The trucking industry has continued to change in recent years, leaving many business owners and fleet managers asking: what should we expect for the trucking industry forecast 2024? The good news is that this industry is resilient. No matter the challenges that show up on the road, there are always solutions to keep your routes going.
If you have questions about the current trucking industry or what we are expecting to see in the future, then reach out to our team at Innovative Toll Solutions. We are leading the industry with modern technology and forward-thinking solutions to improve fleet toll management.
Looking Back at the Trucking Industry in 2023
In order to understand the trucking industry forecast 2024, we need to start by looking back at what happened in 2023. There’s no doubt that the industry is continuing to find balance after all of the changes that happened during COVID. Even though the pandemic wasn’t a major concern in 2023, we still saw fluctuations in demand and pricing.
While shipping rates increased in the previous year, 2023 brought prices back down again. There was a change in the macroeconomics of consumer spending, which decreased shipping demand. At the same time, trucking companies felt the pinch due to increasing operating expenses.
We’ve seen an influx of truck drivers in the last few years, and there was plenty of work to keep everyone busy. But as the economy started to slow down, there was a contraction in the trucking demands across the country. As a result, we’ve reached a point known as a “freight recession.” Drivers have less work, and this is bringing pricing down since demand is lower.
What Will Happen: Trucking Industry Trends in 2024
As profit margins tightened in the trucking industry last year, fleet managers were forced to find creative ways to reduce overhead costs and save money on tolls and trucking. These strategies are expected to continue throughout the year.
At the same time, we are seeing more consumers spending credit card debt, which is an indication of the pressure and strain on the US economy. As inflation and debt load continue to be a concern, it can have a ripple effect on many industries (including trucking). People who are carrying higher debt loads have less money to spend on shopping.
Not only are service-based businesses seeing a decrease in revenue, but businesses offering physical goods are also seeing a decrease in sales. The fewer transactions are happening, the fewer products need to be shipped.
Don’t worry: transportation services aren’t going away. However, part of the trucking industry forecast in 2024 is an increased need for streamlined practices. Fleet toll managers must be strategic to maintain an edge (and a profit) in the industry.
Key Performance Indicators (KPIs) for the Trucking Industry
As an increased focus is being placed on trucking efficiency strategies, there are several factors to watch that will influence the overall outcome.
Transportation Services Demand
Small fleet management trucking accounts for the changing demand throughout the year. Even though overall demand for trucking services is lower right now, there are still spikes when demand increases. For example, everyone knows that the seasonal demand is the highest during the 4th quarter of each year, which means that you need to be sure to have the trucks and drivers ready when the demand peaks.
Economic Trends in 2024
It’s expected that 2024 will be a challenging year economically. US consumption patterns are changing and people aren’t spending quite as much. Even though economists are no longer saying that we are in a recession, inflation continues to be a concern. As costs go up, shoppers are being more selective about how they are spending their money. If this trend continues (as is expected), then it will be no surprise to see trucking demand lower in 2024.
Labor Challenges
Another trend we are seeing across many industries is the challenge of keeping good workers on the payroll. There has been a high turnover in the trucking industry, especially as drivers are looking for other job opportunities for higher pay. If demand continues to stay low and drivers keep looking elsewhere, then we can expect that it will be harder and harder to keep team members behind the wheel.
Increasing Costs
Inflation is having a ripple effect, increasing costs overall. Smart fleet management trucking means that you need to be strategic about controlling fuel consumption, insurance costs, driver salaries, fleet tolls management, and more. There are ways to cut costs, especially through toll optimization for trucking companies. In the past, these automated systems were convenient. Now, they are becoming essential.
FAQ:
How to Save Money with Fleet Tolls Management
With a questionable trucking industry forecast for 2024, now is the time to implement cost-saving systems for your fleet. One essential solution is to save money using fleet toll management. Here are a few things that you need to know:
How does fleet toll management save money?
This automated system leverages bulk buying, helping to reduce expenses every time a vehicle passes through the toll. Additionally, it reduces the money you are spending on fees and late payment penalties. The overall savings really add up over time.
Why is fleet toll management necessary?
There’s no reason to continue with labor-intensive office management when many of these systems can be automated. Fleet toll management is beneficial because it decreases the busy work and paperwork that your office staff has to deal with.
Will trucking survive a recession?
Yes, it is absolutely possible to survive if a recession occurs. The key is to make sure that you are strategic about cutting overhead costs. Fleet toll management helps to reduce fuel consumption, decrease toll costs, and improve budget management overall.
Talk to the Fleet Toll Management Pros
What other questions do you have about the trucking industry forecast in 2024? If you would like more information, then you are invited to reach out to our experienced team at Innovative Toll Solutions. We’re here to answer your questions and provide the personalized solutions you need to help your trucking business thrive in 2024. Contact us today to discuss available services.