Logistics trade groups say infrastructure should be top goal for Buttigieg at Department of Transportation | 2020-12-16 | DC Velocity | The Supply Chain Xchange
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Logistics industry groups are pointing to infrastructure rebuilding as a top priority for working with the incoming Biden Administration, following news Tuesday that former South Bend, Indiana, mayor Pete Buttigieg had been nominated as Secretary of Transportation.
Drafting plans to renovate decaying roads, rails, and bridges has long been a common goal of diverse transportation interests, but previous attempts to launch broad infrastructure initiatives have floundered on the thorny challenge of funding those expensive projects.
However, trade groups quickly renewed their call for infrastructure repair after Biden won the election in November, backing Biden’s plan to invest $1.3 trillion over 10 years on projects such as stabilizing the Highway Trust Fund to build roads and bridges, creating electric-vehicle charging networks, a national high-speed rail system, the development of low-carbon aviation and shipping technology, and infrastructure fortifications to withstand the effects of climate change.
Biden referenced those goals when he named Buttigieg as his choice for Senate confirmation to the job. “I am nominating him for Secretary of Transportation because this position stands at the nexus of so many of the interlocking challenges and opportunities ahead of us,” Biden said in a statement. “Jobs, infrastructure, equity, and climate all come together at the DOT, the site of some of our most ambitious plans to build back better.”
While Buttigieg lacks a background in the transportation sector, a number of trade groups are optimistic that his government and military experience will allow him to chart a path through the administrative minefield that has defeated previous efforts to launch infrastructure renewal efforts.
“Having served as a mayor, Pete Buttigieg has had an up close and personal look at how our infrastructure problems are impacting Americans, and how important it is to solve them, Chris Spear, the president and CEO of American Trucking Associations (ATA), said in a release. “On behalf of the trucking and freight transportation industry, I’d like to congratulate Pete Buttigieg on his nomination to lead the Department of Transportation. We look forward to rolling up our sleeves and working with him to begin the important work of rebuilding our nation’s infrastructure.”
Rail groups also pledged to cooperate on rebuilding plans, according to a statement from Ian Jefferies, president and CEO of the Association of American Railroads (AAR). “Former-Mayor Buttigieg’s forward-looking approach supported by data-driven decision making will serve him well as the next Secretary of Transportation. On behalf of AAR and the nation’s rail industry, we look forward to working with Mr. Buttigieg to modernize the nation’s surface transportation,” Jefferies said.
Likewise, the Consumer Brands Association said Buttigieg would bring a “fresh perspective” to the challenge. “The nation’s reliance on critical supply chains was laid bare during the Covid-19 pandemic, with a huge burden being placed on our transportation networks and the essential workers who help deliver for America,” Geoff Freeman, president and CEO of the Consumer Brands Association, said in a release.
“Reducing congestion, addressing the truck driver shortage, and encouraging innovations like commercial autonomous vehicles to lower carbon emissions are just some of the issues we expect to be on the department’s radar screen. Especially with a new Congress and anticipated infrastructure legislation on deck, not to mention trends like the growth of e-commerce, now is the time to resolve chronic transportation concerns and leverage many of the lessons learned over the past year,” Freeman said.
And while political control of the Senate rests on the result of a pending January run-off election in Georgia, Buttigieg will at least have support for his efforts from the Democratic majority of the House of Representatives. In fact, the pandemic crisis may even provide extra leverage for leaders to make a deal on infrastructure, since the work would not only modernize outdated structures but also generate new economic activity to help the nation pull out of economic recession, according to Peter DeFazio (D-OR), chair of the House Committee on Transportation and Infrastructure.
“As a presidential candidate, Pete’s infrastructure proposal for the country not only focused on fixing our existing roads and bridges, but also investing in the national passenger rail network, boosting public transportation, and investing in rural communities, all while putting an emphasis on 21st century needs such as broadband internet and electric vehicle infrastructure,” DeFazio said in a release. “The bottom line is with a forward-looking leader at DOT, our Nation has an incredible opportunity to create jobs, support U.S. manufacturing, reduce carbon pollution from the transportation sector, and create safer, more efficient infrastructure by investing in transportation.”
