Long-Distance Freight Trucking
During the recession, the Long-Distance Freight Trucking industry struggled through difficult operating conditions and weak demand. Declines across the manufacturing and consumer goods sectors, in addition to volatile crude oil prices, reduced demand for industry services causing revenue to fall. The industry returned to growth in 2010.
This industry is characterized by low concentration, with owner-operators accounting for over 90.0% of all companies. Due to this heavy fragmentation, industry operators face intense price competition and generally earn low profit margins.
Looking ahead, trucking will continue to be the most widely used mode of freight transportation, although the industry will face increased competition from the Rail Transportation industry due to fluctuations in fuel prices and greater consumer concern regarding environmental sustainability.