Daniel Covarrubias

LO·GIS·TECHS

The Exponential Technologies Transforming How Goods Are Transported, Handled, and Cleared Through Customs

Daniel Covarrubias, Ph.D. — Director, Texas Center for Border Economic & Enterprise Development, TAMIU

Originally published February 2023 (Wilson Quarterly) | Updated February 2026

0
Technology Categories
Tracked by MHI/Deloitte
0%
AI Adoption
Projected by 2029
$0T+
Annual Trade
Through US land ports
0%
of Leaders
Increasing tech investment

Source: MHI & Deloitte 2025 Annual Industry Report

Why “Logistechs”?

The term was coined to capture a phenomenon that had no name: the simultaneous convergence of multiple exponential technologies upon the logistics industry. Individual innovations had been studied in isolation, but the compound effect — when AI meets IoT meets blockchain meets autonomous systems — demanded a unifying concept.

“Logistechs represent the impact that exponential technologies have on logistics. We classify them as the exponential technologies that support the transport of goods, that improve their handling, and that expedite their customs clearances.”

— Daniel Covarrubias, Ph.D.

Transport

  • Autonomous vehicles
  • Drones
  • Cargo blimps
  • IoT sensors
  • Route optimization

Handling

  • Robotics
  • Warehouse automation
  • 3D/4D printing
  • Digital twins
  • AR/VR

Clearance

  • AI risk assessment
  • Blockchain docs
  • Predictive analytics
  • Auto compliance

This convergence is a hallmark of the Fourth Industrial Revolution. When multiple exponential technologies grow simultaneously, their growth curves intertwine, creating acceleration that compounds rather than merely adds. Logistechs captures this convergence as it applies to the movement, handling, and clearance of goods across borders.

“The next stage of North American competitiveness won’t come from more lanes; it will come from better data, smarter coordination, and applied A.I.”

— Daniel Covarrubias, Cali-Baja Business Summit 2025
As published in The Wilson Quarterly, February 2023

The Logistechs Living Lab

The first logistics digitalization living lab focused on cross-border flows, housed at TAMIU’s Texas Center for Border Economic & Enterprise Development. It brings together technology providers, logistics firms, government agencies, and researchers to pilot real solutions in a controlled yet operational environment.

1

Problem Identification

2

Collective Intelligence

3

Pilot Testing

4

Solutions

Participant Roles

Active Pilot Programs

Unified Trailer Interchange Application

Supply chain security, traceability, and predictive maintenance through IoT-enabled trailer tracking.

IoT Sensor Comparison for Traceability

Comparative analysis of sensor technologies for real-time cargo traceability across border crossings.

Living Lab Sessions bring startup companies to present AI solutions, digital twins, and IoT applications to the logistics community in accessible formats — bridging the gap between cutting-edge technology and practical implementation.

“By participating in these sessions, SMEs can gain valuable insights, network with peers, and discover practical ways to implement Logistechs in their operations.”

— Rio Grande Guardian, July 2024
Interested in participating? Contact the Texas Center

The Framework

Logistechs categorizes exponential technologies by their primary function in the logistics ecosystem, each delivering distinct operational benefits.

LOGISTECHSTRANSPORTEfficiencyHANDLINGCost ReductionCUSTOMSSpeed

Click a category to explore its technologies

Technologies & Impacts

Each Logistech delivers measurable improvements across the supply chain, from operational efficiency to compliance and visibility.

Select Technology

Explore Technology Impacts

Select a technology to see its impacts and applications

Complete Impact Matrix

Internet of Things
efficiencyspeedthroughputquality
Robotics and Automation
productivityefficiencyorder fulfillment rate & delivery
Predictive Analytics
traceabilityvisibilityforecasting
Artificial Intelligence
flexibilityreliabilityspeedreduce in product losses
Driverless Vehicles and Drones
accuracyefficienciesreducing costsimproving service quality
Blockchain
real time visibilitytracking & compliance

The Adoption Surge

Supply chain technology adoption is accelerating exponentially. AI adoption alone is projected to nearly triple — from 28% today to 82% by 2029 — representing the fastest growth trajectory among logistics technologies.

In Use Today
Within 5 Years
% of organizations
28% → 82%
AI adoption projected to nearly triple by 2029

Source: MHI & Deloitte 2025 Annual Industry Report (n=700+ supply chain leaders)

Disruptive Potential

Not all technologies carry equal transformative weight. Robotics & automation leads with 63% of leaders citing disruptive potential, followed by AI at 52%.

