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

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: 14427

Most Recent Posts


Tag Cloud

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

Blog Archives