Trucking industry begins to turn around

[charrison]

Linkage

Evidence both statistical and anecdotal is mounting that the trucking industry is rebounding on the strength of an improving economy.

Trucking Industry


Photo/Dale Guldan
The trucking industry has started to show growth, analysts say. That could affect truckers such as Jose Canumay, who adjusts his mirrors Wednesday before leaving an Oak Creek truck stop.


Quotable

This is pretty broad-based. There are a lot of companies out there that are saying things are looking good.

- Bob Costello, ,
chief economist for the American Trucking Associations


Tonnage moved is up. So are the stock prices of several of the largest truckload carriers.

At the same time, firms are again having a tougher time finding qualified drivers, a possible sign of economic recovery. And companies are reporting continued strong demand for August and early September - a period not covered by the most recent statistics.

"This is pretty broad-based," said Bob Costello, chief economist for the American Trucking Associations. "There are a lot of companies out there that are saying things are looking good."

The industry trade group's truck tonnage index, a key indicator of trucking activity, is up 3.7% for the first seven months of the year, compared with the same period in 2002.

 

[Zebo]

Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

 

[charrison]

Originally posted by: Zebo
Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

However, it appears just as many jobs have been lost as saved because of the steel tarrifs. Other industrys in the US got less competive because of higher priced steel.

 

[LunarRay]

I used to use this tonnage moved factor as a really good indicator that inventory is moving toward the retailer.. this is a good thing to see for the next quarter's numbers..


edit in a (')

 

[Zebo]

Originally posted by: charrison

Originally posted by: Zebo
Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

However, it appears just as many jobs have been lost as saved because of the steel tarrifs. Other industrys in the US got less competive because of higher priced steel.

I didnt read that but I'll take your word for it. Seems to me then we tax those "other industries" comming into USA to to make our USA made products more competitive keeping americans employed. We cannot compete with china or other third worlders labor prices. Niether can Japan who is feeling the crunch. I guess its enevitable to bring our wages on par with third worlders but I sure as hell don't like the idea and will continue to only buy US made until I can't afford to. Some families have a hard time on two paychecks were I live and my parents did it on one blue collar one.

 

[dmcowen674]

Originally posted by: Zebo

Originally posted by: charrison

Originally posted by: Zebo
Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

However, it appears just as many jobs have been lost as saved because of the steel tarrifs. Other industrys in the US got less competive because of higher priced steel.

I didnt read that but I'll take your word for it. Seems to me then we tax those "other industries" comming into USA to to make our USA made products more competitive keeping americans employed. We cannot compete with china or other third worlders labor prices. Niether can Japan who is feeling the crunch. I guess its enevitable to bring our wages on par with third worlders but I sure as hell don't like the idea and will continue to only buy US made until I can't afford to. Some families have a hard time on two paychecks were I live and my parents did it on one blue collar one.

It's great to see more and more of the people in here seeing the Forest through the Trees. There are still many spewing the rhetoric that is taking down the U.S. but many are wising up. Good job folks, just hope it's not too late.

 

[xxxxxJohnGaltxxxxx]

Originally posted by: Zebo
Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

I think you need to think through your premises a little more, Zeb.

If, as you suggest, we 'slap' a 30% tariff on commodities/products imported from overseas, I truly doubt you will see increased tax receipts and this utopian idea of budget surpluses.

Firstly, let me ask you this: What would be the purpose of these tariffs? Would you not agree that they are used to 'level the playing field," per say, in an effort to make our goods/services more competitive in the home markets? If so, then would you not also agree that there must be something about that particular industry in America that is making it less competitive, thus the need to impose the 30% tariffs? Typically, the factor having the most bearing on the competitiveness, all else constant, is price. The cheaper labor overseas affords foreign manufactures the luxury of bringing goods/services to market at a cheaper price, correct?

So if price is driving your train toward implementing tariffs on less competitive markets in America, then one could logically conclude that the price of goods in America in that industry, relative to our overseas competition who you would like to impose a tariff on to limit their products from reaching American markets, are relatively higher than our foreign counterparts', correct? It seems, therefore, you would like Americans to pay more for goods/services during an interim period, as manufactures work to become more competitive with overseas producers, which, as you argue, would lead America to having "a budget surplus with all the tax receipts driven by all the new jobs created."

