John’s Blog

8-16-10

Dear Friends,

Last week gave us mixed reviews on the direction of the economy although transportation companies continue to shake off the poor results from 2009 with better activity. There remain many reasons to be cautious.

Retail sales were up modestly in July but were mostly driven by car sales and gas stations while retailers showed mixed results with an economy just dragging along. The Commerce Department reported that retail sales increased 0.4% which is what was expected after a June decline of 0.2%.

The role of the consumer cannot be overestimated as they drive 70% of the economy. Consumer spending weakened in the second quarter and this was followed by a slower economy. Here is the break out:

• Dealers of autos and car parts sales increased 1.6%

• Gas station sales increased 2.3%

• Garden supply and building materials sales were down 0.3%

• Apparel sales were down 0.7%

• General merchandise sales fell 0.2%

• Sporting goods, hobby, and music sales slid 0.1%

• Food and beverage store sales were down 0.3%

• Restaurant and Bar sales were up 0.2% (Americans are continuing to drink)

• Furniture receipts were down 0.3%

• Electronics and appliances were down 0.1%

• Internet sales rose 0.2%

The Labor Department said that the consumer price index increased in July 0.3% from June. Core consumer prices increased by only 0.1% and the Federal Reserve is increasingly concerned that the recovery is slowing.

Wholesale inventories increased 0.1% in June according to the Commerce Department.

The Transportation Services Index (TSI) increased in June by 0.2% from May to 100.8. The TSI was up 4.1% year over year for the month.

Transcore reports that the spot market for truckload freight was up 122% in July on a year over year basis. The July volume was 14% less than June.

At Wagner, we have promoted Brian Smith to the position of Chief Operating Officer and Brian has taken responsibility for all Wagner Operations. Shawn Closser has been promoted to Vice President Logistics and is responsible for all Wagner transportation reporting to Brian. Justin Eck is now Director Operations and responsible for Wagner’s shared distribution center network reporting to Brian.

The list of experience, MBA education and other attributes are too lengthy to go into in this space but suffice it to say that the entire Wagner team stands ready to work with you on any distribution center, fulfillment, or transportation projects.

Have a great week!

John Wagner Jr