At Labworks USA, we are more than just a Consortium. flow of freight. View, sort and download the trucking industrys most comprehensive ranking of for-hire carriers in North America, based on a blend of metrics including fleet size, annual revenue and number of drivers. Click here to learn more about our job opportunities. Jan 13, 2023. American. This is good news for truck drivers as it means that there will be more opportunities for work. Trailers: If you use dry freight trailers in your operations, getting new trailers or adding to your trailer fleet will also be a challenge. Production Location Changes types of mergers that trucking companies are likely to pursue: One option for mitigating the effects of a challenging market is to merge The e-commerce boom is also driving significant change in the trucking industry. these new vehicles. This would then allow them to maintain their current position Now, most people realize that this is one of the, Trucking Industry Forecast For 2023 How Will The Industry Perform and How Can You Take Advantage Of It? Most importantly, the morale of the industry itself at the independent level is just not good right now." 2023 Trucking Forecast. to bring new opportunities and challenges for businesses and individuals alike, As a result, many other companies are anticipated to follow in their footsteps in the coming year. E-commerce has been on the rise for several years now, and it doesnt seem to be slowing down anytime soon. Some of the top trucking technological advancements that trucking companies are looking to include are aerodynamics, electric vehicles, and platooning. The ever-evolving landscape of technology has had a profound and positive While cost increases may slow in 2023, its likely that this higher cost structure is here to stay, requiring firms to become more efficient and effective in their operations. Trucking companies can expand their services by merging with a company in a For trucking, technology will be key in allowing you to create a stable environment for 2023. The rising fuel costs have always been a concern for companies operating Currently, we are living in a digital world where people prefer to shop online than from physical stores. For comparison, in Q3 2019 this rate was 2.62%. However, companies have now started looking at newer locations to perform their production operations and meet the demand for trucks that presently exist. ET comments I would say were in a slow growth environment. In 2023 we will continue to deal with ongoing industry challenges, but experts do expect progress. Over the past few This growth is sure crippled without the trucking industry. According to the latest Short-Term Energy Outlook from the Department of Energys Energy Information Administration, average retail diesel prices will remain at more than $5 per gallon through 2022 and into early 2023. By Deborah Lockridge incurred when making these new additions. Companies in the sector will need to adapt and invest in new technologies to stay competitive and meet the changing needs of the market. 3: Modernizing America's transportation system in an inclusive, equitable way. 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. Trends Transforming The Trucking Industry Outlook in 2023 In this article, we'll cover: 1) 1. On the other hand, if you are an owner-operator/manager this technology will help you reduce costs, improve driver safety, reduce risk, increase productivity, schedule preventative maintenance to minimize downtime, etc. 2023 Randall-Reilly, LLC. "Payrolls are up substantially. "I think that we're going to have a mild recession early next year," Costello said. January 12, 2023 2023 Drive MW Truck Driving Jobs Nashville TN. The trucking industry is one of the largest business sectors in the United States. and keep their business afloat. Using her 8+ years of working experience, she writes for trucking industry experts who are always looking for better technological solutions to their problems. An intriguing theory was raised by FleetOwner, which stated that the U.S. economy may be able to balance a recession with the growth of the economy and stability of the job market however, Freight may see a slowdown (Fisher, 2022). As mentioned above, lets discuss the top trucking industry trends that are likely to shape up the trucking industry in the next few years. development within this space. application of technology that is now being experienced. The trucking industry is going to see an increase in mergers in 2023 as companies attempt to pool resources together to weather the storm. TransPlus Systems Corporation 2022 - All Rights Reserved, Short-Term Energy Outlook from the Department of Energys Energy Information Administration, average retail diesel prices will remain at more than $5 per gallon, The American Transportation Research Institute, ATRI reported that 92% of its respondents adopted new safety technology, full list of devices that have been approved. production operations to newer locations, in order to meet the ever-growing The slide in 2022 back to normal from a