Smaller Companies Help Bring Up Trucking Revenue
During tough economic conditions last year, even some of the most well-known carriers in the trucking industry showed revenue losses. While some of these dips were worse than others in the way they affected the freight business, not every name in the industry felt the effects of this slump. Total revenue in the industry exceeded $700 billion for the second straight year as of 2015, with a 3.7 percent rise bringing the total to just over $726 billion according to the American Trucking Associations.
The 100 largest less-than-truckload and truckload carriers experienced a 3.1 percent decline in 2015, leading to a total of $72.4 billion. These companies accounted for approximately 10 percent of total revenues in the trucking industry. Based on this, it can be seen that smaller companies (or existing companies adding new trucks) experienced the most positive performance. Since 66 percent of the largest companies in 2015 experiencing losses, the $26-billion-dollar boost can be attributed to these small and growing organizations.
ATA Chief Economist Bob Costello noted that though the first half of 2016 proved to be tough for the trucking industry, positive activity in the past and growth among smaller companies has many feeling optimistic about the future. Additional increases were reported in employment, number of active drivers, and overall truck sale throughout 2015.
While the beginning of 2016 saw noticeable declines in shipments and tonnage by many well-known trucking companies, the continued decrease in freight demand remained. Some believe that smaller carrier were able to make their deliveries when freight was in high demand. In any case, these smaller companies continue to look promising.