Email Marketing Trends to Grow Your Business
SUMMARY
- Email marketing remains a crucial tool for businesses due to its direct reach to subscribers, bypassing algorithms of social platforms.
- Businesses should focus on nurturing relationships through emails by providing value-added content, including insider tips, trending news, and solutions to customer problems.
- Pairing email marketing with regular website content updates can increase traffic significantly.
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Yes, it's that easy. Using an AI "text to image" feature, your Chamber created the image for this article.
Every day four billion people open email. While social media posting and paid advertising can play a significant role in a small business's marketing campaigns, experts agree that emailing subscribers remains one of the best marketing tools available. Why? Emails go directly into your subscriber’s inbox and bypass the mysterious algorithms associated with social platforms and paid traffic. If your business knows how to leverage the latest email marketing trends, you have an instant advantage over your competition.
Here’s what you need to know about using email to grow your business.
Nurture Audience Relationships through Email
Beyond sales and promotions, email marketing is a great way to demonstrate your value to subscribers. Avoid sending too many emails just for the sake of ‘staying in touch.’ Instead, obsess about your customer’s problems and create email content that includes insider tips, trending news and ways to help your audience get ahead. Also, a smart website strategy should also include email. Whenever you add new content to your website, make sure to nudge subscribers with highlights and direct them to read more online.
How often should you post new content to your website? According to the content marketing experts at HubSpot, it depends. They recommend first running a website audit to determine how often you should post. Then, it’s all about your goals. If your goal is to drive more traffic to your site, then you might need to post 3-4 times a week. If your strategy is to raise brand awareness, then publishing less frequently may work just fine. By pairing email marketing with website publishing you naturally increase traffic to your website without paid advertising.
Find Your Next Content Idea with AI
You’ve probably heard by now that AI is equipped to help you do everything from composing mysteries to finishing your kid’s homework. But the truth is AI is only as smart as its user. Many businesses are finding that the best use of tools like Open AI’s ChatGPT and Jasper isn’t to do your work for you but to do some thinking for you. Rather than starting with a blank page, try utilizing AI as a ‘content assistant’ that can pitch email subject lines or outline email content.
Know How Privacy Changes Affect Deliverability
Measuring the success of email marketing used to be a lot easier. However, a side effect of tech giants like Apple creating Mail Privacy Protection (MMP) to help users guard their personal information is that traditional metrics like open rates and click-to-open rates have become less reliable. As of June 2022, 89% of iPhone users adopted iOS 15 which gives users this option.
These updates don’t change the reality that email remains a highly effective marketing strategy. The difference is that you’ll want to look at other metrics such as ROI, list growth, email forwards, and unsubscribe rates to help determine what’s working and when to adjust.
Turn Subscribers into Fans
The reason people subscribe to your list varies, but we know that most subscribers are motivated by access to deals, shortcuts, rewards, discounts, and hot tips. In other words, they love special treatment.
You can nurture customer loyalty and repeat sales when you treat your email subscribers differently than everyone else. Rather than making special offers to everyone, reward email 'opens' with exclusive opportunities. This strategy will also help you determine which sales are coming from email versus promotions running on your website, ads, or social media posts.
Are you growing your list?
Your email marketing efforts are only as good as the health of your email list. To keep your list growing, make sure you have a variety of lead magnets designed to trade exclusive content or discounts for a person’s email address. After you have new subscribers added to your list, your email marketing strategy begins. Far more than a trend, you can kickstart your new email relationship with a series that both initiates and rewards new subscribers. Connect it all to automation, and you have a simple, reliable email marketing campaign to help you make more sales and grow your business.
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The Columbia Montour Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike.
New Member Highlight – SafeLock Portable Storage
Founded in 2022 by Michael Knaus, Safelock Portable Storage is serving all of Northeastern Pennsylvania with storage solutions delivered directly to customers’ homes and businesses. Whether it involves moving, temporary storage or long-term storage at their facility, convenience and customer service is where they strive to be the best in the industry.
