The trucking industry is pretty huge and is a vital part of keeping the economy of the country up and running. Despite employing thousands of personnel and a large workforce, there are many things that people are unaware of the trucking business, its impact on the economy, and the Gross Domestic Product (GDP).
One of the most significant reasons why the trucking industry makes such a massive impact on the economy is because of the number of people it employs. To be more precise, the trucking industry supports virtually 6% of all the full-time jobs in the United States.
According to the United States Census Bureau and Business Insider, there are around 3.5 million truck drivers in the United States of America (USA) who move nearly 71% of all cargo. Further, there are over 200,000 female long-haul drivers in the United States alone!
According to the American Trucking Association (ATA), the trucking business had cumulative employment for about 7.8 million people as of 2018.
The humongous nature of the trucking business means a large economic footprint. With over 15.7 million operational trucks in the US and over 3.5 million truck drivers, the trucking industry accounts for about 5% of the GDP of the United States, according to HNI.
To put this into perspective, the revenue generated by this business is over $700 billion in 2017 alone, which is more than the GDP of Bangladesh! This number only went on to increase by another $100 billion (approximately) in the following year.
Trucking business and operations are closely tied to almost every industry in the country. With its massive economic footprint in the United States, the country would essentially come to a halt without a trucking industry to move freight.
The trucking business transported about 11.5 billion tons of cargo in 2018 alone, which accounts for more than 71% of the total domestic tonnage, according to the American Trucking Association (ATA).
The trucking industry is an integral part of maintaining the food supply chain. Trucks are used to deliver food items and groceries in large quantities to retailers. Without the trucking industry, the movement of transporting large quantities of food would come to a standstill and cause a food shortage.
So, what exactly does this mean for the agricultural industry? Well, the agricultural industry thrives upon the consumer market. As long as there is a bridge between agricultural production and the civilians, which is often the trucking business, the revenue is constantly generated.
According to the United States Department of Agriculture (USDA), agriculture and food provide about 13% of the USA’s GDP and 18% of employment. Without the trucking industry, this entire revenue generation could shatter and throw millions of people out of their jobs.
Now that you have a good enough idea about the trucking business and its impact on the lives of people keep reading to know what goes into making this business sustainable and indispensable.
Truck driving can be very stressful. The driver has to stay alert and agile every second he is on the driver seat, and it is certainly not an easy task, especially when the durations are for hours on end. Traffic en route only complicates things further.
Some drivers may choose to drive for long continuous hours to earn some extra money. Such decisions and behavior can result in Hours of Service (HOS) violations. Samsara’s ELD compliance solution helps in the Hours of Service (HOS) compliance.
It is a common misconception among drivers that it is good to drive faster as they can cover longer distances in a shorter time. But they do not factor in the risks associated with speeding a large truck with expensive and heavy cargo. According to the National Highway Traffic Safety Association (NHTSA), 4,761 large trucks were involved in traffic fatalities due to speeding in 2017.
The further downside to this is that such accidents can result in heavy lawsuits for the company causing further damage both financially and to the company’s public reputation as well. Such damage is seldom repairable.
Fleet managers have to constantly keep an eye on hundreds of trucks are drivers. Managing a huge fleet is not an easy task.
Managers have to look out for any operational errors in the fleet and their systems in addition to addressing the drivers’ concerns. Furthermore, it is the managers that are often under the spotlight during accidents or other damages.
GPS fleet tracking
Contrary to popular belief, trucking is not a very luxurious niche. You might think that truck drivers get rich easily because they put in a lot of hours, but it is far from the truth, and this has a lot to do with the cost of operating on the road.
The cost of operating on roads has increased over the past years because of which the profit margin has shrunk. The median income for a full-time salary worker was about $48,672 per year in 2019, whereas the median pay for a truck driver was about $45,260 in the same year.
The contribution of trucking to the economy and the dependence of people on this business results in this being a very stable industry. The job of people in the trucking business id usually more secured. Furthermore, the workers get ample opportunities to visit new places, people and increase their network.
Trucking is a difficult and demanding business. But its profound impact in uplifting the lives of people all across the globe makes it indispensable. Educated usage of the current technology can help ease a lot of the trucking business processes and activities.
The dependency of most industries on the trucking business plays a large part in the success and growth of this industry.
The trucking industry by itself is not as dependent on other industries as others are dependent on trucking. This improves the flexibility and profitability of the trucking business, its owners, and operators.
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