NAFTA supply chain poised for growth

“Thanks to NAFTA and the lowering of taxes and duties on many commodities, trade has dramatically increased between the United States and Canada with billions of dollars in goods and services crossing the border on a daily basis,” said John Costanzo, president, Purolator International.
By Patrick Burnson, Executive Editor
October 18, 2011 - SCMR Editorial

Near-sourcing and the North American Free Trade Agreement represent a perfect supply chain match, industry analysts contend.

“Thanks to NAFTA and the lowering of taxes and duties on many commodities, trade has dramatically increased between the United States and Canada with billions of dollars in goods and services crossing the border on a daily basis,” said John Costanzo, president, Purolator International.

He noted that the company is currently in an “aggressive” 2011 expansion, has 10 new U.S. branch locations planned before the end of the year, giving it a presence in 18 of the top 20 U.S. markets for trade with Canada. 

“Its customers in aviation, technology, energy, and consumer goods work closely with Purolator for its expertise in cross border trade, extensive Canadian distribution network and ability to handle complexities in a global market,” he said in recent address.

Speaking at last month’s Supply Chain Council’s Executive Summit, Costanzo shared his perspectives on sustaining a competitive edge in a global market environment, including the trends in global trade and logistics services from a Canada / North America and world perspective.  He also addressed the opportunities NAFTA has created for Canada, the US’s largest trading partner and top trading partner for many global economies.

Costanzo’s speech, “Insights in Leveraging NAFTA for Greater Global Supply Chain Capability,” reinforced many of the observations made in a recent study.

After surveying import and export compliance managers from 200 firms, Customs & Trade Solutions Inc and Management Dynamics have compiled key statistics into our latest benchmark study, “Best Practices for Managing NAFTA and Free Trade Agreement Programs.

The benchmark study suggested best practices for implementing and optimizing NAFTA while divulging key statistics, such as:

• 86 percent of all firms used a manual process to manage their NAFTA data
• Only 34.3 percent of all companies were confident of the information they shared with Customs and their Customers through the NAFTA certificate
• 32 percent of respondents have had their customs group audited in the last 3 years

 



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

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

The market for supply chain management software continues to expand, highlighting the importance of software in today’s supply chains.

Over the past five years emerging markets have maintained their “growth dynamic,” observes John Manners-Bell, CEO, of the London-based think tank Transport Intelligence (Ti).

Amid the talk and coverage about things negatively impacting the trucking industry like increasing regulations, tight capacity, and equipment-related issues and challenges, there is one thing to always remember about the sector: it moves a lot of freight, make that more than a lot, actually.

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.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA