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DG&A's Transportation Consulting Blog

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As 2022 comes to a close, there is much concern that world economies may experience a recession in 2023. There are a host of worrisome economic indicators that appear to be trending in this direction.

Inflationary Forces

The large government Covid relief payments created inflationary effects. The shift from on-site to stay-at-home workers triggered a transition to buying goods versus services. It also produced supply chain disruptions and more inflationary pressure. The war in Ukraine and Russia’s use of food and energy as economic levers, have precipitated spikes in the cost of these essential goods. Consumers have been feeling the effects for months of high prices for food and energy. Food banks are receiving record numbers of visits, a clear sign that many consumers are having trouble making ends meet.

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Freight Rates, Inflation, and the Economy

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 The White House and the media are touting the tentative agreement reached last night between the major U.S. rails and their unions to avert a strike. The agreement, if ratified by union members, would help avert a work stoppage that would have crippled supply chains and passenger trains and would have restricted the movement of essential goods to distribution centers and consumers. A rail strike could severely impact a range of industries, from the autos to agriculture to retail, as about 40% of goods that are shipped long distance in the U.S. rely on the nation's rail system. It could also cause disruptions to the energy industry in ways that may lead consumers to pay more for gasoline, natural gas, and electricity. A shortage of essential goods would precipitate price increases, inflation, and significant economic damage if it persisted for an extended period.

Averting a rail strike comes at a price, a 24% compound wage increase over its five-year term, as well as an annual lump-sum bonus payment totaling $5,000. One should not overlook the fact that these wages increases will create more inflationary pressure. Rail freight transportation remains an important part of North American economies. These wage increases will trigger increases in the cost of rail freight transportation. This is not to say that rail workers are not deserving of an increase in wages and benefits. The point is that these increases contribute to the challenges we are all experiencing with inflation and will make it more difficult for central banks to bring down inflation.

The Wall Street Journal reported that “the U.S. consumer-price index rose 8.3% in August from the same month a year ago, down from 8.5% in July and 9.1% in June, the Labor Department said Tuesday. The slower rate of increase reflected falling gasoline prices last month.

Core prices, which exclude volatile food and energy items and are seen as a better gauge of underlying price pressures, rose a notable 0.6% in August from July—double their 0.3% increase in July from June. The core CPI rose 6.3% in August from a year earlier, up from 5.9% in both June and July, reflecting higher prices for housing, medical care and college tuition.

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In my last blog post, I highlighted the need for a compelling value proposition as a starting point in launching a company’s sales effort. Whether you are selling a car, real estate, clothes, or freight transportation services, having a strong and differentiated value proposition helps get the attention of prospective buyers and creates a sales opportunity for you and your company. If you don’t have a solid value proposition, I urge you to make this a priority before you move forward. In this blog I will discuss four other key elements of the sales process.

P for Passion

I have written about the importance of having a passion for your company and its products or services in the past. If you don’t have a strong belief in the company you work for, this inhibits sales success. In fact, if you don’t have this conviction, and you cannot fix this situation, you should probably be thinking of working for another organization. Passion gives you the energy and motivation you need to drive your sales effort.

T for Trust

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I have had multiple sales careers during my many years in the business world. As a teenager, I sold men’s clothing for a high-end retail chain in Montreal. For many years I sold or managed sales teams that offered freight transportation services to shippers across North America. My most challenging sales assignment has taken place over the past 18 years as I developed my consulting practice. When I started, I had a to build a business from scratch. We had no customers, just some ideas on the services we wished to market. During this same period, I also helped successfully grow an annual freight transportation conference and sustained this business over an 11-year period.

I learned many valuable sales lessons from these various sales assignments. I will share a few tips in this blog, and the subsequent blogs in this series.

Value Proposition

One of the starting points for success in sales comes from an understanding of customers’ needs. What is motivating the potential purchaser of a suit or sport coat and slacks? What type of freight transportation service does the customer need to satisfy the requirements of their end users? Why is a prospective attendee contemplating going to a business conference? When I received a call from a President or VP, Finance of a company seeking consulting services, what is the primary problem that they were seeking to address?

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Canada has just gone through its own version of the insurrection that took place in Washington, DC. on January 6, 2021. Unlike the one-day invasion of the U.S. Capitol building, the Canadian protests were extended over 23 days, in multiple locations, and may not be over. The Protest label is truly not correct; the more appropriate label is an Occupation. Here are a few personal reflections.

Why did these protests take place?

The U.S. protest was intended to overturn the November 2020 election. Canada’s protests were initially directed at the country’s vaccine policies, specifically the vaccine and masking mandates.

The motivation of the so-called “Freedom Convoy” was a piece of federal regulation that requires unvaccinated Canadian truckers to isolate for fourteen days upon returning to Canada from the United States. Unvaccinated foreign truckers, however, are not allowed into the country. Despite 90 percent of Canadian truckers being vaccinated, the support of the Teamsters union and the Canadian Trucking Alliance, this policy energized a vocal minority on the Right.

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