Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in US Auto Sales

The economic forecast for this year and for the balance of the decade is rather glum.  Many economists have projected a two percent growth in GDP will become the norm for the next several years.  This scenario is supported by the fact that 24 million Americans are out of work and millions more are underemployed or have given up looking for a job, corporations are reluctant to invest in their businesses until there is a more visible sign that a sustainable recovery is under way and the US government seems incapable of reaching far-ranging agreements on the financial management of the country.  Real gross domestic product -- the output of goods and services produced by labour and property located in the United States -- decreased at an annual rate of 0.1 percent in the fourth quarter of 2012, certainly not a number that would instill confidence that America is turning the corner. Looking at the past several years, it is easy to support the thesis that we should expect to see more of the same in the future.

But America doesn’t seem to be buying into the low growth scenario.  Here is why.

  • The stock market, a leading indicator of economic activity, has almost doubled since March 2009.  Investors poured $11 billion into U.S. equities in the first two weeks of 2013, the biggest gain since 2000.  The market is telling us that there are better days ahead.
  • Over the next 5 to 7 years, America is expected to achieve energy independence and will no longer be dependent on foreign energy sources.
  • A strong housing market gained momentum in November, 2012 and is expected to continue through 2013, especially with low mortgage rates, which will keep affordability high, according to the BBVA Compass. The Housing Market Index rose to 46 compared to 41 October, which is the highest level since 2006. The jump is a result of homebuilder’s confidence in the housing market.  New home sales and construction are expected to continue on a strong trend throughout the remainder of the year.
  • A healthier economy and more model introductions should push U.S. auto sales above the 15 million mark this year, predicts the Polk research firm.  Auto sales should continue to lead the country's economic recovery, rising nearly 7 per cent over 2012 to 15.3 million new vehicle registrations.
  • Another tech boom is under way with consumers migrating to tablets, smartphones and social media.  America is strong in these areas and Apple, a key player, has recently signaled that it plans to perform some if its manufacturing in the United States.
  • The United States may be in the early stages of recapturing a significant piece of the manufacturing production that fled to Asia over the previous couple of decades.  This is being driven by three factors.  Wage rates in the U.S. are depressed, while labour costs in China are rising.   The surge in oil prices is making it more expensive to move goods across oceans and the shale gas boom in the U.S. has dramatically lowered the cost of powering a plant.   U.S. productivity rates are among the best in the world.  According to the Boston Consulting Group, the U.S. economy is poised to add between 2.5 million and 5 million jobs over the next decade as result of increased factory production (700,000 to 1.3 million actual factory workers and the rest from supporting services).
  • U.S. employers added 157,000 jobs in January 2013.

Jeffrey Saut, the chief investment strategist at Raymond James, has suggested that if we look at the combined impact of all of these developments, we may be witnessing the early signs of a new long-term bull market.  Time will tell.  Low interest rates will not last forever.

One thing has been strangely missing during the first five weeks of 2013.  While President Obama has been pushing hard for immigration reform and new gun laws, two very important initiatives, he has said very little about any legislation aimed directly at economic growth.  Perhaps we will hear some of his plans during this week’s State of the Union report.  Certainly the President’s leadership in areas such as infrastructure development, education and training (retraining), debt reduction and a sound budget would go a long way towards powering America in this direction.  This was one of the key elements of his election campaign.  Now is the time for the President to step up and lead his country and the free world to a strong and sustained economic recovery.  Based on the trends above, he has the option of being a leader or a follower.  Let’s see which path he chooses to take.

Hits: 14375
0
0 Comments

Most Recent Posts

Search


Tag Cloud

tanker cars shipping NCC selling trucking companies CRM Doug Nix Global Transportation Hub Leadership small business Canadian freight market FCA Job satisfaction capacity shortage David Tuttle 2014 freight volumes CSA scores Social Media in Transportation freight forwarders drones Wal-Mart Celadon Freight Capacity Carriers Donald Trump fuel surcharge Twitter Scott Monty Sales Training Werner solutions provider Business Transformation Strategy Regina Bobby Harris shipping wine economy Dan Goodwill Business Strategy Stephen Harper Trade Vision buying trucking companies Career Advice Accessorial Charges freight payment freight audit e-commerce Retail CN Rail NS the future of transportation routing guide Transplace shipper-carrier collaboration energy efficiency 3PLTL peak season Freight Management 2014 freight forecast LCV's Derek Singleton driver shortages Toronto Schneider Logistics Transportation Buying Trends Survey Climate Change NAFTA Retail transportation Inbound Transportation Shipper CSX Adrian Gonzalez Fire Phone Microsoft Freight Carriers Association of Canada Infrastructure Politics pipelines Sales Management US Election driver carrier conference Canada's global strategy transportation news BNSF Emergent Strategy NMFC freight agreements Hudsons Bay Company Transportation Education University of Tennessee TMP Worldwide Ferromex Failure Swift FMCSA Trump USA Truck autonomous vehicles dimensional pricing intermodal freight transportation in 2011 robotics network optimization marketing TransForce Doug Davis Right Shoring BlueGrace Logistics Global experience Rate per Mile consumer centric Cleveland Cavaliers US Housing Market Muhammad Ali RFP 2012 Transportation Business Strategies. Jugaad EBOR automation Software Advice transportation newspaper Otto President Obama Canada Broker freight rate increases MBA Transport Capital Partners (TCP) capacity shortages cheap oil Tracy Matura coaching Warehousing derailments FuelQuest APL Freight contracts truck drivers Surety bond Driver Shortage 2013 Economic Forecast mentoring Search engine optimization Canadian truckers CN Freight Recession Map-21 Loblaw freight transportation Freight Rates Spanx Transcom Fleet Leasing Dedicated Trucking Horizontal Supply Chain Collaboration LinkedIn Canadian economy Yield Improvement LTL Success Training New Hires Social Media Finance and Transportation Facebook Life Lessons truck driver home delibery Management US Auto Sales freight cost savings professional drivers US Manufacturing freight payment rail safety Blogging Masters in Logistics Rotman School of Business Consulting Colilers International Omni Channel Comey freight audit Truckload Packaging US Economy Training hiring process Reshoring Amazon bulk shipping future of freight industry IANA Load broker Canada-U.S. trade agreement YRC financial management Dedicated Contract Carriage freight broker CSA Transloading Keystone Pipeline Driving for Profit Success failure entrepreneur MPG broker bonds freight RFP Canadian Transportation & Logistics Rail Associates Transportation service dynamic pricing shipper-carrier roundtable ShipMax transportation audit Crude Oil by Rail JB Hunt 360ideaspace $75000 bond Freight Shuttle System UP broker security freight bid trucking company acquisitions New York Times driverless Distribution Railway Association of Canada ProMiles Harper Davos speech KCS 3PL Entrepreneur customer engagement Canada U.S. trade Conway business start-up Business skills TMS shipper-carrier contracts FCPC freight costs CP Rail economic forecasts for 2012 Freight freight transportation conference 2015 Economic Forecast Deferred Packaging Crisis management Trucking employee termination CITA Shipper Pulse Survey 2014 economic forecast FMS

Blog Archives