newsworthy
diesel-use index points to broader rebound
A new index that measures economic activity by tracking
diesel fuel purchases by the nation’s over-the-road truck
drivers has contributed to the mounting body of evidence
that the economy is in steady recovery.
The Ceridian-UCLA Pulse of Commerce Index (PCI), published by the University of California, Los Angeles Anderson
School of Management, analyzes data from fuel credit cards
swiped by drivers as they fill their rigs. The index, which
launched in February, is built through capturing and analyzing the location and volume of fuel being purchased. UCLA
and Ceridian, the company that tracks the consumption data
in real time, believe the index paints an accurate picture of
product movement across the United States and thus, provides a clear window on overall economic performance.
After a weak showing in February, when heavy snowstorms struck the U.S. East Coast, the index rebounded in
March to post a 1-percent gain, the PCI found. The March
data indicates a steadily recovering economy, with first-quarter GDP growth expected to reach 4 percent or higher,
according to the analysis.
The PCI data had predicted that the nation’s industrial
production in March would show growth of 0.5 percent
when the Federal Reserve released that number on April 15.
The March industrial production number actually came in
at a higher 0.9 percent, according to the Fed report.
“The good news in March is that the economy is still recovering at a pace that should support job growth, although
unfortunately not at a pace that will drive rapid improvement
in the unemployment rate. GDP needs to grow at a 5- to 6-
percent rate to drive meaningful change in unemployment,”
said Ed Leamer, chief economist for the PCI, in a statement.
Meanwhile, economic activity at the nation’s manufac-
turers in March grew at the fastest monthly clip since July
2004, according to a closely watched monthly index
released April 1. But the rapid growth was accompanied by
two potentially vexing issues for the supply chain: longer
delivery lead times and higher prices paid for products.
ground breakers
; Footwear company Sketchers USA has begun construction on a 1.82 million-square-foot distribution center in
Rancho Belago, Calif. The LEED-certified facility will handle
the distribution of the company’s products in the United
States and Canada.
; Old Dominion Freight Line Inc. has opened a new warehouse facility in Thomasville, N.C., that will serve as headquarters for OD’s warehousing and distribution services division. The 160,000-square-foot facility, which will offer a wide
range of distribution services, will include a Free Trade Zone.
; Evans Distribution Systems has expanded its operations
with three new locations in Lenexa, Kan.; Houston, Texas;
and Memphis, Tenn. Evans is a full-service third-party logistics service company that provides transportation, warehousing, and value-added services.
; Panatonni Development Co. has announced that Ashley
Furniture has signed a lease to occupy 303,000 square feet
of distribution space in Panatonni’s new Airtex Industrial
Center in Houston, Texas. Ashley Furniture will use the facility to serve its Houston-based stores.
