🎣 Best States for Business

Good morning. In today's newsletter, we explore the states with the strongest economies, spotlighting the logistics companies and manufacturers driving their success. We'll also cover the recent manufacturing slowdown in August, a new freight scam targeting brokers, and the year-over-year increase in dry van spot rates.

TOP LANE MOVERS POWERED BY GREENSCREENS.AI

*Greenscreens.ai, forecasts real-time truckload buy prices that are suited to each freight brokerage's purchasing power using AI and machine learning. Its engine takes into account over 130 attributes and data points in each rate forecast.

🐔 WHAT’S COOKIN’ IN FREIGHT

🚛 Hacked FMCSA Accounts. A recent post on the Freight Brokers forum on Reddit highlights a way scammers are impersonating carriers. Scammers are hacking into carrier email accounts to obtain USDOT PINs, which they use to alter contact information in the FMCSA portal. By doing this, they impersonate legitimate carriers on load boards, making it seem like they are reputable companies. This underscores the need to utilize advanced freight technology to verify carrier identities rather than relying solely on traditional methods like Safer and Carrier411. To enhance security, consider using platforms like Highway to ensure thorough carrier verification and protect your operations from similar threats.

📉 Manufacturing Slowdown Hits August. The manufacturing sector remains in contraction, with August's Purchasing Managers' Index (PMI) at 47.2% and production levels at its lowest since May 2020. Declining new orders and reduced backlogs are causing inventory buildups and workforce reductions. However, September is expected to see a shift as manufacturers gear up for the holiday season. Increased port activity and inventory restocking should boost freight volumes, particularly in the Midwest, Southeast, Texas, California, and Northeast regions. While seasonal demand spikes will drive activity, potential challenges from hurricanes and the end of produce season may still affect freight flows.

🎧 The FreightCaviar Podcast. In this week’s episode of The FreightCaviar Podcast, we sat down with Kevin Nolan, Founder at Nolan Transportation Group, and Andrew Silver, Co-Founder at MoLo Solutions. They talk about how they met, their future plans, managing emotions as business leaders, and what they are bullish on in the industry. Read our blog post about the day spent with them and listen to the entire interview on Apple Podcasts or Spotify, or watch it on our YouTube channel.

TOGETHER WITH STEALTH MONITORING

Cargo theft is a real problem and costs companies billions of dollars every year. Stealth’s customized transportation and logistics security solutions help to reduce and deter cargo, parts, and vehicle theft while providing enhanced site management tools and capabilities.

We specialize in protecting outdoor assets, inventories, and fleets for leading transportation, warehousing, drop lots, repair depots, distribution, and logistics companies across North America.

CNBC recently ranked the top ten U.S. states with the best-performing economies of 2024, assessing factors like job growth, state finances, and corporate presence.

These 10 U.S. states have America’s best economies in 2024

Business and job growth, as well as healthy balance sheets, make these ten states America’s strongest economies.

CNBCScott Cohn

Let’s explore the top states and highlight some of the major logistics companies and manufacturers with headquarters in each.

1. Florida: The Home of CSX

Florida, the state truckers despise the most, surprisingly topped the list as the best economy in the United States this year. CSX, the third-largest railroad company in the country, is headquartered in Jacksonville, FL. For the twelve months ending June 30, 2024, CSX reported revenue of $14.6 billion and employs 23,000 people.

Why was Florida ranked #1? Ranked first in the state economy rankings for the second consecutive year, the state has strong job and economic growth, a significant influx of new residents, and healthy fiscal reserves.

2. Texas: Tesla Headquarters

Texas, home to Tesla's Gigafactory 5 in Austin, manufactures over 375,000 Teslas each year. In 2021, Elon Musk relocated Tesla's corporate headquarters from Palo Alto, California, to Austin, Texas. This move followed his criticisms of California's regulatory environment and tax policies, as well as disputes with health officials over the reopening of Tesla's Fremont factory during the early days of the Covid pandemic.

Why was Texas ranked #2? Robust job market, numerous corporate headquarters, excellent fiscal health.

3. Tennessee: FedEx Takes Charge

Memphis remains the world’s second-busiest cargo airport, thanks to FedEx being headquartered there.

The image below shows more than 90 FedEx planes at Memphis Airport:

4. North Carolina: Large Manufacturers Employ Thousands

Major companies such as Tyson, Smithfield Foods, Pfizer, and GE-Hitachi Nuclear Energy are key players, employing thousands across the state. The state's largest industries include food products, industrial machinery, and transportation equipment, making it a vital hub for manufacturing in the U.S.

5. Arizona: Semiconductor Industry

Arizona's rapidly growing semiconductor industry is contributing to strong job growth and a robust housing market, with tight inventory being managed by active construction efforts.

6. Utah: Historically Low Unemployment Rates

Eight out of ten major private sector industries in Utah experienced job growth last year, sustaining the state's strong economy. However, Utah's historically low unemployment has led to a labor shortage, which, according to Mark Knold, chief economist at Utah's Department of Workforce Services, limits the state's ability to expand at its full potential.

7. Georgia: Foreign Direct Investment & UPS

A vital factor in Georgia’s robust economy is foreign direct investment, with major companies like Mercedes-Benz, Nestlé-Purina, Adidas, and UPS establishing a strong presence in the state. As of 2022, Georgia attracted $9.7 billion in planned investments, making it one of the top states for international capital.

8. Nevada: Boosted by Tesla and Housing Market

Nevada saw strong job growth last year, fueled by a steady influx of new residents and a robust housing market. Despite high unemployment, state finances are healthy, with tax revenues above average. Tesla’s Gigafactory (they have one in Storey County) also contributes to the state’s economic strength.

9. Idaho: The Potato State

The state enjoys solid economic growth and a strong credit rating, with key players like Micron Technology and Lamb Weston driving its economy.

10. Delaware: The Business Friendly State

Delaware's corporate-friendly laws attract two-thirds of Fortune 500 companies, with DuPont as the state's largest manufacturer. Last year, 55,000 new businesses were formed.

Sources: Visual Capitalist | CNBC | Business Facilities

TOGETHER WITH LEVITY

Levity helps fast-moving 3PLs and freight brokers to do more with less by automating the most time-consuming and repetitive email tasks.

Whether it's spot quoting, load building, or answering track-and-trace requests, Levity connects to your inbox, TMS and other tools like rating engines, extracting the right information no matter the language or format. It performs tasks on your behalf automatically in the background so you can save time and focus on building shipper relationships instead of data entry. Learn more on Levity.ai today.

🌎 AROUND THE FREIGHT WEB

🚚 Positive Trend in Dry Van Spot Rates. Ken Adamo’s data shows a positive variance in dry van spot rates YoY. With the seasonal September approaching, he predicts the trend to continue.

🛑 Missouri Man Guilty of PPP Fraud. A Missouri man has been convicted of fraudulently obtaining PPP funds, which he used to launch a trucking company.

⛽ Diesel Price Decline Continues. Diesel consumption has decreased for the seventh consecutive week. The benchmark price has not been this low since the start of 2022.

🚨 I-80 Shut Down Due to Trucker's Braking. A trucker continuously riding his brakes “a bit more than he should have” led to his semi-truck catching fire and the subsequent shutdown of I-80.

🔥 Hot Lanes. A recent post by Paul Singer highlighted the lanes most in demand last week. Despite it being the week leading up to Labor Day, the carrier rates were slightly decreased from the week before.

FREIGHT MEME OF THE DAY