Released on: February 6, 2008, 9:11 am

Press Release Author: Analytiqa

Industry: Transportation & Logistics

Press Release Summary: Charting growth trends in contract logistics markets to 2010
- In its latest published research, Central and Eastern European Logistics 2008,
Analytiqa forecasts impressive growth for logistics expenditure.


Press Release Body: Analytiqa - Wednesday, 06 February 2008: Analytiqa’s latest
research, “Central and Eastern European Logistics 2008” reveals that spending on
contract logistics services across six key markets is set to increase by almost €7.3
billion over the next three years as the size of outsourced contract logistics
market grows by 89%.

Whilst it is all to easy to focus on the negative aspects of developing an immature
logistics industry across Central and Eastern Europe, such as the poor quality of
the regions’ transport infrastructure, or a chronic shortage of adequately trained
logistics employees, the region nonetheless presents an enormous opportunity for the
sustained growth of contract logistics activity.

Although growing from a relatively small base makes it somewhat easier to reach
‘headline’ making growth, the figures are nonetheless impressive. Between 2005 and
2007, the largest individual market for logistics in the region, Poland, grew by
33%. Looking ahead, Analytiqa forecasts that smaller, less developed logistics
markets such as Bulgaria and Romania are set for explosive growth rates. Logistics
markets in Bulgaria are set for 82% growth by 2010, as Romanian markets grow by more
than 22% per year... with 3PLs set to capture a significant share of this growth.

A growing market presents its own challenges

Analytiqa’s report also focuses upon the challenges faced by logistics professionals
in the Central and Eastern European region, identifying the obstacles and hurdles
that will have to be overcome by 3PLs if they are to take a share of the massive
growth that is set to be realised. Not least of these are problems associated with
transport and warehouse infrastructure, technology and supply chain visibility, or
the lack of established professional qualifications available for logistics people
in what are very immature markets.

Another key area for concern is the labour drain, as many local logistics
professionals from these countries continue to migrate to the West, creating a
further set of dynamics surrounding the value of, and return received, of training,
together with the rising incomes and costs of logistics professionals, which is
slowly narrowing the differential between Central and Eastern European markets and
more developed markets in the West.

As the likes of Poland, the Czech Republic and Hungary are no longer the extreme low
cost production centres that they once were, significant cost differentials
nonetheless remain. As such costs rise in time, Analytiqa expects manufacturers to
find even cheaper locations in Bulgaria and Romania, or even in the Ukraine and
Russia, where they would also be able to target the expanding domestic markets in
these countries. Logistics dynamics will also develop in tandem as regions of the
Czech Republic, Hungary and even Bulgaria become logistics ‘hubs’ and the
cross-docking stations of the future, enlarged, Central and Eastern European region.

Multinational 3PLs: a cautious approach

Within the Central and Eastern European region itself, a common feature of service
provider activity has seen road transport companies expanding their service
portfolio to offer more traditional 3PL operations. A number of the larger
established transport companies, trading in freight forwarding and groupage
operations, are extending their range of services to include contract logistics.

Whilst many Western European 3PLs follow their customers into Central and Eastern
European markets, domestic service providers are much more likely and willing to
take risks in the development of speculative warehouse facilities and will seek to
benefit from prime locations in forthcoming years.

That said, it is increasingly likely that it will be the local subsidiaries of
Western-based 3PLs that bring improvements in technology with them into Central and
Eastern European markets which will ‘raise the bar’ in terms of acceptable standards
of practice.

Report Focus

Analytiqa’s report, Central and Eastern European Logistics 2008 reflects the results
of an extensive primary research process which saw Analytiqa’s Analysts contact
logistics professionals across Central and Eastern Europe to conduct in-depth
interviews to assess market sizes, performance and the operational issues facing the
region. The report provides 301 pages of unique insight, including 139 tables and 71
charts, all of which can be downloaded into your own reports and presentations
courtesy of Analytiqa Interactive. The report identifies which, and why, markets
will outsource at different rates and includes:

 Country Perspectives
On a country by country basis understand the key issues and trends impacting upon
supply chain activity:
Demographics
Macroeconomic insight
Key trading partners
Key industry sectors: Automotive; FMCG; Healthcare / Pharma; Retail; Technology
Transport Infrastructure
Warehouse and property trends – key locations, hubs, market characteristics and demand

 Market Data
Country specific freight movements, transport and distribution data
Market dynamics, Targeting new business, Threats to growth and Forecasts for growth
Current Logistics Market Size and Market Growth
Current Logistics Outsourcing
Current Contract Logistics Market Size and Market Growth
Forecast Logistics Market Size and Market Growth
Forecast Logistics Outsourcing
Forecast Contract Logistics Market Size and Market Growth


 Company Profiles
56 profiles of leading 3PLs, across 84 pages, of insight on a country by country basis:
Contact Details
Key Personnel
Company Overview
Operations and Services: (where available): Warehouses, locations, employees,
turnover and fleet sizes; Key Clients; Key Services; Key Sectors

...Not forgetting, reviews of latest manufacturing, retail and supply activity,
investment projects, relevant government activity and country specific charts and
maps.


Mark O’Bornick, Research Director, Analytiqa commented:

“The next few years promise to be exciting and dynamic time for the Central and
Eastern European logistics industry. The improving economic stability of the region
is reflected in the unprecedented levels of foreign investment into the region which
is driving growth in manufacturing activity.

Logistics providers face significant challenges if they are to succeed in the region
and tap into the huge potential that Eastern Europe offers. Having researched the
market with the help of Europe’s leading 3PLs, they are acutely aware of the
opportunities, but until now, have not been able to quantify the size of the prize.

Demand for logistics will be sustained by expanding markets, with contract logistics
services in particular, being driven by both ends of the supply chain. Along with
the rapid growth in manufacturing activity, higher disposable incomes and increasing
affluent consumers are demanding greater quantity and more variety of products, from
food and drinks, through to pharmaceuticals, consumer electronics, telecoms and even
cars and motorcycles.”



Notes for Editors:
Please quote ‘Analytiqa - www.analytiqa.com’ where possible.

For additional illustrations, charts and data tables to support your requirements,
please contact Analytiqa. To discuss the issues raised in this article, or any of
the products and services offered by Analytiqa please call Robert Sharp on +44 (0)
1707 37 22 11 or Email: info@analytiqa.com

About Analytiqa:
Analytiqa is a leading business information company providing published reports and
databases, custom research and consulting for multi-national clients across a number
of industry sectors from Logistics and Distribution through to FMCG and Professional
Services.

As a business information provider, Analytiqa is positioned between the logistics
providers and their customers to provide the supply chain sector with commercially
relevant business intelligence. Analytiqa works closely with logistics providers to
source new customers and to better help them understand their existing clients.

Similarly, retailers and manufacturers use Analytiqa’s supply chain profiles,
databases and research services to analyse the operational and service capabilities
of service providers and to benchmark the services they receive against those of
their own competitors.

Analytiqa works closely with its clients, building partner relationships based on
trust and the delivery of high quality and commercially relevant research.
Analytiqa’s services correspond to client’s demanding requirements, assisting with
their business development and profitability objectives.

To better understand how to maximise your return on business information visit:
www.analytiqa-interactive.com


Web Site: http://www.analytiqa.com

Contact Details: Analytiqa
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Tel: 44 (0)1707 37 22 11
www.analytiqa.com