Over the past two decades, the transportation industry has undergone some dramatic changes, both in the regulatory arena and in the availability of skilled drivers. There is also a move toward electric vehicles and driverless vehicles which is coming faster than most people think. The financial impacts of these changes are discussed below, with a view toward keeping you abreast of changes so you can react better to them.
Freight tonnage in this country will expand dramatically to the level of 20.6 tons by the year 2030, and revenues generated by this freight tonnage will exceed $1.6 trillion dollars by that same year. This is a staggering amount of money, and it serves to point up the continued importance of this industry to the American public.
There is already a severe shortage of skilled drivers in the trucking industry, and it is projected that more than 50% of the current workforce of drivers will retire within the next two decades. Obviously, some new drivers will join the workforce, but there will definitely be a net loss of skilled professionals, and that will amount to a critical shortfall. This will probably force transportation companies to offer much better benefits and compensation, so as to attract more skilled people into the industry and train them for careers as professionals.
Electric trucks are already on the market, although they have not yet become commonplace in the industry. It is expected that these will begin to see much more support in the near future, especially since rising fuel costs have been steadily eating away at profit margins once enjoyed by trucking companies. Expect to see more electric trucks on the roadways, and even some driverless vehicles, which are now being subjected to intense testing.
Is Your Small Business Involved in the Transportation Industry?
If so, it may be that you could use an infusion of capital to help cope with all the changes which are taking place in the industry now. Contact us at Grecco Capital so we can discuss some options for providing that needed capital.