What the Trucking Industry Will Look Like in 2016
The trucking industry dealt with highs and lows in 2015, from the continued increases in demand to a significant shortage of drivers. Many factors go into industry outlook, from the overall economy to federal regulations, but being prepared can empower you to plan accordingly for next year’s objectives. Check out the projections for what the trucking industry will look like in 2016:
The U.S. economy is expected to increase by four percent in 2016, with a significant amount of the growth likely to be coming from consumers over industries. Improvement in economic conditions for consumers may result in an increased demand for products, which will bring with it an increase in the number of truckloads required to keep pace.
Increased Federal Funding
Congress passed a long-term highway bill in December 2015, the first one in a decade, which will provide multibillion-dollar federal funding for highway projects. It is expected to make truck driving more efficient and safe with measures such as: making environmental reviews of projects more efficient; reforming the Compliance, Safety, Accountability (CSA) system to prevent inaccurate scores from costing trucking companies business; and making it easier for veterans to become drivers.
In 2016, truck rates are projected to increase from four to six percent. This price raise is likely to be necessary as a way for trucking companies to compensate as capacity continues to get tighter. Other expected costs that may contribute to raising prices for shippers include diesel price fluctuations, the need to pay higher wages to drivers, and healthcare expenses associated with federal labor mandates.
The trucking industry will unfortunately continue to be dealing with a driver shortage in 2016. An increase in demand for trucking, combined with a retiring workforce and fewer younger drivers entering the field, is expected to result in a shortage of approximately 48,000 drivers in 2016, according to the American Trucking Associations (ATA).
The future continues to look bright for the trucking industry into 2016 and beyond, in terms of revenue. The ATA predicts that revenue will grow steadily in 2016 by at least 10 percent and eventually increase by 66 percent by 2022. If the revenue predictions are accurate and remain on pace, the total revenue for the trucking industry is projected to reach $1.52 trillion.
Achieve your business objectives in 2016 with Contracted Driver Services. As a staffing firm serving over 500 clients nationwide, CDS has transportation and supply chain industry knowledge that enables us to accurately assess driving candidates and only provide our clients with top talent that are the right fit. Contact CDS today to learn more about the staffing services CDS offers.