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According to the recent labor surveys, there are 13,000 unfilled supply chain positions nationwide. And, in order to fill those supply chain positions, young professionals with knowledge and skills necessary to manage the supply chains of the future are needed.

Developed curriculums in schools and universities that focus on hard and soft skills are doing their part in enabling young people for the job. But, companies can do their part as well, by transferring the skill set that is cultivated over the years to the next generation of logistics practitioners.

Internships and mentorships as an introduction to the logistics

Paid or unpaid opportunities can enable students to gain the needed experience and learn from you and your company. Also, input from the business community is being asked for by many schools and universities. Your company can get involved, so speak up and be a guide to the ever-growing supply chain industry.

Aside from providing mentorships or being a speaker in universities, you can provide the needed set of knowledge and skills through mentorship programs. Your company can participate in industry organizations that offer opportunities to mentor young supply chain talents.

Columns, podcasts and Internet promotion as a way to gain experience

Sharing your unique perspectives with thousands of readers through or a guest column where you can submit your opinion is a good way to impact a wider community of young people. Also, podcast offers a modern and popular forum to speak directly to younger professionals.

A lot of valuable knowledge-transfer channels are required if professionals are willing to teach a new generation of logistics practicians. One of them is LinkedIn which promotes robust business logistics discussions and comments. By using all those channels of knowledge distribution, your company can gain a valuable asset in a future generation of logistics professionals.

Leading economic indicators which are used as statistics in order to precede various economic events. They are used by the economist so that the next phase of the business cycle is predicted in a proper way. And right now, there are six facts that tell us how the US economy is doing.

Reports from March of 2019 show that the economy is doing well. Low unemployment rates, little inflation, and steady growth are known as the Goldilocks economy. A Goldilocks economy is when the growth is not too hot nor too cold.

A lot of jobs added in March

According to the Non-farm Payroll Report, the number of workers added to businesses and their payrolls each month are being surveyed by the Bureau of Labour. However, it does not count farm workers because of their seasonal nature of work. On average, a healthy economy will create 150,000 jobs. Companies will only add workers once they have enough demand to keep them busy.

According to the National Association of Manufacturers, the 12.75 million Americans who work in manufacturing earn an average of $84,832 a year, including benefits. But, the economy leads to a recession once the manufacturers start laying them off. If the previous year as compared to 2006, in terms of hired workers, manufacturers hired fewer workers starting in October 2006 than the prior year.

Last quarter of 2018 showed a steady growth

The economy is measured by the total value of everything produced in the country. The dollar value of everything produced, no matter if it is produced by the citizens or foreigners. The most important indicator is GDP growth compares this quarter with the last. In the last quarter of 2018, GDP growth was 2,2%.

The GDP growth between 2-3% shows that the economy is healthy. If it is above 3%, the economy could be overheating. On the other hand, growth below 2% brings a danger of contraction.

Weak Rise of Durable Goods Orders in January 2019

Beginning of this year, durable goods orders rose by 0,4% which is weak growth. Machinery, equipment and raw materials that businesses use in their operations are considered to be durable goods. The largest component of durable goods are commercial airplanes. The Boeing aerospace company makes up the lion’s share of commercial aircraft orders.

Businesses buy durable goods only when they feel confident about the future. Durable goods are pretty expensive, so businesses put off buying them until they are in a real need for it. The equipment must last at least three years in order to be considered a durable good. That is why durable goods are a great indicator of economic health.

YOY core inflation above target

Inflation means that you have to pay more for the same goods and services. And the YOY core inflation was 2,1%. The Federal Reserve monitors the core inflation rate because volatile food and gas prices are left out. Also, The Federal Reserve System prefers the year over year inflation rate for its removal of seasonal variations impact.

A target rate of 2% is set by The Fed in a year-over-year for the core rate. That level of inflation is healthy because the consumers expect prices to rise. The Fed use the inflation rate whenever they are deciding whether to raise the fed funds rate or not. The increased demand contributes to economic growth.

