SelectUSA Logistics and Transportation Industry
Industry Overview
The logistics and transportation industry in the United States is highly competitive. International and domestic companies in this industry benefit from a highly skilled workforce and relatively low costs. According to the Council of Supply Chain Management Professionals, United States business logistics costs reached $1.6 trillion in 2019 (almost 8 percent of GDP that year).
Analysts expect investment to correlate with sector-specific growth in the U.S. economy. America’s highly integrated supply chain network links producers and consumers through multiple transportation modes, including air and express delivery services, freight rail, maritime transport, and truck transport. To serve customers efficiently, multinational and domestic firms provide tailored logistics and transportation solutions to ensure coordinated goods movement from origin to end user through each supply chain network segment.
This subsector includes inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply and demand planning, third-party logistics management, and other support services. Logistics services are involved at all levels in the planning and execution of the movement of goods. There were 45,946 establishments in the logistics services industry as of 2017, and the latest employment figures estimate 693,800 workers in the industry. Foreign direct investment contributed $12.3 billion to the logistics services industry in 2019, and foreign-owned businesses employed 71,200 workers in the industry in 2018 (almost 10 percent of total employment in the industry for that year).
The most common occupations in the industry are transportation and material moving occupations, which comprised 293,470 employees earning an average annual wage of $45,670 in 2019. 131,990 of these workers were employed specifically as material moving workers, earning an average annual wage of $38,750. The second-most common occupations are office and administrative support occupations. There were 203,280 workers in these occupations in 2019, earning an average annual wage of $43,200.
Firms in these industries offer expedited, time-sensitive, and end-to-end services for documents, small parcels, and high-value items. Express delivery services (EDS) firms also provide the export infrastructure for many exporters, particularly small and medium-sized businesses that cannot afford to operate their own supply chain. Recent EDS industry growth has been generated by the expansion of electronic commerce use by businesses and consumers. There were 14,359 establishments in the couriers and messengers industry in 2017, and the latest employment figures estimate that over 1 million workers were employed in the industry by the end of 2020.
The most common occupations in the couriers and messengers industry are transportation and moving occupations, with over 664,070 workers employed in these occupations and earning an average of $42,010 in 2019. The top occupations within this occupation group are material moving workers (333,900 employees earning an average annual wage of $29,920 in 2019) and motor vehicle operators (285,370 workers earning an average annual wage of $51,830).
High volumes of heavy cargo and products are transported long distances throughout the United States via rail network. There were 144,900 workers employed in the industry by the end of 2020.
The most common occupations in the rail transportation industry are transportation and material moving occupations. Of the 110,750 workers employed in this occupation group in 2019, there were 40,960 workers employed as railroad conductors and yardmasters (earning an average annual wage of $69,200) and 35,140 workers employed as locomotive engineers (earning an average annual wage of $72,110). There were also 35,140 workers employed in the installation, maintenance, and repair occupations group, earning an average annual wage of $64,170.
This subsector includes carriers, seaports, terminals, and labor involved in the movement of cargo and passengers by water. There were 1,668 establishments in the maritime transportation industry in 2017, and the latest employment figures estimated that 56,800 workers were employed in the industry by the end of 2020.
The most common occupations in the maritime transportation industry are transportation and material moving occupations. Of the 43,380 workers employed in this occupation group in 2019, the most common occupations were captains, mates, and pilots of water vessels (15,670 workers earning an average annual wage of $84,320); and sailors and marine oilers (12,750 workers earning an average annual wage of $43,830).
Over-the-road transportation of cargo is provided by motor vehicles over short and medium distances across the United states. As of 2017, there were 126,986 establishments in the trucking industry, and the latest employment figures estimate that almost 1.5 million workers were employed in the industry by the end of 2020. Foreign direct investment contributed $1.2 billion to the trucking industry in 2019, and 17,600 workers were employed by foreign-owned businesses in this industry in 2018.
The most common occupations in the trucking industry are transportation and material moving occupations. There were 1,159,580 workers employed in this occupation group in 2019, 895,670 of these workers were employed as specifically as heavy and tractor-trailer drivers (earning an average annual wage of $47,400). The second-most common occupations in the trucking industry are office and administrative support occupations. There were 179,270 workers employed in this occupation group in the trucking industry in 2019, and they earned an average annual wage of $41,570.
The warehousing and storage industry includes storage and security for general merchandise, refrigerated goods, and farm products. There were 16,901 establishments in this industry in 2017, and the latest employment figures estimated that there were almost 1.3 million workers in this industry by the end of 2020. Foreign direct investment contributed $2.2 billion to the warehousing and storage industry in 2019, and 33,600 workers were employed by foreign-owned businesses in 2018 (3 percent of the total industry employment for that year).
The most common occupations in the warehousing and storage industry are laborers and freight, stock, and material movers, by hand (301,210 workers earning an average annual wage of $33,620 in 2019); industrial truck and tractor operators (195,860 workers earning an average annual wage of $37,800 the same year); and stockers and order filers (178,2170 workers earning an average annual wage of $34,510 that same year).
Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the logistics and transportation industry.
The Investor Guide is a high-level view of everything from taxes to immigration and workforce to business structures.
SelectUSA has created several dashboards to help analyze key FDI data from a variety of sources.
