The transportation industry has recently undergone many changes due to economic variations. This industry suffered significant losses, including bankruptcies, between 2007 and 2010 and a record number of failures in 2011. This was the product of lack of credit and some companies were unable to generate the cash flow needed to carry out daily business functions.
Businesses are now shifting their focus to improving the speed and efficiency of deliveries in order to increase savings. Trends such as increased truckloads, labor shortage rates, and alternative fuels are predicted to carry on into the future. Lately, transportation firms are becoming more efficient maximizing profit per shipment. The goal for many is to improve relationships with existing clients and to hone in on core functions and outsource other tasks. Freight management in particular is projected to jump 2% annually as companies figure out new ways of improving shipping procedures. Overall, the amount of goods being shipped has continued to rise over the past months and is predicted to continue on this course.
In addition, the price of shipping services is predicted to increase as a result of a shortage of qualified drivers.
The baby boomer generation is nearing retirement and it is expected that the gains of new drivers will not be enough to make up for the loss of retiring drivers. Another factor that has impacted this industry is the rising cost of crude oil which has encouraged transportation companies to seek out alternative fuels. Investments in trucks that run on natural gas could potentially save companies hundreds of thousands of dollars over a ten year period. A more consistent market has paved the way for trucking companies to grow and invest in themselves once again.
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The transportation industry is beginning to rebound from the economic hardships faced in the previous decade and new innovations in fuel technology have the potential to greatly increase company profits. Increased competition from outside industries and shortages in labor may hinder this growth. However, offering market-leading wages could be the solution for preventing the shortages of qualified drivers and help transportation firms to meet their shipment goals.
PayScale has salary data for truck drivers and fleet dispatchers, and well as upper level careers such as transportation engineers. Use PayScale software and market data to create and manage a competitive compensation program for your business.