As I was perusing through the bottom drawer of my file cabinet I stumbled across quite a few files of customers I called on in the past that are no longer in business and I couldn't help but wonder which companies might be next. It was officially announced today that the United States has been in a recession since December of 2007. I believe I speak for most everyone in the transportation industry when I say; "Who didn't know that?"
Our industry is the first to feel upswings and the first to feel downswings in the economy. I could have told some economist this news around January 2008 and it would have saved a lot of research money in the process. The difference between now and then is that the rest of the world is locking in on the recession mode as well with banking and financial troubles spreading like a pandemic.
And so it is with economic cycles.....we go up, we go down. We go up and then down. How low will it go? How long will the downturn last?-both million dollar questions. And another question that weighs heavily on transportation company minds is; will GM, Ford and Chrysler be able to weather the storm?
2 comments:
You wrote:
"I believe I speak for most everyone in the transportation industry when I say; "Who didn't know that?"
It is funny isn't it? Now that the election is over...how it's OK to tell the truth about the economy and the recession.
As you mentioned those of us in the freight business have seen the tell tales signs a long time ago.
And we will be the first to see us pull out as we see first hand the increase of freight shipments nation wide.
As regards GM, Ford and Chrysler it is literally going to take an act of congress to save them. The question is however, even if they receive money from the government can they be saved based on their existing ways of doing business?
The auto issue is so big for carriers and brokers alike. When you consider not just the OEMs, but the suppliers to these companies, you are talking a large percentage of the transporation industry's revenue base. With GM and Chrysler both saying they could be done by the end of the month with no help, it seems like they are going to have to take drastic measures
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