The PCE Price Index is the Fed’s inflation gauge. And it says inflation is rising. Although that usually means that the Fed would be more likely to raise rates, the Committee is worried about slowing growth. It stated that raising rates is not an option until 2021.

The stock market made a six-month correction during the last year

In August 2018, the stock market came out of a six-month correction period. And, as the stock market reflects the investor’s vision of the economy, it also shows corporate earnings and profitability. In the long run, stock prices avoid manipulating techniques that businesses use and they reflect demand and health of the economy.

When prices fall 10% from their high the market enters a correction. If the market had been sitting higher highs for a long time then it is a healthy sign. However, there is no reason to worry if other economic indicators are strong.

Stable interest rates indicate a healthy economy

Interest rates control how expensive it is to borrow for both consumers and businesses by the amount of interest due per period. When interest rates are low, businesses borrow more to invest in their companies. On the other hand, higher rates make the opposite thing happen.

The Fed funds rate is the most important because it guides most other interest rates. A healthy fed funds rate is 2.0%. And, the current fed funds rate is 2.5%. The second most important rate is the yield on the 10-year Treasury note. But, interest rates that are too low create a liquidity trap. They are too low for banks to profit from their loans. The only way that can be cured is by the rising interest rate. When that happens, people take out loans now to avoid higher rates later.

National Work Zone Awareness Week is taking place in Washington D.C. from 8-12 April. This year’s kick-off event is hosted by the District Department of Transportation on April 9, at the Frederick Memorial Douglass Bridge.

Prior to this year’s NWZAW, the Federal Highway Administration reports that about every three days there is a fatal work zone crash involving a large truck in the U.S. Adding to that, the roadside is considered to be one of the most dangerous places to work by the law enforcement.

7 tips to trucking safely through road construction

Last November, PrePass shared some tips on work zones in which they highlighted 7 tips that will lead to a safer drive through road construction:

• Be patient;
• Keep your distance;
• Read the signs;
• Watch out for workers;
• Merge safely and early;
• Obey the reduced speed limit sign;
• Signal others what’s ahead.

Aside from that, roadside activity, such as law enforcement assisting motorists, parents accompanying children on a roadside potty break or drivers swapping seats demands awareness as well. When there is a road activity, you should check if your left-hand lane is open, signal your intentions, and move over to give others the space they need to be safe.

Highway safety demands increased awareness when work zones and roadside activity unexpectedly bring people and machinery into harm’s way. Therefore, the National Work Zone Awareness Week is a reminder to highway travelers and work zones workers that safety demand enhanced vigilance as people and machinery engage in work immediately adjacent to busy roads.

Trucker wallets originally emerged out of necessity since the credit cards were first created around the ’50s. And the trucker’s wallet has since become an iconic item in this industry. Back then, gas stations had offered an incentive to anyone who paid in cash. So, being offered with a discount, drivers around the country carried a huge amount of cash.

The trucker’s wallet is the size of a small briefcase and attached to the paints with a chain. This design – a wallet chain – allows for the wallet not to fall out while being on the road. However, it is always practical to want to economize on the space even if you have lots to carry.

Small wallet with plenty of space

The small wallet provides the drivers with plenty of space for all the cards they need to carry during the ride as well as a place for their cash. In addition to that, it also protects drivers from anyone who is trying to steal the information stored in chips on credit cards and, in many cases, from the driver’s ID.The small wallet can block devices that can read radio frequency identification (RFID) chips on a driver’s truck stop loyalty cards, fuel cards, and credit or debit cards. The design of small wallet usually offers more than a few slots for driver’s cards and a special place to stash the cash.

The knowledge-transfer gap in the LTL (less-than-truckload) field is widening as we speak. Professionals are continuously moving into new supply chain position by taking advantage of the strong job market.

When you add the influx of recently graduated college students and the retirement of the trusted logistics leaders into this job shuffling, it becomes clear that the issue of the knowledge gap is getting bigger.

Less-than-truckload transport issues

When upwardly mobile logistics leaders change jobs, a hole in the collective knowledge of their organizations opens up. The same case occurs when longtime employees with decades of experience in the industry leave. That makes less-than-truckload transport issues appear in a complex mode of transportation and clearly states the fact that experience in the field is not easily gained.