record-setting 2021 was painful for many carriers. The next year should be fruitful for businesses that can stay head of potential challenges. Trucking is one of the most important transportation industries in the world. The sweeping trend of relocating operations to new locations is rampant It heavily relies on the truckers to move their goods from one point to another. While the government is poised to pour billions of dollars into infrastructure improvement, Miller said that would be unlikely to offset any potential losses from housing starts. From better route planning to software that predicts breakdowns, there are many different ways technology can improve efficiency and safety in your trucking company. In fact, there has been a steady rise in e-commerce over recent years. The low prices that truckers currently operate at are considered to be This represents a significant business opportunity for the trucking industry Heres the full list of devices that have been approved. Trend No. impact on many industries, the trucking industry included. Get all the info on the top 250 trucking companies in America. Today, trucking companies can opt to go in for alternative fuel trucks or Last month it was 261,000, bringing the rolling three-month average to 289,000. In recent months, many trucking companies have been forced to close industry by aiding companies that are struggling and may go under if current "FTR is not forecasting negative GDP" for 2023, Vise said, although that could change in its next forecast. Autonomous trucks have the potential to greatly reduce the need for human drivers, and many companies are investing in research and development to advance the technology. 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 main takeaway from this article is that if youre looking for a job, there are plenty of opportunities available right now. With this growth, revenue in the industry is projected to rise 66 percent. The American Transportation Research Institute notes that volatile and increasing insurance premiums are of major concern. Make sure that your business has a strong online presence so people can find you online and contact you easily when they need your services (if you dont already have one). 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. Inflation, supply chain challenges, and rising interest rates lead to another challenging year. And while there are signs that a return to normalcy is on the horizon, it looks like were in for another year of volatility. until the market becomes more favorable. We have dealerships getting outfitted with the right tools and infrastructure, and training EV certified technicians to support growing demand. The trucking industry overview is right before your eyes. them are beginning to incorporate 'smart' technology to improve the vehicle's increase in the flow of freight. As the country approaches the latter half . We go beyond our usual 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. This shift in The trucking industry can now expand its horizons and offer its services to This could mean investing in new trucks that get better gas mileage or using alternative fuels such as natural gas or electric. Companies had to build a lot of inventory to support the spike in demand for goods caused by the pandemic. Currently, truckers in the US are operating at incredibly low pricing, leading them to earn far less than the average American. Platooning is a new technology that trucking companies are looking into that would allow trucks to travel closer together in a convoy to save on fuel. It is unlikely that the trend will change in the coming year unless there is Trucking Industry Trends All the trucking industry trends are indeed likely to influence the entire US trucking industry in 2023. As the industry grows, so too will the prices of trucking services. The trucking industry has a lot of room to grow in the next few years, and you can take advantage of this opportunity by starting or expanding your trucking business. However, if the industry witnesses positive growth, the prices will increase. Looking at GDP, Vise said, FTR expects the fourth quarter numbers when they come in to be quite strong relative to the second and third quarters and perhaps relative to peoples expectations. However, FTRs forecast does call for it to slow quite a bit in 2023. Something went wrong while submitting the form. Insurance premium costs per mile increased by 47% in the last 10 years. goods from one place to another. By 2023, the total freight tonnage is expected to grow by 21 percent, and revenue for the freight transportation industry is expected to rise 59 percent, according to the Ontario Trucking Association (OTA). An in-depth library of knowledge base articles. profitability for many retail companies that rely on trucking companies to transport their merchandise. Several vehicles are being developed with technology that can send information to a source regarding the route and business operations they are involved in. Home / Industry News / 2023 Trucking Industry Outlook. The U.S. trucking industry saw $875.5 billion in revenue in 2021, up from $732.3 billion in 2020. Though the trucking industry is presently in a difficult market, some experts are eagerly anticipating 2023 and all it is likely to bring. Wholesaling, which makes up the bulk of the balance, is up 2% year over year and up 10% from 2019. "It's going to be even more difficult to find drivers as we move into the recovery period (2024 and 2025)," he said. Trucking industry faces headwinds in 2023 | Commercial Carrier Journal Economic trends Trucking in 2023: Recession uncertain, driver shortage shows balance Jason Cannon, CCJ chief. 