Learn More about Safelock Portable Storage.
IRS Regulations Expand Requirement to File Electronically
Final regulations issued by the Internal Revenue Service ("IRS") expand the requirement to electronically file certain returns and other documents with the IRS. This new requirement will impact employers who file Forms 1094-C, 1095-C, 1094-B and 1095-B. It will take effect for returns due to be filed on or after January 1, 2024.
As a practical effect, all applicable large employers ("ALEs," employers with at least 50 full-time employees, including equivalent employees) should prepare to file Forms 1094-C and 1095-C electronically with the IRS for calendar year (“CY”) 2023 reporting due March 31, 2024.
In addition, small employers who offer self-funded plans and who are required to file Forms 1094-B and 1095-B in 2024 should prepare for electronic filing of those forms if filing 10 or more Forms.
Background
Prior to the adoption of these final regulations, the IRS rules regarding mandatory electronic filing of information returns or statements were applicable only to organizations issuing more than 250 forms of each type. Thus, for example, an organization that filed 200 Forms W-2 and 175 Forms 1095-C did not have to file the respective forms electronically. These old rules continue to apply through calendar year or fiscal year 2023, as applicable.
What’s New?
Beginning on January 1, 2024 (or for returns related to taxable years ending on or after January 1, 2024), an organization filing 10 or more returns or statements in a calendar year will be required to file electronically.
This requirement extends to the Forms 1094-C, 1095-C, 1094-B and 1095-B, among others.
Importantly, unlike before, the final regulations require filers to aggregate together all forms required to be filed to determine whether a filer meets the 10-return threshold. If, in the aggregate, there are 10 or more forms, the filer would be required to file them electronically. Further, any corrections will need to be filed in the same manner as the original.
The final regulations also clarify that although there is a hardship exception, these exceptions will not be given freely and that there are few "small business" exceptions to the electronic filing rule.
Employer Action
With respect to these new requirements, employers should:
- Review the final rules and determine which forms will need to be filed electronically beginning in 2024. Briefly:
- All ALEs will need to file Forms 1094-C and 1095-C electronically for CY 2023 filings, due March 31, 2024.
- Small employers who are not ALEs, but offer a self-funded health plan, will need to file Forms 1094-B and 1095-B electronically with the IRS if filing 10 or more returns (determined in the aggregate). Filings for CY 2023 are due by March 31, 2024.
- Work with payroll vendors and/or third-party vendors to determine the best method of filing the applicable forms electronically to ensure compliance.
You’re Ready to Sell – Is Your Business?
Source: David Blain, CPA, CVA, McKonly & Asbury
You have been thinking about your retirement plan for years. Your
business has provided you with a good living, and now it is the time to take the next step of looking to offload your business and ride into the sunset. But wait a minute, is now the right time to sell your business? How will the market and an acquirer look at your business? Is your business in the best position it can be in to sell at a price that will make sense and provide you with the retirement income you will need for the period of retirement you are looking for? If you are contemplating these questions, here are some tips to consider and ways to best position your business to ensure you receive the highest value possible for your business to achieve your future goals.
Know Your Free and Available Cash Flow
Sounds easy, right? You’re the business owner, of course you know what the cash flow of the business is. But do you really? How much of your expense base is non-operating cash expense? Examples of non-operating cash expenses would be staff lunches, parties, outings, etc. Many business owners are very generous with their employees. These types of expenses are great for the morale of the employees, but is it a core business expense? Understanding what constitutes a core business expense versus a non-operating expense is important for normalizing the cash flow stream. Other items to consider would be personal expenses. While you would like to think that personal expenses do not run through the business, there still might be some that do. Being able to identify and extract those expenses will also improve the business cash flow and ultimately the cash flow value of your business.