That is why the first LTL certification program in the industry is being developed by the transportation industry’s leading authority for LTL data, technology, and supply chain education – SMC³.

What will the certification courses provide?

A flexible learning experience in an alternative and engaging environment will be provided by the certification courses. Students that wish to learn at their own pace is allowed to do that with a convenient option brought by SMC³s on-demand online learning platform. Intensive, classroom-style lectures are available for experienced logistics players who need to improve in some of the key components of LTL.

Areas that SMC³ course will cover

The company transfers deep knowledge of all aspects of the supply chain through logistics conferences twice a year – at Jump Start and Connections conferences. This shared knowledge creates a strong and unified supply chain, with more than 82 years of company’s supporting the complex space of LTL transportation.

Areas that SMC³ course will cover are the Fundamentals of LTL, Operations, Carrier Pricing&Costing, Transportation Law and Regulations, and Business Analytics. And while making courses in all of these areas, shippers, 3PLs, carriers, and technology providers have their eyes on SMC³ in order to benefit from this knowledge-sharing, learning about the latest technological disruptors and how to confront emerging supply chain challenges.

The lifetime of LTL experience, previously limited to its two annual conferences will be extended into the classrooms. The certification class provided by SMC³ is a place where students can achieve a thorough understanding of the industry form the LTL specialists in the company.

SMC³ technology solutions that benefit the entire industry

Thousands of industry trading partners rely on SMC³ technology solutions to make informed business decisions as the company has enabled stakeholders to navigate the LTL industry for decades. With education being one of the foundational tenets for the company, SMC³ also creates rating, transit-time and shipment execution and visibility technology solutions that benefit the entire industry.While preparing a first-of-its-kind LTL certification program, the expectations for the future look of a supply chain figures who are looking to master their LTL knowledge and take their careers to the next level is rising.

Shortly after the U.S. Federal Reserve held off on further interest-rate increases, the European Central Bank said it would keep record-low interest rates for longer. While investors are celebrating the policy reversal, soon enough, cheap credits may posses another threat to the U.S. economy.

Postponing the inevitable downturn with artificially low rates will indeed buy market an additional year or two. But, the cost of that postponing is a massive credit bubble that has enormous proportions.

Business cycles to be replaced with credit cycles

A chief investment officer of Bleakley Advisory Group, a $3.5 billion wealth-management firm, Peter Boockvar said that we no longer have business cycles. Instead, we now have a different type of cycles – credit cycles.

When it comes to understanding what do business cycles mean, it is important to reach for the definition. The economy is always in either expansion or contraction. A growing economy peaks, contracts to a trough, recovers to enter prosperity and hits a higher peak.

But, the last decade brought an end to this pattern. An especially painful contraction that occurred was followed by an extraordinary weak expansion. GDP (Gross domestic product) has been around 3% at its best since 2008. And it should be at around 5% in the recovery and prosperity phases.

Debt-fueled growth is not good for the economy

As Boockvar explained why we no longer have economic cycles, he underlined the significance of credit rates. “We have credit rates that ebb and flow with monetary policy. After all, when the U.S. Federal Reserve Bank cuts rates to extremes, its only function is to encourage the rest of us to borrow a lot of money and we seem to have been very good at that”.

But, the problem occurs when, over time, debt stops stimulating growth. Debt-fueled growth pulls people toward future spending and boosts asset prices. That is the main reason why real estate and stocks have performed so well.

Since debt drives so much GDP growth, its cost is the main variable defining where we are in the cycle. The U.S. Federal Reserve Bank is trying to control the cost and that is why all of us are occupied by the central bank policy.

High-yield bonds pose as a threat

The last credit crisis came from subprime mortgages. But, the bigger risk that lies ahead is the mere amount of corporate debt, especially high-yield bonds. Past cycles have shown that the current level of corporate debt is not going to have a positive impact on the U.S. economy.

Recessions triggered bear markets in an old-style economic cycle. Consumer spending was slowed, corporate earnings fell and stock prices dropped with the economic contraction. But, the credit cycle does not operate in the same manner.

