Houston Truck Deals focuses on the import/export market today:
The Houston import/export market grew by 26% during 2010 outstripping 2009, however the levels have not yet recovered to 2008 levels. The level of imports and exports is a healthy measure of the overall state of economic activity in the area. A rise in imports demonstrates that local consumers have higher disposable incomes as they spend more money on luxury and specialty goods, whilst a rise in exports demonstrates a strengthening manufacturing base which is competitive enough to tackle international markets.
This is yet another positive indicator which demonstrates the nationwide and global economic recovery. Used commercial vehicle sales also demonstrated a positive return to growth, but in a much more dramatic fashion. Sales of used commercial vehicles increased to 672,000 units – a record breaking performance. This is the first time that used commercial vehicle and equipment sales have exceeded 600,000 units, and 2010 has broken all records.
National, regional and local carriers are all reporting increased shipping demand for freight haulage services. So high is the demand, that supply is being pushed to the absolute limits to deliver cargoes around the country. Traditionally, the winter months are a period when the trucking industry experiences a downtime period, however February has roared into life several weeks ahead of traditional spikes in freight demand.
An issue is going to be whether carriers can keep up with demand and expand their manning levels to cater for the upturn in business. Whilst the used commercial vehicle market is strong and likely to remain so, as the larger carriers dispose of fleet units and replace them with new vehicles, especially after deferring replacement during the recession, this is not the major constraint.
The major limiting factor for the trucking industry is the scarcity of drivers.
In 2010, it was estimated that the trucking industry would need a further 200,000 drivers in 2011 alone. That estimated prediction is looking to be on the low side at the moment, however the trucking industry is going to struggle to recruit and retain drivers in the coming months ahead. As the economy starts to fire up, demand for labor is going to increase and with that so will pay rates.
This will bring us neatly to full circle. Spiraling pay will fuel the influx of cheap imports, and Houston and other major import/export centers can expect to experience dramatic growth in 2011 to take them past pre-recessionary levels. The key to continuing economic performance however, is going to be making sure the trucking industry is able to scale up to meet the growth in demand for its services.
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