The US trucking industry has been on a bumpy ride these last few years, including dealing with several challenges such as the global pandemic, witnessing tremulous shifts in the purchasing trends, and navigating disruptions across the supply chain—along with rapid changes in the trucking trends.
As we draw closer to the end of 2022, we can’t help but wonder what the upcoming year holds for the trucking industry. Several industry experts expressed that 2023 is going to be quite similar to 2022 in terms of supply chain disruptions, price increases, driver shortages, and surcharges.
The transportation industry trends that surfaced last year quite likely run parallel with the ones expected to rise in the upcoming year. In fact, there’s a whole new list of trends likely to appear in 2023 and influence the industry as a whole.
To help carriers, shippers, customers, and every stakeholder involved in the transportation industry navigate the twists and turns of 2023, we have presented a list of trucking industry trends likely to transform the industry in the coming year.
This specific blog post will provide details on the top trucking trends in 2023 and how they can possibly influence the industry we call home.
It is noteworthy that the trucking industry worldwide is experiencing a major revolution due to advanced technology that is now being deployed. As mentioned above, let’s discuss the top trucking industry trends that are likely to shape up the trucking industry in the next few years.
Harsh market conditions have caused several trucking companies—both large and small trucking companies—to shut down their operations. Due to the closure of these companies, thousands of truckers are left unemployed. One of the major reasons for this is the extreme shortage of movement of goods.
The retail companies are moving fewer goods, causing several trucking companies to shut down because of no work. This has led to a sudden dip in the profitability within the industry. Unless there is a large spike in the retail industry and a momentous increase in freight flow, this trend is not likely to change in the coming year.
Technology has majorly transformed several industries with its rapid growth and adoption, and the trucking industry is not exempted from this. Trucking companies all over the world are beginning to deploy several software solutions including transportation management systems to help simplify their complex operations and make them more efficient and streamlined.
Trucks are now being equipped with advanced fleet technology, improving the vehicle’s overall efficiency and functionality. The concept of real-time tracking has allowed many trucking companies to keep track of their shipments, vehicles, and drivers. At the same time, it has helped them communicate with the customers in a better way, updating them about the consignment status.
While many trucking companies are shutting down due to the harsh market conditions, some are willing to merge with other companies to withstand the market.
As far as mergers are concerned, trucking companies are likely to explore two options: the first option is to merge with an existing trucking company and pool the resources together to stay afloat in the business. The second one is to merge with a company from a different sector to expand its business and services.
The production locations for some of the most popular trucking companies have remained constant for several years. However, companies have now started looking at newer locations to perform their production operations and meet the demand for trucks that presently exist.
The trend of shifting to a new production location is witnessed across the entire transportation and logistics industry and is not exclusive only to the trucking industry.
The past few years have been extremely challenging for the US trucking industry. Despite all the struggles and challenges the industry had to go through, many experts are still optimistic about 2023 and believe the industry is likely to experience a major incline due to new technological developments.
A market flip is expected to emerge in the coming year. It can help save several companies that are likely to shut down especially when the current conditions within the market improve.
Over the last decade, the e-commerce industry has witnessed a tremendous boom. Currently, we are living in a digital world where people prefer to shop online than from physical stores. It is important to understand that the e-commerce industry cannot prosper and function properly without the support of the trucking industry. It heavily relies on the truckers to move their goods from one point to another.
This indicates the improvements in the e-commerce industry will lead to improvements within the trucking industry. With e-commerce development, the trucking industry is also likely to experience some positive growth in 2023 firsthand.
The rising fuel costs have always been a major concern for trucking companies. It is one of the greatest expenses that companies have to bear. Thankfully, there are so many solutions present for this problem that the trucking industry never had in the past.
In today’s age, trucking companies can opt for alternative fuel trucks or even electric trucks to help reduce fuel costs and save some costs being spent on fuel. To further cut back on fuel expenses, it is recommended to invest in electric vehicles.
Currently, truckers in the US are operating at incredibly low pricing, leading them to earn far less than the average American. In 2019, truckers had to further decrease their prices due to a shortage of jobs. Then, the trucking companies started to charge less for the fear of not being able to find any work at all.
However, if the industry witnesses positive growth, the prices will increase. 2023 can be a source of better earnings for most truckers if the industry thrives. Only then there will be a possibility of a significant change to the pricing regarding the services that trucking companies offer.
Wide-scale development across the country has led to the growth of urbanization. As most rural areas have been converted into urban landscapes, it has become convenient for trucks to traverse through parts of the country they weren’t able to reach before.
This helps the trucking industry reach out to a much wider customer base especially in rural areas, thus helping them generate more business.
Data analytics has helped boost the overall efficiency of the trucking companies that they lacked before. Many trucking companies have already realized the importance of incorporating data analytics into their operations. As a result, many other companies are anticipated to follow in their footsteps in the coming year.
In 2023, data analytics will be applied to trucking management. Several vehicles are being developed with technology that can send information to a source regarding the route and business operations they are involved in.
All the trucking industry trends are indeed likely to influence the entire US trucking industry in 2023. At the same time, experts believe the trucking industry is expected to experience the same challenges in the coming year as it did in the past few years. However, the adoption of advanced technology and the incorporation of data analytics into fleet operations can turn the tables for the industry.
What does the future of the trucking industry look like? Is the industry growing or declining? This is the most burning question in the industry right now. Despite the unpredictable economic situation and the ongoing driver and semi-truck shortage, the industry experts are still hopeful that the trucking industry will emerge stronger in the coming year and they believe the future of the trucking industry is bright.
The trucking industry overview is right before your eyes. After going through the entire blog post about the trucking industry trends, we know you now have a better understanding of what we expect the trucking industry to look like in the coming year and how the adoption of the right technology and data analytics can change things for the trucking companies in 2023.
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