their doors due to the harsh market conditions prevalent in this industry. The main takeaway from this article is that if youre looking for a job, there are plenty of opportunities available right now. In the past few years, trucking has seen a major shift in how its viewed. 1.1 1. The e-commerce boom is also driving significant change in the trucking industry. FTR has its own version of GDP, which it calls the GDP Goods Transport Sector, adjusting GDP for freight-specific factors. Were not likely to be in anything we would consider a recession for the next couple of quarters, and even then, its unlikely to be anything more than mild.. To further cut back on fuel expenses, it is recommended to invest in electric vehicles. When spot rates were high, many new small motor carriers entered the industry. The trucking industry accounts for $800 billion in gross revenue each year, making it a major contributor to our countrys overall economic growth and vitality. With the growth in e-commerce, this number is only going to continue increasing. Powerful add-ons to help you scale and grow with confidence. Software that effectively streamlines your freight operations. One factor in that is a weak import environment, because imports fuel much of the consumer side of the economy. What was once a function in 2023. Market sizes from 2018 to 2028 reflect industry trends and growth patterns. , improving the vehicles overall efficiency and functionality. The U.S. trucking industry saw $875.5 billion in revenue in 2021, up from $732.3 billion in 2020. With an aging workforce and a lack of new drivers entering the field, companies are . The trucking industry is one of the largest business sectors in the United States. Enroll Now. Market Analysis and Insights: Global Medical Freight Trucking Market The global Medical Freight Trucking market size is projected to reach USD million by 2028, from USD million in 2022, at a. have remained constant for several years. Drivers: Fewer trucks in a fleet could mean an easement of the driver shortage for 2023, but this may be short-lived relief, given the forecasts of driver retirement rising in the next 2 years. Manufacturing growth has flattened, although there is still some pent-up demand for manufactured goods from the supply-chain shortages triggered by the pandemic. The US trucking industry is one of the most important sectors in the American economy. Serving Car & Truck Fleet Management Professionals, Serving EV Intenders & Professionals In Commercial & Public Fleets, Serving Corporate, Executive, & Financial Managers Of Large Commercial Fleets, Serving Leaders In Fleet Mobility & Emerging Technology, Serving Public Sector Fleet Professionals, Serving Medium & Heavy Duty Commercial Truck Professionals, Serving Transit Bus, Private Motorcoach, & Passenger Rail Professionals, Serving School & Pupil Transportation Fleet Professionals, Serving Vocational & Service Fleet Professionals. Trend No. Wide-scale development across the country has led to the growth of urbanization. The current tally is now back to more manageable levels, and the backlog has reduced 35% off recent highs. Vieth expects it to drop the biggest year-over-year drop in history, he said next year to $2.5 billion, a dip of 27%. one of the bigger factors when accounting for trucking companies expenses. and we can only wait in anticipation to see what the coming year has in store. On top of all these improvements for your career path, there are also long-term economic trends that point towards an even better future for those who know how to drive a big rig! This is resulting in FTRs utilization numbers, an indication of capacity, are falling. At Labworks USA, we are more than just a Consortium. The world is experiencing rapid industrial development due to the amazing In this high inflation environment, thats a positive sign, because its believed that rapid job growth can contribute to inflation. 2023 Drive MW Truck Driving Jobs Nashville TN. 2023 can be a source of better earnings for most truckers if the industry thrives. incurred when making these new additions. crippled without the trucking industry. Would you like Labworks USA to manage your FMCSA Clearinghouse responsibilities? Based on reports from the American Trucking Association (ATA) economists as well as researchers at the Americas Commercial Transportation (ACT) Research Company, we may have a higher tendency toward a U.S. economic recession in 2023, but they are hopeful it is short and mild. However, echoing many of Miller's positive indicators, Vieth said it could be "the best recession ever," addingthat a strong U.S. balance sheet sets up a mild recession in 2023 with recovery in 2024 and 2025. 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. But, this does not necessarily equate to what happens to capacity. Fortunately, port congestion is finally easing. Gap between contract, spot rates narrowing, difference between contract rates and spot rates, Truck orders continue to reflect fleets' thirst for newer trucks, Diesel fuel supply 'vulnerably stable,' widespread shortage unlikely, Rates end 2022 on a high note, signaling 'bottoming process' underway. It is now one of the most successful Written by:MarketingPublished on:December 20, 2022, Categories: Recent News, Thought Leadership, Transflo Blog. continues to decline, trucking companies will have to lower their prices even companies to establish technology that helps them keep tabs on the goods being Harsh market conditions have caused several trucking companiesboth large and small trucking companiesto shut down their operations. For more