A Detailed Forecast Report On What’s In Store For The Trucking Industry
The trucking industry has witnessed humongous changes in terms of their operation and the kind of trucks making their way to the markets.
In the United States alone, the trucking industry has had its ups and downs, which have affected production and development.
As we are halfway through 2020, it is crucial that you know the trends and forecasts that can build or badly impact the trucking sector.
Factors That Could Impact The Trucking Industry
Industries globally are witnessing rapid progression owing to the remarkable application and advancement of technology.
Here are mentioned the top 10 trends that could potentially impact the entire trucking industry in some good or bad ways –
- Carrier Bankruptcy
In the previous year, many large and small trucking companies have been shut for business due to harsh market conditions being prevalent within this industry.
Currently, thousands of truckers remain unemployed owing to the shutting down of these companies. One of the reasons for this is also because of the shortage of movement of goods.
Retail companies are transporting fewer goods across states and cities, leading to many trucking companies to lose out due to lack of work.
This has resulted in a drop in profitability within the trucking industry. The trend won’t change in the coming future unless there is a spike in the retail industry or a prominent increase in the flow of freight.
- Technological Enhancements
The trucking industry, just like any other industry out, there has significantly benefited from technological advancements.
Corporate offices have employed various software programs to make their operations more streamlined and efficient.
Trucks currently running on the road are being equipped with far superior technology than before, and more trucks are incorporating ‘smart’ technology to elevate the functionality of their vehicle.
The concept of ‘tracking an order’ has led to many trucking companies to set up technology to assist them in monitoring the goods that are being carried about.
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- More Mergers
Many companies in the industry are choosing not to shut themselves down, but merging with other companies. This trend might actually save the industry from collapsing.
Many trucking companies might follow this trend if the market doesn’t improve. The trucking companies would consider from the following two types of mergers –
- Merge with an existing trucking company to pool the resources together and stand strong in the market. This way, companies can continue their operations and expand to newer territories.
- Merge with a company from a different sector to expand the range of services provided.
- Production Locations Shifting
Over the past couple of years, the production locations for some well-known trucking companies have been constant alongside constant growth.
However, companies are seeking newer locations to conduct their production operations as-well-as meet the demand for trucks existing currently.
- Market Flip
Considering the decline that the trucking industry has experienced during 2019, the industry can still turn around and experience a rise with the new developments and manifestations.
A market flip can turn the entire industry’s collapse upside down. As new technological changes and advancements in the trucking business are likely to emerge, the market might head towards progression.
- Pricing Alterations
The pricing that truckers are currently operating at is incredibly low and barely enough to sustain. During 2019, the pricing declined even further because of the meager amount of jobs.
Trucking companies began charging less as they feared little to no work at all. In 2020, the pricing that trucking companies operate on can change, but, for the better or worse.
If the market keeps plummeting, trucking companies might have to lower their prices even further. If the industry witnesses promising growth, the prices could rise back up to their initial value.
Either way, there would definitely be significant changes to the pricing due to the mercurial nature of the markets.
- Impact of E-commerce
It is no surprise that the e-commerce industry has thrived tremendously, and we currently reside in a world where the masses now prefer to shop online than in-store.
The diversity available online as-well-as the latest trends have helped bloom this industry and fuel up its progression.
However, the e-commerce industry cannot operate without the aid of the trucking industry. This industry relies on truckers to get their goods across places.
This implies that improvements in the e-commerce industry would also improve the trucking industry. Since the e-commerce industry shows promising growth in 2020, the trucking sector could also benefit from that.
- Higher Fuel Costs
Fuel costs have been on the rise considering the limited nature of this resource, and thus, has always affected the trucking industry.
The expenses that trucking companies have to incur always have fuel costs topping the list.
However, trucking companies can now choose alternate fuel trucks or even electric trucks that can cut fuel consumption costs completely.
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The rise of urbanization can also impact the trucking industry. Most of the country has experienced intensive wide-scale development, where most rural areas are being converted into urban landscapes.
Hence, it is convenient for trucks to be able to travel through parts of the country that they initially weren’t able to traverse through.
Hence, the trucking industry can now widen their scope and reach and offer its services to a wider customer base. This would provide the industry more business and a much-needed boost.
- Data Analytics
Data Analytics is an essential tool to be incorporated in your business and has helped boost the overall impact of various industries and businesses.
Many companies in the trucking industry have realized the perks of incorporating data analytics into their work, and more companies might follow in their footsteps.
In 2020, data analytics would also be applied for the actual vehicles that are on the road. Several vehicles are now being developed with technology to be able to deliver information to a source about the route and information related to the operations.
This technology can help the trucking industry pinpoint the areas that need development when it comes to increasing their operations’ efficiency.
The trucking industry sure had plummeted in 2019; however, with the emergence of new trends such as e-commerce and opportunities, progress could potentially surge and offer employment opportunities.
You need to consider factors like fuel consumption, transportation roads, location shifting, and many others to prognosticate how the industry would perform in 2020.