Email Jim at jim.thompson@ipulpmedia.com

The US interstate highway system is sixty-nine years old this coming June 29^th. In many ways, this has been the most transformative change in the United States culture ever. Heck, I was even inspired to solo drive the 48 contiguous states in less than seven days, which I did in 2005.

Small, local businesses and manufacturers were motivated to build larger factories to capitalize on the scale afforded by this highway system. We did so in the pulp and paper industry, at the cost or savings (depending on your point of view) of thousands of jobs.

In many cases there was just a transfer of jobs from skilled papermakers to truck drivers. Today, truck drivers, with overtime, make earnings comparable to overtime enhanced skilled papermakers.

We have not realized all the savings possible from large papermills because we have given up a portion of that to more truck drivers.

It took a number of years (decades?) for the railroads to catch up to the service demands of our business. It does seem in recent years, however, they are doing better.

Computerized scheduling and tracking as well as double length trains (200 cars instead of 100 cars; engines in the front, middle and back, with live engineers only in the front engine) have helped. This, however, has led to suits from Amtrak, for these longer trains will not fit on sidings and are slowing the Amtrak schedules. However, we will let the railroads fight that battle.

The most important change we can make, however, is to load shipping containers at the end of the paper machine or the converting line. We still individually handle rolls and pallets, and only towards the end of the process finally putting these goods in a standard shipping container or, even worse, an individual truck.

If we rework our handling systems to stop the individual handling of rolls, the potential savings are immense. For no longer do we need clamp trucks and fork trucks, we no longer need warehouses. These containers can be stored on pavement outdoors. After all, we rely on them on the open seas to securely handle our goods.

Once in a container, we can ship via truck or train, or even barge, as appropriate.

Let's show the manufacturing world what modern material handling looks like and reap the savings along the way.

Be Safe and we will talk next week.

Want a deeper dive? Go here.

The Impact of Transportation on Industry: A Study Guide

Quiz

1. According to the author, what is one of the most transformative changes in US culture and when did it reach a significant milestone?
2. How did the interstate highway system initially influence the size and location of businesses and manufacturers? Provide an example from the pulp and paper industry.
3. The author suggests a trade-off occurred with the rise of trucking. Explain this trade-off in terms of employment and potential savings.
4. What improvements have railroads implemented in recent years to better compete with trucking for business?
5. What conflict has arisen from the railroads' use of longer trains, and with whom?
6. What key change does the author propose to significantly improve material handling and reduce costs in manufacturing?
7. What specific pieces of equipment and infrastructure does the author suggest could be reduced or eliminated with the proposed change?
8. What advantages does the author see in utilizing shipping containers earlier in the manufacturing and distribution process?
9. What transportation options become more readily available once goods are loaded into shipping containers?
10. What is the author's overall goal in advocating for these changes in material handling within the manufacturing sector?

Answer Key

1. The author believes the US interstate highway system, reaching its sixty-ninth anniversary in June 2025, is one of the most transformative changes in US culture. He even drove the 48 contiguous states in under seven days in 2005 as a result of its influence.
2. The interstate highway system motivated small, local businesses and manufacturers, including those in the pulp and paper industry, to build larger factories to take advantage of the economies of scale offered by efficient transportation. This consolidation led to job losses for some skilled papermakers.
3. The rise of trucking led to a transfer of jobs from skilled papermakers to truck drivers, with the latter earning comparable wages with overtime. This meant that some of the potential cost savings from larger papermills were offset by the increased expense of transportation.
4. Railroads have improved their service through computerized scheduling and tracking, as well as the use of double-length trains with engines distributed throughout and live engineers only in the front.
5. The use of longer trains by railroads has led to conflicts with Amtrak because these trains do not fit on existing sidings, causing delays to Amtrak's schedules.
6. The author proposes loading goods directly into standard shipping containers at the end of the paper machine or converting line, rather than individually handling rolls and pallets.
7. Implementing container loading earlier could potentially eliminate the need for clamp trucks, fork trucks, and traditional warehouses for storing individual rolls and pallets.
8. Utilizing shipping containers earlier provides secure handling of goods, allowing them to be stored outdoors on pavement, similar to how they are handled on the open seas.
9. Once goods are in a container, they can be shipped via truck, train, or even barge, providing greater flexibility and options for transportation.
10. The author aims to demonstrate modern material handling practices to the manufacturing world, hoping to achieve significant cost savings and improve efficiency in the process.

Essay Format Questions

• Analyze the economic and social impacts of the US interstate highway system as presented in the excerpt. Consider both the intended benefits and the unintended consequences discussed by the author.
• Evaluate the author's argument for a shift towards containerization earlier in the manufacturing process. What are the potential benefits and challenges of implementing such a change across different industries?
• Discuss the evolving relationship between trucking and rail transportation as described in the excerpt. What factors have influenced their competition, and what does the future potentially hold based on the author's observations?
• Critically assess the author's perspective on the trade-off between skilled manufacturing jobs and truck driving jobs. Is this a necessary consequence of transportation advancements, and what are the broader implications for the workforce?
• To what extent does the author believe that technological and logistical innovations can overcome the challenges of transportation costs and efficiency in the manufacturing sector? Use specific examples from the text to support your argument.

Glossary of Key Terms

Interstate Highway System: A network of controlled-access highways that forms part of the National Highway System in the United States.

Economies of Scale: The cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.

Pulp and Paper Industry: The sector of the economy that produces pulp from wood and other fibrous materials, and manufactures paper and paperboard products.

Skilled Papermakers: Workers with specialized knowledge and abilities in the processes involved in manufacturing paper.

Material Handling: The movement, storage, control, and protection of materials throughout the process of manufacturing, distribution, consumption, and disposal.

Shipping Container: A standardized, reusable vessel used to efficiently store and transport goods between different modes of transport, such as ships, trains, and trucks.

Clamp Truck: A type of forklift truck equipped with large padded clamps instead of forks, used for handling items like paper rolls without damaging them.

Fork Truck (Forklift): A powered industrial truck used to lift and move materials over short distances.

Converting Line: In the context of the paper industry, a production line that processes raw paper into finished products like packaging or other paper goods.

Barge: A flat-bottomed boat, typically unpowered, used mainly for river and canal transport of heavy goods.

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