The Impact of Trucking on the Economy

Trucking is essential for modern manufacturing, providing jobs for many Americans and keeping the economy moving. Learn about how truck drivers impact the economy & how deregulation has changed the industry.

The Impact of Trucking on the Economy

Road transport is essential for modern manufacturing, providing jobs for many Americans and keeping the economy moving. The trucking industry is a major provider of jobs in the US and continues to grow, offering a more stable job for those who need it. With the influx of new drivers, stricter regulations are being put in place to ensure safety on the roads. Truck drivers are a fundamental part of the national and global economy, providing millions of jobs, delivering goods to both individuals and businesses, and adding a large amount of revenue to the US GDP.

Truck drivers are also vital to the operations of companies in a wide range of industries. The road transport sector has a huge impact on the national economy by providing necessary goods to people and businesses across the country. Despite the fact that there are already more than 3.5 million truck drivers in the US, there is still a huge shortage of truck drivers. The COVID-19 pandemic has shut down much of the economy and disrupted markets and supply chain systems around the world.

While essential businesses continue to operate, social distancing and fear of becoming infected pose concerns and challenges for many workers. Truck drivers are among those who continue to face the risk of becoming infected so that communities across the country can continue to receive the services and products they need. Buying road transport services is relatively easy, as shippers often receive several price quotes and can search for the best service and rate offer. However, before deregulation, getting into the industry was difficult due to legal resistance from larger and more traditional companies. Deregulation has allowed for increased competition in the market, resulting in reduced transportation costs as truckers and businesses have to bid a lower price to get the load. The trucking industry has always played an important role in the supply chain, but it is also a ruthless business.

To minimize operating costs in this ruthless industry, focusing on recruiting new drivers may be cheaper for truck freight forwarders than retaining existing ones. This leads to higher shipping costs which are ultimately borne by consumers. The economic problems induced by the pandemic will be particularly difficult for the trucking industry, as employment in trucks generally follows a cyclical pattern. The industry has persistently had a problem of recruitment and retention of labor due to increased workload, long working hours and less attractive wages. Unlike consumer vehicles produced on an assembly line, work trucks are often produced in small batches and are highly customized for their specific purpose. The manufacturing sector depends on the trucking industry to provide everything from raw materials (such as fabric, wood and plastics) to steel and automotive parts. The US economic engine needs a strong trucking industry to help drive its recovery.

Employment in trucks has provided a stable income for many workers of different ages, making it an essential part of our economy.