Despite difficult periods in the last few years that came about as a result of both the challenging economic climate, as well as many other factors, the trucking industry is rebuilding it’s strength Despite difficult periods in the last few years that came about as a result of both the challenging economic climate, as well as many other factors, the trucking industry is rebuilding it’s strength in Canada. There were some 
serious, and well founded concerns that the trucking industry in Canada could be in trouble. Not only that, but the potential knock on effects to the already strained economy were likely to simply add to overall problems. However, there are still some challenges faced by truckers, including the creeping increase of plate fees in Ontario. That said, these challenges are to be expected, and the recovery and boom of Canadian trucking is certainly an overwhelmingly positive force. The question is, how long it will last, and what the future looks like for the trucking industry. Considering the outlook on the industry last year, the recent spike in both the trucking production and haulage sectors is certainly a welcome one. One of the major concerns at the time was the lack of new blood coming into the industry, at a time where many drivers were facing retirement age. However, things have turned around to an impressive degree this year, with both sales of trucks, and freight volumes on the increase. This is without doubt great news for carriers and drivers, and is also creating an increasingly stable climate for budding freight companies. Of course, costs for start-ups are still relatively high, with employee costs and insurance to consider. That said, the increasing range of options for cover, as well as a fresh and growing pool of drivers could help to offset some of these costs.
The Good News
Much of the recovery and growth of the industry can certainly be attributed to the increasingly improved economic conditions both domestically and globally. In October, the sales of class 8 trucks saw a dramatic increase, with many companies placing construction orders for next year. Additionally, September saw a huge spike in freight after some months of worrying decline. Much of the recent boom can be attributed to the growing stability of the North American economy, where a huge amount of freight shipping to and from Canada takes place. The resulting increase in US demand for goods and items has, therefore, led to a massive increase in the amount of freight being shipped. It’s likely that the value of the Canadian dollar against the US dollar is also playing a part. The question is perhaps, how long can the industry expect this to last?
The Future
Given the current situation, there are a number of positive aspects that do tend to suggest an increasingly sunny outlook for Canadian trucking. For one, as mentioned, truck orders are on the rise, so it is clear that shipping companies and economists expect this trend to continue well into next year. Oil and fuel prices have also dropped, and this has led to much lower operating overheads for freight companies as well. However, whether the 3 year low in oil prices will continue into next year is certainly open for debate. It could easily be stipulated that this sudden burst of growth and activity in the trucking sector is not only in response to the drop in prices, but also as a result of the awareness that they may not last. However, with the increasing focus on green technology and energy, it is likely that the reliance all freight companies have on oil prices could slowly become less of a focus. More electric and hybrid engines, along with more eco-friendly truck chassis are likely to begin to enter the market at more competitive prices, meaning many companies may be more encouraged to make the jump for their fleets. Ultimately of course, huge growth spikes cannot last forever, but they are certainly a good indication that for the next few years at least, the trucking industry in Canada is set to go from strength to strength, and as new technology becomes more commonplace, could well maintain a stable and secure future free of some of the economic factors that have made it vulnerable in the past. Either way, 2015 looks to be an exciting time for truckers and freight companies in Canada.
Article written by Gemma Naylor
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