Category:
Transport
Handling
Customs/Clearance
63%
Robotics & Automation
handling
52%
Artificial Intelligence
customs
50%
Autonomous Vehicles
transport

Source: MHI & Deloitte 2025 Annual Industry Report

AI in Action

AI is permeating every layer of the logistics stack. From inventory optimization (35%) to transportation routing (27%), artificial intelligence represents the connective tissue enabling next-generation supply chain orchestration.

Current or Planned AI Use (Within 2 Years)

Inventory Management
Leading AI application area
35%
Demand Forecasting
Near-tie for top adoption
34%
Transportation & Logistics
Routing & optimization
27%
Connective Intelligence
AI links inventory, forecasting, and transport into unified systems

Source: MHI & Deloitte 2025 Annual Industry Report

The Talent Imperative

The Logistechs transformation isn’t purely technological — it’s fundamentally human. 63% of organizations are upskilling existing employees, recognizing that exponential technologies require exponential talent development.

Actions Organizations Are Taking to Address Skills Gaps

63%
Upskilling Priority
Organizations investing in current employee development

Source: MHI & Deloitte 2025 Annual Industry Report

Barriers to Entry

Budget constraints (26%) and knowledge gaps (22%) remain the primary barriers to AI adoption — suggesting that education and ROI demonstration, not technological limitations, are the real obstacles to Logistechs maturity.

Top Barriers to AI Adoption

Lack of Budget
26%
Lack of Understanding
22%
No Clear Business Case
19%
Economic Uncertainty
14%
Inadequate Talent
8%
Key Insight
48% of barriers are knowledge-related, not technical

Source: MHI & Deloitte 2025 Annual Industry Report

The Readiness Gap

While organizations recognize the critical importance of technology adoption, a significant gap exists between recognition and actual readiness.

22%

Organization Readiness

My organization is very ready to use technology to improve work outcomes and team performance.

93%

Importance Recognition

Using technology to improve work outcomes and team performance is very important or important to my organization's success.

71%
Readiness Gap

The gap between recognizing technology’s importance and being ready to implement it represents a critical opportunity for organizations to develop their logistics technology capabilities.

Source: MHI & Deloitte 2022, PwC Digital Trends in Supply Chain Survey 2022

The Convergence Effect — Why Exponential Matters

The McKinsey Global Institute finds that transportation and warehousing has the 3rd highest automation potential of any sector. But the real story isn’t any single technology — it’s convergence.

Top Companies by Market Cap — 1979

1
ExxonMobil
Oil & Gas
2
IBM
Computing
3
AT&T
Telecom

Top Companies by Market Cap — 2024

1
Microsoft
Technology
$3T
2
Apple
Technology
$3T
3
Google
Technology
$1.9T
74%
Increase in logistics technology investment post-pandemic
$26M → $13M
Average supply chain spending normalized from 2023 peak to pre-pandemic levels (Deloitte)

“This convergence is why Logistechs matter. Individual technologies improve operations. But when AI meets IoT meets blockchain meets autonomous systems, the effect isn’t additive — it’s multiplicative.”

Logistechs for SMEs — The Family Business Challenge

Established family-owned logistics SMEs face a unique “comfort trap”: traditional methods combined with consistent profitability create reluctance to change. Yet the Laredo corridor alone handles $330B+ in annual two-way trade — and SMEs are its backbone.

Efficiency & Cost Reduction

Automated processes, predictive analytics, and real-time tracking reduce operational overhead and eliminate manual bottlenecks.

Enhanced Customer Service

Unprecedented shipment visibility and automated updates give clients real-time confidence in their supply chain.

Competitive Positioning

Data-driven insights and tailored services allow SMEs to compete with larger firms on technology, not just price.

Strategic Adoption Path

1
Start Small
Pilot one pain point with a single technology solution
2
Invest in Training
Upskill employees to understand and champion the technology
3
Scale
Expand successful pilots across operations and integrate systems

Logistechs in the Wild

Speaking engagements, publications, and conferences where the Logistechs framework has been the featured topic.

DC

Daniel Covarrubias, Ph.D.

Director, Texas Center for Border
Economic & Enterprise Development

TAMIU A.R. Sanchez Jr. School of Business

Education

  • Ph.D. — Deusto Business School (Spain)
  • M.A. Political Science — TAMIU
  • MBA — UTSA
  • BBA — Monterrey Tec

Board Positions

  • TRB Standing Committee on International Trade & Transportation (National Academies)
  • CBP COAC Cross-Border Recognition Working Group
  • US-Mexico Foundation C26+ Smart Borders Working Group

Media

Wall Street Journal, Texas Standard, PBS

Explore the Logistechs Framework

Dive deeper into the research, get the book, or join the conversation on cross-border technology and trade innovation.

dcova@tamiu.edu| 956.326.2520

Texas Center for Border Economic & Enterprise DevelopmentTexas A&M International University