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COMMENT
Who’s who at the
Specialized Carriers
&Rigging Association
CHAIRMAN
RonMontgomery
Intermountain Rigging & Heavy Haul
Salt Lake City, UT
PRESIDENT
AlanBarnhart
Barnhart Crane and Rigging
Memphis, TN
VICE PRESIDENT
Bruce Forster
Rigging Gear Sales
Dixon, IL
TREASURER
DelynnBurkhalter
Burkhalter
Columbus, MS
ASSISTANT TREASURER
JohnMcTyre
McTyre Trucking
Orlando, FL
ALLIED INDUSTRIESGROUP CHAIRMAN
Eddy Kitchen
, Kitchens Crane &
Equipment
Chesterfield, VA
CRANE&RIGGINGGROUP CHAIRMAN
Larry Curran
, JJ Curran Crane Company
Detroit, MI
LADIESGROUP CHAIRWOMAN
KarenWood
,Wheco
Richland,WA
TRANSPORTATIONGROUP CHAIRMAN
Jay Folladori
, Landstar
Jacksonville, FL
SC&R FOUNDATIONOFFICERS
President:
RobertMoore,
NBIS
Atlanta, GA
Vice President:
Stephanie Bragg,
Bragg Companies
Long Beach, CA
Treasurer:
Jim Sever
PSC Crane & Rigging,
Piqua, OH
T
he endof the year tends to elicit
a certainpause for reflection.
We take stockof thework and
results behindus; hopefullymost of them
areproductive, even successful.And then
weuse this reflection to frameout an
assessment, a strategy, for the future.
With2014 all but behindus, whatwe
can ascertain about the global economy
is thatChina’s growth is slower than it
has been indecades and theEurozone
is quite likely slipping into a recession.
Andour own stockmarket is not aplace
for the financially squeamish.
But theU.S. economic engine is picking
up steam. The economyhad ahealthy
2014, and it’s gettinghealthier. Strong
third-quarter growthof 3.5percent,
plus anupward revisionof second-
quarter growth confirm that economic
momentum is backon track. In the
fourthquarter and into2015, growth is
estimated tohold steady at threepercent
ormore.
Increased income
Without adoubt, consumerswill fuel
this surge; increased income is the
answer. Job growth in2015 is projected
at approximately 240,000 jobs permonth
–morepeoplewith incomes equalsmore
spending. Andwages have alsobeenon
the rise; in fact, adjusted for inflation,
income rose almost twice asmuch as
real consumer spending in2014.Which
means there’smoney to spend– and
early estimates predict a spendingbump
of at least twopercent toGDP in2015,
or around$327billion.
Consumers also seem tobe gaining
their confidence back–withhiringon
the rise and jobopenings at near-record
levels. The telltale signs have reemerged;
motor vehicle sales are trendingupward
andAmericans aremovingback in the
directionof recreation spending. The
pattern suggestsmuchmorepotential
for steadyupward trends thandownward
slides – supportedbymajority job
growth in2014 andpredictions that
joblessness could slide to as low as 5.5
percent by the endof 2015.
Look for business spending to also
increase – currently at about 16percent
ofGDP.With energyprices expected to
remain low, combinedwith consumer
demand, corporations are expected to
invest inupwards of sevenpercentmore
in facilities and equipment – adding as
much as $102billion to the 2015GDP.
InOctober,manufacturing advanced
at ahigher rate thanpredicted, allowing
U.S. factories towithstand slower global
markets. A report out inOctober by
the Institute for SupplyManagement
indicated that theU.S. factory index
had increased to59– thehighest in
over three years. Readings over 50
are indicative of expansion.Of 18
manufacturing industries, 16 reported
growth inOctober, ledbyproducers
of plastics, textiles andmetals, asmore
companies reported improvements
inorders than thepriormonth.
Additionally, factory employment
increased, while “prices paid” dropped
to its lowest level of the year –producing
cheaper costs for energy and raw
materials.
Looking ahead
As a result, trucking companies across
the country are also experiencing cause
for optimism. ABloombergBusiness
report indicated that companies such
as Paccar Inc. (PCAR), aheavy truck
manufacturer based inBellevue,
Washington, are seeing encouraging
increases in sales. Bloomberg said that
Paccar delivered37,400 trucks during
the thirdquarter, up sixpercent from
a year earlier, as itsU.S. andCanadian
customers expand their fleets and
replace older vehicles.
TheU.S. economy is bouncingback,
and itwill continue todo sobecause
industries like trucking, construction
andmanufacturingwill continue to
innovate andpush forward. AndSC&RA
will continue todoour verybest to
support you, ourmembers, in2015
as you endeavor to turn this country
around.We thank you for aproductive
2014, and look forward to continued
success in the comingmonths.
■
DECEMBER 2014
ACT
The United States’
economic engine steams
ahead into 2015.
EXECUTIVEVICE PRESIDENT
Joel Dandrea
5870 Trinity Centre
Parkway,
Suite 200
Centreville, VA
20120
Ph: 703-698-0291
Fax: 703-698-0297
Pickingupsteam
