U.S. LOGISTICS - Slow Growth Is Good Growth in the Era of the New Normal

Sep 6

Written by:
9/6/2013 10:17 AM  RssIcon

As the recovery-that-doesn't-feel-like-a-recovery continues, it's time to ask if this is the new normal. May believe that we are experiencing a new order that is translating into the new way of life for the economy and the logistics and supply chain sectors for the foreseeable future.

That new order is characterized by slow growth; higher unemployment; slower job creation; higher healthcare costs; and more reliance on part-time workers who do not receive benefits.  Freight service has become less reliable as volumes begin to rise, but capacity is not increasing quickly enough to fully meet demand.  The single biggest accomplishment resulting from the Great Recession is the increased productivity across almost all sectors of the economy.  Everywhere we have learned to do more with less.

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