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Business & Economy

DHL/UPS Marriage Contract Under Pressure

Posted on 14 August 2008 by Denis Campbell

Even in a global economy business decisions taken that affect key election swing states can give a global multinational CEO indigestion. As with most issues, could the sub-context be more important than the headline? Economically one can see the business logic. German owned DHL Express wants UPS to replace ABX Air and Astar Air Cargo in transporting DHL packages. It’s a cheaper, smarter and direct solution for them and their clients.

The problem is it directly affects 8,000 jobs in the key election swing state of Ohio during a heated and closely contested Presidential Election. Much of the work handled at Wilmington Air Park in Clinton County, Ohio would be transferred to UPS facilities across the USA.

Both candidates condemned the move in stump speeches across the state (the politically correct and non-suicidal thing to do). Congress, not wanting to miss a big political and business moment to grandstand will get into the act with Congressman Jim Oberstar, chairman of the House Transportation and Infrastructure Committee saying Friday that the hearing requested by Ohio’s congressional delegation will be held when Congress reconvenes in September.

It is also a further indication that the downturn in the economy and high cost of petrol is having its effect on every segment. Aside from auto use in the USA being down almost 5% or 12.2 billion less miles driven in July of this year vs. last year and that this occurred in the month when peak vacation season driving traditionally begins, just adds more fuel to the fire.

Or could the real issue be a German-owned and very efficient global freight forwarder doing this in the USA, released a truckload of bile and xenophobic anger?

How much of the outrage is economic and how much is aimed at the rising tide of foreign investment in the USA? The US dollar has fallen to the level of Monopoly money. The euro was the laughing stock of global currencies when launched earlier in this decade. It traded at $.88 to the dollar when released and yesterday was at $1.50 to the dollar. While the British pound has slipped about 8% this week on falling energy prices, it has traded at almost 2:1 for three years.

Now, is this about 8,000 jobs or the choice of UPS a prelude to consolidation of US freight forwarders by deep-pocketed foreign advisors by foreign investors.

While America frittered away her global political and financial standing through sloth, over-consumption and thinking they were the only choice because, well, they were for so long… others kept their eye on the ball.

Let’s check the scoreboard shall we? Europe and the rest of the world invested in infrastructure through: taxes, a bad word in the US; savings, yeah, people actually put some of the money they earn aside; taking care of people, yeah, that’s socialist; playing by the rules instead of expecting to control every time; and the list goes on and on.

Those quick to attack this article need only look at the number of European tourists spending money in their cities this summer, having great vacations and worrying how they will convince customs that they indeed owned 7 really new looking suits before they left and yes, took one per day whilst on holiday.

Protectionism or global markets? The choice this campaign is simple, until 04 November, don’t even think about letting those ‘Deustchland, Deutschland uber alles’ bastards get away with it. After then, Clinton County where?

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Denis Campbell is the American Editor of UK Progressive. He is a political and business pundit contributor to both BBC television and radio. Denis specializes in translating the American electoral and governing process for UK and EU audiences and vice versa, contributing regularly on UK elections and issues to the Huffington Post. He has contributed to newspapers and magazines around the globe. In his “spare” time, he is managing director of Target Point Ltd focused on social media, communication strategy, leveraging technology, corporate change and building world class selling organisations. Denis has lived in the EU since 1998.
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