Beyond Band-Aids: The Urgent Need for Overhauling America's Aging Infrastructure
Good morning! Today, we celebrate the women who keep the world's supply chains moving, all while wearing comfortable shoes and juggling a million tasks. So, grab your coffee and get ready to learn about the incredible women who are making waves in the industry. Let's celebrate their achievements, recognize their contributions, and work towards a more inclusive and equitable future for all. ☕️
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America boasts some of the most beautiful functional infrastructure - from the Brooklyn Bridge in New York to the Golden State Bridge in California. Both cost $300 million and $700 million to build in today’s money, respectively. So, what’s the deal with all the new funding allowed through the passing of the new legislation… will it be repairing new bridges or building them?
Check out today’s featured article from Wall Street Journal to read about the nation’s infrastructure and its future: will federal aid continue to be used for existing infrastructure repairs and enhancements? Or will we ever see new projects come to light?
Featured Article:
America Once Knew How to Build Infrastructure | The Wall Street Journal
“The country will be lucky if the $1.2 trillion Washington is spending leads to any new bridges, tunnels or major roads.”
Manufacturing & Supply Chain Issues 🛠️
“Supply Kentucky” initiative launched by governor to bolster state’s manufacturing power
The Bluegrass State’s economy relies heavily on manufacturing, accounting for nearly 12.5% of its entire workforce. Compare this to the national number of 8%. Kentucky Gov. Andy Beshear is looking to strengthen that sector and expand Kentucky’s slice of the pie.
“Supply Kentucky” is a new initiative launched by Beshear with the goal of funneling job growth into the region, minimizing manufacturing costs, and developing more secure supply chains in the state. Its launch includes a new online platform provides a free database of manufacturers and suppliers in the state of which companies can develop business relationships. Frank Jemley, president and CEO of the Kentucky Association of Manufacturers, is voicing the organization’s support behind the initiative. However, Republican Party spokesman Sean Southard is labeling the governor’s move as “the bare minimum” and “something that should’ve been done long ago.”
Regulations & Train Safety 🚂
Norfolk Southern announces new safety protocols to prevent future train derailments
Under Norfolk Southern Railroad’s new safety plan, the company will be installing more temperature sensors along rail lines to measure the output on train wheel bearings as they are in motion. These sensors will also issue early warnings of possible excess vibration within the track, signaling possible incident. This plan is be unveiled in the wake of two train derailments in Ohio - one of which resulted in a massive chemical spill that has risked the health of nearby residents and wildlife in East Palestine.
Heat sensors can detect an increase in temperature, indicating a potential fire before it spreads and causes significant damage. In the case of a train derailment, the heat sensors can quickly detect the rise in temperature and alert the authorities to take appropriate action. Additionally, train derailments can cause significant delays and disruption to train schedules. By detecting a fire early, heat sensors can help minimize delays by allowing authorities to take action quickly and prevent further damage to the tracks.
Let’s Get Global 🌎
🇷🇺 The global energy market hasn’t been the same since Russia invaded Ukraine. The oil and gas landscape has been disrupted and the world has been struggling to find its footing since February 2022 - when Russia invaded neighboring Ukraine. Following the invasion, many countries imposed economic sanctions on Russia, including restrictions on its energy sector. These sanctions have limited Russia's ability to export oil and gas and have created opportunities for other producers to increase their market share. The conflict between Ukraine and Russia has highlighted the importance of energy security for many countries. Some have sought to reduce their reliance on Russian oil and gas by diversifying their sources of energy, while others have invested in new infrastructure and technologies to improve their energy security.
🇺🇸 Factory demand in the U.S. becoming sluggish as interest rates climb. As interest rates rise, the cost of borrowing for businesses increases. This can lead to higher borrowing costs for factories, which can lead to decreased investment in new equipment, technology, and expansion. This can ultimately lead to a slowdown in factory demand as businesses may hold off on investing until interest rates decrease. As interest rates rise, the U.S. dollar tends to strengthen, making U.S. exports more expensive and less competitive in the global market. This can decrease demand for U.S. goods and can lead to decreased factory demand.
