Transportation and logistics

 
72%

of T&L CEOs are changing their strategies for managing talent
15th Annual Global CEO Survey

Transportation and logistics industry insights

T&L CEOs worry about the economic environment. They're looking at operations around the world to maximise growth and streamline processes. Local disruptions are having a big impact on global supply chains. And talent is a key concern. What else did they tell us?

T&L CEOs see hard times ahead. Just 13% expect the global economy to improve in the next 12 months. That's weighing down transport markets and affecting CEOs' confidence levels. So they're focusing on doing what they do best and building their share of existing markets―38% see that as their main route to growth.
 
38% of T&L CEOs are looking to existing markets for growth

They're cutting costs, improving efficiency. 78% of T&L CEOs launched cost-cutting initiatives last year, and 69% plan to trim the fat in the next 12 months. Many are improving efficiency. Two-thirds say they plan to invest more in innovating to achieve process improvements. Fuel efficiency is one target―63% of T&L CEOs worry about energy costs.
 
Adapting to changing business conditions

Interest in M&A is growing. Just 14% of T&L CEOs say they've completed a cross-border transaction in the past 12 months. But 28% plan to initiate a deal in the coming 12 months. We expect to see some significant shipping and infrastructure deals. Strategic alliances and joint ventures were more popular and working well―only 6% of T&L CEOs have ended one this year.

Local disruptions can have a global impact. 42% of T&L CEOs say their company was directly affected by the earthquake and nuclear crisis in Japan in 2011. With man-made disruptions also increasing, improving risk resiliency should be high on the agenda.
 
Energy costs are a big worry

Talent management is vital. Fewer T&L CEOs plan to add jobs this year, but talent constraints are still hurting. 40% thinks it's getting harder to hire in the industry. Shortages hurt results―21% of T&L CEOs say they prevented the company from reaching growth forecasts. And just 27% are very confident of having the talent they need to execute their company's strategy over the next three years.


Quotes

Rüdiger Grube

Dr Rüdiger Grube

Chairman and CEO, Deutsche Bahn AG    View profile

The effects of the US economic slowdown and the European sovereign debt crisis have rippled through the real economy – including the transport markets.

Rüdiger Grube

Dr Rüdiger Grube

Chairman and CEO, Deutsche Bahn AG    View profile

The demographic changes that we see occurring in many of the regions where we operate –shrinking populations, an aging workforce, and diversifying demographics – compound the challenges we face and intensify the war for talent.

Rüdiger Grube

Dr Rüdiger Grube

Chairman and CEO, Deutsche Bahn AG    View profile

We have intensified our programmes focussed on the recruitment, development, and retention of younger workers --- with an eye toward positioning ourselves as a highly attractive employer.

Rüdiger Grube

Dr Rüdiger Grube

Chairman and CEO, Deutsche Bahn AG    View profile

To systematically prepare our staff members and managers in dealing with current and future demands, we’ve introduced a standardised set of employee and management skills. For example, vital employee skills include a customer orientation, the willingness to change, good communication skills and the willingness to cooperate.

Hussein Hachem

Hussein Hachem

CEO – Middle East And Africa, Aramex    View profile

People want a good salary but it’s not about the money at the end of the day. They want to work for a company that has high corporate values, high ethical values and a high contribution in society. They want to work for a brand that they can add value to and be part of its success story.

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CEO survey: Explore the findings
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Embracing volatility

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Local approaches to global growth

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Risk resilience

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Facing the talent challenge

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Innovating on multiple fronts

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