In this issue of Keyword, an in-depth look at transportation and logistics (T&L) from the multifaceted lens of our distinguished alumni.

Bob Moritz

I continue to be impressed by you, our alumni, and the new paths you are forging.

Many industry analysts would tell you that 2010 was a year defined by hard choices but also one distinguished by financial turnaround. Like most industries, this was the case with transportation and logistics (T&L). Because the companies involved in transportation and logistics move and deliver the components necessary to assemble today’s manufactured goods, as well as the final products readily available to us at our favorite stores, forecasts for the T&L industry can be used to develop macro trends across the economy. As we move into the heart of 2011, once again this industry is reflecting the health of the global marketplace.

Our outlook on the economy is defined not only by the alumni insights you’ll find in this issue of Keyword, but also through our Global CEO Survey. In our most recent survey, our 14th, we surveyed 1,201 business leaders in 69 countries and found that their collective responses reveal a surprising level of confidence in both near-term and long-term revenue growth for their companies. We believe much of this confidence is being driven by growth prospects in emerging economies, such as China, India and Brazil. Chief executives were nearly as confident of growth this coming year as they were in the boom years before the crisis.

The data collected and presented in this year’s Global CEO Survey also allowed us to discern certain trends specific to T&L. Strategies are changing, and many CEOs in T&L define this change as “fundamental” as they respond to customer demands and shifts in their industry. Emerging markets continue to play an important role, and China heads the list. Protectionism is less of a worry with trade barriers easing, and shifts in global trade are leading to the development of new transport corridors. Nearly everyone we spoke with agrees that innovation will help make their business more competitive, and many are making environmentally friendly products and services an important part of their innovation policies. There are concerns as well, such as inadequate infrastructure that could slow down growth.

According to many CEOs we interviewed, government and business need to work together more cooperatively to solve big issues, such as infrastructure. There are also recruiting concerns—the challenge to attract and retain talented people in a time when there is a limited supply of skilled candidates is real.

In this issue of Keyword, we build on the results of our Global CEO Survey with an in-depth look at T&L from the multifaceted lens of our distinguished alumni. Two airline executives share their thoughts on the future of an industry that is once again flying high. And in a time when mergers continue to shape the airline industry, we sit down for an interesting Q&A with the chief auditor of the world’s newest and biggest airline. Rail, road, air cargo and maritime executives come together to tell us about the steps they are taking to move their companies in the right direction. In our other Keyword features, we share a thought leadership abstract that focuses on the important role emerging markets play today and will continue to play into the future, and we ask one former PwC employee what made him change course and career, get his wings, and take to the skies.

As always, I continue to be impressed by you, our alumni, and the new paths you are forging. I hope you enjoy this issue of Keyword, and I look forward to sharing more success stories from our extended PwC family.

Regards,



Chairman and Senior Partner, PwC US firm