Originally Posted by
BizPilot
Well, Fred Smith is a Yale Grad.
Actually, more manufacturing is coming back to the USA. China has a labor shortage (ex. A320 Capts getting 200k a year). Multinationals are freaked out over supply-chains. As the tsumami and floods in Thailand have shown. Honda is upping production in Ohio. So there will be less goods coming from Asia. Unless Fedex and UPS change their business model they will be in trouble.
The argument you make actually helps FDX and UPS to some degree. China and India over the next decade will consume more and more. A balanced trade between the U.S. and Asia creates more efficiencies in the FDX and UPS model (ie. not empty jets coming from U.S. to Asia and full ones coming back). If you have been to China recently, there is a huge appetite for U.S. products (albeit now mostly "knock-offs"). An increase in manufacturing in the U.S. with an increase in consumer demand in Asia is good for FDX. Just my opinion. I personally think the biggest threat to profitability for FDX an UPS is political, the increasing desire to impose trade barriers by all countries.