Is this your premise? If it is, please let me know and I will continue walking you down the path of 30% tariffs across-the-board. If not, correct my assumptions and I will then continue heading down the inflationary path to poverty...just hate to get beyond the scope if I am misinterpreting your argument.

 

[rjain]

On a slight tangent, one economist (I forget who) said that the recent recession wasn't enough to provide for a good recovery. One of the things that a recession does is get rid of overcapacity by forcing companies to consolidate or go out of business (whether merely bankrupcy or full liquidation). Consolidation can sometimes be difficult with the financial conditions surrounding recession, but once the recovery starts, the companies who were strong enough to weather the storm will gain the capital to take over those that went bankrupt or buy assets of those who are liquidating. The low interest rates helps them raise this capital easily, as people flock to bonds to protect their investments, causing a bond bubble due to the lack of companies, governments, and individuals willing to take on debts due to the dire prospects. However, those that took advantage of the low rates as a result of courage and existing financial strength would be rewarded as the extra capital they gained would be easy to leverage with so few other people having steady income. This creates demand for more work, giving more people income, etc.

Basically, the point was that even though we had a bond bubble, we didn't stay in those recessionary conditions long enough to force companies with bad business models and/or operating in oversupplied industries into spending all their savings and getting thrown out. Now we're left with the same inefficiencies that we had during the "irrational exuberance" that created so many companies to create products (like DRAMs) that no one really wanted, but they could "sell" them to the next manufacturer for "free" and book a profit (and add accounts recievable as an "asset"). bleh. what a rant. now, where was I?

 

[Ferocious]

This rebound is temporary as it is a jobless recovery.

At the end of this year....or early 2004......I think we will head south again.....at the very least losing any gains made this year.

 

[xxxxxJohnGaltxxxxx]

Originally posted by: Ferocious
This rebound is temporary as it is a jobless recovery.

At the end of this year....or early 2004......I think we will head south again.....at the very least losing any gains made this year.

While I wait for Zebo to correct my assumptions, how abut you substantiate your claims with a little more detail? Do you data that are suggesting an economic downturn, or do you have some magic 8-ball that see all, knows all? I am just wondering how you arrived at your conclusions...50/50?

 

[xxxxxJohnGaltxxxxx]

Originally posted by: rjain


The low interest rates helps them raise this capital easily...

...which sometimes is a double-edged sword; the propensity to supplant labor, given the realtive price of capital acquisitions, is increased and often leads to a basic substitution effect in labor markets...in less labor-intensive industries.

"irrational exuberance"

Nice

 

[alchemize]

Originally posted by: Ferocious
This rebound is temporary as it is a jobless recovery.

At the end of this year....or early 2004......I think we will head south again.....at the very least losing any gains made this year.

Can you be a little more specific on which month, so I can dump all my money into bond funds? I've never had this level of superior economic consultation before, and I'm excited.

 

[xxxxxJohnGaltxxxxx]

Originally posted by: alchemize

Originally posted by: Ferocious
This rebound is temporary as it is a jobless recovery.

At the end of this year....or early 2004......I think we will head south again.....at the very least losing any gains made this year.

Can you be a little more specific on which month, so I can dump all my money into bond funds? I've never had this level of superior economic consultation before, and I'm excited.

You know what they say about opinions, sir....


I wonder where these guys went...assert one thing, then moves on to the next thread once we question their reasoning...par for the course around here.

 

[Engineer]

Originally posted by: Zebo
Thanks to Bush not allowing Mexican trucks and thier drivers on our roads. Much like the steel industry is doing pretty well with the 30% tarrifs he slapped on foreign steel. Good work Bush. Now if we could just do this for every industry America would have a budget surplus with all the tax reciepts driven by all the new jobs created.

My company now pays $1,000,000 per month more for steel than it did before the tarrif was added. Maybe part of the reason why we lost our 401k match last year and won't get it back anytime soon!