The United States has a choice: Invest now in infrastructure and make it a powerful tool for development, or ignore it and watch our roads, bridges, and ports become a roadblock to business success.
Janet Kavinoky is the director of transportation infrastructure at the U.S. Chamber of Commerce and executive director of the Chamber-led Americans For Transportation Mobility Coalition.
Infrastructure provides American businesses with opportunities to grow and compete, but at the same time, it can be a risk, a limitation, or even a roadblock.
When it fails—a bridge collapses, a water main breaks, there is a blackout, or the Internet is unavailable—there is an acute awareness of the importance of infrastructure to business and the economy. And yet, in the United States, there is a lack of ongoing, sustained attention to maintaining, modernizing, and expanding infrastructure in general—and transportation infrastructure in particular.
The need for greater investment in transportation will become apparent as the economy recovers and demands for goods and services grow. Supply chain professionals will find it harder to move more and more goods, information, and people through the transportation system. With increased economic activity will come congestion, which translates to more risk, more unpredictability, and more cost.
The recovery won't be the only source of economic growth. An increase in exports will also add to the amount of goods moving through our supply chains.
In January, Tom Donohue, the president and CEO of the U.S. Chamber of Commerce, called for a doubling of U.S. exports within five years; that is a goal that President Obama also embraced in his State of the Union address. As the U.S. economy increases its focus on exporting to the 95 percent of consumers who live beyond U.S. borders, more and more goods will have to squeeze through the supply chain.
The rationale for expanding exports is clear: We cannot rely on domestic consumption (private or public) to generate more demand for the goods and services we produce. The American consumer has been cutting back and directing more income toward savings, and the federal government faces an unsustainable budget deficit equivalent to roughly 10 percent of U.S. gross domestic product (GDP) this year.
But is the U.S. transportation network ready for a doubling of exports? The answer clearly is no. There is not enough capacity to safely, quickly, reliably, and cost-effectively move goods to markets at that level of demand. In fact, before the recession, every transportation mode except the inland waterways system was already reaching its capacity limits in hot spots around the country.
Longer term, there is no plan for a coherent, rational, balanced transportation system that will support the economic activity associated with both an increase in U.S. population of 100 million by 2050 and increased exports. Instead, the Obama administration is overwhelmingly focused on neighborhoodlevel transportation challenges—a strategy with popular appeal—even as global economic competition gets more heated. Politically it does make sense, because "freight doesn't vote," and it is difficult to put a compelling face on the needs of supply chains.
A better argument
The arguments that infrastructure proponents have used for years have not resulted in action by Washington. Statements such as, "Lack of attention to transportation has real ramifications for America's competitiveness and economic health"; "Highway congestion in metropolitan areas is costing Americans $87 billion in lost productivity every year"; or "Infrastructure investment creates and sustains jobs and drives local economic growth" aren't enough to get transportation infrastructure on any list of priorities, much less near the top.
The real challenge is making those statements come alive by showing when and where U.S. businesses are hampered by the condition and performance of its transportation system. Legislators, regulators, and policy makers are asking for credible, evidence- based research that makes abundantly clear the relationship between infrastructure and the economy. In response, the Chamber is developing Infrastructure Productivity Indexes that together will:
Define what businesses need from infrastructure in order to grow and succeed (as opposed to what government thinks is important).
Look across categories of infrastructure and consider their relationships.
Correlate infrastructure performance to economic growth. Historically, calculations have focused on expenditures, jobs, or local economic development.
The indexes will also show that infrastructure doesn't have to be a problem. Rather, it can be a powerful tool for economic development and offer a competitive advantage to U.S. business. (For more information on the project, see the sidebar on "How you can help.")
In the near term, the project's findings will be used to shape legislation pending in Congress. In the future, these indexes will help the Chamber write the "business plan" for infrastructure—making recommendations on how to drive investment priorities, remove barriers to getting projects done, and boost public and private investment levels.
For too long, the United States has failed to make infrastructure a priority, relying instead on the investments made decades ago. As a result, our transportation network is deteriorating and will begin to buckle under the economic recovery. Supply chain professionals can help the country move toward a comprehensive plan to build, maintain, and fund a 21st-century infrastructure. There is no more time for delay.
How you can help
Supply chain professionals are invited to help the U.S. Chamber of Commerce shape its Infrastructure Productivity Indexes. To identify which measures to include in the indexes, the Chamber is endeavoring to answer questions such as:
What are the day-to-day problems with infrastructure that leach productivity out of business?
How do organizations "work around" infrastructure, and what problems are they compensating for?
Would costs be lower or opportunities greater if those accommodations weren't required?
What would be the infrastructure-related risks to business strategies in key economic sectors?
Which infrastructure-related factors determine business location?
If businesses could decide what capital investments to make in infrastructure, what would they prioritize?
Here's how you can help answer these questions:
1. Participate in a telephone interview. The Chamber needs companies' insights and anecdotes to help make the nation's infrastructure challenges tangible to state and federal decision makers. C-suite executives, supply chain managers, sustainability directors, and those whose business revenues or costs are driven by how well infrastructure works can participate in brief, confidential phone interviews.
2. Take part in online surveys. The U.S. Chamber will also deploy a comprehensive electronic survey to ensure that the Infrastructure Productivity Index is reflective of its diverse membership's perspectives.
3. Get involved with the U.S. Chamber's "Let's Rebuild America" efforts, which focus on infrastructure. Sign up at www.letsrebuildamerica.com for updates on important developments, invitations to conference calls on legislative and regulatory issues, and information about events (many of which are webcast for free).
To learn more about this groundbreaking research, or if you are interested in participating in phone interviews or surveys, please contact Janet Kavinoky at (202) 463-5871 or jkavinoky@uschamber.com.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.