Local Freight Trucking in the US Industry Market Research Report Now Available from IBISWorld

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During the recession, sluggish manufacturing production and slow retail spending reduced demand for freight transportation. However, industry conditions will improve as the economy stabilizes and demand for freight services increases. Furthermore, recovering consumer confidence and increased spending will support growth in freight volumes, boosting industry demand. However, the industry will face rising competition from other modes of transportation, such as rail, air and ocean. For these reasons, industry research firm IBISWorld has added a report on the Local Freight Trucking industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Local freight trucking has not fared well in the five years to 2012, as all industry services have declined. Slow manufacturing production and retail spending reduced demand for the industry during the recession, according to IBISWorld industry analyst Lauren Setar. Declining demand caused greater price competition among operators, which limited profit margins. Additionally, soaring diesel costs dramatically reduced 2008 profitability, though many industry operators implemented fuel surcharges. These surcharges increase revenue, but are not sustainable. The industry performed poorly in 2009 when revenue declined 20.5%. Weak operating conditions caused many firms to record losses in 2008 and 2009, forcing some operators out of the industry. Furthermore, a drastic reduction in diesel prices in 2009 caused revenue from fuel surcharges, which are tacked on when diesel prices are high, to decrease during the year. Since then, revenue has increased along with fuel prices, but demand remains relatively weak. Consequently, revenue is expected to fall at an average annual rate of 3.3% to $32.4 billion during the five years to 2012. In 2012, IBISWorld expects that recovering demand and increased shipping volumes will cause industry revenue to grow by 2.0%.

Nonemployers comprise about 87.5% of firms in the Local Freight Trucking industry. Barriers to entry are very low, allowing for many small operators and, therefore, increased competition in the industry. These small firms, which generate 38.2% of revenue, were especially susceptible to the decline in demand, Setar said. In the five years to 2012, the number of companies is expected to decline by 3.2% annually to 187,247. Similarly, reduced demand has also caused industry employment to fall 3.4% annually during the same time.

Conditions are projected to improve slightly through 2017. As the economy recovers, the industry is expected to grow along with disposable income and, therefore, demand from manufacturing and retail spending. Additionally, diesel prices will cause growth in the five years to 2017 as companies heighten fuel surcharges to offset costs, though profit will eventually diminish. In the five years to 2017, IBISWorld projects that industry revenue will increase.

For more information, visit IBISWorld’s Local Freight Trucking in the US industry report page.

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IBISWorld industry Report Key Topics

Operators in this industry provide general freight trucking over short distances. General freight companies handle a variety of commodities, which are generally palletized and transported in a container or van trailer. Local general freight trucking companies usually provide trucking within a metropolitan area that may cross state lines, and the trips are generally same-day return.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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