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John’s Blog
1-5-09
Dear Friends,
First let me wish you a Happy New Year as we exit a year that for most of us was very difficult.
On a positive note the nation survived a historic rise in fuel prices and saw oil go from $150 per barrel down to the $40 mark. Today the national diesel average is at $2.327 a gallon.
2008 will also be remembered as the year that we participated in a historic election along with the rise of new leadership. Regardless of whom we voted for I know that we hope and pray that the correct levers are pulled to bring this economy around.
A historic number of bankruptcies removed a lot of trucking capacity from the marketplace and it remains to be seen if YRC can stay in business. If the economy turns around by the third quarter of 2009 they have a shot at running on fumes until then. If the turnaround does not happen until 2010 then I predict YRC and others may not survive.
It appears that the cornerstone of President Elect Obama’s stimulus plan is to be rebuilding our nation’s roads and bridges. We have not yet seen the details but the numbers being mentioned are just south of a Trillion Dollars for economic stimulus. Between the infrastructure spending and tax reductions for business and individuals this should really help jump start the economy and jobs.
At Wagner, we completed the acquisition January 1st of the assets of LTS Logistics in Little Rock and Pine Bluff Arkansas. With an existing 300,000 sq ft Wagner operation in Little Rock, we took advantage of this opportunity to bulk up operations in the region with the addition of a million square feet.
In 2008 Wagner successfully expanded the use of its RedPrairie technology and expanded with a beverage client into Denver. From a transportation perspective, Wagner became a SmartWay partner and moved almost 30,000 shipments for our clients.
From increased productivity to better inventory management, our technology adoption has yielded many benefits. Please let us know how we may work with you in this New Year.
Have a great week!
John
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