5 Reasons The Trucking Industry Is Crucial To Our Economy

In the year 2021 alone, the trucking industry incurred a record loss of 80,000 drivers. This number is given by the American Trucking Associations, which is the largest national trade association for the trucking industry.    Given such facts, economists and policymakers are worried about the implications of the situation. The truckers shortage has become such an issue that even the Emmy-winner, John Oliver, picked up the topic to discuss in one of his episodes on Last Week Tonight.   Now, it might seem ‌odd to you that one industry could cause such a stir among all. But this is not odd at all given the importance of the trucking industry to our country’s economy. Let me explain further.   Here are five reasons ‌the Trucking Industry is crucial to our economy.  

Reason Number #1 - Help Manufacturers in the Supply Chain

  The laptop that you’re reading this on, the cup of coffee that you’re holding, your favorite shirt, your favorite chocolate, your favorite book - ‌these didn’t come from thin air. Everything that you use, and perhaps even own, was created by someone. It was manufactured.    The final products that you see rarely look so in their initial stages. It’s all raw material at the beginning. Raw materials are collected from several places - the farms, the mines, the quarries, or the lumber yards. They are then sent to factories where they undergo the manufacturing processes to become your next favorite item!   But the only question here is, who takes the raw materials to the factories?    The answer is quite simple - It’s the truckers. They collect raw materials from their place of extraction and ship them to the factories. They fulfill the manufacturing needs of these factories, trying their best to make sure nothing ever gets delayed. They also manage the logistics side of these trips.     5 Reasons The Trucking Industry Is Crucial To Our Economy    

Reason Number #2 - Local Retail Establishment

  The trucking industry has an enormous impact on the supply chain. The supply chain deals thoroughly with the conversion of raw materials or components into finished products or services and then delivering them to the consumers.    In this context, it is crucial to note that the trucking industry does not only ship items and raw materials to factories, mega-companies, and franchises. They are also the saving grace of local retailers, small business owners, and small-scale industries.    The trucking industry reliably supplies all the demands of all these units. This way, the trucking industry not only keeps the local economies running but also creates job opportunities in those spaces.  

Reason Number #3 - Large Job Market

  Even with the Great Resignation plaguing it, the trucking industry employs around 8.7 million people in the U.S. alone (including those in positions outside of driving). It accounts for approximately 5.8% of all full-time jobs in America.    With the rise in retail and online shopping and the number of products in both streams, this number is only expected to increase in the coming years.    The trucking industry proves itself to be an egalitarian industry with a record of 40.6% of all its jobs being held by minorities. According to the Bureau of Labor Statistics, this far outruns the national average of 22% when all jobs are compared.   Job creation is extremely vital to the economy. Only when a person is given a well-paying job, do they contribute more to the economy on a local and national level. They become a wheel for the economy through their major purchases (like cars, homes) and taxes.     5 Reasons The Trucking Industry Is Crucial To Our Economy    

Reason Number #4 - The Political Influence of the Trucking Industry

  In the year 2020 alone, despite all the shut-downs and uncertain situations, the trucking industry moved 10.23 billion tons of freight. This generated over $732.3 billion in revenue as per the American Trucking Associations’ American Trucking Trends 2021.    In all the past years, the trucking industry has consistently posted revenues higher than the GDP of almost more than 150 nations. It stands for 84% of all commercial transportation revenues.    Given such conditions, it should come as absolutely no surprise that the trucking industry holds immense political influence, especially in making economic policies.   

Reason Number #5 - Flexibility of the Trucking Industry

  There’s always one season in the year when everybody wants that one particular product. That’s called customer demand. Often, there’s a sudden increase in demand for a particular product, maybe due to trends or an emergency, or something else entirely.   However, such situations put a strain on both the manufacturer and the retailer. To get the best of the economy at the time and/or to avoid worsening situations, it becomes necessary that the supply chain is kept running.    A high supply of raw materials and large deliveries of one single product to particular areas, need to be done. Trucking is the quickest and the most efficient way to do this.   

Conclusion -

  A good economy ‌keeps a great country running. And trucking is a big part of that. From wood to plastics, steel, fabrics, and more trucking makes modern manufacturing possible. It influences our economic policies, creates jobs, and keeps the local economies alive. Trucking plays such a crucial role in sustaining our economy that it wouldn’t be too far to say “If a good economy keeps a country running, then trucking keeps the economy running”.   What are your thoughts on this? Don’t forget to leave us a reply! Visit our website to learn more about the transportation industry and its management.