New Survey from NAW Shows Wholesale Distribution Industry Faces Massive Disruption

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Teamsters strike against UPS would cause significant delays and create bottlenecks according to a new survey by NAW of its members.

Washington, DC – The National Association of Wholesaler-Distributors (NAW), the voice of the $8.2 trillion wholesale distribution industry, that employs over 6 million U.S. workers, and is essential to our nation’s economic health and the flow of goods and services, released the following statement after conducting a survey of potential impacts to member companies:

“For months now, a portion of our membership has been preparing their operations to absorb the impact of a UPS Driver’s Strike, while also working to offer solutions and contingency plans for those impacted by the strike. The rest of our membership relies 100% on UPS and are trying to figure out how to do business if they must go without their carrier,” said NAW CEO Eric Hoplin.

“NAW members and the wholesale distribution industry will face severe hardships and disruptions if talks break down and the UPS strike goes into effect this weekend,” continued Hoplin. “We encourage UPS and their labor union to come to an agreement this week, and for President Biden and his administration to get involved if an agreement appears to be far off,” concluded Hoplin.

Excerpts from our survey are below:

Do you use UPS as a carrier in your transportation operation?

– Most NAW members surveyed said they depend on UPS as a carrier in their transportation operations.

What percentage of your inbound and/or outbound shipments are handled by UPS?

– Most NAW members surveyed said UPS handles fifty to one hundred percent of their inbound and/or outbound shipments.

Describe how a nationwide UPS worker strike of 1 – 15 days would impact your operations:

– Most of NAW members surveyed said they would see a significant short-term impact on their operations.

Under the Taft-Hartley Act, the President can intervene to end a nationwide UPS worker strike by declaring a national emergency. Would you support such an action by President Biden if a strike were to occur?

– Most of NAW members surveyed said they would support the President using his authority to declare a national emergency to end a nationwide UPS worker strike

Stories:

If alternative carriers cannot pick up the additional business, a UPS strike would be crippling in the short term and cost significant revenue.
UPS strike would delay deliveries to rural areas and disrupt emergency critical repair parts delivery.
Distribution teams could see a reduction in pay, and there could be possible layoffs and delayed delivery to customers, and the bottom line will take a hit.
For businesses like healthcare, this could be critical. The ripple impact of an extended strike would significantly impact all US businesses.
We are in the book distribution business, and a strike would have a massive impact on the industry. There are no real mitigation options. UPS is too big of a factor in the book industry.
It will likely delay the delivery of inventory products used by critical aerospace and defense contractors.
We are an electronic component distributor. A strike would have a harmful impact. Customers are manufacturers and are already worried about not having parts to continue producing.

See Survey and Distribution Stories Here:

UPS-questions-and-stories

ABOUT NAW

The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8.2 trillion wholesale distribution industry. Founded in 1946, NAW comprises national, regional, and state employers of all sizes, industry trade associations, partners, and stakeholders spanning all distribution sectors. Our industry employs more than 6 million workers throughout the United States, accounting for 1/3 of the U.S. GDP. 35,000 wholesale distribution companies operate nearly 150,000 places of business across North America, including all 50 states.

SOURCE: NAW

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