Transportation Logistics and Economic Decline: Politics, Infrastructure and the Recession
Final Project
Ricky Dartez – 4171437
TLMT498, Summer 2012
Dr. Ernest L. Hughes
October 28, 2012
Table of Contents
Abstract…………………………………………………………………………………………….3
Introduction…………………………………………….……………….………………………….4
The Scope of Logistics’ Economic Impact..…...………………………….……………………….5
The Economy of Logistics: Macro and Micro Perspectives…………….…………………………8
Impacts of the Great Recession……………………………………………………………….…..10
Transportation and Politics………………………………………………………………….….....14
Conclusion……………………………………………………….………………………….…….17
References………………………………………………………;…………………….………….19
Absract
This paper attempts to explain the cyclical
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Because the economic opportunity of the nation’s populations is dependent upon efficient transport systems; which, in most cases, are dependent upon a publically-funded infrastructure; which, in turn, is dependent upon the economic strength of the populations; there exists a cyclical interdependence not unlike that which exists within most supply chains. In this sense, we can view our country in terms of a large supply chain where the economy represents the finance department, the population represents the labor, and the nation’s infrastructure is representative of the distribution network—inefficiencies in any of these areas ultimately produces inefficiencies within the other areas.
The Scope of Logistics’ Economic Impact.
Since the strength of the U.S. economy is greatly dependent upon consumer spending levels, the impact of logistics and transportation, as a function of logistics, greatly impacts the economy in several ways: direct impacts, indirect impacts, and related impacts (Rodrigue & Notteboom, 2012, para. 2).
Direct impacts. Logistics and transportation directly impact the economy by providing access to employment, adding value to products, increasing market areas. The transportation industry in particular is a major contributor to the economy because its divisions form and support the foundation upon which the
Transportation has been a huge asset in economies all over the world. Products travel all over the place in order to retain a steady flow of money for the respective company. The meat economy is a well known example of this, by using railroads and boats to shape into what the economy is today. Without a doubt, the Chicago and Cincinnati meat economies proved that transportation was a major factor in the strengthening of an economy.
The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).
Organizations are constantly being challenged to identify ways to reduce operating cost, increase equipment capacity and utilization. There are many variables in why we see continued increases. One of the major effects is raising fuel cost. Companies are constantly battling this variable. This is not the only issue facing companies today. But it is certainly a concerning one to companies who rely on fuel for their company to thrive. These challenges are aligned with rising material costs as well. The economics of transportation affects the lives of all U.S. citizens and citizens of other nations. The
Transportation financial matters, the investigation of the portion of transportation assets keeping in mind the end goal to address the issues of a general public. In a macroeconomic sense, transportation exercises shape a part of a country's aggregate financial item and assume a part in building or reinforcing a national or local economy and as an impact in the advancement of area and different assets. In a microeconomic sense, transportation includes relations in the middle of firms and individual buyers. The interest for and supply of transportation for both travelers and cargo, transportation evaluating, and the reasons why the transportation framework is both managed and deregulated are among its worries. Reference acquired from :http://www.britannica.com/topic/transportation-economics)
There are two main culprits of the public transport industry responsible for this mess. These are namely the bus and rail companies who despite, receiving large government subsidies, simply can't rectify their problems.
Every family, every community, and every business needs infrastructure to thrive (ASCE). It is evident that we are dependent on our nation’s infrastructure, but as Andrew Soergel, an economy reporter at U.S. News states, “We need to stop talking about infrastructure as simply an engineering prospect and more as an economic one.” He’s right as infrastructure projects currently make up a vast part of our economy, nearly 11 percent of the American workforce today is employed directly in infrastructure sectors (USNEWS). In a report on the American Recovery and Reinvestment Act, the Congressional Budget Office wrote that, “Spending on infrastructure created the second-most economic activity for each dollar spent.” This power comes from the strong economic activity that is generated by the direct hiring of workers to build the needed infrastructure, as well as the boost from the increased spending of those newly hired workers. National Editor of Forbes magazine Robert Lenzner estimates that long-term infrastructure investment programs are bound to create 23,000 jobs for every $1 billion of investment. This will help lower unemployment and raise GDP. The long-term health of the economy is also helped by strong public infrastructure because it helps to boost the productivity of workers and businesses in the private sector. Well-maintained roads, for example, allow
1. It did not surprise me that logistics has an important impact on the economy because logistics is one of the biggest causes for globalization. Logistics is the movement and management of goods and that is what keeps countries involved with one another.
Railroads can be used human passenger traffic, or the transportation of freight and shipments from one destination to another due to the fact that “trains are four times more fuel efficient than trucks” (Association of American Railroads [AAR], 2015), and the fact that railroads also “reduce highway gridlock, lower greenhouse gas emissions, reduce pollution” (AAR, 2015). In fact railroad transportation according to United States Department of Transportation’s Federal Railroad Administration, “rail network accounts for approximately 40 percent of U.S. freight moves by ton-miles (the length freight travels)” (Federal Railroad Administration, 2010). With the reliance on railroads to transport freight and shipments from one place to another also
The difference in the share of railways in the USA and the EU is due to the geographical distances between cities in the USA and the EU. Railways cost less to operate and have fewer emissions when compared to trucking. Yet, the use of railways is limited for the following reasons: (i) building its infrastructure is very costly; (ii) the long lead time required for developing the infrastructure; (iii) consistent-high-volume of the freight traffic is needed for economic viability; and (iv) the need for trucks for the distribution to the final destinations. Trucks have many advantages over other modes of transportation, especially that they provide last mile delivery. Trucks, as compared to railways, ships, or planes have the most flexibility in reaching a destination, and the upfront
Shipping is an inevitable transportation in Canada because almost all Canadian goods are independent from other countries. The first advantage is people will be able to succeed annual shipments. This consequences are people such as shippers, suppliers and owners in companies can work full years and this makes them possible to earn more money than usual shipments. Also, goods are available to get no matter when it is, so buyers can get both normal and seasonal goods. The second effect is shipping is one of the smart-saving fuel system and reasonable due to carry goods. Carrying goods on railways and tracks can be a long way and sometimes stops because of the melting ice roads, however, shipping
It is widely known that logistics is the life blood of anything major. The logistics and transportation industry in the United
by high levels of manufacturing, with a large population base and in areas close to a main
Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.
Education and unskilled labour affect the economic growth and development of Southern Africa by causing many problems within the actual supply chain, which could lead to an increase in logistics costs, an increase in the costs of logistics within Southern Africa make Southern Africa
The transportation and logistics industry is one of the key components of modern life. It provides the framework through which every raw material and finished consumer good is moved through the supply chain into the hands of consumers. This industry is generally taken for granted by consumers. When consumers do think about the industry it is thought of in terms of unchanging and stagnate transportation modes. This vision of the industry is not an accurate reflection of the reality of modern transportation industry. During the last several decades the technological innovations that have changed the face of modern life, have also had far reaching effects on the transportation industry. The pressures driving innovation in the industry