The trucking business can be very competitive and demanding. Like any other business, trucking can have good years and bad years. Well according to a new report, the trucking business will be experiencing steady growth.
A recent report by the American Trucking Association, the amount of goods hauled by trucks will grow by more than 3% annually over the next five years. The same report goes on to say that freight volume will grow 2.8% in 2017 continuing to grow at an accelerated rate to 3.4% annually through the year 2023.
That’s great news for the trucking industry in general, and for all the industries that support the trucking industry in general. Trucking will remain the dominant mode for moving freight having moved 10.73 billion tons of freight in 2017. It is also worth mentioning that other forms of moving freight have also experienced an increase.
The American Trucking Association is crediting a growing population which spurs an increasing economy for the continuing gains in demand for freight transportation.
Among the key contributors to the rapid growth are manufacturing, consumer spending and international trade.
All this expected growth will continue through the year 2023 when freight volumes are forecasted to retreat to a more modest annual growth rate of 2.3% between 2023 and 2028. Trucking is closely tied to the countries overall economic conditions and the economies recent resurgence and increased manufacturing is no doubt a central cause for the positive forecast. The U.S. gross domestic product is expected to remain stable over the forecast period.
Along with increases in amount of freight hauled will also be an increase in trucks on the road. Sales of class 8 vehicles are expected to climb 38% from 186,003 vehicles in 2017 to 257,567 in 2028. The road looks good for the trucking business and related businesses, let’s hope it’s a good sign for the rest of the country.