Supply Chains Will Move at Modest Pace, Says ITR Economist
Alan Beaulieu, who will once again be the keynote speaker at the Conveyor Equipment Manufacturers Association (CEMA) annual convention in Palm Springs, California this spring, says there are some opportunities for companies with a healthy balance sheet.
Alan Beaulieu, president of ITR
Alan Beaulieu, president of ITR
Latest News
Cargo Shipping Remains on Hold in Baltimore Following Bridge Collapse Maximizing the Bottom Line: The Power of Procurement Baltimore Bridge Collapse Latest Supply Chain Disruption 6 Questions With … Tom Plotkin February and year-to-date U.S. import volume is solid, reports S&P Global Market Intelligence More NewsLatest Resource
2024 Supply Chain Management Readiness Index Lack of predictive view leaving organizations vulnerable to disruptionAll Resources
Although there have been recent signs of new hires in the supply chain sector, managers are being advised to remain cautious when it comes to investing in human capital this year.
“We see the rate of employment bleeding off in the second half of 2014,” says Alan Beaulieu, president of ITR, an economic forecasting firm. “The same goes for spending on equipment and technology.”
The reasons for restraint are many, he adds, pointing to a forecasted “market correction” and concern about cost implications in healthcare reform.
“These are the two major headwinds we see coming,” says Beaulieu. “Consumer confidence is also eroding, so manufacturers and retailers may continue to keep their inventories lean.”
Beaulieu, who will once again be the keynote speaker at the Conveyor Equipment Manufacturers Association (CEMA) annual convention in Palm Springs, California this spring, says there are some opportunities for companies with a healthy balance sheet.
“Cash is king, as always,” he says. “Buying new equipment and hiring skilled professionals to use it, can be a competitive advantage when the economy stages a rebound in 2015.”
That’s because of several factors, Beaulieu contends.
“Healthcare issues should be addressed and reformed by then, and we’ll have survived mid-year elections. China’s economy should improve, thereby driving demand for U.S. exports of heavy equipment and finished goods.”
Meanwhile, he advises companies to remain active in the global marketplace. A concentration on “purely domestic” business may pose a long-term risk.
“And it may be a good time for young professionals to concentrate on careers in supply chain management,” he says. “Anecdotally, we hear of a real need for smart people to move into jobs in this sector.”
As a consequence, concludes Beaulieu, compensation in the supply chain arena – including logistics and materials handling – will ramp up.
“Schools and universities are anticipating a need for managers and business leaders,” he says. “Pay scales and salaries will reflect that in the coming years.”
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue