• 70% of all sustainability projects result in cost savings….

Interesting data points:  
  • 70% of all sustainability projects result in cost savings.  My question is why would any profit-motivated company ever do the other 30%?
  • Victims of direct-to-consumer demand:

    • Such mundane things as household cleaners are now being air-freighted around the USA – courtesy of the need for 1 or 2 day delivery
    • “If you think about the sales productivity across the entire supply chain, paying a high [warehouse} rent is not a big deal” – real estate analyst talking about Amazon-type businesses.And yes, rent is traditionally <5% of supply chain costs, whereas transportation is north of 60%
    • The Supreme Court ruling that all mail-order sales must pay local sales taxes will slow growth.  When Amazon started charging sales tax in some states, sales dropped by 9.4% – but this predates the ruling
  • Oil is not being discovered fast enough to support projected world demand  
  • In the US, we know where the oil is, we just can’t get it to the refinery cheaply enough – until more pipelines are built
  • Jobs that used to require a college degree are eliminating that hurdle … potentially taking some road-scholars (truck drivers) off the road
Oil is back over $70 on Monday afternoon!