Where Freight Companies Are Headed in the Next 5 Years
For many years, not much has changed about freight companies. Trucks have been the same, people have been the same, and industries have grown.
That is all changing at a rapid pace. Here are 4 major things that will drastically affect the state of freight companies in Canada.
1. Growing population
Year by year countless freight companies are being introduced to the industry, mostly because there are more and more people looking to be entrepreneurs, and increase their quality of life.
Competition has never been higher in the trucking industry and will continue to get even more crowded.
At its current state, many local freight companies are at their beginning. Only time will tell how long they will last, especially with the other challenges ahead like the high cost of living, fuel prices, administrative/licensing expenses, and rising vehicle costs.
2. Artificial Intelligence
Artificial intelligence has been a very popular topic in recent months. You may be asking how can this affect freight companies? The simple answer is marketing.
AI marketing tools are at the forefront of many businesses. With benefits such as cutting costs, saving time, and getting more website traffic, there seems to be no better solution.
This fits into the rising amounts of smaller, younger freight companies using tools like this. Unlike companies like Day and Ross and TFI International who spend hundreds of thousands of dollars every year on marketing, it simply does not make sense for smaller companies to pump all their earnings into something they can accomplish with a small monthly subscription and other ad costs.
AI marketing tools can be the make it or break it factor for many small, young freight companies.
3. Climate change movements
With politics pushing many agendas, climate change has had a huge affect on freight companies and services.
There is no better example than Amazon and their partnership with electric vehicle manufacturer Rivian.
With Amazons plans to grow their electric vehicle fleet to 100,000 vans by 2030, be sure to see competitors attempting a similar stunt.
Other examples include PepsiCo’s use of Tesla’s new semi truck to deliver Frito-Lay products in California. With an alleged 500-mile range, they have serious potential to spread to other companies.
However, many cities infrastructure’s fail to have necessary charging stations in order to complete multiple trips, as well as the introduction of new truck maintenance problems. Good luck finding a mechanic to fix your broken-down Tesla semi, which seems to be a popular issue.
4. Economic troubles
The current state of Canadas economy is all but friendly to new companies in any industry. With higher costs of living, to high fuel prices, it has become increasingly harder to work around these problems. Companies can cut costs in other ways, but they are running thin. Only the best companies will survive through the next 5 years.
If you are looking for a quality freight company to handle your needs, look no further than us! With family values at our core, we are sure to do things the right way, not the easy way.
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