American Trucking Association Predicts Growth in Freight and Trucking for the Next Decade
Saturday, July 30, 2016
The American Trucking Association (ATA) released a report in 2015 that trucking and freight will continue to increase by 29% through 2026. With factors such as population growth, expansion in the energy sector, and foreign trade relations having been stabilized and even improved in the last few years, the future of moving goods by truck, train, and plane are bright.
This report, while not new, is significant because it indicates a tremendous growth in our sector, which will impact companies that serve the industry, businesses that utilize the industry, as well as end consumers. With growth as much as 28.6% in freight tonnage and an increase in freight revenues of 74.5%, ultimately reaching $1.52 trillion in 2026, there will be countless niches to be filled by freight companies, who will provide a multitude of additional options to businesses wanting to move merchandise, and will likely positively impact the cost of moving goods, which will be passed on to consumers.
Being able to plan out a decade in advance is invaluable for any industry. This type of prediction can help freight companies make important decisions about expanding and investing today that will affect their growth and bottom line in the years to come. They can also make important decisions about working with lawmakers and regulators to encourage the best possible policies to follow through on the growth of the past decade and to continue moving the economy forward.
According to the ATA data, moving goods by truck will still dominate the freight industry. The number of Class 8 trucks on the road will reach nearly 4 million by 2026. However, while overall tonnage will increase, the ATA predicts that the percentage of goods being moved by trucks will decrease slightly.
The tremendous growth the US has seen in energy production in the last eight years will have the biggest impact on freight, with pipeline volumes increasing an average of more than 10% per year and their share of freight increasing from 10% in 2015 to 18% in 2026.
Railroads will see a slight decline in freight tonnage, but intermodal freight will the second-fastest growing segment of the industry with a 4.5% annual growth through 2021 and then a 5.3% growth every year that follows through 2026.
If you need to move freight, products, or goods anywhere in the US, including Alaska and Hawaii, give us a call. We’ll make sure we win you over with our top-notch customer services, impressive attention to detail, and trusted strategies that save you time and money.