With a new administration coming on board during 2017, the year is shaping up to deliver some surprises across the country. In an industry that is responsible for moving some 70 percent of the domestic freight in the country, changes in consumer demands, tax reform and infrastructure are going to affect it.
1. Greater infrastructure funding
The nation’s infrastructure is the backbone of the trucking industry. An extensive infrastructure that is well maintained is important to making sure that the industry meets its goals. With an $1 trillion infrastructure plan that spans 10 years proposed by President Trump, the trucking industry will benefit from a badly-needed infusion of additional funds.
2. More corporate investing
President Trump is promising to slash corporate taxes. This move will probably result in businesses establishing operations in the United States or adding to their existing facilities. What remains to be seen is if this effect is across all industries — most notably in manufacturing which relies heavily on trucking to move their products. If it is concentrated in segments like retail,, the trucking industry would benefit less. Something else to consider is that the cost of labor could rise if lower corporate taxes push inflation numbers up.
3. Demand driven economy expands
Trucking companies can expect to see more on-demand requests from their customers. The industry will be expected to deliver the exact products in the quantities needed within a pre-determined time frame to meet the demands of their customers and consumers. Data-driven intelligence and real-time logistics need to combine to increase productivity and streamline operations to deliver the products when and where consumers expect.
Because the trucking industry is the foundation upon which nearly every other retail, commercial and industrial sector relies, any signs of changes are often felt there first. 2017 promises to be a year of big changes for the professional truck driver — and the country as a whole.