P.M. Executive Briefing - Jan. 2
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Manufacturing Falls for Fifth Month, NAPM Says
Manufacturing fell in December for the fifth month in a row, the lowest level in nearly a decade, the National Association of Purchasing Management said - offering more evidence that the U.S. economy is weakening.The manufacturing sector is struggling, NAPM said. The association's purchasing index fell to 43.7% in December, down from 47.7% in November. A decline in manufacturing could lead to fewer loads of domestically produced goods for trucking firms to haul.
The report is one of the first indications of economic activity in the manufacturing sector. It is based on NAPM's survey of executives who buy the raw materials and supply for manufacturing at more than 350 industrial firms. Transport Topics
Bush Names Abraham to Energy, Chavez to Labor
President-elect Bush on Tuesday named recently defeated U.S. Sen. Spencer Abraham, R-Mich., to head the Energy Department, and former Reagan administration official Linda Chavez to run the Labor Department.Bush also named current Commerce Secretary Norman Mineta to become secretary of transportation (see related story). Before Tuesday, Abraham had been on numerous lists as a possible transportation secretary.
Energy costs have become an enormous issue for the trucking industry in the past year, as pump prices of diesel and gasoline soared from levels of recent years and sharply increased truckers' operating expenses.
The American Trucking Associations last year lobbied the Clinton administration to tap the Strategic Petroleum Reserve to help cool prices. When Clinton authorized an SPR drawdown, Bush criticized the move as a ploy to boost Vice President Al Gore in the presidential election and charged the country lacked a solid energy policy.
At his press conference Tuesday in Austin, Texas, Bush said he would refrain from trying to influence OPEC as its members mull a possible cut in oil production at their Jan. 17 meeting. Bush repeated his view that the United States should speak with one voice on international policy issues, and that until Inauguration Day on Jan. 20 President Clinton will speak for U.S. interests. Bush also reiterated that he favors exploring to find more domestic energy supplies.
Chavez was director of the civil rights commission under President Reagan, lost an earlier Senate bid in Maryland, and is currently president of the Center for Equal Opportunity, the Associated Press reported. Transport Topics
Swiss Allow Bigger Trucks on Highways
Beginning with the new year, trucks that weigh up to 34 tons may travel on Swiss highways, the Journal of Commerce reported Tuesday. However, all motor carriers will now pay a higher toll to use the highways.Previously, only trucks that weighed a maximum of 28 tons could travel on highways that run through the Alpine country, the article said. But an agreement with the European Union has opened the roads to bigger trucks. In the near future, trucks that weigh up to 40 tons will also be allowed to use the nation's highways.
Swiss authorities will determine tolls based on tonnage and the number of kilometers traveled. Under the new rates, it will cost $95 for a 34-ton truck to travel from the German border at Basel to the Italian border at Chiasso. The toll for that route last year was $24. Transport Topics
Renault, Volvo Deal Initiated
After being approved by the European Union and the U.S. government, Volvo AB's (VOLVY) acquisition of Renault V.I./Mack was formally initiated Tuesday, Bloomberg News reported.As part of the deal, Volvo transferred over 40 million shares of its stock to Renault SA (13190-PAR) as partial payment for the French automaker's commercial-truck subsidiary, which includes Mack Trucks. Renault now holds a 14.9% stake in Volvo, the news service said. Transport Topics
Truck Leasing Pioneer Ralph Ryder Dies
Ralph Bennett Ryder, a founder of Ryder System Inc. (R), has died at 90, the Associated Press reported.Ryder died of heart failure in a hospital in Coral Gables, Fla. on Thursday. Ralph Ryder was vice president in charge of construction and operations for the business, and designed many of the company's buildings.
Ryder and his two brothers started the company in Miami in 1933, hauling meat to ports on the beach and carrying back debris and cement. The company started leasing trucks in 1938.
The company now rents or leases about 170,000 vehicles in North America and the United Kingdom, according to AP. Transport Topis
Nacco to Close Ill. Forklift Plant
Nacco Industries (NC) will close its Danville, Ill., forklift manufacturing plant in an effort to cut costs, Reuters reported Tuesday.The lift truck operations at the Danville plant will be consolidated into plants at Berea, Ky., and in Nijmegen, The Netherlands, Reuters said. The forklifts are made under the Hyster and Yale brand names.
The Danville parts center will remain open, the company said.
Some forklift components now made in Danville may be outsourced or made at the company's Lenior, N.C., plant, the Associated Press reported.
Nacco is a holding company based in Mayfield Heights, Ohio, that is also involved in coal mining and household appliance manufacturing. Transport Topics
K-Mart Distribution Workers Sue Over Discrimination
A discrimination lawsuit was filed Friday against discount retailer K-Mart by 24 current and former employees of a distribution center, the Associated Press reported.The workers alleged that they faced discrimination when returning to work at the Fairless Hills, Pa., facility after recovering from work-related injuries, and that the company violated their rights under the Americans with Disabilities Act by denying them job advancement, transfers and overtime.
The workers had been operating forklifts and loading boxes, but were placed on light duty after returning to work. Some workers were dismissed, AP reported.
An attorney for the workers said K-Mart changed its overtime policy after workers complained. Transport Topics
ArvinMeritor Updates Web Site
Truck component-maker ArvinMeritor (ARM) has a new Web site that consolidates information about the truck parts supplier. The site includes, among other things, information on the company's product lines and business divisions, investor and career information and a calendar of events. The URL is www.arvinmeritor.comTroy, mich.-based ArvinMeritor serves commercial truck, trailer and light vehicle original equipment manufacturers and related aftermarkets. It worked with Logic Solutions of Ann Arbor, Mich., to design and build the site. Transport Topics
Headlines From Today's A.M. Briefing
- Bush Schedules Afternoon News Conference
- OPEC Members Continue Push for Production Cuts
- DaimlerChrysler to Invest $942M in Fuel Cells
- Online Holiday Buying Up Sharply Over 1999
- Hawk Begins Production at Chinese Plant
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