Unemployment rates in transportation sector are growing grey
Good morning! It’s National Cut Your Energy Costs Day. ⚡️What is your company doing to cut costs during this inflated time - fuel-efficient vehicles? Optimizing routes? Alternative fuels?
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The Bureau of Labor Statistics (BLS) has released the latest data on its Bureau of Transportation Statistics (BTS) Unemployment in Transportation dashboard. This tool is meant to provide updated information on unemployment in the transportation industry on a monthly basis by including the unemployment rate for various subsections and the number of unemployed workers within each. Not seasonally adjusted, December’s rate sat at 4.5% - higher than December 2019 (2.8%) & 2021 (3.6%).
Check out today’s featured article from DC Velocity to read about the growing unemployment rate in the United States transportation sector and how it will continue to affect the economy and supply chain issues if the problem isn’t solved - and fast. ☕️
Featured Article:
Transportation unemployment rate continue to climb | DC Velocity
“December mark of 4.5% was above 2021 and 2019 measurements, but still far below high-water mark of 15.7% during early pandemic.”
Manufacturing & Robotics 🦾
Looming Recession? No worries. Manufacturing is ready to invest
Despite rising interest rates and a (possibly?) looming recession, the manufacturing sector is ready to invest in new equipment and technology to improve its operations this year. According to the National Association of Manufacturers’ outlook survey conducted during Q4, approximately 62.4% of respondents agree that a recession will occur this year. Retaining a quality workforce, supply chain challenges, and increased material costs are the top three concerns for manufacturers during this time.
However, despite these concerns, over 65% of respondents are planning to increase capital spending on new equipment and technological improvement. Another 64% are intending to provide additional training to the existing workforce. These manufacturers may want to focus on improving talent in the existing workforce instead of hiring “new talent” due to the increased productivity, improved company culture, and improved retention rates
Driver Issues & Diversity 👩🦳
Data needed: Women in Trucking analyzing gender diversity
The Women In Trucking Association (WIT) is researching gender diversity in the trucking industry. The 2023 WIT Index is looking to survey ocean carriers, railroads, and private fleets alike to gather data on the issue. While individual data will remain confidential, respondents are encouraged to visit WIT’s live survey on their website before April 21, 2023.
The number of female drivers in the industry rose 3% in 2022 compared to 2019. Women dominate in Human Resources and talent management roles (74.9%) and make up nearly 14% of C-suite executives in the trucking industry.
Let’s Get Global 🌎
🇨🇳 China’s zero-Covid policies are gone, but will their supply chains improve? The growing public protest forced China and President Xi Jinping to pull back on the forced quarantines and factory lockdowns, but it remains to be seen if it’s too little too late for China’s global supply chain. While China struggled to deal with the Covid-19 crisis like so many other countries, some have criticized the country’s strict and nearly three-year-long response that nearly crippled supply chains across the world. The future of China’s status as a manufacturing hub is now in jeopardy as the West continues to trend its near-shoring and re-shoring efforts.
🤑 If you’re looking for low-cost, stop looking at China. Once paraded as the best option for cheap labor in the manufacturing sector, China’s workers have become more skilled and less poverty-stricken. The labor rates have been rising for a handful of years in the country and the momentum to continue increasing pay is growing. Mexico, Vietnam, Myanmar, and India are now the lowest-cost options for manufacturers. It seems that American companies are focusing more on bringing manufacturing back to domestic soil, regardless. The pandemic seemed to change the outlook in the manufacturing industry, which hopes to avoid similar problems in the future.
