Driving Growth and Employment Through Logistics - Journal Article

Author Yossi Sheffi makes the argument that Logistics Clusters create jobs that are difficult to move offshore, and therefore lead to economic growth in multiple sectors.

Logistics clusters are local networks of businesses that provide a wide array of logistics services, including transportation carriers, warehousing companies, freight forwarders and third-party logistics service providers. They also include the distribution operations of retailers, manufacturers (for both new products and aftermarket parts) and distributors. These clusters attract companies for whom logistics is a critical element of their service offering or a large part of their overall costs. In recent years, logistics clusters have received support and funding from regional and national governments all across the world seeking to promote economic growth.

Logistics clusters have the ability to address several challenges many economies face, including the pressing need for good jobs, higher levels of foreign trade and infrastructure renewal. In addition to helping companies navigate global supply networks, logistics clusters can lead the way in sustainable transportation and energy-efficient storage and transportation operations. The author contends they are contributing to the efficiency of global supply chains and, in the process, increasing international trade and global trade flows.