In a previous post, How Big is the Trucking Industry, we shared trucking industry statistics. The industry is huge, and with more than 255 billion dollars in annual revenue, it affects us all. Whether it’s good or bad news – it touches every one of us. Logistics impacts consumer goods prices from groceries to pharmaceuticals. When operating costs rise, retail prices increase, and when trucking is down, other businesses are too – possibly, the very one you work in. After several years of a sluggish economy, there’s good news on the horizon for the trucking industry in America, which is good for all of us.
Here’s the Good News
According to mema.com: “Orders for new freight trailers jumped 29.1% in October from the same month in 2011, the highest monthly total since January, as the end-of-year rush appeared to arrive early, ACT Research reported. Sales totaled 23,597 (from Transport Topics)” What’s this mean? It means business is on the upswing. Trucking companies who’ve held off buying new trailers are preparing for forecasted growth in 2013 and beyond. Growth in the trucking industry simply means more is being shipped. Obviously, trucking companies expect to ship more in 2013. Shipping more means increased manufacturing, job creation, and economic growth.
Transport topics also shared this report last week: “Oil fell to a week-low price of less than $87 a barrel early Thursday following a Department of Energy report that showed gasoline and distillate inventories jumped last week, Bloomberg reported.”
Higher fuel costs add to shipping costs, which leads to higher consumer prices. Lower fuel costs stave off consumer price raises, and lower cost often mean lower prices. Historically, stable or lowered prices translate to increased consumer confidence and spending, which spurs productivity and adds jobs.
Add to this predicted growth, congress recently passed New CDL Regulations, making it easier for military veterans to obtain a CDL (commercial driver’s license). Considering the trucking industry is short more than 150,000 drivers, this will bolster the industry. The cost of training new drivers adds substantially to freight costs. Allowing experienced military drivers to immediately join the workforce reduces hiring and training costs, once again, leading to reduced consumer prices.
ATA (American Trucking Industry) has reported increases in tonnage shipped throughout 2012. And even catastrophic events, such as last summer’s drought and Hurricane Sandy, have not stopped the continued growth of logistics.
The movers and shakers in the trucking industry, through their preparations, have predicted increased revenue and tonnage shipped in 2013. If they’re correct, and we think they are, it’s good for all of us. Support America – be a trucking industry advocate.