Supply Chain Optimization

Slow Down Ahead

Noel Perry of FTR predicts a slowdown or even a recession by 2020.  Even though 2018 is likely to see…

Noel Perry of FTR predicts a slowdown or even a recession by 2020.  Even though 2018 is likely to see 3% growth – the best growth since the recession of 2008 – the lights are flashing yellow:
  • Constraints on labor and trucking
  • Declining energy prices (Oil – West Texas Intermediate – has tanked to ~$51.61 per barrel on concerns of a glut  caused by rising supply from fracking and slow/no growth)
  • The start of wage inflation
 
The Wall Street Journal picked on food service distributors – maybe they think they are the canary in the coal mine – because they are highly labor and transportation intensive and trapped between the food manufacturers and restaurant chains.  The WSJ author did point out that they are paying more to get labor and mitigate costs – all things that everybody is seeing.