source: US Department of Commerce
California One of 10 Largest Economies in the World
California is one of the 10 largest economies in the world with a gross state product of over $2 trillion (Trade Statistics). California is the greenest and most diverse, globalized and Asia-oriented state at a time when world business is heading those directions. U.S. Department of Commerce reported that, in 2013, California exports amounted to over $168 billion to 229 foreign markets. This is an increase from the 2012 total of $161.9 billion. California maintained its perennial position as a top exporting state.
Exports from California accounted for 10.6 percent of total U.S. exports in 2013. California’s top export destinations are Mexico, Canada, China, Japan and South Korea. California trade and exports translate into high-paying jobs for over one million Californians.