Why The Trucking Industry Is Growing Especially In The Year of A Global Pandemic
For safe and fast delivery, all businesses rely on the trucking industry. Trucking companies located in San Diego handle more cargo than ships, trains, or planes. Trucks are essential for goods to travel between rail yards, ports, and airports. A slowdown in economic growth could be caused by a halt in the trucking industry.
What Does the Trucking Industry Have to Do with The Economy?
Transporting raw materials to factories is where trucks earn their first contribution to the economy. Trucks transport raw materials from local sources like quarries and mines farms, loggers, and farms to factories that need the materials to create products. The finished products are then delivered via trucks to retailers or wholesalers or other transportation conduits that allow them to travel by air or ship to places all over the region or around the world.
According to the technology and business website, this amounts to approximately $140 billion per year in the sale of goods. Shipped products include fish, agricultural furniture, stone and mineral products, motor vehicles, furniture, leathers, wood, textiles as well as petroleum, and coal.
A lot of small trucking firms in San Diego work under the owner-operator model. That means the truck driver is independent. Larger trucking firms typically employ unionized drivers. Unions are there to defend the rights of trucking drivers like trucking associations strive to protect the interests of the entire trucking industry. A strike this large could cause the economy stops, which would result in delays to shipping and massive price increases as retailers fight to satisfy consumer demands.
Business Insider reports that the trucking firm San Diego makes approximately 84 percent of the commercial transportation industry revenues. Its annual earnings are approximately $650 million. Because of the importance and size of the sector of trucking that it is, federal, state, and local governments have issued many rules. There are laws that restrict trucks from using certain roads and force trucks to travel at lower speeds. The laws also restrict truck drivers from stopping to rest while driving. Members of the trucking industry collaborate to create industry-wide guidelines and best practices to influence public policy and manage perceptions of trucking.
What impact can those who have a stake in a trucking company have?
Trucking associations, labor unions, and clients are familiar stakeholders in small trucking businesses. Different stakeholders could play different roles that impact business aspects such as the wages of workers and the volume of shipping. Certain stakeholders can have a direct influence on small trucking companies through having an influence on regulations at the sectoral level. Each stakeholder has a common desire, however, each has its own agendas and goals.
Many stakeholders can affect a small trucking business. Associations representing truck drivers lobby local, state, and federal government. Local post-secondary education institutions and labor unions can train future truck drivers and workers.
Labor unions were created to educate workers about worker rights and help them gain bargaining influence. The Teamsters claim that their members earn an average of 27 percent more than employees who do not have union representation. Labor unions can directly affect the amount of money that trucking companies have to pay for salaries and benefits.
Many community stakeholders, like police departments or educational institutions, as well as others, may have an impact on small trucking firms in San Diego.
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