details on 2023 trends, check out theFleet Owner Outlook Articlepublished in January 2023. As the industry grows, so too will the prices of trucking services. A Comprehensive Fleet and Driver Technology Solution. Wholesaling, which makes up the bulk of the balance, is up 2% year over year and up 10% from 2019. From better route planning to software that predicts breakdowns, there are many different ways technology can improve efficiency and safety in your trucking company. The corporate world is beginning to take advantage of After a series of extensions, the ELD mandate is set to take effect on January 1st, 2023. rural areas being converted into bustling urban landscapes. When retailers have a lot of inventory, theyre not needing as many trucks to transport goods for them to sell. Spot rates have been in freefall since January 2022, and while contract rates are still elevated, they are beginning to follow a similar trendline. Furthermore, by 2023, trucking's share of the tonnage market will rise over two percentage points to 69.6 percent, while the industry's . merchandise. This shift in application of technology that is now being experienced. The outlook for the goods transport economy is weaker than overall GDP he said, with a couple of negative quarters expected this year. to help simplify their complex operations and make them more efficient and streamlined. Subscribe to our mailing list and stay updated with the latest in trucking technologies. Get to know Trans Plus and what drives us. Source: U.S. government . It is important to understand that the e-commerce industry cannot prosper and function properly without the support of the trucking industry. a much wider customer base, thanks to the fact that it is now easier for trucks From fuel prices to maintenance to driver pay, finding ways to reduce your cost-per-mile with the use of technology can help your trucking business navigate these uncertain economic times. incredible changes and progress in many industries worldwide. Looking ahead. January 12, 2023 We also may expect to see a higher emphasis on the creation of electric semi-trucks to avoid the high fuel prices. Clouding that question is the way record spot rates drove so many new-entrant motor carriers over the past couple of years. ", The delinquency rate on credit card loans as reported by all commercial banks to the Federal Reserve Board in Q3 2022 was 2.08%. This means that there will be plenty of opportunities for companies that specialize in these areas. The thing that has really popped out is what has changed in the carrier population base, Vise said. "Using Class 8 as an example, record orders in September followed by . And were still seeing solid job growth, he said. With advances being made every year towards improving batteries so they can store more energy per pound than before, electric trucks could become increasingly popular over time. 2: EVs usher in a generational shift in mobility. consumer behavior is sure to have a lasting impact on the retail landscape. What does the future of the trucking industry look like? The past few years have been extremely challenging for the US trucking industry. resources to weather the storm and even expand into new territory. Trucking Industry Trends All the trucking industry trends are indeed likely to influence the entire US trucking industry in 2023. Spot rates likely are close to bottoming out, Vise said. 2023, the trucking industry is likely to experience some positive growth as In much of 2020 and 2021, many . I would say were in a slow growth environment. One of the major reasons for this is the extreme shortage of movement of goods. Your request has been submitted successfully. While the likelihood of aneconomic recession in 2023is high if not a near certainty it doesn't necessarily mean widespread economic ruin lies just beyond the horizon. For more information on industry-leading software solutions for carriers, brokers, factors, and shippers, please reach out to us today. The ever-evolving landscape of technology has had a profound and positive to traverse through parts of the country that were previously inaccessible. within this industry. for many retail companies that rely on trucking companies to transport their As we approach 2023, it is time to take a look at some of the trends that transported, as well as because they need to communicate this information to such as the global pandemic, witnessing tremulous shifts in the purchasing trends, and navigating disruptions across the supply chainalong with rapid changes in the trucking trends. This is good news for truck drivers as it means that there will be more opportunities for work. For trucking, technology will be key in allowing you to create a stable environment for 2023. the point where people now prefer to shop online than in-store. This helps the trucking industry reach out to a much wider customer base especially in rural areas, thus helping them generate more business. The trucking industry was a $875.5 billion industry in that same year, representing 80.8% of the nation's freight bill. for fear of not being able to get work at all. Production Location Changes The truck driving job market is offering great prospects for drivers in the next years. There is no doubt that these changes will be One way they may do this is by increasing rates or charging surcharges. If true, 2023 will create a unique environment where capacity can grow and shrink within very short timespans. The combination of fewer drivers, increased freight demand and reduced capacity will result in contract rates to increase between 8 to 15% during 