What Our Clients Say
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Couriers and Local Delivery Services are a very critical part of our economy today. Perhaps you’ve never wondered where that new tablet you ordered came from or how it got to you. You’ve answered the door, signed your name and taken the package without a second thought or perhaps even a ‘thank you’ to the courier who gave it to you. If not for them, obtaining goods, materials and documents would be even more challenging.
It isn’t merely the locals who take advantage of the courier services but also many businesses rely heavily on them for the smooth and profitable running of their establishments. Goods that used to take several weeks to ship and deliver now take 1 – 3 days to receive. Few businesses now a days cannot cope without knowing they will receive their demands for product on time. The economy would suffer terribly without this service. Regardless of where you are in the country goods can be transported to you at a record pace and there are a few different popular delivery services that have been well established enough to provide such services.
First off, the industry itself is divided into two segments which include couriers and local messengers. The first segment is the larger of the two being primarily dominated by companies like Purolator, FedEx and UPS. All these companies deliver goods and products all over the ground and some deliver by air as well. Healthy competition between these different couriers not only helps increase quality and professionalism, but also ensures very reasonable rates for their customers. This segment of the industry is responsible for 82.3% of the revenue. The second segment of the industry is primarily comprised of local messengers, non-employers and other small companies delivering food and documents.
Over the past five years, the high demands of consumers have led to a dramatic increase of business activity. IBIS World, one of the most trusted industry sources of industry and market research, expected the revenue to increase at a rate of 1.6 % to 9.7 billion during the five years up to 2014 including 1.4 % in 2014 itself.
However, though the high demand for courier services to deliver to online businesses has industry revenue increasing dramatically, the effect of digitalized documents and email had greatly reduced the need for local messengers who deliver contracts invoices, magazines and other physical items. As a result these local deliveries are expected to have a very difficult time in the coming years.
This rise it is expected to increase within the next five years as well and competition within the courier market will continue to grow in intensity. Couriers like UPS will also be looking to expand their market into the healthcare sector.
So though you may see a decline in the need for door to door delivery in the future, you will not see a decline in the online world. So enjoy your tablet and remember to thank the couriers for making your life easier.
Gene SmithOperations ManagerLoadWatcher.com allows our entire team the ability to locate any carrier from one dashboard.
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