Deaver Brown’s Post

The days of pushing price hikes to consumers appears to be over #pricingpower #demand #inflation • Companies like FedEx and airlines are experiencing a loss in pricing power as consumers become more price-sensitive and demand weakens. • To cope with the shifting landscape, companies are cutting costs through layoffs, buyouts, and improved efficiency. • Sales growth for companies in the S&P 500 is expected to average 2.7% this year, down from 11% in 2022, while net margins are forecasted to slightly decline from 11.9% to 11.6%.

The layoff of 12,000 workers at UPS does not necessarily indicate a rapid decline in the economy as a whole but international express declines a lot due to many more lines are developed to meet demanding requirements, especially amazon/overseas warehouses businesses need to be deliver with duty paid. #freightforwarding #express #UPS #internationalexpress

Longshoremen strike. Walmart won't like. Retail in upheaval. Buying your Nikes. Dollar General price hikes. Downturns are seasonal. All we want in life - is to do what we might. Is that unreasonable? Some stocks shocked - while others not. That's where we'll leave it all, so... Poetic justice so good it could get me a deal with Penguin Publishing Group. That would be sweet like Baskin Robbins getting the scoop. NASCAR speed with the wit, racing not stuck in a loop. Google Maps planning my route. Stranger Things have happened, right Netflix? JPMorganChase out for drinks in Manhattan - with a twist. All within a grip. Won't slip. About to flip. Indiana Jones smart as a whip. Dock workers looking for better wages. Cold truths like a book deal in Penguin Random House's pages. The kind of honesty that lasts the ages. Curaleaf clarity like Buddha & the sages.

https://lnkd.in/gEKbG47r Gulshan Singh, PhD Margaret A. Kidd, CMILT, CPE™ #SCLT4380 Several companies in the freight and logistics industry are undergoing mass layoffs and facility closures. DHL Supply Chain is cutting 161 jobs in Illinois, due to losing a customer, likely Mars Inc. Hillside Logistics in Illinois is closing a facility, leading to 136 layoffs. Ceva Logistics is laying off 80 workers in Michigan, linking it to reduced business from Ford. DXS Logistics is ending operations at an Amazon facility in California, resulting in 80 layoffs. Quad Logistics Services is closing a center in Illinois, laying off 74 employees. Universal Intermodal Services is laying off 42 truck drivers in California.

UPS Continues to Shrink Check out the attached article from Max Garland at Supply Chain Dive on layoffs at UPS. Expect to see more cutbacks at UPS throughout 2024 as I am not seeing indications of a volume rebound at either UPS or FedEx here in the US. Additionally, recession like conditions in Europe will also continue to negatively impact both global, integrated carriers. It probably would not be fair to characterize cutbacks at UPS and FedEx as a race to the bottom. However, it's clear that both carriers have adopted a strategy of shrinking their operational footprints to reduce costs, and raise prices via ad-hoc rate increases, to protect margin in a shrinking volume and revenue environment. #UPS #fedex #dhl #ups #ecommerce #lastmiledelivery #usps

Would you believe me if I said…… A downturn is the perfect opportunity for sustainable growth for smaller carriers. I personally would like to grow sustainably. Sustainable growth for me means growing to the extent where no matter what the market does people don’t have to get fired or take massive pay cuts. If the cards are played right. A small carrier can actually thrive in a downturn, it’s harder for a large corporation to do the same. Perhaps in such a fragmented industry no single large Corp is actually TOO Big TO Die. There are plenty, however, that are large enough such that their revenues are heavily intertwined with the overall economy. So how can a small carrier thrive then? what characteristics do they have.? Simply put frugal and overall responsible small carriers can thrive in any market. Those who are in it for the long haul and typically have deeper roots than the passers by. Why? Mega carriers feel the crunch the most and are subjected to massive layoffs to alleviate the reduction in revenue This leaves smaller carriers with access to a greater driver pool to work with. It also affords a better negotiating stance with respect to driver pay. This in turn levels out the playing field where, in the race to the bottom,well, it bottoms out. Some smaller carriers have some considerably lower overhead cost than others in general. And Small amounts debt, if any. I could go on and on. We’ve felt largely an affected and although we have struggled it hasn’t been due to low rates nor lack of work. Three trucks offloaded this morning and we are all set and locked in with the next ones . We are blessed to say the least! Have a great day folks! Let’s thrive!!!! #trucking #logistics #flatbed #America

Carrier Layoff Logistics: How Will it Affect Your Business? - Negotiations averted massive supply chain disruptions, but they left many wondering how their business would be affected and how to mitigate risks. Read more here! https://hubs.ly/Q02lZ70Z0

🚛 In recent weeks, the #freight and logistics industry has faced a wave of layoffs and facility closures across Florida, Georgia, Illinois, Michigan, and Texas. High-profile companies such as Universal Logistics, Swissport Cargo Services, The Kroger Co., RXO Logistics, Nosco Inc., and Ryder Integrated Logistics have all announced significant job cuts. 🔍 Key Developments: - Universal Logistics is closing two subsidiaries in Michigan, impacting 677 jobs with no clear reason provided. - Swissport has released employees in Atlanta and Newark following the loss of contracts, including a major one with Amazon. - The Kroger Co. is downsizing, shutting delivery hubs in Texas and Miami, affecting over 230 employees. - RXO Logistics and Nosco Inc. also face layoffs and closures due to lost contracts and operational shifts. 🔗 Read more about these developments on FreightWaves: https://lnkd.in/eru728AV This situation could lead to increased freight rates, changes in service availability, and possibly reshape regional logistics networks. 👉 Our Take: This trend of layoffs could trigger a poignant strategic reassessment within the logistics sector. Companies may need to adopt more robust & flexible business models that can quickly adapt to changing client needs and market conditions. This represents an opportunity to innovate and enhance efficiency in an increasingly dynamic market. #logistics #supplychainmanagement #transportation #industrynews #businessstrategy #jobcuts #innovation

Very interesting to watch the U.S. small parcel market dynamics. Last year it was announced Amazon delivered more packages to U.S. homes in 2022 than UPS after eclipsing FedEx in 2020. Meanwhile, UPS and FedEx announce significant workforce reductions. Are UPS and FedEx leaning out to slant the field in their favor against Amazon or are there other possibilities? Only time will tell. https://https://lnkd.in/dv5HjFj5 https://lnkd.in/dv5HjFj5

More layoffs ahead for freight-related companies across US Geodis, Bimbo Bakeries, Quality Custom Distribution, Neovia Logistics, Dave’s California Logistics cutting 1,234 workers. #grow🌱 #agribusiness #supplychain #trade #usa🇺🇸 #markets #commodities #freight #trucking🚛 #layoffs #interestrates🔥 #logistics #recession2024 #demand