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Home » Transportation and Logistics Execs Worry About Risk--But Don't Do Enough

Transportation and Logistics Execs Worry About Risk--But Don't Do Enough

September 26, 2007
PriceWaterhouseCoopers

CEOs of transportation and logistics companies also worry about the risk of network disruptions, according to the 10th annual survey of global CEOs conducted by PriceWaterhouseCoopers consultancy. These executives, in fact, scored far above the average of all CEOs in their concerns about energy prices, energy security, security of the supply chain, terrorism, climate change and pandemics such as bird flu.
"The survey findings reinforce how easily the T&L sector can be harmed by external forces," the report says. Nevertheless, T&L CEOs feel they are average, at best, when it comes to expending resources to meet threats related to most of these issues. "Only against the threats of terrorism and inadequacy of basic infrastructure does the T&L sector expend more resources than the global average," the report says. "Risk and crisis management will be a key challenge in the T&L industry and should be addressed even more actively."
Desipte these concerns, transportation and logistics CEOs are more confident than their counterparts in other industries about the prospects for revenue growth over the next 12 months--60 percent positive as opposed to 52 percent in the total global CEO population.
"This could be attributed to the fact that the T&L industry sector, more than most others, benefits from globalization," says the report. "Global supply chains require transport capacities and the management of material and information flows. The CEOs of logistics service providers, airlines, shipping companies and other T&L providers continue to trust in sustained growth."
http://www.pwc.com

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