Transportation
Transportation is one of the world’s largest industries. Encompassing trucks, airplanes, taxis, trains, ships, barges, pipelines, warehouses and logistics services, it is not surprising that this $1.8 trillion industry employs about 4.5 million Americans. The three major trends in this industry include global evolution, consolidation and technological advances.
Transportation will continue to evolve on a global scale. China is a good example, with its transportation investments equaling 9 percent of its annual GDP. Between 1989 and 2008, China expanded its infrastructure from 200 kilometers of expressways to 50,000 kilometers of expressways.
Consolidation is becoming a growing trend, especially within the airline sector. Because of the growing competition for overseas routes and increasing operating costs, large airlines have begun merging. In February 2008, Delta and Northwest airlines began merger talks. Other airline giants such as Continental and American have also considered possible mergers. This trend is becoming popular in the freight, logistics and rail marketplaces as well because of customer demand for end-to-end service from a single carrier.
Advances in technology have helped the transportation industry become exceptionally more productive. As technology develops, the transportation industry becomes more efficient and costs are reduced. The next few years will see extreme growth in technology, providing exciting opportunities for the improvement and further development of efficiencies within the industry. According to a U.S. Department of Transportation estimate, freight shipment volumes will increase by 70 percent between 1998 and 2020 and the amount of foreign goods entering the U.S. will more than double.
The transportation industry is constantly growing as its strategies to best serve its consumers evolve and technology advances. At AXIA, we understand the exciting possibilities and trends within the transportation industry and are prepared with the specialized knowledge needed to reach your consumers.
“Introduction to the transportation & logistics industry,” Plunkett Research, Ltd. 2008
“2008 Tech Trends: Freight, Logistics and Rail,” EDS. 17 December 2007.