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. 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. Penske On-Site Maintenance: Elevate your shop and your business. That balance could be short-lived as Vieth forecasts the workforce approaching retirement rising in 2025, and the prime age driver population shrinking through2029. significant and will have a major impact on the trucking industry. It is unlikely that the trend will change in the coming year unless Companies should focus on a few key initiatives to weather the storm, such as: By taking the above steps, businesses will be well-positioned for success in a changing economic landscape no matter what lies ahead. We kind of have to redefine what a recession is, he said. This can help the entire further in order to stay afloat. December 9, 2022 2023 ACT Expo fleet-focused sessions will cover zero-emission infrastructure, . That said, market demand continues to outpace production capabilities of manufacturers so it will still be a struggle to get equipment. The industry employs millions of people and generates billions in revenue every year. Join 80,000 trucking professionals who get helpful insights and important news delivered straight to their inbox with the CCJ newsletter. Despite the pandemic, freight volume has been on the rise and is expected to continue growing in 2023. Your request has been submitted successfully. This means less idling time for driversa welcome relief., Despite improvements in wait times, supply chain challenges will persist throughout 2023. As the market began to decline, trucking companies started to charge less the industry has bloomed because of it. Utilization: While not ideal, the inability to get new trucks could have a positive effect overall for some fleets. Lower utilization means more capacity and lower truckload rates. Software designed to assist 3PL providers. Your submission has been received! New housing starts is a key statistic to watch when it comes to freight volumes. Consumer spending is still high, Miller said, noting retailers brought in holiday season inventories earlier than normal, which blunted what historically is a peak freight season. Overall, 2023 could be a positive period for businesses if they take steps to prepare for the risks and opportunities ahead of the looming recession. Trend No. Electronic logging devices or ELDs are a type of equipment that will automatically record and log driving time for commercial vehicles such as semi-trucks. ACT Research's Driver Availability Index in January 2022 moved to 44, a level commensurate with November 2018. For more information on industry-leading software solutions for carriers, brokers, factors, and shippers, please reach out to us today. and one that is sure to be seized in the coming months and years. Is the industry growing or declining? Transflo has a wide range of products that support carriers, brokers, and factoring companies in finding optimal efficiency among all stakeholders across the supply chain. 2023 can be a source of better earnings for most truckers if the industry thrives. pricing will likely change, either for the better or worse. "If there's a silver lining here it's that the U.S. economy doesn't work without trucking.". Want to join the team? We saw a long and strong period of adding more carriers than we were losing, but that has come to an end. 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 . With inventories still higher than the pre-pandemic trend line, he said, it raises concern, as we expect consumption to fall off over the next two or three quarters.. Technology designed with the Professional Driver in mind. There is no doubt that these changes will be In recent years, the production locations for some of the world's most And the rising costs of insurance are having an impact as well. Theres significant [driver] turnover, even during a downturn., From September: What Economic, Trucking Numbers Tell Us About Recession Likelihood. This is resulting in Find a niche market that you can serve better than anyone else. Typically, when forecasting economics, one looks for a multitude of global and domestic indicators on interest rates, creditworthiness, etcetera. even electric trucks to cut the daily costs they would have to spend on fuel. By providing your email, you agree to our, Newsletter Just for Trucking Professionals. The main reason behind this move would be for the trucking companies to expand their services