February and March are months where I attend a lot of industry meetings. The information I hear in these meetings is sometimes interesting, sometimes mind-boggling, but they always leave me with plenty of things to consider. I often wonder how CFS and our members will deal with this information. A couple of themes that were relevant this year are supply chain management including the e-commerce type business. The other topic perhaps less discussed, which has the potential to be equally disruptive to our industry is electric vehicles. Of course, on the much shorter horizon is the 199A tax legislation.
Most people believe March 23rd is D-day for the 199A tax legislation. The legislation either gets “fixed" or it stays, at least for one year. Most experts say it will be "fixed" and others question how anything controversial, could be fixed in the current legislative environment. The industry will be a buzz if it has not changed on March 23rd. The discussion around electric vehicles and the impact it may have on our business has gained traction, or more people are talking about it, and how it will impact our business. I have seen the realization of electric vehicles happen in the last six months. How quickly will this impact CFS? Three years, five years, ten years, or will it be longer? I am in the camp of 5-10. Lastly, supply chain management, including e-commerce, is the most widely discussed topic. The industry continues to see market pressure and new competitors in the marketplace. The effect Amazon has in other industries, has become crystal clear. We need to make our supply chain more efficient. In a nutshell, we need to figure out the most efficient way to get products from the manufacturer to the customer in a friendly, simple, and timely manner. These will be the expectations of our customers. If we can't or don't meet these needs, someone else will.