Issue link: http://publications.winnipegfreepress.com/i/1288082
A SUPPLEMENT TO THE WINNIPEG FREE PRESS SATURDAY, SEPTEMBER 19, 2020 3 T he economic returns gained from ensuring transportation infrastruc- ture is up to the job of moving goods and people are well docu- mented – investment in strategic and core infrastructure in Canada returns $1.30 to $1.60 for every $1 invested, depending on the mix of assets analyzed. But what does that mean, on the ground, on the roads where business is happening every day, around the clock? It means getting the goods to their markets on time and – most critically – in the condition they were in when they left the production line, so customers get what they paid for and a company's brand "arrives" intact. "Price is very reliant on trade transportation infrastructure, especially highways, as for us this is still the most cost effective and efficient method. Therefore, strategic investment in trade transportation is very important," says Gerry Price, chairman and CEO of Price Industries. Price ships just 4% of its orders via air, none by rail. All other shipments inbound or outbound move by road. For the manufacturer of commercial air distribution products, good roads are key to delivering on the company's commitment to customers. Sometimes road conditions make that a tough proposition. "In our experience, we have determined that the infrastructure in the United States is far better than in Canada based on our freight claims. In 2019, Canadian freight claims were approximately 81% higher than the claims on shipments sent to the United States," Price explains. "Anyone who's ever taken a road trip to the U.S. from Manitoba can attest to the bumpy ride on Highway 75 which becomes smooth sailing the second you cross the border." The trucking industry – the carriers that put 'trade on the road' – knows well the cost of inadequate transportation infrastructure. "Being centrally located as we are, investment in road transportation infrastructure is key to the success not only of Manitoba's trucking industry, but also to all Manitobans," stresses Terry Shaw, executive director of the Manitoba Trucking Association. "We have positioned ourselves as a distribution hub with North America's largest tri-modal inland port and Canada's first designated foreign trade zone, but if goods cannot be moved safely in and out of our hub, then someone else is going to be more than willing to take over that title," Shaw cautions. Mariette Mulaire, president and CEO of the World Trade Centre Winnipeg, says it is infrastructure that helps businesses in a relatively small market at the centre of the country expand their markets and acquire global reach. "By investing in trade infrastructure, we are essentially ensuring that Manitoba businesses can reach other markets without being at a natural disadvantage," Mulaire says. "That leads to more sales, which leads to increased production and more jobs." WTC Winnipeg works to help Manitoba companies grow their business beyond the province, and to assist international companies interested in doing business with provincial firms. "At the end of the day, Manitoba is a small market of 1.4 million people. Reducing the cost in time and money to reach our neighbours ultimately expands our economic reach and generates opportunities that would otherwise not be feasible. It is the job of organizations like the WTC Winnipeg to assist in turning that opportunity into reality." Delays and bumpy roads are bad for business and, ultimately, drive up costs, notes Price. Poor infrastructure can often lead to delays, he says. "For example, within Canada, commutes are longer for drivers due to the lack of freeways and too many single lane highways." Price says his firm has discussed this with their carriers and they say it's challenging to pinpoint overall infrastructure standards across the nation as this would depend on specific municipal, state, and provincial budgets. As a result, Price Industries' response has been to protect their product against damage as best it can. "Rather than focus on infrastructure, which is out of our control, we and our carriers have put extensive focus on packaging methods. Our carriers push back on us to ensure we have well-engineered packaging to protect goods while in transport, which adds additional costs to the customer. Our carriers invest in resources to educate customers on the importance of packaging to ensure the risk of damage is minimized, and we make the investment to ensure our goods arrive intact in spite of bad roads in Manitoba and Canada." Shaw says poor roads are an issue for the whole supply chain, and Manitoba's trade profile. it's estimated that 95% of all goods – food, clothing, PPE supplies, manufacturing tools and finished products – are shipped by truck at some point in their journey into the hands of consumers, he notes. If manufacturers cannot ship their goods safely and reliably, then the supply chain is broken. "As the saying goes, we are only as strong as our weakest link; road infrastructure simply should not be that weak link." Getting trade on the road – it's about the ride Being centrally located as we are, investment in road transportation infrastructure is key to the success not only of Manitoba's trucking industry, but also to all Manitobans. " – Terry Shaw, executive director of the Manitoba Trucking Association SALES • RENTALS • PARTS • SERVICE YOUR AUTHORIZED JCB CONSTRUCTION EQUIPMENT DEALER FOR SASKATCHEWAN AND MANITOBA. 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