Evaluate the Management Structure of Your Business
Many business owners have a very “hands on” approach. This is your business and you have run it for decades. While it might seem great that you know all the ins and outs of their business, what happens if you are not there? Does all that knowledge leave with you? Is there anyone in the business that can operate the business in your absence? One issue that can really affect the value of a business is the lack of a management structure. In the valuation world, valuators will discount the value of the business if there is only one or two key employees in the business. One way to increase the value of your business for a potential acquirer is to have a management structure in place that will allow the business to operate even if one of the key employees is absent. Evaluating your C-suite (COO, CFO, CIO, CMO, etc.) will ensure you have the right leadership in place to operate the business in the event you or a key member of the team is missing. Also, evaluation of your key upper and middle level management personnel will also add value through the depth of their technical knowledge and expertise.
Understand Your Market
This is your business, and you believe that it is clearly the best in the industry. No one competes with your process, procedures, and overall business structure and management. While this might be your belief, understanding what the market is actually saying about your business will also help you to evaluate the real value of your business. Doing your research on your industry and competitors will help you to better identify what strategic advantages your business really has. Maybe your competitors have a product or business model that is more advanced compared to yours. Factors like these will impact market multiples and deal structure. Other items to consider are the types of deals that are being done in your market. Are there private equity organizations looking to buy a turnkey operation? Are there competitors looking to buy market share or just a book of business? All of these considerations have an impact on value and market multiples. Understanding what the market is saying is a very critical component to how to best position your business for its highest value.
Consider Your Goals
For many, the goal is going to be to maximize the cash paid in the transaction. That is clearly a great idea, but do you have other goals with the business transaction you are trying to achieve? For many owners, finding a soft landing spot with the new company is also an objective of a sale due to a sense of loyalty to their employees. Also, ensuring that the clients you so diligently worked with for many years are taken care of by the new owners is often another concern. Sometimes, there is still a desire to continue working, just without the hardship and worry of running the day-to-day business. Alternatively, some owners look for the ability to continue to work and still be active in the business. Your ultimate life goals are also going to drive your decision on whether to sell now or later. Take all of your goals into consideration in addition to the economics of the transaction when making your final decision.
As you can see, sometimes what seem to be the easiest decisions in life are not as easy as they are thought to be. Taking the above points into consideration while contemplating the next steps in your life and your businesses longevity will aid in making the right decision regarding when the right time to sell and transition your business will be.
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McKonly and Asbury, LLP, can assist you with analyzing your business to help you make these decisions and assist you with a sell side process. If you would like to talk to one of their professionals in our Entrepreneurial Support & Client Accounting Segment on this topic or any other business-related topic, please do not hesitate to contact them.
Business Mergers Could Get a Lot Harder
Source: US Chamber of Commerce
The Federal Trade Commission and the Justice Department released
updated merger guidelines on Wednesday. While these guidelines aren’t law, they have shaped how the courts interpret and weigh in on antitrust cases.
• More importantly, they demonstrate the antitrust agencies’ views regarding mergers and acquisitions.
Why it matters: If current agency leaders are successful, the result would be less competition in the economy and a harder path forward for businesses looking to grow.
Be smart: The vast majority of mergers and acquisitions in the U.S. raise no competitive concerns.
• Evidence shows that mergers increase competition in the market and provide benefits to American consumers.
• The dire consequences often predicted when mergers are announced often fall flat.
The US Chamber's take: These guidelines are designed to chill merger activity, which will deny smaller companies access to the capital and expertise they need to grow. This places U.S. businesses at a disadvantage with their global competitors.
What’s next: Congress and the courts should continue to reject the agencies’ efforts to undo the consumer welfare standard and decades of antitrust precedent that has served the U.S. economy and consumers so well.
Dig deeper:
• A Shift in Merger Enforcement Risks Damaging Our Economy
Member News – July 26, 2023
First Columbia Bank Photography back in 2023
Summer Concert Series Continues in Danville, Bloomsburg, Berwick, Catawissa
Have you connected with this midweek fun? Check out the concerts in Danville (Tuesdays, 7 PM at Memorial Park), Bloomsburg (Wednesdays, 7 PM at the Bloomsburg Town Park), Berwick, (Thursdays 7 PM at Jackson Mansion) and Catawissa (Tuesdays, 7 PM at Cara Park, South 4th St.
