Consumer spending, holiday shopping gains good for trucking sector

A growing economy and the approaching holiday shopping season makes this a great time for the commercial truck industry.

 

As the largest carrier of goods in the country, according to the American Trucking Associations, commercial trucks benefit greatly from any growth in the economy, which has been the case for the past few years.

 

The United State’s economy increased by 3.5 percent during the months of July, August and September – the third fiscal quarter of 2014 – due in large part to growth in business investments and export sales.

 

The U.S. Commerce Department reported the third quarter gain in October, which followed a period of growth in the second quarter of the year.

 

“Analysts believe the economy is maintaining momentum in the current quarter, with a big fall in gas prices expected to bolster consumer spending,” the Associated Press reported in October. “After the roller-coaster first- and second-quarter gyrations, the economy is poised to achieve consistently stronger growth for the rest of this year and all of 2015.”

 

The same Associated Press article reported that some economist are predicting a growth rate of 3 percent in 2015, which would be the largest increase since before the recession in 2005.

 

The recent economic growth was also due in part to increased consumer spending, which has a positive impact on the commercial truck industry as retailers rely on trucks to deliver goods to restock store shelves.

 

“For the third quarter, consumer spending grew at a solid 1.8 percent annual rate,” the Associated Press reported. “Consumer spending contributed 1.2 percentage points to growth in the third quarter. Another major contribution came from an 11 percent rise in export sales, far outpacing imports, which fell at a 1.7 rate. The smaller trade gap added 1.3 percentage points to growth in the third quarter.”

 

Economists predict continued growth in consumer spending over the next few months as the holiday shopping season kicks into gear.

 

“As the economy continues its streak of slow, steady improvement, the National Retail Federation offered an upbeat forecast … for the upcoming holiday shopping season,” the Washington Post recently reported. “The trade association expects retail sales to increase 4.1 percent this November and December to $616.9 billion — much better than the 3.1 percent uptick seen last year.”

 

That kind of increase in holiday shopping could give the economy an even bigger shot in the arm.

 

“Retailers could see a welcome boost in holiday shopping, giving some companies the shot in the arm they need after a volatile first half of the year and an uneventful summer,” NRF chief executive Matthew Shay said in a statement.

 

Not only is that good news for the overall economy, but its also great news for the commercial truck industry, which experiences increased demand as the economy grows and consumer spending rises.

 

The commercial truck industry has seen steady growth in recent years and all signs point to continued growth for an industry that has a large demand for more CLD trained truck drivers.

 

Commercial truck carriers across the country are facing a shortage of truck drivers, which is likely to continue this holiday season as consumer spending continues to grow.

 

“Lower gas prices and a high-flying stock market could leave consumers with more dollars to spend this holiday season, according to Alison Paul, U.S. retail and distribution leader at Deloitte,” the Washington Post added. “Paul said this year could mark the return of what she calls the ‘me too gift’ — when shoppers nab a little treat for themselves while they’re out buying presents for family and friends.”

 

Whether shoppers are buying gifts for friends or family – or for themselves – it will mean retailers will be calling on commercial trucks to deliver more goods over the next few months.

 

The commercial truck industry is experiencing steady growth and there is a demand for more drivers. Many truck carriers are facing a shortage of drivers as there are not enough applicants to meet current demand. That is why many jobseekers are considering new careers in the commercial truck industry. If you are hoping to launch a new career in the truck industry then Hamrick School could be a great place to learn the skills today’s carriers are looking for.