Labor Disruption at California Ports Could Derail U.S. Economy

July 8, 2022--Researched by Industrial Info Resources (Sugar Land, Texas)--The labor contract for 29 West Coast ports has expired, but normal operations are ongoing as the two sides continue to negotiate. Nonetheless, the National Association of Manufacturers (NAM) has warned a work stoppage or slowdown at the ports of Los Angeles and Long Beach would have dire consequences for the U.S. supply chain and economy. Industrial Info is tracking more than $1 billion worth of active capital-spending projects at the two major ports, which handle about 40% of all cargo containers entering the U.S.

The NAM cited a study by Inforum Economics that indicated a 15-day closure at the two ports would cut the U.S. gross domestic product (GDP) by nearly half a billion dollars per day, for $7.5 billion total.

With that said, infrastructure improvements at the ports serve to benefit cargo movement throughout California and across the country.