Trucking Industry Growth
The freight industry has been experiencing steady growth in recent years. This comes as welcome news to those within the freight transport industry since there was a decline in the industry and in truck driving jobs during the recent recession. This article will discuss how much growth is expected, how long the growth is expected to last, and the reasons behind the growth.
The current forecast for growth sees the industry, jobs, and revenues increasing consistently until at least 2023. During that same time period there will be a drop in freight being transported by means of rail. While air and water freight transportation will increase, they will not be increasing as much as the portion of the industry relying on trucks for transport. The air and water freight transportation industries will be growing by as little as 1% and as much as 4% every year.
The amount of growth that can be expected by trucking companies is significant. The amount of freight being transported is estimated to increase 21% by the year 2023. This also means that the amount of revenue will increase as well, and by a large degree. In the same time period the revenue is going to increase to about 59%. Now, those increases are for the transportation industry as a whole. Transport by truck will comprise 69-70% of the freight being transported, and will have an 81-82% share in revenue.
The reasons behind this steady growth are quite simple. The first reason is because the truck freight transport industry is taking quite a bit of business from the rail transportation industry, which may account for the dramatic drop rail transport is expected to take by 2023. By 2023 the rail industry may only account for 14% of total freight tonnage transported, possibly less. Another reason for the growth in trucking is the increase in freight shipments. The amount of freight being shipped has been increasing year over year. Obviously, more freight being shipped will equal more jobs and revenue for the industry as a whole.
While there was a harsh setback to the transportation industry as a whole, and the truck freight companies in particular, the transport industry has bounced back. Not only has the industry bounced back, but it has done so in such a way that it is projected to grow almost nonstop until 2023. This is great news for the industry and anyone considering getting into the field.