The bet is on the Wall Street as industry analysts positively take a sight on the shift in gear in the trucking industry in the United States. But the change is not on the downward lane but rather on the optimistic road to recovery as investors foresee a slight to a more impressive growth in the freight industry. And with the good sign of recovery, the trucking industry has been among the strongest contenders for investors' fanciful bid on stocks early on before a drastic upward trend in stock prices of listed trucking companies could occur.
The recession in 2008 propelled by the housing crisis that loomed since 2006 did not spare the trucking industry to a perilous road. Many trucking companies fled to a secured route to escape the brink of bankruptcy while others did not make it and opted to halt the engines. Even the big players almost hit the tumultuous brake. An example of them is YRC Worldwide. Thanks to a debt exchange transaction, the US No.1 trucker took the right turn last year, narrowly escaping the cliff to bankruptcy.
Industry experts have seen the headlights beaming in 2010 in an industry driven by retail and manufacturing sectors. Having been a part of the supply chain, the trucking industry's fate relies on the inventories the manufacturers entrust to the logistics operations. The growth in retail demands also fuel the rapid transit of inventories ranging from raw materials, work in process and to the finished goods. Transporting the inventories is part of the manufacturing cycle and thus, the role of the trucking industry is as relevant as the worker bees in conveying pollens into honey in a hardworking colony.
In trucker's sakes, however, the increase in volume of inventories for transport could also mean an increase in machine hours for trucking vehicles. And with more and more packages to transpose from manufacturer to another manufacturer, wholesaler or retailer, the need for another trucking equipment is a probable consequence.
The trucking industry's foreseeable growth should be taken with a seemingly conspicuous regard. Even the US President Obama has observed a spur in trucking equipment demand fueling rental and lease revenues as another sign of economic recovery in the US. This indication has been made concrete from a due visit of the president to a commercial truck dealership situated outside of the US capital.
Another indication of the trucking industry's recovery is the increase in employment rate. From the mass lay-off in 2008, this year's performance in logistics operation has seen the need for more workers and more professional drivers to propel trucking vehicles. The US Labor Department reported an upward employment rate in May 2010. The report's statistics brought to the Labor department by the trucking companies integrated the acceleration in job growth for three consecutive months-- from a lean March increase to a broader gain in May.
The prominence of the trucking industry in the supply chain should be deemed undeniably relevant. The recovery should be regarded another attestation that the demands in manufacturing are up, if not slowly increasing, and that the US economy has trudged the road to recovery.
The wheels of fortune for the trucking industry are now on the upward momentum. And the state of the wheels will remain so until the dependent factor, which channels its growth, takes another turn.
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