LOG501 MOD 5 case SLP - Essay Example

The infrastructure comprises of every transportation mode from rail, road, sea and air to the economy of country as all of these factors collectively support the logistics development within the country (Lynch, 2010; “The transportation challenge: Moving the US Economy”, 2008). Despite increase in efforts of US government in the development of the logistics and transportation industry, it has been unable to achieve the targeted results. For instance, the government of US has allocated $2.3 billion of the federal budget for the development of the transportation infrastructure which is more than 5% as compared to last year i.e. 2010 (“Transportation Performance Index Update 2011”, 2011).

It has been specifically mentioned in a report that the backbone of an effective supply chain and logistics system for any company is the transportation and logistics industry of the country as they need to have access to the right mediums for enhancing their transportation facilities as it facilitates their delivery mechanism. There is a requirement of a well-developed transportation and logistics sector because the rules and regulations are developed in accordance to the demands of the companies that are present in that sector.

In order to compete effectively, the government of US has to ensure that the resources are effectively utilized and all changes are made slowly and steadily (“20th annual trends and issues in logistics and transportation study”, 2011). US had a strong sector which was growing steadily till 2008; after the recession, it had to undertake severe precautionary measures especially creation of stringent laws for safe and secured transportation and logistics activities (“24th annual state of logistics report”, 2012).

The main factors that are impacting the infrastructure development are as follows: 1. Growth in