Home Economy How is express delivery impacting the global economy?
Early predictions expect the express delivery market to grow by 9% annually – contributing even further to economy and employment
Postal companies have had to seriously rethink using traditional delivery services now that express delivery has become so popular. Consumers have adapted to the digital shopping experience and now demand much more from the companies they do business with.
With same day and even one-hour deliveries on the rise, what impact is express delivery having on the global economy?
Its contribution to the economy and employment
According to a report back in 2005, express delivery was already significantly contributing to the economy. In 2003, its direct contribution on the world GDP was said to be a huge $64 billion. That was before same day delivery services became the norm, so you can imagine just how much the sector is worth now.
According to more recent statistics in 2015, the industry was contributing $140 billion which is a massive increase. However, that’s nothing compared to the $343 billion contribution expected by 2020!
It’s also directly boosting employment and was expected to be supporting over 4.5 million jobs by 2013.
A sector that keeps on growing
It’s never been a better time to be part of the express delivery sector. Records show that despite even the Great Recession, the industry’s volume grew by an impressive 7% over five years. Thanks to developments in the sector, this figure is only likely to increase over the next few years. In fact, early predictions expect the market to grow by 9% each year.
Drone delivery has become the latest exciting development in express deliveries. Amazon has been trialling same day drone delivery, with a goal to deliver packages within just 30 minutes. Once this technology hits the mainstream, it’s going to provide a further substantial boost the global economy.
The importance of competitive supply chains and delivery services
Express delivery demand is forcing companies to focus on competitive pricing. While express delivery does cost more for the consumer, UK companies are making it difficult for their competitors by offering next day delivery services from as little as £3.99. This means supply chains and delivery services are being forced to offer competitive prices.
Companies such as TNT UK lead the way with affordable, low delivery costs; particularly to long-haul destinations.
Overall, express delivery isn’t just benefitting the consumer, it’s contributing to the global economy in a massive way. As new delivery technology is introduced, it’s only further going to add to the economic contributions.