Welcome back for Part 2 of our Q&A with SpecialtyTransportation.net.
In freight transportation industry in 2017. He also touched on the growth in internet orders for residential deliveries, and how this is spawning design innovations to accommodate efficient and rapid deliveries to households.
We’re going to switch our focus in today’s blog and look toward the future.
Q. Where do you see the market for truck bodies and lift equipment heading in the next five years?
The long recession in the U.S. from 2008 to 2013 resulted in a huge postponement of replacement vehicles—it is no wonder that from 2014 onwards the supply chain was caught with chassis and component shortages from unprecedented replacement demand. This will continue to play into the coming demand further accelerated by emission regulations requiring fleets to replace older diesel vehicles.
Last mile delivery is growing in importance with the tremendous growth in ecommerce. Refrigerated cargo vans are increasing share in the fresh products delivery segment particularly for lower volume applications.
Q. What have been the most important technological developments in freight transportation over the last decade? How will these developments impact the vocational truck/body industry in the coming years and what can we expect to see?
- Increasing use of telematics to improve fleet efficiencies.
- Greater use of cleaner and greener technology in applications which require in-city use, for example, street sweepers.
- Greater use of safety technology such as parking assist and anti-sleep alarms are expected to improve safety levels.
- Better ergonomics will play a growing role in areas such as seat design for drivers and interior height and layout of cargo vans, to improve comfort and ease of operation.
Q. What other industry do you find the most interesting outside of the ones you cover? Have you ever considered covering this industry (why/why not)?
Ready-made cargo vans are a growing market. SpecialtyTransportation has covered the chassis-mounted van body segment for a long time. We have been aware that the market for ready cargo vans is growing and we believe there is significant opportunity on the upfit side for customizing vans for numerous commercial applications, from refrigeration to trade applications such as contractor, electrical, locksmith, HVAC, etc. These vans have become very competitive at the small-size end with fabricated bodies on purchased chassis.
STN now has a project underway on this segment which will be published early next year.
Another segment of interest is road construction equipment, covering the entire gamut of equipment used in road construction, from site/surface preparation to paving to seal coating and finishing. An uptick in highway construction spending is expected. STN has a new project underway on this segment which will be available in the second quarter of 2017.
STN is also exploring a project on airport ground support equipment. We had investigated a few segments within this sector in the past, and these reports had been well received by companies from across the world. STN is now proposing a report covering all mobile equipment used at airports for servicing aircrafts, passengers and cargo. This report will be available in the third quarter of 2017.
The freight transportation industry is one to keep an eye on. An increase in the number of transportation vehicles globally, and a major boom in the adaption of technology, suggests significant growth opportunities in the market. Only recently, reports suggested Amazon and Uber were working on initiatives directly related to the freight business. This is something we’re going to explore in more detail in tomorrow’s blog, so don’t forget to check back for more news and analysis.
We’d like to take this opportunity to thank Brij for sharing his expertise on the freight transportation industry with us.
Stay up-to-date with the latest market developments, trending news stories and industry advances with the Research and Markets blog. Don’t forget to join our mailing list to receive alerts for the latest blog plus information about new products.
About the Interviewee:
Brij Madan is a graduate of the London School of Economics and of the Graduate Business School at Columbia University, New York, where he received his Masters in Business Administration (MBA).
Over time his business interests have included a number of entrepreneurial ventures, including high-end market research publications, private asset management for overseas investors, hotel ownership and hospitality management for third party hedge funds and private equity investors. Brij serves as a Director on the board of a number of small and mid-size companies, where his services are valued as Finance, Strategy and Market Planning adviser.
(Image - Ed Dunens)