The trucking industry functions just like any other business sector as it depends on how it is managed.
The trucking industry is doing better now than before, mainly due to the changes in technology.
More quality trucks are being manufactured, and at the same time, more qualified drivers are being employed to meet the rising demand for trucking services.
A short summary to whether Trucking is a Dying Industry:
The trucking industry is far from dying. It’s grown so much that outsourcing drivers from outside the country is necessary. The demand for qualified drivers is on the rise. The industry is a source of income to thousands of people, including drivers, loaders, truck owners, and logistic companies.
What is the Significance of the Trucking Industry?
The trucking industry is one of the significant components of any thriving economy. It involves transporting commodities from one place to the other using trucks.
Customers pay for the services depending on the distance covered or the weight of the load carried.
With technology evolving daily, manufacturers can produce different trucks depending on the nature of goods to be carried. More so, they can increase the carrying capacity and the distance a truck can cover without stopping.
To add to that, the government has ensured to improve infrastructure, making it the most accessible area.
Though it may look like other means of transport such as air and water may rise. Still, trucks play a significant role in the transport system.
The fact that trucks operate on land, they act as joining bridges between other means. They can access areas where for instance, airplanes cannot access.
What is more, those trucks are strong enough to carry tons of commodities on any terrain. Consequently, more people accept using trucks to transport goods as they are efficient, fast, and cheap.
The diversification of the trucking industry has enabled it easy to transport any commodity. They transport the perishable and non-perishable, fragile and not fragile, expensive or cheap goods.
Is the Trucking Industry Slowing Down?
Though it’s rising again, the trucking industry had been affected by the ongoing pandemic. Before the pandemic, the industry was booming, but it has reduced as people are required to stay indoors to curb the spread of the virus.
Now that the situation is better, the industry is going back on its feet as more businesses are resuming operations and the countries struggle to restore the initial state of their economy.
The production of trucks has increased whereby they get improved in carrying capacity, fuel consumption, and the distance they can cover without needing to stop.
The trucking industry continues to grow even bigger as infrastructure is improved, which leads to more excellent connectivity. More job opportunities are also being created as it’s a huge sector. More so, a larger variety of goods get transported.
Are Trucking Jobs Going Away?
Statistics have shown that there has been an increase in demand for trucking services in the recent past. For the industry to run, it has to have drivers, loaders, logistic managers, security personnel, among others.
The trucking industry is involved in transporting various commodities such as fuel, food, drugs, or even moving homes. Diversification has ensured that the demand for the services is always high.
The industry has managed to give employment to tens of thousands of people. Although technology is coming in to reduce human resources, the demand for a workforce is still high, and more people can get employed.
Is the Trucking Industry Cyclical?
The trucking industry is considered cyclical in that its demand varies according to the state of the economy. When the economy is booming and more people start businesses, there are jobs for truck drivers and vice versa.
When the economy is doing well, freight companies will hire more trucks to meet the demand, and when the demand is low, they cut off some trucks.
More goods to carry trucks will add more carrying capacity, such as added trailers. They also add more shifts for drivers to meet the demand of the clients.
Is the Trucking Industry Growing?
The trucking industry is growing daily, especially with the increase in demand for land transport services. The growth is even more significant now that the economy is trying to rise again after the Covid -19 pandemic.
Businesses are coming up every day and are opting to use trucks to transport their commodities. Also, transporting using trucks is considerably cheaper and faster than other means such as air which could be costly. Also, trucks can carry more tonnes compared to air.
Due to an increase in demand, the industry offers employment to thousands of people. They include; drivers, loaders and off loaders, logistics managers, manufacturers, mechanics, and distributers.
The increase in demand for the services has also led to the rise in the production of trucks. The trucks are being improved with the use of technology and very soon will have self-driven trucks, which will significantly help meet the high demand.
The improved trucks will move long distances as well as carry more loads in terms of weight. Also, they are modified so that the goods they carry reach the owner in good condition.
How Much has the Trucking Industry Grown?
Recently there was a research report released by the American Truck Association on the industry’s status despite the pandemic ravaging the economy. The report predicts an approximately 35% growth and turnaround for the year 2021. The continued growth gets expected to continue for the next 10 years up to 2031.
Based on the HIS market report for the period ending 2019, the total tonnage in the trucking industry has grown and hit about 12 billion tons. It signified a 39% increase in tonnage from the previous report released in 2009.
Despite the negative impact of the Covid 19 pandemic, the total freight truck tonnage in the next 5 years gets expected to rise by 21.7%. During the same period, the revenue generated by truck transportation will surge to about 45.8% by the end of the forecast year 2031.
Is Trucking still a Good Career?
Statistics have proven that there is a high demand for freight services, and the demand keeps growing daily. It translates to an increase in the number of drivers needed. Most companies go for qualified drivers.
Also, due to the high demand, the jobs are more stable as one is unlikely to lose their job, and the competition is relatively low.
Most freight companies can pay their employees well as the income they get is high. It has enabled truck drivers to improve their living standards and provide for their families. Compared to other jobs, the pay can get considered to be standard.
Adding on to that, with freight companies coming up now and then, the struggle to retain drivers has increased due to competition.
This way, they have introduced attractive employee benefits such as retirement insurance and health insurance, providing basic needs such as food and water.
Is it Worth It to be an Owner-operator?
An owner-operator is a business person who owns or leases a truck and lends it to a freight company. Though they are required to cater for any expenses incurred, they can still earn their profits.
One of the benefits of being an owner-operator is that they get paid according to the miles covered or the weight of the load carried. That way, they can make more money compared to the truck drivers.
Another thing is that owner-operators can make connections with service providers. They work in a well-connected network and can get referrals. It is important to them because they increase the number of clients, which later translates to more income.
Unlike truck drivers who have no choice of what to transport or what routes to take or on their availability, owner-operators can choose who they work with and when to or not go to work.
All that gets required of an owner-operator is to offer reliable services, have well-maintained trucks, have good connections, and make huge profits.
Is the Trucking Industry Profitable?
Like any other business, the trucking industry requires one to have great business skills to succeed. One of the ways of increasing your profits is by reducing the expenses.
You can do it by having well-maintained trucks with low fuel consumption and regular checkups to reduce accidents and time wastage during repairs.
With an increase in demand for trucking services, freight companies can serve more customers, which translates to more profits. Also, with increased carrying capacity, trucks can carry more tons of loads, which in turn brings more profit.
What is the Future of the Trucking Industry?
The future of the trucking industry is very bright, especially with the incorporation of technology. Technology has in a significant way improved efficiency In terms of service delivery.
For instance, it has enabled the installation of tracking devices that allow customers to track their goods until they are delivered, hence building the service providers’ confidence.
Also, infrastructure has been built in many areas making them more accessible. Quality roads have also helped maintain the excellent condition of trucks which reduces repair expenses.
Transporting using trucks is most preferred due to the low costs, time management, and efficiency. The demand for it keeps growing, which means stable jobs for the truck drivers and steady income for the freight companies.
Does AI mean the End of Jobs in the Trucking Industry?
One of the benefits of incorporating AI into the trucking industry is improving efficiency while reducing costs. Though it gets feared that computers will replace human resources, it will instead call for more workforce.
Even with technology, trucks cannot be fully automated. They will require human intervention to sit behind the screens and control the trucks.
More so, there will be an increase in employment as more trucks will get produced and monitored. More jobs for mechanics will be available.
Drivers will manage to have the much-needed rest instead of working for long hours and driving over long distances, which will improve the trucking industry’s efficiency.