Member Businesses Looking for New Hires
Submit your job opens in the Chamber and get them listed on our website. Check out who is hiring.
Webinar: Manufacturing Panel Discussion
On July 27 at 2:00 pm, the manufacturing team at McKonly & Asbury will host this roundtable discussion with Janice Snyder, Brett Bauer, Dave Hammarberg, and Jeremy Peachy. Attendees will gain insight on cybersecurity concerns, recent tax changes impacting manufacturers, and attracting and retaining staff. The webinar is free and one "specialized knowledge" CPE credit is available for this webinar. Register today.
Bloomsburg Community Luau
Bloomsburg Community Luau, Saturday, September 9, 2023, at the Bloomsburg Town Park starting at 6PM. Enjoy live music and entertainment, great food, fun tropical activities, enter the Tiki Lounge decorating contest, and see Elvis on the outdoor big screen in the classic film Blue Hawaii. Bring a chair or blanket to relax and enjoy the entertainment at the corner of Market Street and Fort McClure Blvd.
Commonwealth University - Bloomsburg Offers Parking Help
Commonwealth University - Bloomsburg is making their hospital parking lot available until classes start on August 21, 2023, for those customers and business owners who are losing their parking spaces due to the construction on the East Pine Avenue lot construction. Thank you to Commonwealth University - Bloomsburg for the help to Bloomsburg businesses.
Drive-through Senior Expo Planned
On Wednesday, August 2, 10:00 am - 1:00 pm, a Drive through Senior Expo will be sponsored by State Representative Robert Leadbeter's office. See flyer for more details.
CSIU To Hold Free Training
Educators, First Responders, and Community Members register today for free trainings on Youth Mental Health First Aid and QPR Suicide Prevention. See a full list of dates and times here.
IMC to host Webinar Series
The Innovative Manufacturers' Center will be hosting a free four-part webinar series about attracting and retaining employees. The series starts July 25th. See full details.
BTE announces 46th Season
New Faces, New Spaces are coming your way care of the Bloomsburg Theatre Ensembles' 46th season. Check out the season line-up.
Fall 2023 Career Expos
Commonwealth University of Pennsylvania is excited to bring the power of all 3 of our universities together to benefit our students and employer partners across the state in a Fall 2023 Accounting and Financial Services Career Expo and Management, Supply Chain, Marketing, Technology and Analytics Expo on campus in Bloomsburg. Reach out to Darwin Kysor at 570-484-2181 to get more details about participation.
BU Community Day Fair & Carnival
Set to take place August 18, from 6 PM to 8 PM, this event is on the B.U. Academic Quad and provides students with the opportunity to connect to the community. Local businesses and non-profit organizations are encouraged to attend. Learn more by reaching out here to Rebecca Toth, at 570-389-4189. See the flyer.
NEPIRC Manufacturing Day: October 13
Join NEPIRC on Friday, October 13th to celebrate the many contributions of our region’s manufacturing industry! At Manufacturing Day, you’ll be able to see product demonstrations; learn more about the cool products made right here in our local communities, and more!
Coming in October...Downtown Bloomsburg, Inc.'s Chili Cookoff & Fall Festival!
Stunning fall foliage and cooler temperatures create the perfect atmosphere for this first annual, family-friendly downtown Bloomsburg event. Read more.
UPS Strike Averted
UPS and the International Brotherhood of Teamsters have reached a tentative agreement that averts a strike and prevents service disruptions to consumers and businesses. A major work stoppage would have wreaked havoc on the economy.
Why it matters: A strike by UPS workers could have been the costliest in at least a century. UPS moves $3.8 billion of goods daily. Had a strike occurred, nearly four million small and medium-sized businesses that depend on UPS for delivery of critical goods would have been affected.
