Unlike the threatened railroad strikes of 2022, there is no system in place for the federal government to prevent a UPS strike. The balance of this estimate would result from the disruptions incurred by UPS customers. These costs stem from the 340,000 striking workers losing an estimated $1.1 billion in wages and UPS losing $816 million in earnings. economy an estimated $7.1 billion, according to Anderson Economic Group – a research firm – making it potentially the costliest strike in U.S. Farmers and construction companies trying to get spare parts for heavy equipment would see delays in those shipments, which might result in downtime that costs tens if not hundreds of thousands of dollars.Ĭonsequently, a strike would leave many businesses scrambling to fulfill customers’ orders, which may force them to spend more money on higher-priced air freight shipping.Įven a 10-day strike could cost the U.S. The supply chain for manufacturing computer and electronics products would probably be disrupted too, according to my analysis of data from the Census Bureau and the Bureau of Transportation Statistics that tracks how different industries transport products to their customers. Consumers will also find it harder to get clothing and shoes in stores, as retail locations are typically replenished by parcel carriers.
The rest go to retailers and other businesses.īased on my years of researching transportation operations and supply chain disruptions, I believe Americans should recognize that the impact of a UPS strike would stretch far beyond delayed delivery of everything from pet food to tennis rackets that they buy online.Ī UPS strike could disrupt the availability of spare parts for cars and wholesale medical supplies, just to name a few essentials.
Roughly 57.3% of the packages UPS delivers are shipped straight to consumers. The risk of losing market share is leading many industry experts to believe that if a strike were to occur, it wouldn’t last long. If a prolonged strike happens, UPS could lose up to 30% of its business, experts warn, as customers switch to rival services. Parcel delivery demand peaked in 2021, when millions of Americans were still social distancing.
That’s due to delivery workers clocking fewer hours per week today compared to the height of the COVID-19 pandemic. If a strike were to happen, UPS competitors, including Fe圎x Ground and the United States Postal Service, would likely be able to handle about 20% of UPS’s deliveries because the industry currently has some excess capacity. Today, consumers spend about 15% of their shopping dollars on e-commerce purchases. The Census Bureau only began to track that slice of the economy in 1999, when online shopping amounted to about 0.6% of all retail sales. In Tennessee, GoodRx is registered as a Prescription Drug Discount Plan Operator.The 1997 strike, which lasted 16 days, took place when e-commerce was in its infancy. In all states except Tennessee, GoodRx is considered a marketer of prescription discount cards. Please seek medical advice before starting, changing or terminating any medical treatment.
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