LOUISVILLE, Ky. (May 31, 2012) — The Logistics and Distribution Institute Index (LoDI) for June 2012 is 59.
The index, named after the University of Louisville-based Logistics and Distribution Institute, was created to help area businesses monitor their market’s well-being and guide them in future investment decisions.
April’s index was 58, while May’s index climbed to 63.
The LoDI Index is expected to broaden to a national scope, said Sunderesh Heragu, the institute director, an industrial engineering professor and the Mary Lee and George F. Duthie endowed chair in engineering logistics at the J.B. Speed School of Engineering.
The index uses data primarily from the four transportation modes (road, runway, rail and river) that are important to the region’s logistics and distribution economy to calculate a number value between 1 and 100. Lower values represent a decline and higher values an increase in regional logistics and distribution activity. Organizations that are part of Greater Louisville Inc.’s Advanced Manufacturing and Logistics Network have provided data for the model.
A value greater than 50 is good, Heragu said.
Index users can use monthly data to gauge short-term potential risk and reward, he said, and as the index ages, they will be able to analyze trends. Heragu said that he hopes the LoDi Index will become a tool similar to the Consumer Confidence Index used in the marketplace.
Primary users are expected to be logistics-related businesses and warehouses around Louisville and southern Indiana. Other potential users could be government, chambers of commerce and individuals, he said. The institute plans to issue the index on the last Thursday of each month and to offer the information in advance to subscribers.
To subscribe to the LoDI index, contact Heragu at 1-502-852-2741 or [email protected]