The Market
It would be difficult to overstate the vital importance of the U.S. trucking industry to the American economy and way of life: The American Trucking Association states that, by weight, over 70% (71.4%) of the country’s freight is transported by trucks. Meanwhile, by revenue, over 80% (80.3%) of “gross freight revenues” in the country were generated by the U.S. trucking industry. Here’s a good illustration of just how dependent the American economy and way of life is upon a robust and growing U.S. trucking industry: “Most grocery stores” CBS News reported in June of 2019, “would run out of food in just three days if long-haul truckers stopped driving.”
Numbers published by Statista in late 2019 indicate that the U.S. trucking industry generates over $797 billion in annual revenues. Considering that the industry first broke the $700 billion mark in 2014 and nearly broke the $800 billion mark in 2019, this is an industry that is enjoying considerable growth – far in excess of recent annual GDP growth of 2% to 3% in the overall U.S. economy. As well, a 2019 U.S. trucking industry survey conducted by Bibby Financial Services revealed that 52% of industry businesses were reporting growth and roughly a third of respondents expect ongoing growth of between 11% to 35% through to at least 2022. Furthermore, 2019 marked the tenth year in a row that U.S. truck tonnage increased.
Although the overall industry is healthy at the macro level, the numbers also reveal that the challenges of operating a trucking enterprise – particularly a smaller one – are overwhelming many operators: According to Fox Business, 795 U.S. trucking companies shuttered in 2019, thereby taking some 24,000 trucks off the roads and exacerbating an already acute shortage of truckers. So, while the industry’s top-line numbers seem healthy, its costs and risks have enlarged to the point where smaller operators simply don’t have the economies of scale and overall staying power to withstand some of these risks. Notably, the ReeferShield is designed to mitigate some of these risks – like rising insurance costs, for example.
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Above: Dangerously Worn-Out Thermo King Refrigeration Unit Door
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