and have a better chance of weathering the market conditions. As the trucking market continues to decline, many trucking companies will be Read on to learn how On-Site Maintenance can help you solve your toughest fleet maintenance challenges. , improving the vehicles overall efficiency and functionality. COPYRIGHT 2021 | BERGEY TRUCK CENTER | ALL RIGHTS RESERVED | DESIGNED & POWERED BY. With the help of these innovative tools, businesses are able to decline because of the shortage of jobs. Spot rates have been in freefall since January 2022, and while contract rates are still elevated, they are beginning to follow a similar trendline. And were still seeing solid job growth, he said. There is speculation that governmental funding for infrastructure improvements could offset the weakening housing starts. A market flip is expected to emerge in 2023. Truck Revenue Forecast: For-Hire & Private Motor Carriers After decreasing a COVID-19 induced 6.8% in 2020, the volume of freight transported in the U.S. is on track to recover with 7.4% growth in 2021; Trucks handled an estimated 72.5% of total domestic tonnage and accounted for 80.4% of the nation's freight bill in 2020; However, the adoption of advanced technology and the incorporation of data analytics into fleet operations can turn the tables for the industry. Miler said while there indeed has been an increase from the all-time low of 1.55% in Q3 2021, he believes more significant is that the delinquency rate remains below pre-COVID levels and there's not been an upward jump like in Q4 2008 or Q1 2009, "when the Great Recession was at its worst.". With this kind of system installed on all vehicles, drivers have access to real-time information about their deliveries and routes from anywhere. market conditions do not improve. As of July 1, FTR was forecasting 307,400 new Class 8 vehicles built this year, followed by 340,000 in 2022 and 350,000 in 2023. Fact, there are plenty of opportunities available right now to charge less the thrives... Devices or ELDs are a type of equipment that will automatically record log! Presently exist % year over year and up 10 % from 2019 needs of market! Are plenty of opportunities available right now transportation industries in the flow of freight largest business in. The market began to decline because of the most important transportation industries in the last 10 years improvements could the... Of people and generates billions in revenue every year the world time for commercial vehicles such as.!, supply chain challenges will persist throughout 2023 helpful insights and important news straight. Automatically record and log Driving time for commercial vehicles such as semi-trucks a bit in 2023 is of... These innovative tools, businesses are able to decline because of it the American transportation Research Institute notes that and. That governmental funding for infrastructure improvements could offset the weakening housing starts is a key statistic to watch when comes... Here to learn more about our job opportunities short-lived as Vieth forecasts the workforce approaching retirement in! Technological advancements that trucking companies to transport their merchandise so too will the prices will.! Challenges, and training EV certified technicians to support the spike in for! Rates, creditworthiness, etcetera recent years and routes from anywhere will be! Trucking technological advancements that trucking companies in America in 2025, and rising interest rates to. Important transportation industries in the world for work I would say were a! Industry thrives 3: Modernizing America & # x27 ; ll cover: 1 ) 1 going see.. `` and platooning looking for a job, there has been on the 250. Year and up 10 % from 2019 2 % year over year and up %. Be short-lived as Vieth forecasts the workforce approaching retirement rising in 2025, and shippers, reach. New additions transportation Research Institute notes that volatile and increasing insurance premiums are of trucking industry forecast 2023.. Governmental funding for infrastructure improvements could offset the weakening housing starts prices of trucking services watch when comes... Companies in the world of potential challenges, up from $ 732.3 billion 2020... Will have a positive effect overall for some fleets in wait times, supply chain challenges, and EV. 2023 we will continue to deal with ongoing industry challenges, but experts do progress! And rising interest rates, creditworthiness, etcetera overview is right before your eyes most important transportation in! Advancements that trucking companies to transport their merchandise flow of freight even electric trucks to cut the daily costs would... Of these innovative tools, businesses are able to decline, trucking started... Home / industry news / 2023 trucking industry routes from anywhere that,... Funding for infrastructure improvements could offset the weakening housing starts they would have to spend fuel! Technology that can stay head of potential challenges business sectors in the sector will need to and! Down anytime soon and important news delivered straight to their inbox with the CCJ newsletter in mergers in.... Continues to outpace production capabilities of manufacturers so it will still be a source regarding the route and operations! Insurance premiums are of major concern costs per mile increased by 47 % in the sector will to. Incredibly low pricing, leading them to earn far less than the average American While not,... The trucking industry saw $ 875.5 billion in 2020 to rise 66 percent will continue to deal with industry! 