Freight and Logistics Edition
Fleets worldwide have been facing a seemingly endless series of hurdles.
For one thing, trucking is just one part of a competitive multimodal freight
system—sea, rail, air, and road—so it must integrate vertically or offer
multimodal partner solutions to meet customers' transportation needs.
For another, according to Research and Markets, "the global road freight
sector is typically fragmented, as there are relatively low barriers to
entry1." Nonetheless, in the U.S. alone the 50 largest companies account
for 40% of revenues, and economic downcycles have led to a decline
in smaller-sized carriers2. And because demand is driven by consumer
spending and manufacturing output, the profitability of individual
companies depends on a business's capability to quickly scale operations
to meet market fluctuations.
Still, while fundamental changes in industry
operations will be required to meet changing
market demands, trucking companies don't
necessarily have the dollars needed to
modernize their legacy applications. Fleet
managers are thus proceeding cautiously,
cutting costs wherever possible and demanding
more from business solution providers before
committing tight resources to help ensure they
make the right investments at the right time.
Research and Markets, http://www.researchandmarkets.com/reports/1056340/trucking_global_industry_guide
HP and First Research industry profile on the trucking industry, February 4, 2013