🔋 As EV subsidies dwindle, EV sales follow suit. In a massive drop, EV sales have dramatically collapsed with only 672,000 units sold in January. Year-over-year, that is only a 3% increase and a nearly 50% drop from December. When subsidies are available, it can make EVs more affordable and appealing to consumers, who may be hesitant to pay a premium price for a new technology. When subsidies are reduced or eliminated, the cost of purchasing an EV can become prohibitive for some consumers, leading to a decrease in demand for these vehicles. Additionally, some consumers may choose to delay their purchase of an EV until subsidies are available again or until the price of the technology comes down.
iLevel With You 🏡
More topics for the average American household to consider…
🤓 Worker productivity and benefits go hand-in-hand. Traditional criticism of shorter work weeks and paid sick leave has often referenced a drop in worker productivity when these benefits are offered. However, after several in-depth experiments in the labor force across the globe over the past several years… the data is saying differently. Employees who have worked from home often reported an increase in productivity and a better work-life balance. Companies that participated in a 4-day work week trial in the United Kingdom have overwhelming decided to keep the policy in place instead of returning to five days a week at the office. While the labor market remains strong and tight, employees still have the advantage. Will more companies in the Untied States begin taking these sentiments to heart?
🧪 Polyfluoroalkyl substances (PFAS) in supply chains can be managed. PFAS are a group of man-made chemicals that are used in a variety of industrial and consumer products, including food packaging, non-stick cookware, and firefighting foam. They are persistent in the environment and can accumulate in the body, which has raised concerns about their potential health effects. They can enter the environment through wastewater discharges, landfills, and other industrial activities. Once released into the environment, they can contaminate soil, water, and air, which can lead to exposure to humans and wildlife. Managing PFAS in the supply chain requires collaboration with suppliers, a commitment to finding alternatives, and a proactive approach to identifying and mitigating potential risks. By taking these steps, companies can help prevent PFAS contamination and protect human and environmental health.
🛵 Why is the gig economy is booming? The gig economy offers workers the ability to work on their own schedule, giving them greater flexibility than traditional 9-5 jobs. With the rise of mobile technology and the internet, it has been made easier than ever for people to work remotely and connect with clients and customers. For businesses, hiring gig workers can be more cost-effective than hiring full-time employees, as they do not need to pay for benefits or taxes - for now. Additionally, many gig workers offer specialized skills or services that businesses may not be able to find in-house, making them an attractive option for one-time or short-term projects.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🔋 Electric SUV manufacturer Scout scores $1.3B offer from South Carolina. Scout Motors Inc. and South Carolina officials announced the new electric vehicle plant in the state, awaiting lawmakers approval. The plant would employ approximately 4,000 people and provide South Carolina the ability to compete with neighboring states who are also focusing on welcoming EV-manufacturing plants to their regions. Georgia recently offered Hyundai Motor Group $1.8 billion in incentives to build a plant in Savannah and North Carolina looks to be offering Vietnamese automaker VinFast more than $1 billion to create its first North American manufacturing facility in the state.
💰 New port rules for detention and demurrage worry stakeholders. Port executives from across the country are voicing concern over the Federal Maritime Commission’s reformation of the accessorial costs. During the height of the pandemic, some cargo owners were slammed with inflated fees while containers were unable to be moved due to overwhelming congestion. As part of the Ocean Shipping Reform Act enacted in 2022, the FMC is expected to rule that carriers can only levy these fees on parties which they have contractual business relationships… but some worry that this will spark cargo fluidity issues at the ports all over again.
⛈️ Ports have serious concerns over natural disasters. Ports can be at risk during national disasters due to their location and the critical role they play in the global supply chain. High winds, flooding, earthquakes, and other disasters can cause significant damage to port infrastructure, including docks, cranes, and storage facilities, which can disrupt port operations. Overall, ports face a range of risks during national disasters, and it is essential for port authorities and emergency response teams to have plans in place to mitigate these risks and respond effectively to any emergencies that may occur.
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.