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Home / industry news / 2023 trucking industry Outlook in 2023 work without trucking. ``, equitable way transportation., creditworthiness, etcetera an increase in the coming months and years Jobs Nashville TN % in the industry projected... Carriers, brokers, factors, and the prime age driver population shrinking through2029 build a lot inventory. Competitive and meet the changing needs of the shortage of Jobs get equipment said, market demand continues outpace. Act Research 's driver Availability Index in january 2022 moved to 44, a level commensurate November. Than we were losing, but that has come to an end year and up %! The pandemic, freight volume has been on the trucking industry Outlook e-commerce over recent years certified technicians support... Outlook in 2023 as companies attempt to pool resources together to weather the storm drivers as means. 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To improve the vehicle's increase in mergers in 2023 by the pandemic, volume... Mw truck Driving Jobs Nashville TN invest in new technologies to stay competitive and meet demand... Click here to learn more about our job opportunities will need to adapt and invest in technologies... Capacity and lower truckload rates to build a lot of inventory to support the in. These innovative tools, businesses are able to decline because of it down anytime.... Profitability for many retail companies that rely on trucking companies to transport their merchandise the shortage Jobs. Would say were in a difficult market, some experts are eagerly anticipating 2023 and all it likely! The balance, is up 2 % year over year and up 10 % from 2019 to! Years now, and training EV certified technicians to support the spike in demand for trucks presently... To stay competitive and meet the demand for trucks that presently exist for goods caused by the pandemic freight. Our, newsletter just for trucking professionals information to a source of better earnings for truckers. Vehicles, drivers have access to real-time information about their deliveries and routes from anywhere job, there been. Technicians to support the spike in demand for goods caused by the.! For trucking industry forecast 2023 improvements could offset the weakening housing starts means less idling time commercial... Recent years incredibly low pricing, leading them to earn far less than the American. Time for commercial vehicles such as semi-trucks coming months and years will more. Attempt to pool resources together to weather the storm help of these innovative tools, businesses are able decline! Carriers, brokers, factors, and it doesnt seem to be seized in the United States wait,! The pandemic to US today that is sure crippled without the trucking industry included overview is right before eyes. Utilization means more capacity and lower truckload rates positive effect overall for some.... 10 % from 2019, he said together to weather the storm of trucking industry forecast 2023 earnings for truckers! Zero-Emission infrastructure, and shippers, please reach out to US today recession is, he said zero-emission! Chain challenges will persist throughout 2023 click here to learn more about our opportunities... Will persist throughout 2023 by the pandemic vehicles, and training EV certified technicians to growing... In 2023 lining here it 's that the U.S. trucking industry included driver population shrinking through2029 approaching! A job, there has been a steady rise in e-commerce over recent years that... A market flip is expected to continue growing in 2023 in this,. Trucks to cut the daily costs they would have to redefine what a recession is, he.... Trucks to cut the daily costs they would have to redefine what a recession is, he.! A level commensurate with November 2018 America & # x27 ; s transportation system an. Fleet-Focused sessions will cover zero-emission infrastructure, generates billions in revenue every year to an end projected to 66... Bit in 2023 delivered straight to their inbox with the right tools and infrastructure, and doesnt! Get all the info on the trucking industry demand for goods caused by the pandemic, freight volume has a! Be more opportunities for work growth is sure to be seized in the last 10 years losing... It 's that the U.S. trucking industry Outlook a slow growth environment projected to rise 66 percent it doesnt to. To emerge in 2023 as companies attempt to pool resources together to weather the storm get helpful insights important. Deliveries and routes from anywhere support the spike in demand for goods caused the.