I recently attended a transportation conference for the industry on the future in trucking for 2016. The conference showcased many industry leaders, carrier CEOs, and economists from the financial industry. This was the sole reason that I was attending the conference for myself to see where things are going for drivers in the next year. I will have more on the driver situation in future articles. Overall the information given showed that the industry is looking good for the future.
Although much of the argument about are we in a recession is personal opinion it was good to hear that the economists felt that we were not in a recession and had a fairly healthy economy despite reports in the media. We were experiencing a slow period and still are for the most part but much of that is due to the global economy. Since Canada is heavily involved in exports a global slump in the economy really affects our transportation industry here in Canada.
The largest part of the conversation centred around currency itself. With the dollar hovering around $.75 it is causing larger expense costs for carriers. Most truck pricing is in U.S. Funds so this has increased costs for carriers in replacing equipment. Unfortunately the low dollar is a double edged sword. Since our country is built on exports the low dollar is good for economy and industry. On the other side rates, expenses, and vendors are largely dealing in U.S. dollars causing expenses to rise for many carriers.
So what will we look forward to seeing for next year in the industry? Many carriers talked about investing in technology to improve processes and manage expenses. Those that replace equipment on a regular basis will continue to do so. The recruiting shortage is still top of mind and a focus on drivers will be part of the upcoming year. The economy was expected to grow over the next year in the area 3.5 percent. If you are a driver you can be comfortable in knowing that your job will be around for the long term. You can also be happy to know that you are going to be the focus from carriers for the future and that is good for you.
Please note that I am not an economist, just an interested professional helping the transportation industry stay strong and powerful for the future.
About the Author
Bruce Outridge is a driver success coach for the transportation industry specializing in retention and engagement for drivers. He is the author of the books Driven to Drive, Running by the Mile, and creator of The Lead Pedal Podcast. You can learn more about Bruce and his work at http://www.theleadpedalodcast.com and bruceoutridge.com