What we did: Last week, the Columbia Montour Chamber joined a coalition letter to the White House detailing the harm a strike would cause and asking the administration to help both sides come to an agreement as it did in both the railroad and West Coast port terminal contract negotiations.
The US Chamber's take: “The Chamber commends UPS and the Teamsters on reaching a tentative labor agreement that prevents work stoppages and returns certainty for the many businesses and consumers that rely on UPS and its workers,” said Chamber President and CEO Suzanne P. Clark. “While the agreement is a win for the nation, this and other negotiations are a reminder that unnecessary brinksmanship can do lasting damage to our businesses, consumers, and the workforce critical to our nation’s success.”
The Columbia Montour Chamber's take: "Already, an audible sigh of relief is heard among business owners and consumers in our region. We're grateful to the U.S. Chamber for organizing a nationwide response, the Administration for hearing that response, and for both UPS and the Teamsters for their work to reach an agreement. The state of the economy and all of its unpredictability means that business owners are riding wave upon wave of anxiety. Averting a strike is a most welcome reprieve," said Chris Berleth, CMCC President.
Looking ahead: Union workers will vote on the agreement starting on Aug. 3.
Looking for more on this subject? Read our previous article:
KEY INSIGHTS INTO THE UPS AND TEAMSTERS LABOR NEGOTIATIONS
Last Week in the Legislature
July 25, 2023
Source: PA Chamber of Business & Industry
State budget negotiations remained stalled in Harrisburg last week as the House and Senate stand in recess and are not scheduled to reconvene until September. On the other hand, Senate President Pro Tempore Kim Ward (R-Westmoreland) offered a glimmer of hope, telling ABC 27 news on Friday, “I’m sure at some point in August we’ll be able to get the general appropriations signed…”
Of course, the House and Senate must still reach an agreement on various code bills that are passed in conjunction with the budget and dictate how funding is allocated. Additionally, other budget-related bills (like funding for state-related universities) remain unresolved at this time.
Further complicating the resolution to this year’s budget standoff is the resignation of Democratic State Rep. Sara Innamorato (D-Pittsburgh), who announced Wednesday that she would step down to focus on her campaign for Allegheny County Executive.
Innamorato’s departure leaves the partisan makeup of the House in a 101-101 tie, ostensibly stripping House Democrats of their status as the majority party. However, the rules package adopted in March included a provision enabling the caucus to retain its majority powers in the event of a vacancy until a special election has been conducted. A special election for Innamorato’s seat has been scheduled for Tuesday, Sept. 19, one week before the House returns to the legislative session.
In a press conference on Thursday, House Republican Appropriations Chairman Seth Grove (R-York) said that Innamorato’s resignation, paired with the ongoing budgetary gridlock, means that any substantial movement on the budget agreement will likely be delayed until at least October.
Need a refresher on what was included in this year’s budget bill? Click here to read the PA Chamber’s 2023-24 State Budget Rundown.
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Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.
Why Your Best Employees Leave
SUMMARY
- Employee dissatisfaction at work is often rooted in feeling overlooked, a lack of purpose, and limited creative freedom. Recognizing employees' daily efforts, understanding their 'love languages,' and fostering a sense of belonging can combat feelings of undervaluation.
- Making sure work feels meaningful and impactful for employees is critical, which can be achieved by establishing a shared vision and involving the workforce in strategic conversations, thus fostering a sense of shared purpose.
- Enabling employee autonomy and creative freedom has been shown to improve workplace satisfaction. Avoiding micromanagement, valuing employee input, and providing them with control over their roles and working conditions have been found to be effective measures.
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Fifty years ago, few people expected to find happiness at work. But as the saying goes, times have changed. Underneath all the reasons workers quit, unhappiness tops the list.
But what causes workers to become unhappy at work and what can employers do about it?
