Industry Indicators: June 13-19
Job openings, hires, and quits; driver preferences; truckload market forecasts; maritime nightmare; supply chain inflation; retail store profitability; industrial robots; cargo theft categories; blue collar pay, women in logistics; diesel prices
Industries in search of workers
Source: MSN News
According to the Bureau of Labor Statistics, in April, the U.S. witnessed a record 9.3 million job openings. Hires however are well below job openings at 6.1 million (gray). More worrisome, Americans are quitting their jobs at record rates – 2.7%.
The tightest labor markets (more openings per hire) appear in manufacturing, state and local governments, and transportation. These industries show significant changes from the pre-pandemic baseline average.
Driver Preferences
Source: Conversion Interactive Agency
Online survey of CDL drivers from April 19 – May 7, 2021.
Truckload market forecast
Source: Coyote Curve
Coyote Curve is a spot rate index built with data from over 10,000 daily shipments. After the pandemic, truckload spot rates (green) rose sharply above contract rates (blue). But notice in Q1 2021 spot rates are trending down while contract rates up. Coyote expects these two trends to continue.
Several key economic measures show steep rises after the pandemic dip - literally a V shaped recovery. The dramatic rise puts tremendous strains on the supply chain – for example, look at the surge in industrial production.
Wishing to exploit higher spot and contract market rates, carriers invest in class 8 tractors – orders are up.
But with orders high, spot rates will begin to dip as the new capacity begins to enter the market. Contract rates lag spot rates but are expected to drop as well – see Coyote’s forecast in 2022 and 2023.
Maritime nightmare better but expected to last into 2022
Source: SupplyChainBrain
Southern California ports are better, but a greater number of ships than usual still wait to offload.
Supply chain inflation
Source: SupplyChainDigest
US gasoline prices are at seven year highs, and many predict $100 oil barrel for later this summer. Input prices for iron ore, copper, steel, and key materials for making cars, houses, and home appliances are reaching record levels. Below, the S&P Commodity Index, which shows price changes for a basket of metals, energy, and agricultural products, has surged nearly 60% in the past year.
Improve store profitability – use technology!
Source: SupplyChainDigest
If McKinsey projections are accurate, retailers should invest in technology – soon. Automation and robotics, back office automation and electronic shelf tags and consulting selling tools appear to be winners.
Pandemic renews interest in industrial robots
Source: SupplyChainDive
Cargo thefts in 2020 were mostly household and food and beverage items
Source: TransportDive
Pay the key factor for blue collar workers in distribution and logistics
Source: SupplyChainDigest
Women in Supply Chain
Source: Gartner
A Gartner survey finds women represent 41% of supply chain workforce – a percentage that has increased steadily since 2016.
Diesel Fuel Up 1.2 cents
Source: Transport Topics
That’s it for this week, thanks for reading!
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