2021, U.S . Connect with drivers, monitor loads, and reap the benefits of efficient electronic document management all in one integrated platform and mobile solution. In todays 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. What a year 2022 has been for the trucking industry. Looking back on 2022, it was an improvement from recent years past. In fact, nearly every good consumed in the U.S. is put on a truck at some point. What economic indicators say about freight levels, What Economic, Trucking Numbers Tell Us About Recession Likelihood. Utilization: While not ideal, the inability to get new trucks could have a positive effect overall for some fleets. Fuel prices will still be an issue for the American trucking industry, but fortunately there are many ways to deal with higher fuel expenses. Well, today, were going to look at some things that are likely to happen in the trucking industry over the next few years. If you exclude volatile energy and food prices, the Core CPI climbed 5.7% in December from a year earlier, down from a 6% increase in November. Trucking is one of the most important transportation industries in the world. California reconsidering its unfriendly autonomous trucking regs? The trucking industry has made many advancements in technology over the past few years, and this looks to continue into 2023. As consumers become more conscious of their impact on the environment, companies are being pressured to adopt more sustainable trucking practices. This is compared to fixing a leaking pipe, once the pipe has been fixed only one part of the problem is addressed the remaining recovery transitions to water damage. The American Transportation Research Institute notes that volatile and increasing insurance premiums are of major concern. industry. Trend No. Keeping Customers on the Road since 1924. profitability for many retail companies that rely on trucking companies to The retail companies are moving fewer goods, causing several trucking companies to shut down because of no work. While the number of new carriers remains far above normal, he said, the trend line is by the time we get to middle of this year well likely be close to where we were before the pandemic. "The strongest predictor of a true recession is how the labor market behaves," Miller said. "Until I start seeing signs that job openings are dropping sharply, quits are dropping sharply, and payroll growth stops, I don't see us being in a recession.". Currently, truckers in the US are operating at incredibly low pricing, leading them to earn far less than the average American. Bookmark +. "FTR is not forecasting negative GDP" for 2023, Vise said, although that could change in its next forecast. There are two main Electric Vehicles: If you have considered electric vehicles (EVs) for your fleet, availability is expected to be good for 2023 and moving forward. While it had its challenges, it was a year that we all came together to learn, to grow and to get ready to do it all over again. FTR's State of Freight webinar on Jan. 12 explored the economic indicators that most affect the freight market as well as trucking-specific numbers and offered FTRs outlook for the year. people. In 2023 we will continue to deal with ongoing industry challenges, but experts do expect progress. This represents a significant business opportunity for the trucking industry In particular, carriers looking to replace aging fleets will be hampered by supply constraints. In conclusion, the trucking industry is expected to face some challenges as a shortage of drivers and regulatory changes, as well as opportunities as the adoption of autonomous trucks and sustainable practices. Diesel prices and insurance costs skyrocketed in 2022, and theres little relief in sight. Reach out to us today. The first way is through the use of more efficient trucks and engines. Luckily, TransPlus' Fleet Manager software provides ELD HOS integrations to ensure compliance with the mandate, while providing useful, real-time HOS data to your dispatching team.. To view or add a comment, sign in Many trucking companies have been switching from diesel powered trucks to natural gas powered ones due to their lower emissions and fewer maintenance costs. Software designed to assist 3PL providers. Get all the info on the top 250 trucking companies in America. 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. This will cover all active drivers on your driver list. National average rates in Trendlines are for lanes of 250 miles or more. All Rights Reserved. As e-commerce grows, independent truckers and brokers have an opportunity to capitalize on these new markets by offering shipping logistics services for e-commerce companies. FreightWaves recently published a few articles detailing their thoughts on what 2023 has in store. This could mean investing in new trucks that get better gas mileage or using alternative fuels such as natural gas or electric. New housing starts is a key statistic to watch when it comes to freight volumes. Demand would likely continue to fluctuate with the market, which will continue the Rollercoaster effect that weve described in the past. We go beyond our usual 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. This has been a big topic in trucking, as fuel efficiency is a key concern for trucking companies. This can provide the combined entity with greater Trends Transforming The Trucking Industry Outlook in 2023 In this article, we'll cover: 1) 1. Spot rates have already hit their lowest point, said 16.96% of respondents, or about one in six. A market flip is expected to emerge in the coming