As we begin to get the first glimmers of hope for the resurgence of the North American economy, there are two things we can be certain about: One, the new economy will be significantly different from what we’ve been used to in the past; more government intervention is a certainty, not only in the Obama-led US but even here under a Conservative government. And two, green practices will begin to figure more and more prominently in the new economy.
Trucking both benefited and contributed tremendously to the previous economic expansion. The numbers speak for themselves: The amount of freight carried by for-hire carriers from 1990 to 2003 rose 75%. Trucking was a huge contributor to the ability of manufacturers to trim their inventories by 15% from 1992 to 2005 as they employed JIT delivery strategies. The Canadian tractor-trailer fleet grew by a third since the turn of the century as a result.
Is trucking poised to once again play such a definitive role in driving supply chain efficiency in the new economy sure to rise from the ashes of the currently ruined one? The answer to that we believe depends on trucking’s ability to adjust to and thrive in a carbon-constrained business climate. Learning to understand and profit from government cap and trade programs, answering shipper demands for more sustainable transportation practices and embracing green practices to reduce operational costs will be key ingredients to future success.
Yet at the same time, it’s impossible to ignore the continuing pressure on trucking company profit statements. Investments in environmental projects and programs have to contend with across-the-board cuts in company budgets. This can be a very confusing time for companies trying to reduce their expenses enough to survive the worst economic downturn since the Great Depression while at the same time trying to keep an eye on the future.
Understanding and capitalizing on government cap and trade initiatives will be key is will be effectively evaluating and impementing fuel saving technologies. and working with shippers to reduce out of route miles and detention time during loading and unloading.
If both shippers and carriers take the time to do it right, you can turn green into gold. Taking needless cost and waste out of the transportation system is never a bad idea.
