"“Making the World on Time”: Business, Labor, and the State in the Development of the U.S. Logistics Industry"

In the 1970s, the postwar economic growth stagnated in the United States, and many leading companies, especially in heavy industry, struggled to compete with foreign manufacturers, operate under strict federal regulations, and cope with labor union demands for higher wages. Amid this turmoil, the logistics industry started growing rapidly, benefitting from structural changes in the U.S. economy that included deregulation, the rise of lean production, and the decline of labor unions. Focusing on FedEx, this paper demonstrates how the logistics industry mobilized political resources and labor-management strategies to achieve a fluid and flexible service to store, distribute, and deliver items, an essential part of the post-Fordist “just-in-time” production model. To establish its smooth logistics network between the 1970s and 1990s, FedEx needed to remove hindrances in its way, such as federal regulations and strong labor unions. Indeed, since FedEx began its formal operation under an exemption of the New Deal airline regulations in 1973, its founder Fred Smith regularly testified before Congress and built relationships with political figures in his effort to deregulate the air cargo industry. At the same time, Smith also strove to create a “family atmosphere” in the corporation and prevent his employees from joining unions such as the Teamsters and United Auto Workers. Using records of state and federal governments as well as unions, this paper takes a plural approach to consider how the business, labor, and government sectors all played a role in shaping the creation of a logistics network between the 1970s and 1990s. Examining how this fast, punctual, and flexible logistics system was created is critical to understand the rise of supply chain management and the success of e-commerce companies like Amazon today.