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About Logistics Industry
"Logistics is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements." - Kate Vitasek, Managing Partner of Supply Chain Visions
Note: CaTLI would add to the above definition the efficient and effective transportation and “temporary storage” of people by such means as trains, passenger ships, cars, trucks, buses and aircraft.
Background and Facts
- The Logistics Industry includes four segments: Water, Air, Road and Rail.
- Each segment is composed of five sectors: Transportation, Warehousing and Storage, Logistics Support, Supply Chain Management and Safety and Security.
- Logistics has become one of the fastest growing, high-demand industries in California since the era of growth in the Silicon Valley.
- The combined ports of Los Angeles and Long Beach are the fifth largest in the world and handled over 43.9% of all U.S. imported containers.
- The number of containers handled by the ports of Los Angeles and Long Beach are projected to grow from 15.8 million in 2006 to 42.5 million in 2030.
- During the period 1990 – 2006 California lost approximately 465,000 manufacturing jobs.
- During that same period, the Logistics Industry added about 79,000 jobs, equivalent to 2.8% of all state employment.
- Almost 60% of California’s Logistics Industry employment is in Southern California.
- Southern California is projected to add about 350,000 jobs in the Logistics Industry by 2030.
- There will be 138,800 jobs in the warehousing and storage sector in Los Angeles County alone by 2010.
- These warehousing and storage jobs will include approximately:
- 96,200 entry-level positions that today average $11.90/hour
- 10,200 mid-level positions that today pay $12.71/hour
- 15,200 in advanced positions that today pay $22.26/hour
- 17,200 first line supervisory jobs that today average $24.07/hour
- The Logistics Industry average annual wage in 2005 was about $47,400 and compared favorably to manufacturing wages of about $48,400.