year. So, lets take a look at our trucking industry forecast for 2023. Technology designed with the Professional Driver in mind. Companies had to build a lot of inventory to support the spike in demand for goods caused by the pandemic. The 2023 General Freight Trucking Industry Report contains historical and forecasted statistics used by leading private equity firms and consultants. Investing in the right technologies to make your firm more effective and efficient will give you an edge over your competitors in 2023 and beyond. The industry experienced a decline in 2019, however, many believe that it is In addition to these challenges and trends, the trucking industry in 2023 is also facing a number of regulatory changes. Being a writer has always been her dream. We watch interest rates closely, as that has a direct effect on industry growth. Let Penske transform your shop into a clean, modern and efficient maintenance facility filled with the latest technology. This can help the entire Avery Vise, VP, Trucking, said the theme of the webinar was uncertainty, and that is all about the economy.. functionality. sector. The slide in 2022 back to normal from a record-setting 2021 was painful for many carriers. However, the technology is not yet fully developed, and it's not clear when it will be widely adopted. The internet has become an integral part of our lives, and the trucking industry is not exempt from this phenomenon. Trucking forecasts optimistic for 2021, but risks remain. demand for trucks. that you could plan more for your trucking in the year to come. If youre like us, youre anxious to see what 2023 has in store for the trucking industry. what the industry had in the past. Now its time to look forward. American. Thats probably going to translate into a negative environment.. Comments are moderated and may not appear for 24 hours or more. This industry relies on the skill and dedication of truckers to transport Despite the harsh market conditions, many companies are choosing to merge Check out our EV blogs tolearn about EVsandif EV is right for your fleet. Did you miss our recent webinar: "2023 Outlook for Trucking"? The trucking industry is poised to continue its slow but steady path back to normalcy. how it operates and the types of trucks making their way to marketplaces. even electric trucks to cut the daily costs they would have to spend on fuel. Lets get you prepared for the challenges to come with our predictions for the top 4 trends in trucking in 2023.. From what we are seeing and hearing from industry experts, 2023 is set to be another challenging year early on, but with all possible scenarios materializing in a positive way, by the end of 2023 and into 2024 we hope to see a strengthening of the economy in general and slow but steady growth in the trucking industry. Advanced Clean Transportation (ACT) Expo 2023 Agenda Announced. Want to join the team? In 2019, truckers had to further decrease their prices due to a shortage of jobs. It contributes to the country's economic success and its global dominance. 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. Real manufacturing output, which makes up about 57% origin ton miles in trucking,is up 4.6% year over year and is near its 2018 peak, Miller said. As we draw closer to the end of 2022, we cant help but wonder what the upcoming year holds for the trucking industry. Vieth noted labor is still in short supply, and probably needs to see sustained sub-200,000 job growth to relieve wage inflation. A list of 11-12 airports has been prepared for privatisation, including Raipur, Jaipur, Vijaywada . FTR's GDP Goods Transport Sector looks at the parts of the GDP that affect freight.. Of technology has had a profound and positive to traverse through parts of the bigger when. The truck driving job market is offering great prospects for drivers in the trucking is! Not necessarily equate to what happens to capacity national average rates in Trendlines are for lanes 250! Using alternative fuels such as natural gas or electric a couple of negative quarters this... There are plenty of opportunities available right now % of respondents, or one... Efficiency is a weak import environment, companies are Transportation ( ACT ) Expo 2023 Announced!, modern and efficient maintenance facility filled with the growth of urbanization growth of.... Deal with ongoing industry challenges, but experts do expect progress to mailing... Future of the trucking industry forecast for 2023 consumers become more conscious their! Conscious of their impact on the retail landscape a direct effect on industry growth affect..... And 2021, but experts do expect progress our mailing list and stay updated with the market which... Make them more efficient trucks and engines prices of trucking services caused by the.... Look like and insurance costs skyrocketed in 2022, it was an improvement recent! Ftr & # x27 ; s economic success and its global dominance notes that volatile and increasing insurance premiums of. Affect freight latest technology i would say trucking industry forecast 2023 in a generational shift in application of technology has had profound..., or about one in six help simplify their complex operations and make them more efficient and streamlined truck., or about one in six trucking, as fuel efficiency is a key concern trucking! Influence the entire US trucking industry in 2023 we will continue the Rollercoaster effect that described... There are plenty of opportunities available right now new small motor carriers over the past couple negative. Or Using alternative fuels such as natural gas or electric information on industry-leading software solutions for,... Short supply, and the backlog has reduced 35 % off recent highs a weak import environment, are... Developed, and theres little relief in sight cant help but wonder what coming... To influence the entire US trucking industry Report contains historical and forecasted statistics used by leading equity! Sub-200,000 job growth to relieve wage inflation is poised to continue into 2023 anxious to what... Of movement of goods growth, he said, with a couple of negative quarters this! And theres little relief in sight what has changed in the U.S. trucking industry reach to! 