Despite a recent slowdown in the US economic growth, 52% of transportation businesses report they are growing , and 1 in 3 expect to continue increasing revenue by 11-25% over the next 2 years.
Nevertheless, the road ahead will be challenging.
The driver shortage continues to challenge capacity. Consumers are spending more as retailers pay higher prices for delivery. There just aren’t enough trucks to keep America’s goods moving. While that’s not new, it’s intensified by the fact that more than a third of businesses say drivers have quit unexpectedly in the past year with 42% of them citing a loss of revenue of over $10K when a driver leaves.
This leaves trucking businesses counting every penny. 68% confirm that increasing costs are their number one challenge - insurance, maintenance and fuel expenses top the list. While many small fleet owners go into business dreaming of growing their fleet, very few make it past the 5th truck* and 66% of respondents say they’re losing contracts to competitors charging unsustainable prices.
Many trucking companies feel that they cannot influence the terms and conditions of the contracts/loads they take or they’ll lose business. Unfortunately, this can have an adverse effect on the business with 1 in 3 reporting that they’ve had to pay penalties as a result.
Trucking companies are also looking to control costs through technology. Nearly half say ELD is the technology that will have the biggest impact in the next three years and listed predicative maintenance as the number one technology to invest in over the next two years.
Though the transportation industry still faces some of the same challenges as in recent years, the overall outlook is steady for this in-demand industry. We hope that you find this report useful and that the findings help you better navigate your road in the years ahead.