Logistics, transportation industry optimistic about economy

By Patrick C. Miller | August 14, 2018

The U.S. logistics and transportation industry is optimistic about the nation’s economy and its prospects over the next three months, according to a survey conducted in July by TCompanies of Henderson, Nevada.

“The survey numbers confirm what we have been feeling for some time in the logistics and transportation industry—overall, things are going very well,” said Tom Burke, TCompanies CEO. “And while there is a great amount of optimism, there are cautionary concerns with inflationary pressures as a majority plan to increase pricing and pass costs on to customers in the next three months.”

Over the next quarter, nearly 74 percent of survey respondents said they were optimistic about the economy, with just 8 percent expressing pessimism. More than 64 percent expect to hire more in the next three months, while about 30 percent will maintain current workforce levels.

A workforce shortage was listed by nearly 44 percent as the greatest obstacle to growth in the next quarter. Other obstacles included regulatory issues (18.6 percent), trade tariffs (17.4 percent), access to credit (8.7 percent), repair expenses (4 percent) and energy costs (2.3 percent).

Almost 75 percent of companies surveyed expect their revenues to increase. About 19 percent believe their revenues will stay the same and around 6 percent see revenue reductions. In addition, 67 percent see company profitability increasing, 25 percent expect profits to remain level and 7.5 percent forecast reductions.

Other survey findings include:

Wage Growth—"With regard to your employee wages over the next quarter, do you expect to:”

- Increase wages—38.29 percent

- Keep wages the same—57.71 percent

- Lower wages—4 percent  

Pricing of goods and services: “With regard to the pricing for your goods or services over the next quarter, do you expect that you will:”

- Increase prices—57.71 percent  

- Stay the same—39.43 percent

- Decrease prices—2.86 percent