Typically, the state of our overall economy is said to directly affect the state of the trucking industry. Trucking is responsible for up to 80% of freight movement. The reason– it’s cost-effective. If trucking as an industry is doing well, chances are, so is the economy.
In the same vein, if new truck orders are coming in, that should bode well for the economy in the year to come… but not necessarily. All things considered, things are looking up for the trucking industry in the near future. Here are some reasons why:
Logistics Are Shifting
The fact that logistics are shifting offsets the need for worry about stagnant or declining new truck purchases. Freight forwarding coast to coast is giving way to a more regional distribution methods by shipping and trucking companies. It is a trend that has emerged recently. And it is a good thing, all in all because it allows the trucking industry to adapt to an on-demand marketplace that is quickly evolving, makes for more flexible logistics, assures truckers that they will be away from home less frequently, and drastically cuts down on travel time from one destination to another.
Which Is More Important? New Truck Sales or Freight Volume?
Whereas, new truck sales can be an indicator of how the economy is doing, a far more reliable indicator is freight volume. Buyers will purchase more products when they have more disposable income. So, the consumers end up having more freight being delivered to them, warehouses and distribution centers have higher inventory – all in an effort to satisfy demand.
You can combine an economic growth forecast with a comparison of freight volume shipped (compare this year to last year) to make an informed decision as to the economy. Currently, a 2% economic expansion is predicted for the upcoming year. The trucking industry shouldn’t have any problem dealing with such a modest growth amount. That means that new equipment won’t necessarily be purchased – but trucks will carry bigger loads.
Our Economy Goes Through Cycles
Economic cycles happen all over the world. Even if falling sales are predicted, a record number of sales can still be realized by the year’s end. Trucking is not disqualified by any means when it comes to the ebb and flow of the economy. And until there is a true need to panic, those involved in the trucking industry should not be overly concerned.
Mickey has been a reputable name in the trucking and transport industry for decades. Since its inception, our business has remained family owned and operated. Throughout the world, we are considered one of the most versatile manufacturers of specialized trailers and truck bodies. We offer new and used trucks, trailers, parts, accessories, and expert service at our service centers located throughout the United States. When it comes to the industry responsible for delivering emergency goods, food, gas, oil, batteries, beverages, etc. – Mickey is a leading company providing reliable, dependable vehicles for transportation. Call Mickey today find out how we can be of assistance to you.