Over the last few years, the trucking industry has undergone a tremendous change, especially in the manner they operate and the type of fleet making their mark.
For example, in the United States, the industry has faced bad and good times during the last year, which did impact the production and development.
Some trends have made more of an impact on how the industry functions, including trucking technology.
With that said, we have come up with seven such ground-breaking trends, which will leave a lasting impact on the trucking industry in 2020.
The Seven Truck Industry Trends to Look Out for in 2020
When it comes to knowing about trends in any industry, you need to understand that not all trends are adverse for those working in it, and nor are they all for the best.
In short, some trends might benefit the upper echelon, while some will help those working round-the-clock to keep the industry open.
Let us now look at these seven trends;
Technological advancement has been the cause of improvement in many industries, and the trucking industry is no exception. Whether it is how corporate offices of fleet management companies function or the types of truck one sees on the highway; technology has made its presence felt.
There is an increased demand for advanced programs for effective fleet management for streamlining the entire process. Moreover, trucks are now being changed from manual to semi-autonomous and fully automated for enhanced functionality.
Trucking companies now have what is known as the ‘track your order’ program to see where the goods are going. It also helps them let the customer know when they will get the delivery.
Market Conditions Will Change
The trucking industry was not in the best of shape during 2019. However, as per the latest trucking news, some experts are optimistic about this year. Owing to the decline during 2019, many believe the industry will have a gradual increase in the market share. In short, this change in the trucking industry during 2020 can help them to earn a profit.
Effect of E-Commerce
During the last few years, the e-commerce industry has seen significant growth, and we live in a world where the consumer prefers to buy online rather than visit a physical store. The options available online, combined with the fast service, have helped this company boom. However, you need to understand that the e-commerce industry would never be able to survive without the proper transport services, aka the trucking industry.
The E-commerce industry is dependent on the industry to deliver goods from one place to another. It clearly states that any improvement in the e-commerce industry will immediately impact the trucking industry as well. Since the e-commerce industry is likely to grow more in 2020, it is without a doubt that the trucking industry will also enjoy the fruits.
Another significant development, which will help the trucking industry prosper in 2020, is the growth of urbanization. During the last few years, the majority of countries around the world have seen a wide-scale development, with the rural landscape changed to urban areas.
It means that moving will become easier for trucks through those parts of the country, which were not accessible earlier. The trucking industry will now widen their scope and reach, which will allow them to cover a broader customer base.
At the same time, it will let them create more business in the process. The majority of the rural areas in any country will have access to all necessities, which urban areas are dependent on. It will make it possible for the trucking industry to expand their business even further. Moreover, one can also count on the rising demand for advanced trucking technology to handle more business.
There are many trucking companies, which closed their doors for business during the last few months owing to fierce market competition, which are still present in the industry. At present, around three thousand truckers are out of jobs, which is a direct result of many companies closing down.
A reason for this happening is the shortage of movement of goods and services. The retail sector is moving fewer goods from one location to another. It has led to many trucking companies losing out due to a shortage of work. Moreover, it has resulted in a considerable drop in profitability for the industry. Unfortunately, this trend will take some time to change, especially until there is a significant boost in the retail sector for the flow of freight.
Increased Number of Mergers
Although many trucking companies decided to close business as soon as the market got too tight for survival, some took the alternative route and merged with other companies. Many trucking companies are moving towards mergers in 2020, especially if the market does not show signs of improvement. There are two main routes to merging when it concerns trucking companies.
But we have some excellent trucking news.
The first route is to merge with an existing trucking company, which lets both pool their resources together and survive the market. It will allow both companies to work and expand to new areas. On the other hand, the second route needs the trucking companies to merge with a company from a different sector to expand their services. It will help both companies survive the fierce market competition.
Increasing Fuel Costs
Fuel costs have risen owing to the limited availability of this particular resource, which has a significant impact on the trucking industry. It has always been the most significant expense of the trucking companies, and a rising cost will concern all trucking company owners.
However, trucking companies can now choose alternative fuel trucks or electric trucks to reduce the cost incurred on traditional sources of fuel. It also means the company would need to invest in the new vehicles, which at times might be a bit expensive.
Without any doubt, it is sure that these trends will undoubtedly change the future of the trucking industry in 2020. Although trucking technology might make an impact, one cannot ignore the importance of other factors in the success of this industry.
Michael is a writer about the trucking industry, as it is his passion to help truckers with the right information. He is someone who always stays updated with the trucking news and finds it great to help other truckers with the enlightenment.