Employers hear a lot about compensation and benefits packages, yet research shows that modern workers want more from their employers. In fact, when it comes to greater workplace satisfaction, it’s the emotional side of work that ultimately keeps top talent fulfilled.
Here are three reasons great workers walk away, plus some aligned solutions to help you keep your best and brightest.
3 Reasons Great Employees Walk Away
#1 Feeling Overlooked
Employees are human, and according to best selling author and researcher, Brené Brown, every person needs to feel worthiness and belonging. When workers are performing well and giving their best and still go unnoticed or unacknowledged, they don't feel valued. In turn, this lack of appreciation affects productivity and, worse, fuels resentment.
As Debby Muno, managing director of Genos North America, told Fast Company, employees want to feel connected to their leader, their purpose, and to their organization. Workers who feel seen, according to Muno, are “stronger collaborators and communicators, and are more engaged.”
Organizations that focus on recognizing their employees’ daily efforts and big successes foster a positive team culture. Also, taking time to understand how employees want to be recognized means no one gets overlooked. In recent years, assessments like the Five Love Languages have expanded to understanding appreciation in the workplace. Knowing your employees ‘love language’ ensures they get noticed in a way that resonates with them.
#2 A Lack of Purpose and Meaning
Employees who find happiness at work share something in common. They feel like their work matters. Finding this connection may seem challenging at first – after all, your grandparents would probably chuckle at the notion of a shared purpose. But ignoring this aspect of workplace happiness comes with great risk, as some of the qualities that make up your best employees likely include an intrinsic desire to make a difference.
Leadership experts recommend organizations have a shared vision and include workers in the conversation. According to Harvard Business Review’s writers James M. Kouzes and Barry Posner, “The best way to lead people into the future is to connect with them deeply in the present. The only visions that take hold are shared visions—and you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”
# 3 Not Enough Choice or Creative Freedom
Everyone wants to feel like they have control over their lives, and this desire includes time spent at work. Unfortunately, many leaders micromanage their employees, which leaves some of the smartest and hardest workers feeling stifled instead of satisfied.
The good news is that talented employees often have great solutions for how to improve productivity, communication, and workplace satisfaction. Organizations that value employee input and choose to incorporate their insights will create a workplace where people feel seen and valued at work. In a recent hybrid work study, researchers found that beyond flexibility workers want autonomy. In a present age where a one-size-fits-all approach no longer works, employers who give workers more control and input over their roles and optimal working conditions will win out over organizations who fail to tune in.
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The Columbia Montour Chamber of Commerce is a private non-profit organization that aims to support the growth and development of local businesses and our regional economy. We strive to create content that not only educates but also fosters a sense of connection and collaboration among our readers. Join us as we explore topics such as economic development, networking opportunities, upcoming events, and success stories from our vibrant community. Our resources provide insights, advice, and news that are relevant to business owners, entrepreneurs, and community members alike.
Key Insights into the UPS and Teamsters Labor Negotiations
Source: John Drake, US Chamber of Commerce
The United Parcel Service (UPS) and the International Brotherhood of Teamsters (Teamsters) are in the final stages of negotiating a new, long-term collective bargaining agreement for approximately 340,000 UPS employees. These negotiations will establish compensation, benefits, work hours and conditions for several years, so while both sides report significant progress in reaching an agreement, it is not unusual for talks to become strained before a deal is reached.
Most Recent Developments
Recently, the Teamsters announced they would resume contract negotiations with UPS, beginning the week of July 23rd. Like last year’s rail negotiations, UPS will be forced to prepare for a potential strike in the coming days, meaning our nation’s communities, businesses, and local governments will soon see service disruptions before the “official” August 1 date that a strike could begin. This makes it incredibly important for both sides to reach a deal as soon as possible to avoid any potential service disruptions to the American public, which is why the U.S. Chamber led a coalition letter of more than 250 organizations, and State and local chambers including The Columbia Montour Chamber, calling on the administration to intervene in the negotiations.