Lower asset prices cause a recession. Access to credit drives consumer spending and business investment. If you take those credits away, consumer spending and business investment decline.

Market makers who disappear when needed the most

Two related problems appear when it comes to corporate debt issuance. Firstly, corporate debt issuance, especially high-yield debt, has exploded since 2009. And, secondly, tighter regulations discouraged banks from making markets in corporate and high-yield debt.

Many experts agreed on the fact that the Dodd-Frank Wall Street Reform and Consumer Protection Act have reduced major banks’ market-making abilities by around 90 percent. Bond market liquidity is fine so far, mostly because the hedge and other non-bank lenders have filled the gap.

But, nothing requires them to hold inventory or to buy when you want to sell. In a bear market, you sell what you can, not what you want to. On the other hand, this gap that is currently being filled by the hedge and other non-bank leaders means all the bids can “magically” disappear just when you need them most.

Low credit rates could lead to a recession

Many of these lenders bought their corporate bonds with money borrowed at record-low rates. Hence, they are far more leveraged this time. And that trend will continue as long as the central banks keep rates low.

Another thing that makes this matter even worse is the fact that most leveraged corporate bonds are “covenant-lite.” That means that the borrower doesn’t have to repay by conventional means and that can even be forced to take more debt.

While many companies lose their ability to service debt due to the fact that the economy is entering a recession, this would normally be the borrowers’ problem. But, the covenant-lite lenders took it on themselves to service those debts. And this means that the effects of the macroeconomy changes will spread even more widely.

The electronic logging device (ELD) mandate in December 2017 upended the freight markets by the capacity of its crunch. The new milestone, which begins in December 2019, expands regulation in two dramatic ways and it may end up being just as disruptive.

Switch from AOBRD’s

The Automatic On-Board Recording Devices (AOBRDs) will no longer be deployed by the drivers since the new ELD requirement becomes more stringent. Fleets will no longer be allowed to deploy the AOBRDs that were implemented for the first two years of the ELD mandate.

Carriers with AOBRDs were once considered compliant, but come December 2019, they will need to switch. The biggest difference is that devices that are “intrinsically integrated” must be included by the ELDs into the truck’s operating system.

Cell phone apps that did not plug in are soon going to become non-compliant, including many of the legacy systems from companies we all think of as the dominant players in the industry.

It is estimated that more than 50% of the 3.5+ million Class 8 trucks now in commercial use will be required to replace or significantly upgrade the ELD system they are currently using. Driver behavior and fleet operation could be under some major changes due to the new ELD mandate.

Every truck in commercial use is included

Every truck in commercial use, not just Class 8 semi-trailers, has always been included by the ELD mandate. Class 3 through Class 7 are also covered, including FedEx, UPS, and Amazon delivery trucks. Also, local utility and plumbing contractor’s trucks are included in the equation.

According to the current mandate, if a delivery driver maintains an electronic log, it is almost always on a cell phone or other device that is not intrinsically integrated. But, with the new ELD mandate, if and when they travel 100 miles or more from their home terminal, they’ll all need to have an ELD device that meets the more stringent requirement of being intrinsically integrated into the truck’s operating system.

Currently, there are more than 3.7 million of these truck in commercial operation. It is estimated that more than 60% of them will need to install a compliant ELD. Otherwise, drivers who do not comply to the new ELD mandate are at risk of being fined whenever they travel more than a couple of hours from home.

Is the new capacity crisis possible?

When the first ELD mandate occurred, back in 2017, there was a full-on panic in the industry. But, as it turned out, no lasting impact was made. The first mandate was well publicized, therefore, the industry had enough time to prepare for it.

However, some disruption came along in 2018 and had a short-term impact on rates. Come the third quarter of the same year, most fleets had adapted to the new technology and the end result was not as dramatic as expected.

Following the new mandate expected to begin this December, even larger population of trucks will be under its influence. Improved technology will eventually lead to an even more efficient workplace. However, there is still one very big problem. A surprisingly large percentage of the industry is unaware of the looming changes in ELD requirements.