Add aDemand for industry services improved as the economy began to improve
New York, NY (PRWEB) August 26, 2014
The Local Specialized Freight Trucking industry has been slowly recovering over the past five years. Industry carriers use trucks to locally transport freight that requires specialized care and trailers. Examples of such freight include automobiles, chemicals, construction materials, iron ores, gases, gasoline, frozen food and heavy equipment. At the height of the recession, economic activity plummeted with industrial and construction activity drastically declining. Moreover, consumer spending decreased, with sales of consumer goods such as automobiles also dropping. Consequently, the need to transport consumer-oriented freight such as cars, industrial gasses, chemicals, construction materials and heavy equipment declined, causing industry revenue to collapse.
However, in subsequent years, demand for industry services improved as the economy began to grow once again. According to IBISWorld Industry Analyst Maksim Soshkin, “Industrial activity, as measured by the industrial production index, is expected to recover to prerecession levels this year, while the value of construction finally began to rise in 2012.” As a result, demand for industry services has strengthened, causing revenue to increase. Moreover, the industry has benefited from increased outsourcing of private trucking operations and proliferation of just-in-time (JIT) inventory management, as these trends require frequent use of for-hire specialized truck carriers. JIT allows companies to improve efficiency by purchasing only the materials needed immediately rather than storing them in inventory. Furthermore, demand has been strong enough to allow operators to partially pass on increased fuel prices, caused by the climbing world price of crude oil, to customers in the form of fuel surcharges, boosting revenue growth.
As a result of recovering demand and increased fuel surcharges, IBISWorld expects industry revenue to rise in the five years to 2014. “Continuing growth in consumer spending and industrial and construction activity are anticipated to be the primary drivers of this growth,” says Soshkin. Moreover, the outsourcing of private trucking operations and JIT delivery and inventory management will continue to provide sustained stimulus for the industry. Nevertheless, carriers will endure a number of challenges, such as environmental regulations.
For more information, visit IBISWorld’s Local Specialized Freight Trucking in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Local Specialized Freight Trucking industry provide specialized road transportation for cargo using trucks and trailers. Local trucking establishments provide trucking within metropolitan areas that may cross state lines, and trips are often same-day return. Specialized freight transportation is the movement of cargo that requires specialized equipment for transportation because of the shipment’s size, weight and shape.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.