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THE U.S. ECONOMY WILL REMAIN STRONG IN 2019, BUT THE longer-term outlook is questionable due to uncertainties surrounding trade and other global economic issues, economist Don Ratajczak said at a transportation industry conference in Atlanta on Jan. 30.

Ratajczak, a consulting economist at Georgia State University, said he expects U.S. economic growth of 2. 7 percent this year despite moderating conditions and a worsening outlook among consumers and business leaders. He spoke to a crowd of transportation industry professionals at Jump Start 19, an educational conference sponsored by the Atlanta-based freight-pricing technology firm SMC3.

“The economy is in OK shape, but there is a lot of uncertainty,” Ratajczak said, pointing to tariffs and trade concerns, a slowing Chinese economy, and Brexit, among other issues. “These are the Much of the 2019 outlook hinges on trade concerns, especially a potential new round of tariffs on $200 billion worth of Chinese goods. The latest round was supposed to take effect March 1, but in February, the Trump administration delayed their implementation as it continued trade talks with China. Although business leaders in transportation and logistics remain anxious about the prospect of being caught up in the trade dispute, Ratajczak said he is “ 60 percent” optimistic that the United States and China will reach a trade deal and the tariffs will not take effect. That’s largely because China’s slowing economic conditions are likely to make it more willing to negotiate, he added.

“Their economy is struggling [so] they are in a position that they may wish to deal,” Ratajczak said. “I’m optimistic, but not terribly optimistic.”

—Victoria Kickham

Global headwinds dampen economic outlook beyond 2019

Infrastrucuture is “fertile ground” where things can get done in a divided Congress, Rep. Drew Ferguson (R-Ga.) told attendees at Jump Start 19, a transportation industry conference sponsored by freight-pricing technology firm SMC3 in January in Atlanta.

But Ferguson said much work has yet to be done on the issue at both the legislative and executive levels, including determining a list of priorities and finding dedicated revenue streams for projects.

Ferguson, a member of the House Ways and Means Committee, told attendees he expects infrastructure legislation taken up in the new Congress to focus on maintenance rather than new projects, saying that maintaining what is already in place “has to be the first priority.” He said there is an urgency in Washington to get something done on the issue this year.

Ferguson’s sentiments echo those of other lawmakers and industry leaders. Earlier this year, for instance, the Retail Industry Leaders Association (RILA) listed infrastructure improvements as one of its top legislative priorities in 2019, pointing to the group’s efforts to raise awareness about port inef-ficiencies as well as trucking industry issues.

“Transportation has been very bipartisan, and we’ve been at the forefront advocating [for infrastructure improvements],” RILA Senior Vice President of Government Affairs Austen Jensen told DC VELOCITY. “Unfortunately, the last Congress was not able to get anything off the ground. But this is one of the areas you may see the divided government come together [this year].”