Saia study reveals ongoing shipper concerns

A nationwide survey of U.S. executives on their motivations and beliefs about economic conditions, budgets and supply chains revealed other worries as well

By ·

Not surprisingly, the primary concern among small to medium-sized businesses, is the economy. But a nationwide survey of U.S. executives on their motivations and beliefs about economic conditions, budgets and supply chains revealed other worries as well.

In announcing its recent findings of the 2011 National Trends in Small to Medium-sized Businesses, Saia reported that the vast majority (65 percent) of U.S. executives said the economy is their number one concern, followed by fuel costs (23 percent) and health insurance (15 percent).

“Small to medium-sized businesses are the backbone of our economy,” said Rick O’Dell, president and CEO of Saia. “Normally, you would expect business leaders to be more upbeat coming out of a downturn like we recently experienced. I am encouraged by several of the survey’s findings including those regarding staffing and supply chain expenditures.”

This comes on the heels of a Fedex earnings report showing major a strong yield in all transportation segments.

More than one-third (39 percent) of those surveyed said capital expenditures will be the same in 2011 as in 2010. Capital expenditures for 2011 will be higher according to one-third (33 percent) of business executives. More than one-quarter (28 percent) say capital expenditures will be less in 2011 than in 2010.

Supporting their concern of uncertainty, nearly three-quarters (72 percent) of executives said they plan on maintaining the same number of employees for the next 12 months as they have today. Seventeen percent of those surveyed said their company plans to increase the number of employees in the next 12 months, while 11 percent said they plan to reduce their current staffing levels.

“About one in ten small to midsize businesses are changing their inventory practices as a direct result of the catastrophes in Japan earlier this year,” said O’Dell.

“Nearly two-thirds of those surveyed say they do not have a contingency plan in place to handle inventory issues during a business interruption or emergency event.”

For related articles click here.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at pburnson@peerlessmedia.com.

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!

Latest Whitepaper
Improving E-Commerce Fulfillment Through Business Integration
As e-commerce continues to outpace conventional retail, companies of all sizes are finding ways to disrupt traditional business models and seize market share.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...