The trucking industry is the industry that Americans most take for granted. Other sectors are essential to the economy and daily life, but none as intricately as trucking. According to the American Trucking Association, trucking is responsible for almost 70 percent of all shipped freight in the United States.
If you have never stopped to consider how the trucking industry affects all others, you may be surprised. The trucking industry plays a vital role in every one of your daily activities. Whether you are watching TV, stocking shelves and managing products, or shopping at a local store, trucking is involved.
Trucking and Everything Else
Imagine a hypothetical scenario: every truck driver in America is unable to work. In this scenario, multiple major crises would result. Within three days, there would be a significant perishable goods shortage. Between two and four weeks, drinking water would become scarcer. Hospital food supplies would be eliminated in a day. ATMs would run out of cash within three days. Jobs would begin to drop out of the economy at a rapid pace. Trucking alone employs 7 million people, and this does not count those whose work relies on trucking to operate.
These are a sampling of the vital systems that rely on trucking to operate. There is practically no facet of the modern economy that does not rely on trucking for its necessities. The vast majority of American communities rely on truck drivers to get the necessary goods daily. Primary everyday products and services that we often take for granted could not function without the trucking industry.
Trucking’s Growing Importance
The trucking industry is projected to continue to grow in importance in the coming years. Other forms of shipping like rail can be less costly, but trucking provides higher levels of service. Trucking is also crucial because its logistics are more flexible and cost-effective than other forms of freight transport.
It is challenging to quantify trucking’s impact on other industries entirely. Trucking is so interwoven in the economy that finding where its influence begins and ends can be tough. However, trucking certainly affects the economy in far more ways than its employees and GDP growth contribution.
Truckers Fuel the Whole Economy
Since trucking enables other industries to move the goods they need, most businesses would be unable to operate without truckers. Delivering products that companies need to make profits is probably the trucking industry’s most significant contribution to other sectors. It cannot be overstated how important trucking is to the daily operations of every grocery, convenience, hardware, and retail store.
Trucking is one of the significant indicators economists use to gauge the direction of the rest of the economy. Since almost two-thirds of freight in the U.S. is shipped with trucks, a shrinking number of trucks and deliveries is a warning sign. Before the Great Recession began to smash the global economy in 2008, trucking had already taken a significant dip two years earlier.
When trucking declines, it means other industries are not moving as many goods. This indicates that consumers are making fewer purchases. These signs are what economists look for when trying to spot potential economic downturns. Trucking is usually the first industry to show these red flags and give economists a heads-up.
Currently, trucking is experiencing challenges, along with other freight transport industries. Experts believe the trade war between the United States and China will continue to exacerbate these issues shortly.