John’s Blog 8-11-08

Dear Friends,

With the nation’s truck tonnage up in June by 5.4% the stimulus checks seemed to have worked in the short run.  The lower retail numbers in July remind us that this was a one time occurrence and that a lot of uncertainty remains.

We can take some solace in that Durable Goods orders were up by 0.8% in June and that factory orders are at levels not seen for the last 6 months. With the US Dollar remaining weak the export activity remains high. With a weakening world economy it remains to be seen if the high export market can sustain itself. No way to sugar-coat the fact that the automotive industry is in the dumpster and the banking and housing mess will continue to be a drag on the economy.

The battle over Mexican cross-border trucking continues with Congress promising to kill the program this fall while Mary Peters extends the program for two years.  When Congress returns from its vacation, expect some real fireworks over this volatile issue.

Attached are several good articles on the current situation with a lot of detail and analysis.

At Wagner we are gearing up for the holidays with several seasonal co-packing projects underway. Our HR folks are busy hiring an additional 250 people for fulfillment and contract packaging work which will keep us busy through November.

Please let me know if you have any weak spots in your supply chain that you would like to collaborate on.  We have ample space and are able to accommodate most projects within our existing distribution center network of:

• Jacksonville FL
• Morrow (Atlanta) GA
• Memphis TN
• Little Rock AR
• Grand Prairie (Dallas) TX
• Kansas City MO
• Denver CO

Have a great week,

John Wagner Jr.