Supply Chain by the Numbers

- March 10 , 2011


Supply Chain by the Numbers for Week of March 10, 2011

  Big Potential Costs for Trucking; Supply Chain Jobs Looking Up; Mexican Tariffs Revive Trucking Program; Railroads Opening Wallets Big Time

$126 Billion

What we calcuate as the total "unpriced costs" that the trucking industry in the US benefits from, according to estimates issued late last week by the US GAO in a report to Congress. The upshot is that the GAO implies the trucking industry should be asked to make amends through higher diesel fuel taxes and fees, having a huge potential impact on costs to shippers. However, most of these unpriced costs are 'social costs." See GAO Tells Congress Freight Carriers, especially Trucking, are not Paying True Costs of Moving Goods.)





Number of companies planning to hire supply chain staff this year, according to the most recent employment outlook report from APICS. That compares with 48% answering Yes during the same period last year. Just 7% of companies said they were downsizing supply chain positions this year, half the from 14% wo planned layoffs a year ago.



Drop in exports from the US to Mexico in the product categories affected by the Mexican tariffs applied in 2009 in retailation for the US halting the program to alllow Mexican truckers to operate in the US, as agreed to under NAFTA. That export hit is largely behind the Obama administrations announcement late last week it would re-start a pilot program for Mexican trucking companies in had previously halted.

$12 Billion

Planned 2011 capital expenditures by the US Class 1 railroads, setting a new record above the then record $10.7 billion investged last year, more bullish bets the rail business will continue to be good. Rail carriers used to have among the lowest returns on invested capital of any industry - but not any more. The big change: the huge growth in imports that dramatically juiced rail volumes.