Newton, Mass. — The warehouse logistics industry is cautiously optimistic about business this year, according to a recently released State of the Warehouse Logistics Industry report.

Results of the report were presented during the International Warehouse Logistics Association convention in San Francisco this March. IWLA members are largely third-party logistics providers serving manufacturers, distributors and other "significant players" in the supply chain, according to IWLA.

IWLA surveyed 550 members in the U.S. and Canada.

Results show that 75 percent of respondents are concerned about their customers' financial status. Despite that, many companies are forecasting increased business during 2002. That's partly because of continuing trends in industrial and commercial markets, such as increased outsourcing of logistics services by manufacturers under pressure to trim operating costs. Fifty-seven percent of IWLA members foresee new business resulting from that practice.

Offering value-added services to customers is also a growing trend. Ninety-eight percent of respondents said they provide value-added services "to a great extent." Such services include supply chain fulfillment, re-packaging and labeling, and selective final manufacturing or assembly.

The survey also showed that rising costs are impacting IWLA members' operations. Rising insurance and employee costs, and material handling equipment and technology purchases, are among the top cost-drivers.