2019 Transportation Industry Trends
2018 has ended and 2019 is here! New opportunities in the transportation industry are thriving. Transportation professionals seeking to stay on top of trends in the industry look to implementing these trends. This will allow them to maintain their competitive edge. Below are the notable trends for 2019.
Global Supply Chain Strategies
Growing prominence of the tariff wars and their effects on global supply chain have led executives, trade compliance personnel, and supply chain professionals to revamp the current supply chain strategy and operations. This may result in a more complete approach to some of the issues that the companies face this year. These issues include understanding the impact of tariffs on company financials to later curb it, managing global operations risk, and determining and tackling the root causes of other issues such as higher global supply chain costs and business uncertainty.
Broken US Infrastructure
Natural disasters in the United States over the last few years that have impacted the country’s transportation infrastructure, from hurricanes and floods to snowstorms. Due to the weather events’ effect on ports and major highways, the US economy and companies consider the US transportation infrastructure a financial risk.
Rise of China’s Economic Power
China’s One Belt One Road (OBOR) trade project means the country is investing in Africa and the Middle East, and increasing their investments in roads, ports, rail lines, and bridges. Development of global trade routes is a sign of China’s economic expansion and influence, just as the US’s influence is starting to wane.
Focus on Data Analytics
Supply chain professionals rely on data analytics to examine, analyze, and interpret. Allowing the analytics to drive making decisions about the risks and costs of tariffs, suppliers, manufacturing and logistics. Supply chain professionals will use their skills and advanced analytics software to investigate and report on data. This will help companies make better choices in the future.
Disruption of Transportation Industry
As it stands, current trend of industry “disruption” is also going to affect the transportation industry. While transportation may not face a radical change compared to other industries such as technology or retailing, there are competitive dynamics pushing for technological change in the future. The biggest disruptive technology in development is driverless vehicles. Due to a trucker shortage and higher demand, the successful implementation of self-driving trucks could threaten railroad and car rental companies.
Digitalization is not exactly a new trend. It continues to progress and evolve each year and is occurring in business processes from administration to contracting. Digitalization creates new business processes and moving the point of purchase and other parts of service provision into the digital environment. Approximately 54% of companies expect that digitalization will increase their revenues. Increases occurring through benefits such as redesigning services and products, managing the impact of talent gap, and simplifying the processes. Digitalization is already present in the online transportation industry. This is seen in ordering of taxis and personal transport and online ticketing systems of public transportation.
The Possible Future of the Industry
These are just some of the major trends that will affect the transportation industry in 2019. Professionals in the industry are researching these rising and predicted trends.
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