JACKSONVILLE, Fla. -- Clarence Gooden, vice president of Sales and Marketing and Chief Commercial Officer of CSX Transportation, Inc., was the guest speaker at Monday's meeting of the Rotary Club of Jacksonville.
A railroad executive since 1970, he has seen many cycles in his industry and the economy. Gooden offered club members his predictions for the future of all three.
"Chances are two-thirds of everything that's in your home was handled by us or another railroad. That's everything from appliances to electronics to plumbing fixtures to clothing. If you had a Corona beer this past hot weekend, we hauled it," he said.
Railroads predict future economic trends based on the amount of raw materials and finished goods that are being shipped. Based on the volume of lumber and other building materials being shipped, Gooden said he doesn't expect to see a recovery in that segment of the market until 2012.
In terms of the automotive industry, Gooden said railroad shipping volume is down but the federal "Cash for Clunkers" rebate program reduced manufacturers' inventories from 77 days of available product to 44 days.
"And today is the first day all auto plants are working in months. Some of them are only on a five-day schedule, but it's better than it was," said Gooden.
He predicted quicker recoveries for market segments including phosphate (chemical fertilizer) and coal.
He also said CSX has maintained a strong philosophy of capital investment in its road beds and other infrastructure -- $1.645 billion this year alone.
"This economy will be back and when it's back we will have made the investments needed," said Gooden.
(The preceding article by Max Marbut was published August 25, 2009, by the Jacksonville Financial News & Daily Record.)
