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I have certainly felt the need to define TAM and, as you say, to make sure it is large. In terms of "how big is it really", I think its ~$3.2 trillion of which ~$2.8 trillion is in execution, $300 billion is in infrastructure, and $90 billion is in management (here I include 3PL gross margin to avoid double counting them in execution). Over 50% of execution is in road transport: ~$1.5 trillion per year.

Where in the world am I getting these figures from? Mostly from this excellent report by BCG which sizes and breaks into subcatageories the field of "logistics". https://www.bcg.com/publications/2016/corporate-development-finance-value-creation-strategy-transportation-and-logistics-in-a-changing-world

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Sep 4, 2020Liked by Eric Johnson

Right on Eric! So descriptive of the complexity of the industry. Thanks for the chuckle too - haven't had a good laugh in a while, never thought it would be about our beloved industry :)

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