Background
UPS is one of the world’s largest package delivery companies and a leading provider of global supply chain management solutions, including a variety of transportation, distribution, logistics, and customs services. Every day UPS moves approximately 5% of the nation’s GDP – or roughly $3.8 billion of goods.
Important to performing this work are the approximately 340,000 UPS package car drivers, feeder drivers, loaders, sorters, clerks, and others, who are represented by the Teamsters. Indeed, UPS is the single largest employer in the Teamsters union.
The current contract, which expires on August 1, 2023, is unpopular with the new Teamsters’ leadership – Sean O’Brien, the Teamsters’ new president, promised to reverse several of its provisions as part of his campaign for the union’s top post.
Despite this, both sides have reported productive discussions since negotiations began in April to negotiate a new agreement. In late June, Mr. O’Brien expressed optimism to reach a new agreement by early July. To date, both sides have reached tentative agreements on 55 issues – which includes virtually all of Mr. O’Brien’s stated priorities such as installing new heat safety measures for UPS vehicles, the use of technology, prohibiting in-vehicle cameras, and eliminating the “22.4 drivers” (also known as “combo drivers”) classification. This leaves a handful of issues to resolve.
In recent days, news reports show heightened rhetoric by the Teamsters, including demands for a “last, best, and final offer,” and walking away from the negotiating table. While these actions are cause for concern, they are not unexpected. Historically, contract negotiations can become more heated during discussion of the most important items. Further, it is important to remember that the current contract remains in place until August 1. As long as a contract is in place the Teamsters may not legally strike, meaning time remains to negotiate.
Impact on Small Businesses and Consumers
Small businesses are especially reliant upon UPS and its competitors for timely deliveries of everything from financial products, critical medical supplies, agricultural equipment, baby formula, semiconductors, school supplies, and other critical business goods.
If a worker strike were to occur, the nearly 4 million small-and-medium-sized small businesses that count on UPS to deliver their products will be impacted. We’ve unfortunately seen this before during the strike in 1997, with one CNN article reporting “The strike has snarled package delivery service across the country, affecting thousands of businesses, large and small.” And another saying, “The strike has sent 185,000 workers to the picket line and slowed delivery of millions of packages.”
Small businesses have made a remarkable comeback since the pandemic, with the number of applications to start new companies recording a 53% jump from pre-pandemic levels. Small businesses also represent 43.5% of gross domestic product, or 99.9% of all U.S. businesses.
Consumers and businesses of all sizes are counting on both sides to remain at the table and reach an agreement that avoids a strike at all costs.
A Broader Look
The UPS-Teamsters negotiation is the latest labor negotiation to capture the nation’s attention. Last year, the six largest freight railroads reached an agreement with their twelve unions only after the threat of a national rail strike and the direct intervention of the Biden Administration and Congress. More recently, the West Coast port terminals reached an agreement with the International Longshore and Warehouse Union (ILWU) following a year of negotiations and service stoppages and immediately after the Chamber called for President Biden to directly intervene in helping finalize the negotiation.
Just like with the current UPS-Teamsters negotiations, rhetoric was heated in these two negotiations, especially towards the end.
Bottom Line
UPS and its workers are incredibly important to our economy and the business community. For 100 years, UPS has collaborated with the Teamsters to provide industry-leading pay & benefits for their employees, while achieving industry-leading marks on safety and on-time-performance.
While the Teamsters have increased their rhetoric in recent days, it’s important that both sides stay at the negotiating table for the sake of not just UPS and the Teamsters' rank and file, but for U.S. businesses and consumers.
About the authors
John Drake
John Drake is vice president for transportation, infrastructure, and supply chain policy at the U.S. Chamber of Commerce, the world’s largest business advocacy organization. In his role, Drake is responsible for representing the business community on transportation, infrastructure, and supply chain issues before Congress, the administration, the media, the business community, and other stakeholders. Drake is also a member of the Commercial Customs Operations Advisory Committee, which advises the U.S. Customs and Border Protection on improvements to U.S. trade.