As I write this posting, an estimated 1 million people are gathering in Washington, D.C. to watch the inauguration of Barack Obama as the 44^th President of the United States and the first African-American to hold this office.  This is truly a historic moment in our country’s history, and it’s difficult not to feel inspired and full of hope, regardless of your political views, seeing so many people expressing their support for the new president.

What impact will the new administration have on the logistics industry?  In the near term, I believe there are four things worth tracking:

1. The fate of the U.S. automakers.  Will they get additional “bailout” money from the government?  What other assistance will the government provide (e.g., regulatory changes) to make the industry more competitive?  The automotive industry is a significant source of revenue for many logistics service providers.  For example, in a study we conducted a few years ago where we profiled twenty logistics service providers, the automotive industry accounted for almost 30 percent of total net revenues for these companies, the highest percentage among all industries.  The economic woes of the automotive industry are impacting all types of LSP services: contract transportation management, dedicated fleet, freight forwarding, customs brokerage, etc. Simply stated, as the automotive industry goes, so does the LSP industry.
2. Will the Employee Free Choice Act (EFCA) get passed?  I’ve written about this topic several times already (here and here), so I won’t repeat myself again.  Sufficient to say that EFCA is shedding light on the role and importance of labor in the logistics industry.
3. Legislation and funding for “green” initiatives.  Transportation is a leading source of carbon emissions, so any regulation focused on reducing, monitoring, reporting, or capping emissions will have a big impact on the industry.  Will Congress pass a carbon “cap and trade” law?  Will the EPA regulate greenhouse gas emissions under the Clean Air Act?  Will California and other states take unilateral action?  These questions will likely get answered in 2009.  In terms of funding, read the American Recovery and Reinvestment Plan of 2009 summary report published by the House Committee on Appropriations last week.  Proposals include $200 million for a new grant program to encourage electric vehicle technologies; $400 million to help state and local governments purchase efficient alternative fuel vehicles to reduce fuel costs and carbon emissions; and $300 million for grants and loans to state and local governments for projects that reduce diesel emissions, including technologies to retrofit emission exhaust systems on school buses, replace engines and vehicles, and establish anti-idling programs.
4. Investments to improve our nation’s transportation infrastructure.  I commented on this topic last week (“Global Trade Posts Negative Growth“) and it’s also a key component of the American Recovery and Reinvestment Plan, where $30 billion is targeted for highway and bridge construction projects.

The actions Obama and Congress take in the next few weeks will determine our path to economic recovery, and how quickly we’ll get there.  There will certainly be a lot of debate and differences of opinion, but let’s hope that the “Yes We Can” mantra that inspired so many citizens on the campaign trail also inspires our elected officials and business leaders to make the “right” decisions today, whatever they turn out to be.