How business and logistics impact the economy

In the 60s, logistics became an essential part of businesses. They depended on them for transportation of goods from one location to another safely.

Nowadays, logistics is a business concept. Most factories depend on these third-party companies to transport products to wholesalers and retailers. Therefore, the industry has a massive impact on the economy.

If you’d like to know some of the impacts that logistics and other companies such as Deliveree Indonesia have on the economy, read till the end.

Source of employment

logistics business shipThe industry is very influential in many parts of the world. And since most businesses depend on these companies for product deliveries, the industry is a source of employment for many truck drivers, warehouse managers, and many other workers.

Studies show that these companies employ millions of workers who earn their full-time living out of this. And before you get the job, there are specific qualifications that you need to pass.

Source of revenue

Other than a source of employment, companies can be a source of revenue, not only for them but also for the government. The authorities will expect them to pay taxes in one way or another.

Due to the number of goods that these firms transport, studies show that the industry is a billion-dollar industry. The trend is set to continue this way as more businesses continue depending on them for safe and reliable transportation.

They affect inflation

When a product is in demand, retailers increase the prices to cater to supply. The sudden increase in prices can be frustrating. However, did you know that logistic companies and other businesses might have a hand in it?

They are the ones in charge of transporting raw materials and finished products to stores and wholesalers. A small delay will cause a low supply of a particular product, increases demand, and inflation comes into play.

Growth of towns

While the government is the body in charge of this, business and logistic firms have a hand in this. For instance, if you look for a particular product in that town and can’t find it, it goes down to whether the business wants to sell their product there.

And if they can, is the infrastructure fit for a logistics company to deliver on time? When individual businesses go into particular towns, the government knows the impact of that business being there and will do everything they can to ensure that that town grows.

Influence other industries

Believe it or not, businesses and logistic companies can influence other industries. One product, and how easy it can get to a particular area, can influence innovation and other industries.

For instance, a logistic firm directly influences the agriculture industry since they transport food and other materials.


As you can see, businesses and logistics influence the economy directly and indirectly. Therefore, governments worldwide need to see the opportunities that business and logistics bring to their economies and the revenue they can collect from them. And note that the impacts are both negative and positive.

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