I suspect we join many others in the transportation sector when we say we are cautiously optimistic as we look to 2011. Although we are encouraged by the economy’s movement toward recovery, we know the coming year will present its fair share of challenges.
For one, we expect to encounter the impact of increasing government activism in our industry and the private sector in general. The health care reform act is of particular concern. As a large, self-insured employer, we always strive to do right by our associates, and that includes helping them become good consumers of health care. We think that is far more valuable than forcing everyone into a system. As a result of the health care reform, our associates will get fewer health care benefits than they receive today, even though the company will be spending more to provide them.
We’re also troubled by the government’s persistent lack of interest in investing in our country’s infrastructure. Last year’s stimulus funds were misdirected, and we have yet to solve the very real issues around infrastructure. The appropriations that go from the Highway Trust Fund to the states are getting redirected to other, short-term initiatives. We need to stop this irresponsible practice and start putting resources toward improving, or at least maintaining, our roads and highways.
I fear we will continue fighting this uphill battle in 2011 and beyond.
In the commercial world, we’re noticing a reduction in big capital investment by our customers, whether it’s building new stores or extending manufacturing capacity. They’re waiting to see what kind of government regulation and tax situation we’ll be living under next year. They’re also wondering if the consumer demand will truly come back.
Because we are in the cautiously optimistic camp, our own investment in capital is pretty conservative, as well.