Monday, October 13, 2008

In Chaos Lies Opportunity

Today's speaker at the Transportation Club of Tacoma featured Patrick O'Malley, President, Landstar Carrier Group, whose motto for the times: In Chaos Lies Opportunity.

As intriguing as the look at his company, here's a short snapshot of what he expects in the future of his industry: trucking.

CAPACITY: Those who have capacity will be winners. Since the downturn, 24,000 trucks have been sold overseas. They are not coming back.

FUEL: Some stabilization is ahead. Never a return to the glory days.

INFRASTRUCTURE: It needs rebuilding, regardless of who the owners are (states, cities, federal highways, ports). His company's position is that the feds should fund from fuel taxes.

SECURITY: Need coordination and standardization. Look to California's efforts as a (bad) example.

CREDIT MARKETS: (As of noon), it's irrational. There are 1 in 10 companies now whose market value (stock price) is less than their per share value in cash.

O'Malley thinks the bellwether on a recession will be unemployment, and will drive government economic recovery programs.

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