Debt deal is done. Now what?
This deal spells relatively good news for the economic engines that drive our country at a time when we can least afford to lose any signs of momentum whatsoever.
in the NewsState of Logistics 2016: Pursue mutual benefit Protective packaging revenues to nearly double by 2026 As ocean cargo alliances prepare for new deployments, Port of Oakland remains “confident” A3 previews Automate 2017 show and conference Slow progress on Positive Train Control implementation remains intact, reports FRA More News
Now that there appears to be a tentative deal on increasing the federal government’s debt limit in place, I am going to be an optimist and ‘assume’ this is a done deal.
Why? Well, for one reason, reading about all the partisan bickering and related back-and-forth nature of what led to this point is draining to say the least.
And aside from that, it spells relatively good news for the economic engines that drive our country at a time when we can least afford to lose any signs of momentum whatsoever.
Failing to increase the debt limit, as mentioned in this space, would not only have been bad for the economy, it also would have been bad for supply chain operations.
A negative credit rating not only would significantly impact consumer patterns, it could have potentially wreaked havoc on inventory management and demand planning processes for both shippers and carriers.
At any conference you attend these days, you usually cannot go five minutes without hearing the word visibility and how important it is to have in when approaching the myriad facets of supply chain management.
What’s more, failure to agree on increasing the debt limit in any way could have set us back to 2008, when Wall Street crashed and put us in an untenable situation entirely.
Things are not as bad now, but, by no means, are they all that great or even that much better. But you don’t need me to tell you that.
Another thing failure to agree on increasing the debt limit would do is to negatively impact the already limited amount of credit available to do things like reinvest in businesses so carriers can by more trucks, rail cars, and containers, and shippers can increase warehouse space, and add personnel, and also allow both sides to grow through expansion and acquisition at a more fervent pace.
I am trying not to get too far ahead of my self, but these days good news—or even a good sign of economic positivity—can be hard to come by. So I will take last night’s news as a good sign….for now.
About the AuthorJeff Berman, Group News Editor Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
5 Supply Chain Trends Happening Now 2017 Warehouse/DC Equipment Survey: Investment up as service pressures rise View More From this Issue