Equipment Appraisal Blog | Understanding Machinery Appraisals

The truck transportation industry in 2024 continues to play a critical role in the global economy, particularly in the U.S., where it remains the primary mode of freight transport. However, the industry is navigating several challenges and evolving trends. Here are a few key variables affecting the market:

Driver Shortages & Retention

The industry continues to face a significant shortage of qualified drivers. The American Trucking Association (ATA) estimates that the shortage could exceed 80,000 drivers in the coming years. On top of that, high turnover rates and long hours contribute to driver dissatisfaction, making retention difficult. To counter this, trucking companies are offering higher wages, signing bonuses, and improved working conditions to attract and keep drivers.

Rising Costs and Freight Demand

Trucking companies are grappling with high operational costs, including fuel prices, insurance, and labor. Freight demand has fluctuated in response to broader economic trends, including inflationary pressures and changes in consumer spending. E-commerce has sustained demand in some sectors, while others, like construction materials, have been more variable.

Technology Impact-Autonomous & Electric Trucks-Telematic Systems

While fully autonomous trucks are not yet mainstream, developments in autonomous technology continue. Companies like TuSimple and Waymo are testing self-driving trucks, with potential for reducing labor shortages and improving efficiency.

More fleets are adopting telematics systems that provide real-time data on vehicle location, fuel efficiency, and driver behavior. This helps companies optimize operations, reduce costs, and enhance safety. With growing environmental regulations and a push for sustainability, electric trucks are becoming more prominent. Companies like Tesla and Rivian have made significant strides, though infrastructure challenges like charging stations remain a hurdle.

Regulatory Changes

Factors such as stricter environmental regulations for things like emissions standards and hours of service regulations requiring drivers to take more rest breaks continue to be points of contention.

The Infrastructure Bill and Jobs Act should benefit the trucking industry both short and long-term with improved conditions of roads and bridges.

Other critical issues, such as supply chain disruptions and sustainability, will continue to challenge the industry both now and in the future.

Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) practices will need to remain a primary focus for top trucking executives.

In summary, while the trucking industry remains strong and vital to the growth of both the U.S. and global economies, these challenges and regulations will lead to rising operational costs and complexities for business owners. E-commerce will continue to grow and reshape the markets, which could have mixed effects on the industry.

Like many other markets, trucking is at a pivotal moment, with new technologies, economic shifts, and regulatory pressures shaping its future. Companies that adapt to these changes by embracing innovation and addressing workforce challenges are more likely to thrive in this evolving landscape.

If there's one thing that always stays the same in trucking, it's that everything changes. The past few years have seen high and low fuel prices, extreme demand and complete lack of business, easy hiring and hard to find drivers. But what trends are ahead for the trucking industry? Find out how a tractor appraisal can help you keep ahead of industry trends no matter which way the market goes.

Trucking Industry Trends: How Tractor Appraisal Keeps You Ahead

• Trucking policy is an unknown at this point. With a relatively new administration in office still shaking things up, it's really difficult to know how the industry will be impacted by policy changes. President Trump made it into office by promising to make America great again by promoting American business, which would suggest an increased demand for trucking services, but how well Congress will work with him on these issues may be another story.
• Are you ready for Elogging? By the end of 2017, all trucking companies will need to be in compliance with the new regulations concerning these areas. This means there's a stronger demand for trucks that already have this capability, which may raise or lower your tractor values depending on whether you already have the technology in place or not.
• Freight costs are on the rise. With our economy solidly in recovery, consumer confidence is rising. Many consumers are using this opportunity to replace items that were allowed to slide during the recession, such as appliances, vehicles, home improvements, clothing and virtually any other aspect of consumer spending. With the increased interest in buying online, shipping traffic should be strongly on the rise, raising your tractor values as more demand for shipments come through your business.
• Get your reefers moving. With elogging putting a stronger demand on drivers' time and increased consumer demand for fresh and frozen items, the strong market for refrigerated trucking is on the rise. If you're able to put more trailers and drivers on the road to maximize your reefer fleet, you're almost certainly going to see good profits, even as fuel prices are moving their way slightly higher than in the past year or two.
• Work together. Virtually every industry in operation today is undergoing digitization, which is leading to significantly different business models than have been used in the past. A major part of digitalization is the collaboration between your business and other logistics and supply chain businesses, forming partnerships and coalitions to reduce overall costs and increase overall consumer happiness with how a product is moved from the factory, field or farm to their home. These partnerships are focused on improving energy efficiency, reducing handling and providing superior outcomes for all involved.

When you stay ahead of your equipment values, you can ensure that your business is in good condition to take advantage of business opportunities without exposing yourself to excessive risk. A tractor appraisal helps you be aware of what you have available for collateral for a new expansion loan, which tractors may need to be replaced sooner rather than later and how much a tractor is worth if you're facing an insurance claim or court case. Make sure you work with a certified equipment appraiser who has experience in the trucking industry to ensure you're getting the right value for your records.