If it is realized, that focus on physical infrastructure would mark a departure from the department’s direction during the Trump Administration, when it has been led by Transportation Secretary Elaine Chao. During her tenure, DOT policies have often walked a thin line between opposed interest groups such as industry, labor, and environment. Those sectors have debated the impacts of decisions like the Federal Motor Carrier Safety Administration (FMCSA)’s move to loosen federal restrictions on truck drivers’ hours of service (HoS) caps and the Federal Railroad Administration (FRA)’s call that U.S. railroads will not have to meet minimum requirements for the size of train crew staffs.
Supply Chain Xchange Executive Editor Susan Lacefield moderates a panel discussion with Supply Chain Xchange's Outstanding Women in Supply Chain Award Winners (from left to right) Annette Danek-Akey, Sherry Harriman, Leslie O'Regan, and Ammie McAsey.
Supply Chain Xchange recognized four women who have made significant contributions to the supply chain management profession today with its second annual Outstanding Women in Supply Chain Award. The award winners include Annette Danek-Akey, Chief Supply Chain Officer at Barnes & Noble; Sherry Harriman, Senior Vice President of Logistics and Supply Chain for Academy Sports + Outdoors; Leslie O’Regan, Director of Product Management for DC Systems & 3PLs at American Eagle Outfitters; and Ammie McAsey, Senior Vice President of Customer Distribution Experience for McKesson’s U.S. Pharmaceutical division.
Throughout their careers, these four supply chain executive have demonstrated strategic thinking, innovative problem solving, and effective leadership as well as a commitment to giving back to the profession.
The awards were presented at the Council of Supply Chain Management Professionals (CSCMP) annual EDGE Conference in Nashville, Tenn. In addition to the awards presentation, the leaders discussed their leadership philosophies and career path during a panel discussion at the EDGE conference.
The surge of “nearshoring” supply chains from China to Mexico offers obvious benefits in cost, geography, and shipping time, as long as U.S. companies are realistic about smoothing out the challenges of the burgeoning trend, according to a panel today at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
Those challenges span a list including: developing infrastructure, weak security, manual processes, and shifting regulations, speakers said in a session titled “Nearshoring: Transforming Surface Transportation in the U.S.”
For example, a recent Mexican government rail expansion added lines to tourist destinations in Cancun instead of freight capacity in the Southwest, said panelist Edward Habe, Vice President of Mexico Sales, for Averitt. Truckload cargo inspections may rely on a single person looking at paper filings on the border, instead of a 24/7 online system, said Bob McCloskey, Director for Logistics and Distribution at Clarios, LLC. And business partners inside Mexico often have undisclosed tier-two, tier-three, and tier-four relationships that are difficult to track from the U.S., said Beth Kussatz, Manager of Northern American Network Design & Implementation, Deere & Co.
Still, dedicated companies can work with Mexican authorities, regulators, and providers to overcome those bottlenecks with clever solutions, the panelists agreed. “Don’t be afraid,” Habe said. “It just makes sense in today’s world, the local regionalization of manufacturing. It’s in our interest that this works.”
A quick reaction in the first 24 hours is critical for keeping your business running after a cyberattack, according to Estes Express Lines, the less than truckload (LTL) carrier whose computer systems were struck by hackers in October, 2023.
Immediately after discovering the breach, the company cut off their internet, called in a third-party information technology (IT) support team, and then used their only remaining tools—employees’ personal email and phone contacts—to start reaching out to their shipper clients. The message on Day One: even though the company was reduced to running the business with paper and pencil instead of computers, they were still picking up loads on time with trucks.
