Freight and logistics industry
The freight and logistics industry has been hit hard in 2024. This is not the only industry to struggle, as the retail space, restaurant industry, and supply companies have also faced challenges amidst high inflation. The industries have been ridden with layoffs throughout the year, and experts expect tens of thousands more in the coming years.
In this gallery, we take a closer look at the toll inflation is taking on various industries.
Led to continued economic caution
The Federal Reserve’s preferred inflation measure, the core PCE, rose 2.7% in September, exceeding forecasts and complicating plans for future rate cuts. September’s 2.1% overall price rise was the lowest since early 2021, matching estimates. However, core inflation’s unexpected rise has led to continued economic caution.
Supply-chain companies have experienced significant layoffs
Supply-chain companies have experienced significant layoffs, with more than 2,400 job cuts announced across several states recently. PepsiCo closed a Chicago plant and warehouse, laying off 131 workers due to site limitations. Amazon is laying off 57 employees from a Milpitas, California, facility starting December 27.
Weak demand
U.S. manufacturing has contracted consistently in 2024 due to weak demand. Pressured by high interest rates and weak demand, the industry has remained sluggish.
Reported reduced orders
Many manufacturers have reported reduced orders and inventory cuts. Some sectors, like chemical products, saw growth, but others, such as machinery, have contracted.
GXO Logistics
GXO Logistics will lay off 343 workers in Bloomington, California, by December 31, due to losing a major customer. The company has cut 902 jobs nationwide this year.
Competitiveness and job growth
The Inflation Reduction Act (IRA) turned two in 2024, but its impact on inflation has been widely debated. The Wharton School found it had little effect, possibly worsening the situation. Critics believe the IRA’s tax hikes on businesses have harmed U.S. competitiveness and job growth.
The IRA expanded subsidies
The IRA expanded subsidies, benefiting special interests. Green energy tax breaks, costing more than expected, have mainly aided China’s renewable industry.
True Value Co
True Value Co. filed for Chapter 11 bankruptcy, planning to sell assets to Do it Best for $153 million, leading to 1,108 job cuts across eight distribution centers.
Federal spending has surged
Federal spending has surged since 2020, with deficits doubling. The ten-year deficit has increased by $11.6 trillion.