Here are three key points all shippers should be paying attention to as the new administration takes over:
With Inauguration Day behind us and the nation’s new president beginning his presidency, it’s a good time to take a look at what could be coming around the next corner for the global logistics and transportation sector.
And while some question if the tax cuts, regulation reductions, national infrastructure improvements, and trade deal shifts that President Trump has been talking about publicly will ever come to fruition, shippers should expect at least some impact—both positive and negative—from these three key trends and proposals:
- The nation’s infrastructure may get a major facelift. Speaking of improvements for bridges, roads, and other public projects, President Trump has for months been talking about the poor state of the nation’s infrastructure and what he plans to do about it. As part of his vision, the president-elect plans to “transform America’s crumbling infrastructure into a golden opportunity for accelerated economic growth and more rapid productivity gains with a deficit-neutral plan targeting substantial new infrastructure investments.” This could bode well for the nation’s shippers, carriers, and third-party logistics firms, all of which rely on these infrastructure components on a daily basis. It could also help spur on job growth for laborers and other workers who were displaced from their positions during the recession, and who have yet to find new employment.
- Trading with global partners could be altered. Trump won’t be steering the ship alone while he’s in office, but if early indicators are on target, we may experience significant changes in the direction on foreign trade over the next four years. In his first few days, US President Donald Trump has already signed an executive order to withdraw from the negotiating process of the Trans-Pacific Partnership as well as pledged to begin renegotiating the North American Free Trade Agreement (NAFTA) in upcoming talks with the leaders of Mexico and Canada. Odyssey will continue to monitor the status of these negotiations and the impact they will have on logistics.
- Domestic trade velocity could increase significantly. If there was a common theme across most of the President’s campaign promises and “first 100 days” plans, it was the desire to either bring offshored jobs back to the U.S. or keep more domestic jobs in place. This could impact the global transportation environment on several fronts but a major one being an increased need for national logistics infrastructure. Whether this actually plays out remains to be seen, but it’s definitely something for shippers to keep an eye on.
Odyssey is here, ready to help
Odyssey is ready to help your organization manage the coming changes that the new presidential administration could bring about over the next few months. If you have any specific questions about your supply chain and the best approach when dealing with these issues (or, taking advantage of the related opportunities), please reach out to your Odyssey representative.