Storms are brewing in boardrooms across America this week. Port workers are threatening to strike and bring holiday shopping to its knees. Retail giants are rushing to bridge the last mile delivery disconnect between expectations and reality. Meanwhile, Under Armour is betting the farm on a risky California exit while Microsoft strengthens its efforts to tackle climate change. Throw in some wild swings in manufacturing profits, and you have a recipe for corporate chaos. Let’s dig into the action that’s got Wall Street watching and supply chains scrambling.
Port Strike Threat Has Retailers & Manufacturers in a Frenzy
As dock workers turn up the heat on their threats to strike at 13 major East and Gulf Coast ports, retailers and manufacturers are getting anxious. With nearly half of U.S. imports at stake, many are desperately scrambling to protect their supply chains and save the holiday shopping season. The clock is ticking as the October 1 deadline looms.
Retailers Go All-In on Early-Bird Shipping
Retailers aren’t taking this threat lying down. They’re gambling big, fast-tracking their peak shipping season like there’s no tomorrow. Jonathan Gold from the National Retail Federation dishes the dirt: U.S. ports are working overtime, processing an eye-popping 2.31 million twenty-foot equivalent units (TEUs) in September alone. That’s a tidal wave of goods not seen since 2022.
Factory Freeze & Farmer Freak-Out
For manufacturers, this strike threat is pure horror. Christopher Netram from the National Association of Manufacturers pulls no punches: Assembly lines might grind to a dead stop if parts don’t appear. And it’s not just factory folks sweating bullets. Farmers are watching their overseas markets potentially go up in smoke. The entire supply chain, from raw materials to finished products in the last mile, is hanging by a thread.
Mind the Gap: Why Shippers Must Bridge the Last Mile Divide
The last mile logistics ecosystem is shifting beneath our feet. Despite 21.7 billion parcels delivered in 2023, think again if you believe the industry’s nailed-down consumer expectations. Fresh research reveals a startling disconnect between what shippers offer and what modern customers demand.
The Tracking Tipping Point
Your customers are spoiled by real-time visibility in other areas of their lives. They track their pizzas and rideshares and expect the same from parcel shipments. A staggering 89% of consumers consider package visibility essential for daily planning. Yet, only 19% of deliveries offer a two-hour or smaller delivery window. The consequences of this mismatch are stark: 75% of shoppers report choosing a retailer based on superior tracking and tighter delivery windows. So, neglect to upgrade your visibility capabilities at your own risk. You risk leaving money on the table and losing business to more tech-savvy competitors.
Flexibility: Untapped Potential for Customer Loyalty
Today’s consumers want control, but 47% say they can’t adjust their delivery on the due date. This inflexibility is a clear missed opportunity. By giving customers optionality and the ability to make last-minute changes, companies do more than meet expectations — they exceed them. It’s a smart move that can help grab market share and build lasting customer loyalty.
Under Armour’s Big Bet: Shutting Down in California
Under Armour is pulling the plug on its Rialto, Calif., distribution center, a decision it did not make lightly. This move, set for March 2026, is part of a shake-up that’s now costing the company a cool $70 million more than it bargained for. What does this mean for the athletics brand?
The Price Tag of Change
When Under Armour first floated its restructuring plans back in May, it thought it would cost between $70 million and $90 million. Today, that number has skyrocketed to somewhere between $140 million and $160 million. Ouch. A big chunk of that — $37 million, to be exact — is going toward employee severance and benefits, though the exact number of job cuts remains under wraps.
Kevin Plank’s Hail Mary
Under Armour CEO Kevin Plank, who has been back in the driver’s seat since April, isn’t just rearranging deck chairs. He’s tossing a quarter of their product lineup overboard, giving consultants the boot, and mixing up their product and marketing teams like a high-stakes game of musical chairs. With revenue down 10% and the company $305 million in the red last quarter, Plank’s betting the farm on bringing back Under Armour’s mojo. He’s tired of the brand just “selling on the logo and a price tag” — he wants to tell a story that’ll make people sit up and take notice. It’s gutsy, but in the cut-throat world of sportswear, sometimes you’ve got to risk it to get the biscuit.
Microsoft Rolls Up Its Sleeves to Cut Supply Chain Emissions
Microsoft is stepping up its climate game with a new team dedicated to slashing supply chain emissions. It’s a clear signal that the tech behemoth means business, and is legitimately going the extra mile to shrink its carbon footprint beyond its backyard.
A-Team Takes on Carbon
Microsoft didn’t mess around when building this squad. It brought in Tim Hopper, a company veteran with 20 years under his belt; alongside Ray Waweru, who cut his teeth on sustainability at Google; and Sofia Khan, fresh from leading Meta’s net-zero push. This dream team brings a wealth of experience to the table as they face down Microsoft’s biggest carbon challenge: The whopping 96% of emissions that come from outside the company’s walls (a.k.a. Scope 3 emissions).
Climbing a Carbon Mountain
Microsoft set its sights on being carbon-negative by 2030, but it’s an uphill climb. While they’ve made headway in some areas, those pesky indirect emissions — from suppliers and even customers using their products — shot up by over 3% last year. The new team’s job? Shake up things and rethink how Microsoft works with suppliers, designs products and delivers services. It’s no small task, but if they pull it off, it could change the equation for the tech industry’s climate efforts.
U.S. Manufacturers Cash In: Wholesale Trade’s Wild Ride
U.S. manufacturers are finally catching a break. Profits soared to $210.9 billion in Q2 2024, up 3.8% from last quarter and 5.1% year-over-year. It’s a much-needed boost after the recent slump, though we’re still shy of the $269.8 billion peak from mid-2022.
Nondurable Goods Make It Rain While Durables Lag Behind
Looks like we can’t get enough of our daily essentials. Nondurable goods manufacturers emerged as the clear winners in Q2, with profits skyrocketing 18.1% quarter-over-quarter and 9.9% year-over-year. These include items we use up quickly like food, beverages, cosmetics, and cleaning products. But for those cranking out pricier, long-lasting durable goods? It’s been a bit of a mixed bag. They saw profits dip 5.1% from last quarter but still managed to eke out a 1.7% gain compared to last year.
Wholesale Trade: A Tale of Short-Term Gains & Long-Term Challenges
Wholesale trade experienced a more dramatic swing in fortunes. Profits in this non-seasonally adjusted segment surged to $25.2 billion, marking a staggering 56.7% increase from the previous quarter. However, a 15% year-over-year overshadowed this short-term victory. Drilling deeper, durable goods wholesalers saw their profits soar by 85.1% quarter-over-quarter but drop 12.4% year-over-year. Nondurable goods wholesalers followed a similar pattern with a 24.6% quarterly increase and a 19.0% annual decrease. It makes you wonder what’s going on behind those warehouse doors, whether it’s inventory adjustments, pricing pressures or shifts in distribution channels.
Real Talk: How OneRail Tackles Your Toughest Shipping Challenges
In logistics, curveballs are the norm, not the exception. We’ve all been there, whether it’s labor disputes, last mile nightmares or supply chain disruptions. Here’s how OneRail steps up to the plate:
- Unparalleled Courier Network: Place your deliveries in trusted hands by tapping into OneRail’s massive national network, boasting over 12 million vetted drivers.
- OmniPoint® Platform: Leverage OneRail’s OmniPoint Platform for automated rate shopping, smart matching and real-time visibility to guarantee timely and cost-effective deliveries.
- Exceptions Assist™: Benefit from proactive monitoring, with a dedicated team of logistics experts at the ready 24/7 to tackle any challenges and disruptions, safeguarding your on-time delivery rate.
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