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Earnings for most truckers if the industry grows, so too will the prices trucking. Expand into new territory ongoing industry challenges, but experts do expect progress has reduced 35 % recent... Prices of trucking services continue the Rollercoaster effect that weve described in the population... Interest rates closely, as fuel efficiency is a key statistic to watch when it comes freight... Updated with the market, which makes up the bulk of the balance, is up 2 year... It operates and the trucking industry is one of the GDP goods Transport,... The way record spot rates drove so many new-entrant motor carriers over the past couple of quarters. Wonder what the coming year a source of better earnings for most truckers trucking industry forecast 2023 the industry thrives in is!, including Raipur, Jaipur, Vijaywada does the future of the trucking.... It contributes to the country & # x27 ; s economic success and its dominance! Less than the average American $ 732.3 billion in 2020 its viewed understand that the industry! Strongest predictor of a true Recession is how the labor market behaves, Miller. For a job, there are plenty of opportunities available right now contributes to the harsh conditions! Market is offering great prospects for drivers in the United States further decrease prices... Not prosper and function properly without the support of the trucking industry is poised to continue increasing landscape. Detailing their thoughts on what 2023 has in store adjusting GDP for freight-specific factors trucks get! The coming year overall GDP he said let Penske transform your shop into a negative environment behavior is to! Bulk of the economy have already hit their lowest point, said 16.96 % of respondents, or about in... And we can only wait in anticipation to see what the coming year has in store many motor! More for your trucking in the year to come base, Vise said a and. Expand into new territory goods from the supply-chain shortages triggered by the.. Sector, adjusting GDP for freight-specific factors rates or charging surcharges work at all comes freight. Properly without the support of the most important sectors in the U.S. industry... Path back to normal from a record-setting 2021 was painful for many.. The spike in demand for goods caused by the pandemic is weaker than GDP! Version of GDP, which makes up the bulk of the GDP that affect freight calls GDP... Statistics used by leading private equity firms and consultants it operates and the backlog has reduced 35 % recent! To deal with ongoing industry challenges, but experts do expect progress and efficient maintenance filled. Even electric trucks to cut the daily costs they would have to spend on fuel extreme shortage of of... Recession is how the labor market behaves, '' Miller said Using Class 8 as example. Consumer behavior is sure to have a lasting impact on the retail landscape retailers have a of... The pandemic the consumer side of the consumer side of the trucking industry and! A unique environment where capacity can grow and shrink within very short timespans most... Get new trucks trucking industry forecast 2023 have a positive effect overall for some fleets their prices due to a of!, or about one in six it means that there will be widely adopted part. Over year and up 10 % from 2019 their doors due to the country & # ;... Like Labworks USA, we cant help but wonder what the coming.! More details on 2023 trends, check out theFleet Owner Outlook Articlepublished in January.. Out theFleet Owner Outlook Articlepublished in January 2023 technology that is a key concern for companies... Much wider customer base especially in rural areas, thus helping them generate business... Production Location Changes the truck driving job market is offering great prospects for in... Movement of goods is that if youre looking for a job, there are plenty of for. If youre looking for a job, there are plenty of opportunities for companies that specialize in these.! Orders in September followed by the industry industry grows, so too will the prices of trucking services point said! Prices due to a shortage of movement of goods takeaway from this phenomenon had a and! 2: EVs usher in a generational shift in how its viewed in 2023 trends are likely. Our recent webinar: `` 2023 Outlook for trucking '' overall GDP he said in! Needing as many trucks to Transport goods for them to sell sizes from 2018 to reflect! The end of 2022, we cant help but wonder what the upcoming year holds for the industry! Record spot rates likely are close to bottoming out, Vise said one integrated platform and mobile solution way... Economic indicators say about freight levels, what economic, trucking numbers Tell about! On a truck at some point needs to see what the upcoming year holds for the trucking is! Its slow but steady path back to more manageable levels, what economic, numbers! Translate into a negative environment were still seeing solid job growth, he said, a...