The Five-Year Horizon for the Trucking Industry
The forecast for the heavy trucking industry over the next five years is predominantly favorable. There are a few potential pitfalls, but trucking companies have good reasons to be optimistic about their future.
According to industry forecasters, growth in the required services of heavy trucking are expected to rise approximately three percent until 2023. Some of this coincides with the expected healthy economic growth due to a resurgence of domestic manufacturing. Another factor is the current increase and expected continuation of house sales as well as building.
The stability of trucking use as a percentage of shipping is expected to remain stable - which is approximately a 70% rate. If current economic growth trends indeed hold as predicted, this is good news for trucking companies across the country. Also, with the current shortage of trucks needed to transport goods, the increased demand also will bear well for truck manufacturers.
One challenge to the current growth period of trucking is labor shortage. Partly due to the regulatory system, there is a shortage of drivers, which poses an obstacle to keeping transportation costs down. The body of regulations is currently being reviewed. If a significant portion of these regulations are repealed or relaxed, it will make it easier for new drivers to enter the industry.
The advancement of automotive technology in the realm of heavy trucks is another factor to take into account. In the year 2018, there are approximately 500,000 trucking companies in the United States, which vastly vary in sizes. To maintain a quality service, each of them will have to stay competitive in timeliness and reliability. The goods delivered must be in usable condition, so pressure to purchase or lease new vehicles may affect some profit margins.
Moving forward, the main wildcard in the trucking industry is the price of diesel. Will it steadily rise, fall, or be a rollercoaster over the next five years? The historical answer to this is that only time will tell. If you are looking for more information, please do not hesitate to contact us.