Retail sales should boost trucking demand during holidays
Consumer spending is expected to be up this year, which will mean more business for commercial trucks as cargo is transported from manufacturers to retail outlets.
The holiday season always sees a bump in consumer spending, but despite stagnant overall growth in the economy this year, economists expect the spending levels to be very strong in the 2013 holiday shopping season.
“Consumers appear to be willing to spend beyond what the tepid job creation and minimal income growth over the past several quarters would suggest,” said Lindsey Piegza, managing director and chief economist with the investment firm Sterne Agee. “In part, consumers are feeling wealthier thanks to record gains in equities coupled with falling prices at the pump and a slew of better-than-expected data reports which at least on the headline suggest things are improving.”
Higher retail sales often means the transportation of more merchandise. This demand may create a larger need for commercial truck drivers. The increase in retail sales means many products shipped in from overseas will need to be restocked on shelves, but even those items will spend time on the back of a truck. The majority of freight shipped in America travels on the back of a commercial truck and as shipping volumes rise, so does business for the nation’s truck industry. Commercial trucks are seeing the demand for both short- and long-haul routes increase as the manufacturing and construction sectors each show their own growth.