Eric Hoplin is chief executive officer of the National Association of Wholesaler-Distributors. All opinions are the author’s own.
Everything you enjoyed this past holiday season — from the gifts you received to the meals on your table — was made possible by a distributor who worked tirelessly to maintain a safe and efficient supply chain. And there’s a crucial, often unseen factor that enabled this smooth flow of goods: our ports remained open.
Yet, this stability was recently put at risk. The International Longshoremen’s Association once again were prepared to strike this month — potentially putting our economy on the line and risking roughly $4.3 billion per day, according to an Oct. 1 analysis by RSM U.S. — before ultimately coming to an agreement with the United States Maritime Alliance that does include automation. While this resolution rightly acknowledges the need for modernizing our ports, it’s unfortunate that the standoff escalated to the point of threatening a shutdown in the first place.
Why is this so concerning? Because a functioning supply chain is a matter of national security. Allowing a single union boss to hijack the U.S. economy — and inflict untold damage on consumers, distributors and businesses — does not serve the national interest. Our ports handle 70% of America’s international trade, per Statistica, and when they stall, it jeopardizes both our economic growth and our ability to compete globally.
The recent agreement marks a significant step forward, demonstrating that adopting automation can — and must — be part of the solution to strengthen our supply chains. Unfortunately, some labor leaders continue to prioritize their own self-interest, creating unnecessary brinkmanship that erodes public trust and strains the economy. If we want to promote national competitiveness, we must ensure these labor disputes never again reach the point of crippling our ports.
We need only look to Europe and Asia for examples of how automation can boost efficiency and secure a competitive edge. Embracing technology is not about replacing human workers; it’s about creating pathways to new jobs and fueling opportunities for tomorrow. When ports become more efficient, they handle more cargo, which translates into higher levels of economic activity and greater demand for skilled workers in technology-driven support roles. But we must invest in our workforce providing training, education and the tools necessary to thrive in a modernized port environment.
From the vantage point of the wholesale distribution industry, we see firsthand how reliable, modern port infrastructure safeguards America’s supply chains. We build contingency plans to weather short-term disruptions — like hurricanes — but a prolonged port shutdown is a far more damaging prospect. The mere threat of a strike can send shockwaves through supply lines, driving up costs and hitting consumers where it hurts most — their wallets.
Trying to cling to outdated methods and resisting necessary innovation not only undercuts U.S. competitiveness, it undermines the spirit of progress that built this nation. We’ve faced a scenario like this before. In the 1960s and 1970s, unions, including the ILA, initially resisted containerization, a technology that revolutionized global trade. Their reluctance to adapt then nearly derailed one of the greatest advancements in modern commerce.
Our longshoremen are indispensable partners in driving our nation’s prosperity. They deserve fair wages, respect and a clear path toward the future. The recent agreement is a positive development, a testament to the fact that embracing automation can be done in a way that benefits both workers and businesses. But let this be a lesson: We cannot allow America’s prosperity to be held hostage by a handful of leaders unwilling to face the realities of global competition.
By investing in our workforce, embracing new technologies and guaranteeing that our ports remain open and future-ready, we secure our nation’s health, safety and competitiveness for generations to come.
