Long-Distance Freight Trucking in Canada Industry Market Research Report from IBISWorld Has Been Updated

Share Article

Although increased trade, manufacturing and retail activity will stimulate growth, competition from other modes of transportation will continue to curb industry revenue. For this reason, industry research firm IBISWorld has updated a report on the Long-Distance Freight Trucking industry in its growing industry report collection.

News Image
Low barriers to entry and weakened demand have intensified price competition

The Long-Distance Freight Trucking industry hit some speed bumps during the past five years, as it slowly recovered from the recession. Industry players use trucks to transport freight along long-distance routes between regions in Canada and the United States border. As the economy recovered, industrial, retail and trade activity climbed. Consequently, the need to move goods between manufacturers, retailers and borders increased, leading to higher freight volumes and demand for industry services. However, even when the economy began to recover, its slow pace (especially in recent years) and subpar industrial output caused demand for industry services to remain relatively weak. Therefore, in the five years to 2015, industry revenue is expected to climb.

According to IBISWorld Industry Analyst Maksim Soshkin, “the industry has also come under pressure from stronger internal and external competition.” Low barriers to entry and weakened demand have intensified price competition, especially among smaller carriers. Moreover, rail has become an attractive alternative to trucking because of its efficiency, compared with trucking. Nevertheless, demand for industry services has been strong enough to increase industry profitability over the past five years. Moreover, the industry has benefited from trends such as just-in-time (JIT) inventory management. In JIT inventory management, manufacturers only purchase materials and inputs needed right away instead of purchasing ancillary goods, which must be kept in storage. This process has strengthened demand for industry services.

In the next five years, industry growth is forecast to strengthen. Although increased trade, manufacturing and retail activity will stimulate growth, competition from other modes of transportation will continue to curb industry revenue. Industry operators might also find it difficult to deal with a growing labour shortage. “Difficult working conditions, relatively low pay and an aging workforce are all projected to put pressure on carriers' ability to fill job openings, a trend that is anticipated to increase wages,” says Soshkin. However, at the same time, operators should benefit from recently declining fuel prices, which should help increase profit.

For more information, visit IBISWorld’s Long-Distance Freight Trucking in Canada industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Long-Distance Freight Trucking

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 and Canadian 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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld Inc.
+1 (310) 866-5042
Email >
Visit website