The Evolving Definition of Sustainability in Freight Transportation

In October, the EPA presented its Smartway Excellence Awards to an array of transportation companies for their exceptional achievements in sustainability.

Sustainability in transportation was born of the green movement, leading to a greater awareness of the environmental impact of the transportation industry. These days, though, the term “sustainability” has evolved to mean more than just recycling programs and stewardship of natural resources.  It encompasses broader social responsibility and is only possible when companies have a sustainable business model - one that focuses on the stewardship of financial and human resources and operating using lean principles that facilitate the elimination of waste.  Engaged employees supporting the ongoing vitality of an environmentally responsible company is key to supporting the environment itself.

In practice, that means creating jobs that will endure.  It means healthy financials, and little waste. Furthermore, it means making smart investments: erring on the side of green when the cost differential is close; but when it’s not close at all, perhaps waiting for (and even encouraging) technologies to evolve.

Sustainable business models provide the foundation for the journey. If our businesses are set up to profit through sustainable business practices, then for  the foreseeable future, we can commit to taking care of our employees, our customers, and our communities, and do it all in a sustainable way that benefits all stakeholders for years to come. 

With market forces supporting near-shoring, is NAFTA still necessary?

Much has changed in the business landscape since the North American Free Trade Agreement (NAFTA) was enacted two decades ago. Always controversial, NAFTA has been credited with GDP, trade, and wage growth, but also blamed for shuttered factories and outsourced jobs.

In truth, more jobs moved to China, where affordable labor trumped NAFTA perks. Recently, though, volatile transportation costs, rising wages, and other issues have narrowed the savings gap. Now, U.S. manufacturers planning new operations are looking closer to home, trading off-shoring for near-shoring.

By operating in the same time zone, corporate offices, R&D, and the factory floor can communicate better, innovate faster, and create better products. And contrasted with the bottlenecks and lag times encountered abroad, shipping from Mexico to the states is inexpensive, reliable, fast, and flexible.

NAFTA adds to these inherent benefits with NAFTA Visas for project managers who need to travel back and forth, legal protections against intellectual property theft, tariff-free borders, and guidelines to promote sustainability region-wide.

The U.S. and Mexico are both ready for large-scale economic growth. The cultural affinity we’ve built over twenty years has primed us to create collaborative, integrated, skilled manufacturing partnerships– making NAFTA more valuable now than ever before.