Independent U.S. Shippers Not Out of the Woods Yet

According to the National Federation of Independent Business (NFIB) Small Business Optimism Index optimism remained at recessionary levels in December with just a half-point increase in the index over November
By Patrick Burnson, Executive Editor
January 08, 2013 - SCMR Editorial

Last week we noted that retailers were expressing relief that the “fiscal cliff” had been avoided. The impact of such a threat, however, has yet to be measured. According to the National Federation of Independent Business (NFIB) Small Business Optimism Index optimism remained at recessionary levels in December with just a half-point increase in the index over November.

Furthermore, business owners continue to have low expectations about the future of the economy. Only three of the ten index components were down, but still, there were no major improvements in the remaining components.

Two of the down categories were related to employment conditions. The net percent of owners adding to their labor force in the last three months fell 1 point to -2%, and plans to hire in the next three months fell 4 points to a net 1%. Skepticism about future business conditions is likely behind the reading, as those reporting under-qualified applicants as an issue behind filling positions fell for a third consecutive month. 

Business owners continue to report growing inventories, however they are feeling more satisfied with their current levels than in November. A net -4% are planning to add to stocks in the next three to six months, a point higher than in November. Sales expectations for the next three months improved a bit to -2% from -5%.

The bottom line?

With no additional information on how the fiscal cliff would play out before the December reading, it was tough for small business owners to give a positive report on their sentiment.

Economists say that the small improvements here and there were not enough to boost the overall outlook. It is still tough to tell how small business owners will react in January since the resolution of the fiscal cliff.

IHS Global Insight believes that it is likely that many were not fully satisfied with the outcome.



About the Author

image
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 .(JavaScript must be enabled to view this email address).

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!

Recent Entries

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Diesel prices continued their recent stretch of gains with a 3.6 cent increase this week to $2.936 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

TSA has reaffirmed its March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and lines have also filed a previously announced April 9 GRI in the same amount.

Article Topics

Blogs · Global · Economy · ISM · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.