December  2004

Innovation in a Challenging Economy
In This Issue:
Innovation in a Challenging Economy
Shipping Shortage Threatens Holidays
FRA Addresses Safety Concerns
Security Concerns for Rail Cargo
Profiting from Increased Costs
Canadian Railroads Sign Agreements
 

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Businesses operating in today's climate face a number of challenges. Since the terrorist attacks of September 11th increased security, and the associated increase in operational costs, have become standard. The costs of raw materials and energy steeply increased during the past year, placing a strain on manufacturers that have been unable to pass on costs to customers. In this climate, companies that have taken an innovative approach to a shortage of resources are positioning themselves to succeed. This seems clear in browsing through the news this month.

Perhaps one of the greatest shortages is labor in the trucking and railroad industries. Companies that have been been slow to keep up with the unprecedented shipping demand point to a lack of qualified employees as the root of the problem. With the labor pool just not available, companies are taking other approaches to give them a competitive edge.

Clearly, the major Canadian railroads are working together to solve backlog problems and improve traffic flow for both railroads, and some US routes. In other sectors, manufacturers that have positioned themselves to take advantage of an increasing demand for US products abroad are able to raise prices in face of rising costs, and may be improving profits as commodities prices ease. Business sectors that once looked to the government for answers are adjusting to the idea that government agencies are also short on resources. Homeland Security Secretary Tom Ridge has stated that the federal government cannot afford to pay for the increased security needed to protect U.S. ports from terrorists.

In response to a limited pool of inspectors (about 415 nationwide) the Federal Railroad Administration is turning to compliance agreements, rather than relying on compliance orders. A process that has been successful in the past, according to Robert Johnson, Transportation Department spokesman. He adds that safety improvements may take longer if regulators issue a so-called compliance order (Star Telegram Nov, 2004).

Good planning, and innovative strategies may be the key to maintaining the competitive edge in this economy.

The Tech Corner
Internet Tips

"Phishing" refers to a person or a group of cyber-criminals who create an imitation or copy of an existing legitimate Web page to trick users into providing sensitive personal information. Responding to "phishing" emails puts your accounts at risk.

"Phishing" cyber-criminals solicit personal data from unsuspecting victims via the Internet - like personal IDs, passwords, card numbers and PINs - and sell this information to other criminals who use it for financial gain.

To increase the number of responses, cyber-criminals include upsetting or exciting statements in their emails. They want people to react immediately and respond with the desired information without thinking.

To protect yourself, take the time to examine the claims made in the email. If you receive an email requesting sensitive information, check its authenticity by contacting the company that appears to be the originator of the email.
Check the link of any page you are submitting your login information, make sure it is the link to your institution.

Freight Transportation Shortage Threatens Holiday Sales
Record demand for freight transportation, combined with a labor  and capacity shortages could disrupt freight shipments this holiday season. Small businesses may be hit hard, and everyone is feeling the crunch as rates continue to rise. More..
  FRA Addresses Safety Concerns in San Antonio
  The Federal Railroad Administration has added 10 inspectors to the San Antonio area and completed a safety compliance agreement with Union Pacific in response to 6 train accidents involving Union Pacific in the San Antonio area during the past 6 months.  More...
  "Not Nearly Enough" Security for Railroad Cargo
  The Port Authority of New York and New Jersey commented that security needs to be improved for railroad cargo entering the nation's ports. The topic was raised at a recent maritime and port security summit in Washington, D.C. More..
  Manufacturers Set to Profit on Increasing Material Costs
  The cost of raw materials has increased dramatically during the past year. Manufacturers that have been able to pass operating costs on to their customers may be poised to increase profits. More...
  Canadian Railroads Sign Cooperative Agreements
  The Canadian National Railway and the Canadian Pacific Railway have signed several recent agreements to improve efficiency and transit times within Canada and the US.  More..
  We Want To Hear From You
  Has this newsletter been helpful? Are there more topics that you would like to see covered? We are here to serve the railroad community, so send us your ideas, concerns or suggestions.
   

 

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