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Six Logistics Trends to Watch for in 2023

Christen Martines | December 6, 2022

Supply Chain Brain, December 6, 2022, Robert Cadena

As the transportation and logistics industry emerges from the global COVID-19 pandemic and the pain it inflicted on the supply chain, we now face new challenges and an uncertain economy in the coming year.

Following are six trends we can expect to see in 2023.

Merger and acquisition activity will continue into the new year. During the pandemic, logistics companies grew by size and revenues as never before, gaining attention from private equity firms looking to invest in fast-growing firms, as well as owners looking to exit when valuations were at all-time highs. But other factors came into play as well, including the state of the economy, to drive merger and acquisition activity.

According to a mid-2022 report by PwC, “The high level of M&A activity in the transportation and logistics sector is expected to continue in FY 2022 as companies address a number of challenges. Due to uncertainties related to new COVID-19 variants, the war in Ukraine, material and equipment shortages and overall supply chain disruptions, many companies are considering near-shoring opportunities and attempting to gain more control over their supply chain.”

“While M&A is slowing down, there are still many businesses looking to acquire or be acquired,” says Peter Rentschler, chief executive officer of Metafora, a consulting and technology company that specializes in the transportation and logistics space. “We’re seeing private equity firms that aren’t already invested in logistics back away, which will lead to a higher number of strategic acquisitions where a larger company will buy a smaller one that brings a new customer footprint or service offerings.

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