Instructions (TLMT498) Brief Report – APA format Using your outline from week 1 as a guide, submit a minimum of 5 pages of the research you have completed on your topic to date. You should have an int
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A Review of the U.S Economy and its Impact on Transportation and Logistics Management
Dexter Harris Jr
American Public University
TLMT498
Professor Ridings
December 10, 2023
Abstract
This study investigates the complex relationship between the transport and logistics management and the US economy emphasizing that the latter is vital in enhancing economic growth and competitiveness. The US economy, characterized by its resilience and innovation across sectors such as manufacturing, agriculture, and services significantly affects how operations of transportation and logistics are carried out.
The study examines how economic policies and trends shape efficiency, sustainability, and innovation in this industry. Consequently, the main thesis argues that the dynamics of US economy affect transportation strategies for logistics companies hence influencing their interaction.
Regarding Azmi et al. (2017), Closs & Bolumole (2015), Farhadi (2015), Duranton et al. (2020) and Porter (2012) collectively assert that there is an essential connection between economic elements, transportation infrastructure and logistics management- explained by literature review. Additionally, this paper goes on to give more information concerning this issue through a discussion and results section that highlights major changes like 2008 global recession as well as increased online businesses.
Lastly, the research concludes by giving suggestions on how to address problems caused by economic factors. It urges for digital technologies adoption plus sustainable practices as a way to advance efficiency and sustainability in transportation & logistic management within US economy framework.
Introduction
One of the biggest players in the global economy is the United States. The country exudes capitalism due to its abundant natural resources, a superior infrastructure system as well as its high economic productivity that it has. Its dynamism, adaptability, and inventiveness set it apart as a distinctive economy in many sectors including manufacturing, agriculture energy and services.
The U.S. economy depends on transportation and logistics management for its sustainability. This has been improved by efficiencies brought about by movement of goods and services which have contributed towards competitiveness and economic growth. Closs & Bolumole (2015) reveals that transportation and logistics management is a major part of the United States’ economy since it ensures that supply chains operate smoothly. this affects a wide range of industries including those from retailing to manufacturing.
This study will provide insight into how transportation logistics are affected by the US Economy. Thus, it will examine how economic trends shape strategies in the sector through their operations. The underlying theme is that U.S’s critical influence on Transportation and Logistics Management defines its effectiveness, longevity, and originality.
How has transportation and logistics management been influenced by the US economy? This question enlightens us on different aspects of economics as well as logistics interacting with each other within the perspective of American domestic market.
Literature review
(Duranton et al, 2020) researched on the relationship between the United States' transportation infrastructure and its economy, underlining how efficient transport systems are essential for promoting economic growth and competitiveness. Their research emphasizes on the importance of investing in transportation infrastructure to facilitate economic development.
Analysis by (Porter, 2012) on economic market drivers and regional economic development, emphasizing the role of transportation and logistics in enhancing regional economic performance. His work provides valuable insights into how transportation and logistics management can contribute to regional economic development.
Azmi et al. (2017) discussed about integration as an Important Factor of Business Processes in Logistics and Supply Chain Management. Their research highlights the need for effective coordination and integration in logistics and supply chain management to enhance efficiency and competitiveness.
(Closs & Bolumole, 2015) findings show that a region’s transportation system is often one of its most critical factors, while supply chain hubs underscore the strategic importance of transportation in facilitating economic growth. Additionally, their work provides a comprehensive overview about how transportation and logistics management can contribute towards economic development. (Duranton et al, 2020) research on transportation infrastructure in the U.S. provides valuable insights into the role of transportation infrastructure in promoting economic growth. Therefore, they have concluded that investment in transport would foster expansion of business activity.
According to (Farhadi, 2015) study on transport infrastructure and long-run economic growth in OECD countries provides valuable insights into the role of transportation infrastructure in promoting economic growth. His research underscores why investment is necessary for developing transport to drive business expansion.
Discussion and Results
Transportation and logistics management in the United States is greatly influenced by its economy. According to (Farhadi, 2015), the state of the economy determines the demand for goods and services which affects transportation and logistics. In a booming economy, demand is high leading to more movement of goods. Conversely, this may reduce during a recession. The US trucking industry has been affected by such factors as the 2008 economic recession. The recession had caused reduced freight volumes due to low product demand. As a result, many companies under this industry have faced financial problems.
Conversely, recent technological advancements and changing consumer behaviors have made e-commerce grow rapidly increasing need for effective logistics service providers who can be depended on. This has led to transformative growth within the logistics industry because businesses are investing in cutting-edge technologies aimed at enhancing their efficiency and meeting customers’ needs.
It is evident that transportation and logistics management in America cannot do without its economy. Economic patterns and policies shape strategies of business enterprises in logistics sector thereby becoming either opportunities or challenges for it.
Discussion of New Solutions
Transportation and logistics management are greatly influenced by economic factors, providing both challenges and opportunities. Thus, changes in economic can affect supply and demand making transportation and logistics operations difficult (Witkowski, 2017).
One of the difficulties faced is cost containment during economic recessions. During such periods, goods’ demands dwindle hence lessening the amount of transport activities carried out. This may mean that cost per unit transported goes up but this will eventually affect the profitability of logistics enterprises.
The difficulties faced is cost containment during economic recessions also provide a platform for growth. For instance, during hard times business may seek to be more efficient and cut on costs through innovation. This may result in new ways of doing things based on technology and how goods are moved and managed in the logistics industry.
Digital technologies are more important in solving some the problems. Digital platforms in logistic and transportation could improve productivity while reducing costs and improving service delivery at the same time. Therefore, it would be possible to develop a system where goods can be tracked in real time using digital platforms improving transparency and efficiency.
Another solution is adopting sustainable practices such as use of renewable energy sources in transportations aimed at reducing carbon emission which would contribute to environmental sustainability because economic factors force companies to adopt green practices into their businesses.
Conclusion
The US economy has a profound impact on transportation and logistics management as is seen in this study, revealing a complex interaction between economic trends and the efficient flow of goods and services. It can be seen that the strategies and operations of this sector are significantly influenced by economic policies and trends, which present both difficulties and opportunities. Economic downturns such as rising costs or reduced demand can damage a company’s efficiency but also propel its development throughout these periods too. The relevance of these findings goes far beyond that provided by this study, to provide useful insights for policy makers, industry executives, researchers in the field of transportation logistics management. Future research might examine specific economic policies’ effect on this sector more deeply or determine how emerging technologies can assist it in becoming more efficient sustainable one day.
References
Azmi, I., Hamid, N. A., Hussin, M. N. M., & Ibrahim, N. I. (2017). Logistics and supply chain management: The importance of integration for business processes. Journal of emerging economies and Islamic Research, 5(4), 73-80.
Closs, D. J., & Bolumole, Y. A. (2015). Transportation's role in economic development and regional supply chain hubs. Transportation Journal, 54(1), 33-54.
Duranton, G., Nagpal, G., & Turner, M. (2020). Transportation Infrastructure in the US (No. c14352). National Bureau of Economic Research.
Farhadi, M. (2015). Transport infrastructure and long-run economic growth in OECD countries. Transportation Research Part A: Policy and Practice, 74, 73-90.
Porter, M. E. (2012). The economic performance of regions. In Regional competitiveness (pp. 131-160). Routledge.
Witkowski, K. (2017). Internet of things, big data, industry 4.0–innovative solutions in logistics and supply chains management. Procedia engineering, 182, 763-769.
