Industry Indicators: April 4-10
Industry Indicators: April 4 - 10
iLevel Logistics presents intriguing data that offers a snapshot of notable industry changes and events during the week of April 4th through April 10th.
Infrastructure, Public Support for Infrastructure, Jobs and Infrastructure, Minimum Wage, Suez Canal, and California Ports
From these numbers, infrastructure appears to be pretty good
Source: USA FACTS
Generally, half of the federal government’s annual spending on transportation is allocated to highways – approximately 47B in 2019. However, due to several COVID relief bills in 2020, air transportation edged higher, nearly doubling the 2019 figure to reach a 40% share of total spending. Notice total federal transportation spending set a record in 2020 at 145B, 36B more than peak spending in 2010. (All figures are adjusted for inflation).
Though 145B represents a significant federal investment, the big dollars are spent by state and local governments. In 2018, for example, state and local spending nearly cracked the 170B mark – this figure excludes federal transfers – 2019 and 2020 state and local expenditure numbers are not available. The graph reminds us that in general infrastructure spending depends largely on state politics and policies. The constant focus on Washington DC conceals this essential fact.
““Let’s get this passed so we don’t have to live in fear of the next bridge collapse or dam failure.” ”
Are bridges in poor repair and falling apart? Yes, some, but less than 10% according to the Bureau of Transportation. Overall, the percentage rated as poor decreased approximately 2% from 9.4% in 2012 to 7.5% in 2019. Some states are of course better than others at maintaining bridges. But every year the percentage of poor bridges decline.
Finally, the data do indicate many roadways are improving – the graph shows improvement from 2000 to 2019. Rural interstate, rural mid-size, and urban interstate roads all improved, albeit slightly, and less than 10% are rated unsatisfactory. The 3 other categories – rural minor, urban mid-size, and urban minor – improved notably but the percentage rated unsatisfactory remains high.
Americans overwhelmingly support an infrastructure plan – well, maybe
Source: yahoo!news
When Americans were asked whether they supported a government overhaul of American roadways, railroads, bridges, and ports, nearly 80% said yes. However, that question does not really capture politics.
Rephrasing the question in practical political terms, Reuters/Ipsos polling firm discovered that only 45% of Americans would support a “jobs and infrastructure plan that was recently released by the Biden administration.” Additionally, 27% said they were opposed to the Biden plan and another 28% were uncertain.
In short, Americans are ready for infrastructure improvements. But most are not yet ready to support Biden’s infrastructure plan. The substantial drop in support comes from Republicans and Independents. Approximately 20% of Republicans and 30% of Independents support Biden’s plan.
If enacted, Biden plan lifts trucking jobs
Source: Freightwaves
A report from Georgetown University Center on Education and the Workforce forecasted significant growth in commercial truck driver jobs resulting from Biden’s proposed infrastructure plan. Transportation and material moving comprised 60% of occupations created/saved by the Biden plan. In this broad category, commercial drivers of heavy trucks account for roughly 1.9 million jobs and light truck/delivery drivers another 901,300. The total of 2.81 million jobs is nearly 20% of the total jobs projected by the report – 15 million.
Source: Georgetown University Center on Education and the Workforce forecast
Raise the minimum wage! Many states and cities already have
Source: Pew Research Center
The federal minimum wage of $7.25 is used in only 21 states – this represents about 40% of all wage and salary workers according to a recent Pew Research Center report. In the remaining 29 states, minimum wages are higher and range from $8.65 in Florida to $15 in Washington DC.
Some cities and counties maintain even higher rates than their state’s minimum – most are in Los Angeles and San Francisco Bay areas. This may be expected, given the wide variation in the cost of living across the United States. Pew Center Research discovered the highest minimum wage just outside San Francisco in Emeryville.
Close to normal at the Suez Canal
Source: Freightwaves
Now 10 days after the Ever Given was finally liberated, the average number of ships at anchor is approaching normal levels. Historically, the daily average of ships at anchor is 53. Since the Ever Given was freed, the daily average has rapidly declined and on April 7th reached about 100 vessels – just twice the average. This is less than a third of the March 29 peak of 367 vessels at anchor. Still, transit time remains higher than usual.
Congestion in California ports continues
Source: AJOT
The wait to offload containers at neighboring ports of Los Angeles and Long Beach lengthened to 8 days – compared to 7.9 a week earlier. Back in November, the average wait hovered around 2.6 days. The backlog of anchored vessels shows no signs of abating – and March is typically one of the slowest months for inbound merchandise. This adds to the challenges of companies trying to fortify inventories amid a surging economy.
And that’s it for this week. Thanks for reading.
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