Category: Trucking News

Commentary: How E-commerce and Millennials are Changing Retail and Trucking

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Source: U.S. Census Bureau, Advance Monthly Sales for Retail and Food Services, Seasonally Adjusted

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Source: U.S. Census Bureau, Advance Monthly Sales for Retail and Food Services, Seasonally Adjusted

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Retail sales are important – not just to the overall economy, but also to trucking – and the game is changing big-time, possibly thanks to an entire generation.

About two-thirds of U.S. economy is driven by retail sales. Compare that to around 12% for manufacturing. As for why it's important to trucking, surely you've heard the line, “If you bought it, a truck brought it.”

The good news is retail sales, including food service sales, were up 2.8% in July from a year earlier. The bad news is that when you compare July to the month before, sales were flat, following a second quarter in which sales increased at a 4.2% annual rate.

This could just be a blip, but others note this may be the beginning of a whole paradigm shift in American spending habits.

Online sales are booming, meaning the traditional patterns of distributing and selling goods isn't the only game in town. In the second quarter, e-commerce sales totaled $97.3 billion, up 4.5% from the first quarter. And e-commerce sales were up 15.8% while total retail sales moved up just 2.3%. E-commerce as a percent of total sales was 7.5% in the second quarter versus 6.6% a year earlier.

In other words, people are still spending. They just aren't doing it the same way they used to – and that has some retailers scared.

In August, department store giant Macy's said it would close around about 100 stores, cutting its footprint by around 15%, to strengthen its presence as an “omnichannel shopping destination.” The move was greeted with a thumbs-up by many analysts. Retailing behemoth Walmart recently bought online retailer Jet.com for $3.3 billion to increase its e-commerce presence and broaden its audience.

There's another way spending is changing. According to ...Read the rest of this story

NAFA Gives Affiliate Members Voting Powers

The NAFA Fleet Management Association has given affiliate members the ability to vote and serve on its national board, the fleet management association announced.

The move broadens leadership opportunities with the association for professionals who are not directly involved in the management of fleet vehicles.

NAFA's members approved the move by a margin of nearly 15 to 1, with 93% of respondents voting in favor of the changes.

"This has been a long time coming," said Ruth Alfson, CAFM, NAFA's president. "NAFA's bylaws had remained virtually the same since the day NAFA was incorporated in 1957, so it is about time we recognized our affiliates as the valued partners they are. Besides that, though, this is the right strategic move for NAFA to make."

As part of the move, NAFA has made many changes to its bylaws. The changes redefine who qualifies as a member and supplier, and sets up a new membership category called regular member for individuals directly involved in fleet management. Other membership categories include associate members (formerly affiliates), honorary members, and retired members. Associate members can now hold up to five of the 13 board roles.

The move also creates a leadership advisory board to help direct NAFA's strategic efforts that replaces the former board of delegates and board of governors. The immediate past president will now be designated as the chair of the nominating committee.

NAFA will form a nominating committee later this month to select candidates for four open board seats. Eligible individuals will be able to submit their names to the committee for consideration.

The board election will take place in January, and the new board will take office in February. The board will then elect a new president, senior vice president, vice president, and secretary/treasurer. The sitting NAFA president will be named the immediate past president.

Related: NAFA I&E ...Read the rest of this story