According to the American Trucking Associations, trucks move about 71% of the nation’s freight.
A huge percentage of the revenue collected represents the nation’s freight bill. This means, trucks play a crucial role in people’s lives and the economy as well.
The new trucking industry trends can only be expected to allow the industry to contribute more.
The trucking industry has also undergone several changes. These changes have greatly affected the way the industry operates, its overall productivity and development.
Though new regulations imposed some of the changes, others were influenced by the economy and technology.
Here are some of the new trucking industry trends that you are most likely to see:
1. Growth in Technology
Technology has improved over the years, and this has caused a lot of changes in various industries. The trucking industry, too, has not been left behind when it comes to growth in technology.
Trucking companies are today adapting technology trends and using different software programs to ensure an efficient and streamlined operating system.
Having integrated systems, for example, ensure quick pay and smarter invoicing, and this automates workflow.
The trucks today are also equipped with better technology that improves the functionality of the vehicle. Tracking orders is a concept that is helping trucking companies to keep track of customers’ orders, and relay the same information to the customers. This also ensures better customer service delivery.
2. Reliance on Data Analytics
Data analytics is an essential tool that businesses all over the world use. It has helped in boosting the impact that companies have. Trucking companies have also realized the importance of relying on data analytics. In the coming years, this is yet another trucking industry trend that will greatly change this industry.
This trend is being applied to the corporate world and the trucks, and it can be used to identify areas that need improvement so that the operations can run more efficiently. With this, trucking companies can examine, analyze, and also interpret customer trends.
Studying the data collected also helps companies make better decisions like manufacturing issues, the risks, cost of tariffs, logistical requirements, and more.
3. Mergers
In 2019 alone, almost 800 U.S. based trucking companies filed for bankruptcy. This was as a result of harsh market conditions that led to several companies choosing to close down their businesses rather than merging with other companies.
To ensure that they do not go under, trucking companies are more likely to merge with other companies if the market remains as it is.
When it comes to mergers, trucking companies have two options. The first is to merge with another trucking company so that they can pool their resources together, and keep operating.
The second option is that the company can also merge with a company from a different sector so that it can provide a wide range of services. This will help the trucking company stay afloat until the market stabilizes.
4. Influence of E-commerce
The e-commerce industry has also grown over the past years. People today buy a lot of products online, thus contributing to the growth of eCommerce. It is no surprise that this is a trend that has made its way to the trucking industry.
Online stores depend on trucking companies to deliver goods to the consumer on time. Therefore, as the e-commerce industry grows, it will transform and improve the trucking companies as well. With e-commerce expected to grow even further in 2020, you can only hope that the trucking industry will record significant growth too.
5. Urbanization
The growth of urbanization is also most likely to influence the trucking industry. The country has experienced development, with rural areas being converted into urban areas. Such changes transform the trucking industry positively.
Urbanization will ensure that trucks can quickly and easily get to the parts of the country that they were not able to get to before. This will also widen their reach and scope and allow them to increase their customer base. In the long run, companies will be able to make more money.
The once-rural areas will also be able to have all the facilities that urban areas enjoy, and this will add to the growth of such towns.
6. Change in Production Locations
Several trucking companies have maintained their production location for a very long time. However, companies are now considering getting newer locations so that they can conduct production operations more effectively and also be able to meet the demands of their current customers.
This trend is not exclusive to the trucking industry. It is something that will spread across the freight and transportation industry. This is because of the need to provide better services to the customers and meet the demands of the consumers.
7. Changes in Prices
Truckers operate at relatively low prices. Their prices are far less than that of the average American. This has been influenced by the lack of jobs and the financial status of trucking companies.
The companies charged less over the years so that they can get work. This trend is likely to change with time.
If the market continues to decline, the companies might be forced to charge even lower than before, but with positive growth, the prices can go back to what they were before the decline. Whichever way it goes, there is going to be some significant changes to the prices that the companies will charge for their services.
Lookout for These and More Trucking Industry Trends That Will Change the Trucking Industry
It is quite clear that over the next few years, there will be a significant transformation in the trucking industry.
With these are more trucking industry trends expected to influence this industry, one can only hope that truckers will experience more growth. These trends will alter how trucking companies function.
Are you looking to streamline your business, automate your workflows, or ensure a faster payment system? Visit our website and check out our services. Sign up for free or get in touch with us for more information.
