Ltl Freight - Connecting And Sustaining Local Economies

Most Americans are trained to see economic trends in extremely broad terms

. Look no further than the 2012 Presidential campaign - data is used by candidates' supporters or detractors to paint a picture of an economy that will be either positively resurrected (or horribly crippled) by whatever policy any given candidate proposes. What can we do to dig a little deeper and understand the economic flows that are most important to local and regional economies - the ones we know through daily life?

An excellent way to recalibrate one's perspective on the economy is to consider trade that occurs within a city or region. Much regional commerce is transmitted via LTL freight, in which companies transport medium-sized quantities of merchandise between suppliers and consumers via distribution hubs. Let's take a closer look at a regional economy and how LTL shipping plays in to its economic situation.

Take, for example, Los Angeles. Even through the economic downturn, the economy of the Los Angeles Metro area has remained fairly solid over the last ten-plus years. According to figures from the U.S. Bureau of Labor Statistics, from 2001 to 2010 Real GDP of the Los Angeles-Long Beach-Santa Ana Metropolitan area grew from $57.8 billion to $67 billion. It's not a huge increase, but as a percent of the total US Metro areas, it remained at about 5.7 percent - not bad for a single area in one corner of the country, and certainly not as dire as the downturns seen in other U.S. Metro areas.

LTL freight has played an important role in making Los Angeles an economically resilient place. The city has a dense network of medium-to-large freight shipment firms, and those with up-to-date equipment, flexible services, local transportation knowledge and lasting customer relationships have been able to help customers maintain and even grow business over the last ten-plus years. The same data set from the BLS shows that in the L.A. region, industries trading in both durable and nondurable goods of the type transported by LTL firms have fared decently in hard times: the Real GDP value of durable goods has increased from $3.1 to $4.4 billion, while nondurables have kept steady at about $2.6 billion despite the economic challenges of the day.

LTL transportation facilitates the business of these and other industries. Even though the country's economy is not out of the clear, one thing remains certain: professional shipping services and infrastructure can play an important role in keeping local and regional economies sustained and even growing into the future - heartening news as the larger, often less relatable debates swirl around at the national level.

by: John V

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