LMI for N American logistics managers in Feb 62.8, up from Jan's 62

The LMI is a joint survey of North American logistics managers conducted by researchers from Arizona State University, Colorado State University, University of Nevada, Reno, Florida Atlantic University and Rutgers University, supported by the Council of Supply Chain Management Professionals (CSCMP).

The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs; warehousing capacity, utilisation and prices; and transportation capacity, utilisation and prices.

The LMI is calculated using a diffusion index, in which any reading above 50 indicates that logistics is expanding; a reading below 50 is indicative of a shrinking logistics industry.

The positive movement in the overall index was driven by the continuing expansion of inventory levels, which were up by 6.3 points to 64.8 in February—the fastest rate of expansion for this metric since June 2022.

So far 2025 stands in stark contrast to the more just-in-time inventory patterns of 2024 when average inventory level growth was a lean 52.7. It is likely that this increase has been at least partially driven by continually shifting trade policies, a press release from LMI noted.

The spike in inventories has led to increased rates of expansion for inventory costs (plus 7.1 points to 77.3) and warehousing prices (plus 4 points to 77).

Both of these are reading in at their fastest rate of expansion in several years as supply chains strain to shoulder both the volume and velocity of inventory that poured across US borders in January and early February as firms attempted to avoid costs associated with potential tariffs.

Further evidence that supply chains are straining is warehousing capacity dipping by 1.2 points to 50.5, which is on the verge of contraction.

Interestingly, transportation metrics slowed in February, with transportation capacity increasing by 2.5 points to 55.1, while the expansion of transportation utilisation (minus 2.3 points to 57.8) and transportation prices (minus 4.9 points to 65.5) decreased.

Fibre2Fashion News Desk (DS)