John’s Blog

2-7-11

Dear Friends,

The results are in and January’s retail numbers were better than expected even with all of the weather issues. The International Council of Shopping Centers index of 32 retailers shows a 4.8% increase in sales for retail locations open for at least a year beating expectations.

In dueling reports on job growth, both ADP and the Labor Department released their findings. ADP said private sector jobs grew by 187,000 jobs last month beating the forecasted 143,000 number. Unlike the Labor Department, ADP only reports private sector employment.

In the Labor Departments report that includes government workers, January employment grew by 36,000 jobs significantly below the expected 146,000 forecasted by economists. In this mixed report effected by the bad weather, the January unemployment rate fell to 9% from 9.4% in December. State and federal government jobs took the biggest hit.

The Institute for Supply Management’s factory index made a surprising upturn in January rising to 60.8 from December’s reading of 58.5. In this index any reading over 50 signifies growth. Orders grew to a 7 year high and factory employment jumped to the highest level since 1973. Manufacturing accounts for about 11% of the US economy.

The ISM inventory index increased to 52.4 from 51.8 signaling growing stockpiles.

Ground transportation between the US, Mexico, and Canada grew 15.5% in November year over year according to the Department of Transportation. NAFTA trade rose to $68.1 billion.

In transportation, FedEx is planning to use intermodal service for the first time in their 40 year history. They will be using Norfolk Southern to move LTL in the east through a new service offering.

The Association of American Railroads reported that intermodal traffic was up 9.2% year over year in the week ending January 29^th. Total traffic was 222,742 units with a 10.1% increase in containers and a 4.4% increase in trailers. Carload traffic was up 4.7% at 291,147 units.

Bad weather hindered motor carriers with many shut down for 24 to 48 hours due to white out conditions last week.

At Wagner we completed our move in Jacksonville Florida to a new facility and capacity in existing facilities is becoming tight. With the industrial real estate market in recovery mode there are great deals on fine buildings across the US.

Should you need to re-align your distribution network now is a good time to take down space with competitive leases. Please let me know if there is a reason to talk as Wagner has the resources to open the right sized facility for you to perform distribution warehousing, fulfillment, or packaging.

Wagner’s logistics group is busy moving loads for those companies who are having a hard time finding capacity so please let us know if we may help you if your carriers fail in their commitments.

On a personal note, the founder of our company in 1946 passed away at age 99. John P. Wagner Jr started Wagner as a local trucking company and his entrepreneurial spirit lives on in all of the associates. He was a great man and will be sorely missed by everyone who knew him.

Have a great week!

John Wagner Jr

John’s Blog

1-31-11

Dear Friends,

The Commerce Department reported last week that due to consumer spending and rising exports the US GDP grew 3.2% in the fourth quarter. For all of 2010 the economy grew 2.9%. Consumer spending (accounting for 2/3 of economic activity) increased 4.4% in the 4^th quarter and durable goods sold increased 21.6% at the same time.

Exports of goods and services also increased in the 4^th quarter at an 8.5% rate which was up from the 3^rd quarter results of 6.8%.

Businesses in the private sector slowed the pace in adding inventories adding $7.2 billion in the 4^th quarter as compared to an increase of $121.4 billion in the 3^rd quarter.

The Fed decided to keep the Federal Funds Rate at its current level. The Federal Reserve Bank is not expected to raise rates until 2012.

The Conference Board announced that consumer confidence attained its highest level in 8 months in January with the monthly index reading 60.6. The December reading of the index was 53.3 showing improved optimism by consumers.

The Labor Department reported last Thursday that initial jobless claims were up 51,000 the previous week. The four week moving average increased to 428,750 from 413,000. The number of continuing claims stands at 3.99 million people.

The American Trucking Association said that truck tonnage increased 4.2% in December. This is highest level of activity in two years. The index gained 2.2% from November to December and tonnage increased 5.7% for 2010. In 2009 tonnage had dropped 8.7%.

At Wagner I am watching snow fall outside my winter as the Midwest finds itself in yet another major winter storm. While peaceful in my office my thoughts are with the many drivers in their tractors navigating their way through the mess to make their deliveries.

If you have a logistics project I hope that you will consider speaking with me as Wagner has a number of resources and competencies. Operating distribution centers, providing cross channel distribution to big box retailers along with e-commerce fulfillment, performing manufacturing support through materials management, co-packing and transportation services are among our many talents. Provide us a seat at the table and let’s collaborate.

Have a great week!

John Wagner Jr