03/03/2022 01:02
The trucking
industry is witnessing tremendous changes as it relates to the manner in which
it operates and the kind of trucks it makes its way into the market spaces.
During the
year, the industry in the United States has seen its ups and downs. All of
these have affected the overall production and development of this space. Over
time, various factors have impacted the way the industry functions, and various
elements have changed the way work gets done within this industry. Looking
ahead to the rest of 2022, we're going to take a look at a few trends that
might affect our industry.
Industries
worldwide are experiencing a rapid increase in technological advancement due to
the incredible use of technology that is now occurring.
Here are some trends in trucking that are likely to
emerge for the rest of 2022 (and beyond) within the industry.
1. Carrier Bankruptcy
Over the
past few years, several large and small shipping companies have closed their
doors because of harsh market conditions prevalent within the industry. At
least 3,000 truck drivers are currently out of work because of the closing down
of these trucking companies, leading to an increasing number of unemployed
people.
Another
reason is the shortage of transportation. Retail companies are moving fewer
goods from one place to the next, which means there's less work for trucking
companies. This has caused them to go bankrupt, resulting in a drop in their
profitability. The trend is unlikely to change in the coming years unless there
is a large increase in the retail industry and a significant increase in
freight flow rates.
2. Improvement Of Technology
Technology
has improved the way we live our lives in many ways, and the transportation
industry is no exception. Technology has improved across the board for trucking
companies, from their corporate offices to the very trucks themselves. More
companies are beginning to use software programs to help them run their
operations more efficient and streamlined.
Trucks that
were once just used for transporting goods are now being equipped with advanced
technology that makes them smarter than ever before. More trucks are
incorporating smart technology to improve their functionality. Tracking orders
is also something that has made many trucking companies have to install
technology that helps them keep tabs on the goods that are being transported,
and also because these companies have to convey this information back to their
customers who buy their products.
3. Higher Number of Mergers
Many
companies in this industry are going bankrupt as a result of the tough market
conditions. However, some companies choose to go down the alternative path and
merge with other companies instead. Many trucking companies will likely shift
their focus towards autonomous trucks by 2022 if the market doesn’t improve and
if trucking firms don't have any other alternatives to turn to.
There are
two main ways that trucking companies may go about merging. The first step is
to merge with an already established trucking company so that you can pool your
resources together and withstand the competition. It allows companies to keep
operating and maybe even expand into new territories. Trucking companies can
also choose to merge with a company from a different sector to expand their
range of services. This would help them stay afloat until they reach a more
favorable point in the market.
4. Shift In Production Locations
For several
years now, the production locations for many of the world's largest trucking
companies have remained relatively stable and have only grown with time.
However, companies are beginning to look at newer locations in order to be able
to conduct production operations and to meet the demand for existing trucks.
When it
comes to moving, and saving fuel costs, Texas, Illinois, and Ohio are among the
states that companies are likely to move to.
For Reefer
smokers, California and Illinois are preferred locations.
Flatbed
trucks are mainly being produced in Texas and Pennsylvania and are expected to
continue there in 2022.
Shifting to
a new location is no longer exclusive to the trucking sector and is something
that is happening across the entire transportation and logistics industry.
5. A Market Flip
While the
trucking sector may not be in the best position right now, there are some
people who are enthusiastic and optimistic for 2022 and all that it will bring.
As a result of the decline that the online marketing industry experienced in
2019, many believe that this industry is likely to turn back around and
experience a gradual rise as a result of the newer developments that are coming
to the industry.
A market
flip is predicted to emerge in 2022 and could really help the entire industry
and save some companies from going bankrupt if the current market conditions
don't change.
6. Changes in Pricing
Truck
drivers currently earn far less than most Americans, so much so that they earn
far less than their counterparts who drive for companies like Uber and Lyft.
During 2019, the prices that truckers were paid declined significantly due to
the lack of available jobs. Trucking companies started charging less because
they were afraid of not being able to find any work at all.
Driver pay
increase have been a concern in the past years resulting to driver shortage. Of
course, this is due to the change in pricing of trucking companies.
Professional
truck drivers experience this from different supply chains too. Considering the
freight industry, freight volumes, freight demand, and especially the freight
rates? These supply chain concerns affect and have a real impact too to driver
pay.
One of the
effects of this is the shortage of jobs due to driver wages. Regardless of the
driver type, they have the same sentiments.
By 2022, the
prices that trucking companies charge their clients may be changing either for
the better or for the worse. If the market continues its downward trend,
trucking companies will likely have to cut their prices even further.
If the
industry experiences a positive growth rate, the prices can increase back to
where they were before the decline began. Either way, there's no doubt that
there will be significant changes to the prices for trucking services offered
by companies.
Remember,
the trucking
business can still be profitable.
7. Influence of E-commerce
Over the
past few decades, the e-commerce market has grown tremendously, and today we
live in a world where consumers prefer to buy products online rather than in
stores. The wide variety available on the internet and the fast fashion that
come with it have helped this industry grow and have made it one of the most
successful ones today.
However, it
is vital to note that the eCommerce industry cannot function without the
assistance of the trucking industry This industry relies heavily on truckers to
transport its goods from one place to the next, so improvements in e-commerce
will improve the trucking industry. Given the fact that the e-commerce industry
will likely continue growing in the future, one can hope that the trucking
industry will also experience some positive growth.
Conclusion
The trucking
business growth is dependent on the current trends in the trucking industry and
other supply chain issues. This 2022, let's keep updated more ourselves with
all the innovations in Trucking. This will keep us thriving more in the
trucking industry.
Looking at
the trends above, it might already be overwhelming for you to handle DOT safety
and compliance concerns. With that, Labworks
USA can lessen
the burden for you. Feel free to reach out to us today.