🚘 Chinese EV auto industry leader is pivoting to shipping. BYD, a Chinese electric vehicle manufacturer, has ordered several car carriers to transport their products across the oceans on their own equipment. The global shipping services will not only be used on the product created by BYD - it looks like the company will also be offering its services on the car carriers to other car manufacturers. This is likely to establish a foothold in global shipping, particularly for electric vehicles.
iLevel With You 🏡
More topics for the average American household to consider…
⚖️ The DOT is tackling “unfair cancellation practices” in the aviation industry. “Unfair”, by the Department of Transportation’s definition, means “likely to cause substantial injury and the harm is not outweighed by benefits to consumers or competition.” While most airlines maintain that the companies do not intend to harm their customers with cancellations, the DOT is not obligated to consider intention when labeling actions as “unfair.” The DOT is tasked with the responsibility of ensuring that the rights of air travelers are protected by regulating the cancellation policies of the airlines. US DOT Secretary Pete Buttigieg has led the department as it unveiled an airline customer service dashboard with the purchase of guaranteeing meals and hotels when customers are left stranded after canceled flights.
🛵 DoorDash can now pick up your packages for you! Instead of getting in your vehicle and driving to the nearest parcel delivery service of your choice, DoorDash is now offering to pick them up and save you the drive. The launch of the new service comes during one of the busiest times of the year: the post-holiday returns season. The service limits the pick-up to five packages for the cost of $5 even. Those who pay for the DashPass, the company’s subscription service, will have a flat fee of $3. The move is likely to capitalize on the existing logistics infrastructure and determine a new way to convince DoorDash’s existing customer base.
📦 Walmart aims for 1 million drone deliveries on an annual basis. Boasting 6,000+ drone deliveries in 2022, the retailer had big goals for a rapid expansion of the service. Considered a successful launch, thirty-six Walmart stores nationwide are offering drone deliveries to qualifying customers. These drones are operated by DroneUp, Flytrap, and Zipline in Virginia, Texas, North Carolina, Arizona, Arkansas, Utah, and Florida. Vik Gopalakrishnan, Walmart U.S. vice president of innovation and automation, voiced excitement for the drone delivery “footprint” left by the company and signaled that the growth is not slowing down anytime soon.
✈️ Nepo-babies? Try “lifers” in the airline industry. After a week of massive chaos between the Christmas and New Year’s holidays, Southwest Airlines has found itself in hot water. From angry customers to the “disappointed” DOT, they seem to be on everyone’s naughty list. But AJOT is tackling what they’re calling a deeper problem with the company’s management: the executive team at Southwest is full of individuals who have held their positions for a decade(s).
GET SMART 🧠
Ramp up that brain power for these advanced topics…
👔 Booking Holdings Inc. CEO Glenn Fogel pumps up 2023 projections. Fogel, speaking with the Associated Press, praised the Booking.com parent company, which posted record quarterly earnings. In combination with other companies under its umbrella, including Priceline and Kayak, Booking Holdings earned $1.8 billion during the first ¾ of the previous year. Wall Street is voicing support for the company with analysts predicting further growth. Gross bookings are now sitting at an increase of 25% compared to the first quarter of 2019.
🔎 Supply chain network visibility can transform your operations. Network visibility typically refers to a company’s ability to track and monitor the movements of goods within its supply chain. Tracking technologies are readily available to be used in this fashion, including RFID (radio-frequency identification) tags, GPS (Global Positioning System) tracking, and sensors located in trucks. These technologies, when implemented correctly, can create improved efficiencies, enhanced control, better transparency, and well-crafted decision-making. By providing a wealth of data, these supply chains will become based on more-informed decisions.
🚢 The Covid-19 shipping boom seems to be an echo of the past. Maritime operators are looking in the rearview mirror at some of the wildest shipping rates in history during the Covid era as slumping demand and plummeting rates are now the “new normal”. Lars Jensen, chief executive officer of consulting firm Vespucci Maritime, acknowledges the spot rates are now matching what they were before March 2020.
🧱 Manufacturing companies are turning to 3D printing tech. Due to consistent supply chain disruptions hindering production capabilities, manufacturing firms are turning to other technologies available for use in the industry. The act of 3D printing allows companies to provide mass-scale customization of products and reduces spare parts inventories. with more complex goods entering the market, 3D printing may be the best option going forward.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.