“Customers never want to hear bad news, but they really don’t want to hear bad news from someone other than you,” the company’s president and COO, Webb Estes, said in a session today at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
After five or six painful days, Estes transitioned from paper back to computers. But they continued sending clients daily video updates from their president, and putting their chief information officer on conference calls to answer specific questions.
Although lawyers had advised them not to be so open, the strategy worked. It took 19 days to get all computer systems running again, but at the end of the first month they had returned to 85% of their original client list, and now have 99% back, Estes said in the session called “Hackers are Always Probing: Cybersecurity Recovery and Prevention Lessons Learned.”
As the final hours tick away before a potential longshoreman’s strike begins at midnight on the U.S. East and Gulf coasts, experts say the ripples of that move could roll across the entire U.S. supply chains for weeks.
While some of the nation’s largest retailers were able to pull their imports forward in recent weeks to soften the blow, “the average supply chain is ill-prepared for this,” Tom Nightingale, the former CEO of AFS Logistics, said in a panel discussion today at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
Despite that grim prognosis, a strike seems virtually unavoidable, CSCMP President & CEO Mark Baxa said from the stage. At latest report, the White House had declined to force the feuding parties back into arbitration through its executive power, and a voluntary last-minute session had failed to unite the International Longshoremen’s Association (ILA)’s 45,000 union members with the United States Maritime Alliance that manages the 36 ports covered under their expiring contract.
The ultimate impact of a resulting strike will depend largely on how long it lasts, the panelists said. With a massive flow of 140,000 twenty foot equivalent units (TEUs) of shipping containers moving through the two coasts each week, each day of a strike will require 7 to 10 days of recovery for most types of goods, Nightingale said.
Shippers are desperately seeking coping mechanisms, but at this point the damage will add up fast, whether a strike lasts for an optimistic “option A” of just 48 to 72 hours, a pessimistic “Option B” of 7 to 10 days, or even longer, agreed Jon Monroe, president of Jon Monroe Consulting.
The first full day of CSCMP’s EDGE 2024 conference ended with the telling of a great American story.
Author and entrepreneur Fawn Weaver explained how she stumbled across the little-known story of Nathan “Nearest” Green and, in deciding to tell that story, launched the fastest-growing and most award-winning whiskey brand of the past five years—and how she also became the first African American woman to lead a major spirits company.
Weaver is CEO of Uncle Nearest Premium Whiskey, a company she founded in 2016 and that is part of her larger private investment business, Grant Sidney, Inc. Weaver told the story of Uncle Nearest—as Nathan Green was known in his hometown of Lynchburg, Tenn.—to Agile Business Media & Events Chairman Mitch MacDonald, in a keynote interview Monday afternoon.
As it turns out, Green—who was born into slavery and freed after the Civil War—was the first master distiller for the Jack Daniel’s Whiskey brand. His story was well-known among the local descendants of both Daniel and Green, but a mystery in the larger world of bourbon and a missing piece of American history and culture. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
“I believed it was a story of love, honor, and respect,” she told MacDonald during the interview. “I believed it was a great American story.”
Weaver told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest, and has channeled it into an even larger story with the founding of the brand. Today, Uncle Nearest Premium Whiskey is made at a 323-acre distillery in Shelbyville, Tenn.—the first distillery in U.S. history to commemorate an African American and the only major distillery in the world owned and operated by a Black person.
Weaver and MacDonald's wide-ranging discussion covered the barriers Weaver encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she said she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, emphasizing a recent project to fast-track a new Uncle Nearest product in which collaborating with the company’s supply chain partners was vital.
Uncle Nearest Premium Whiskey has earned more than 600 awards, including “World’s Best” by Whisky Magazine two years in a row, the “Double Gold” by San Francisco World Spirits Competition, and Wine Enthusiast’s “Spirit Brand of the Year.”
CSCMP’s EDGE 2024 runs through Wednesday, October 2, at the Gaylord Opryland Hotel & Convention Center in Nashville.