What’s in store for the transportation industry in 2016? Experts seem to agree to disagree on how infrastructure, regulation and security will impact commercial fleets. Here are the top five predictions for 2016.
- Driver Shortage Will Continue: Fixing the driver shortage will take time, and there is no quick fix for 2016. Few new drivers, aging existing drivers and HOS regulations will continue to hamper commercial fleets.
- The Highway Bill Will Improve the Industry: many industry experts feel that the passage of the highway bill in December of 2015 will have a positive effect on trucking. Some of the resulting regulations may cut into profits slightly, but overall businesses will see some relief from over taxation and over regulation.
- Technology Glitches Fixed: Over the last several years, the technology industry has helped bring cleaner engines and safer vehicles to commercial fleets. And while the newer engines had some bugs that caused frequent breakdowns, improvements have been made to fix those glitches, making cleaner vehicles a better investment.
- Small Companies Contracting Out: Small companies are streamlining their business processes to be more competitive. In many cases, this streamlining includes contracting out their transportation needs to commercial fleets. This means more business for transportation companies.
- Freight Expected to Increase: Almost all experts agree that freight is expected to increase in 2016. If companies can manage their driver shortage, the increase in freight can help improve business for the transportation industry.
While there are some positive and negative factors affecting the transportation industry in 2016, the overall outlook seems to be expected moderate growth. In order to leverage this growth, transportation companies need to find ways to increase coverage while decreasing expenses. Contact us to learn more about transportation safety, risk reduction, and coverages.