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Disruptive technologies will often alter the form and function of an industry, at least to some degree. The changes brought about by these new disruptions are subtle, making the sector more efficient (production is a good example of this) but change little else. The transportation industry, however, is standing at the precipice of total revolution. These new, disruptive advancements won’t affect it in small ways, but rather change it altogether, making the industry something completely different from what we’ve seen over the past several decades.
There are some big questions to answer when contemplating how these new developments will alter and impact the industry.
There are some big questions to answer when contemplating how these new developments will alter and impact the industry. IHS Markit’s latest study “Reinventing the Truck” is taking a closer look at how new power-train and autonomous trucking will affect logistics, trucking, and the energy industry.
New Changes for the Trucking Industry
Of these new changes, the first one to consider is that we’re beginning to see new patterns of both distribution and consumption across consumer markets. Typically speaking, a growth in trade reflects economic activity, but that relationship might change due to changes in manufacturing and distribution practices. 3D printing, for example, means that certain consumer goods could be manufactured on site, rather than being transported from a manufacturing facility and then being hauled to a DC before reaching its final destination. Local production of consumer goods could reduce supply chains and lower demand for freight carriers, negating shipping costs entirely in some instances.
New Technology in the Industry
Technology will also be a driving factor. According to Markit’s study, there are three key areas in the industry that will be impacted. The first of these is through increased data access. As the IoT and expanded sensor banks allow logistics companies to gain access to more data throughout the supply chain, networks and best practices will see optimization and increased efficiency.
Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings.
Other advancements to be aware of will change fuel consumption patterns throughout the industry. Electric vehicles are becoming more sophisticated and developing a longer delivery range, making them ideal for urban settings. As electric drive trains are quieter, hours of operation can be extended, allowing carriers to operate throughout the night when traffic is reduced, which will change deployment patterns as well as fuel consumption.
The Role of Automation
Increased levels of automation within the industry itself will also play a large role in the transformation of the transportation industry. Warehouses are employing more robots for picking and packing of orders. Automated loading and unloading systems can reduce truck detention times, allowing a driver to get back on the road quicker.
Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.
Self-driving vehicles are also on the horizon which will allow for a greater traveling distance and might be enticing for new, younger drivers, as a reason to get behind the wheel. Automation will greatly reduce costs by increasing efficiency which will be enhanced as connectivity and communication levels increase.
New Regulations will Change the Supply Chain
Lastly, there is the change in trucking regulation to consider, which will have the most immediate impact on the industry. These new regulations are taking place on a local, state, and national level. These policies have a wide range of goals, anywhere from reducing CO2 emissions and improving (reducing) fuel consumption, to addressing longstanding labor issues. Regardless of their intention, these new regulations all share one factor in common, the will to alter the established patterns and practices of the trucking industry. Germany, for example, has allowed individual cities to ban diesel trucks. That alone will significantly change the transportation industry, bringing a new level of complexity for fleet operators that work in and around urban areas as it can vary from city to city.
Change to Affect More than Just Transportation
Considering that these changes have a far-reaching impact, not just on the transportation industry, the Markit study also looked at how other industries will be affected. With supply chains being shortened or even negated in some instances as well as new regulations and standards being put into effect, oil refineries and the petrochemical industry will begin to see a diminished demand from their biggest customer.
Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.
In short, these new changes will push our understanding of disruptive technologies to a new level as the transportation industry will begin to undergo a metamorphosis. Given that the transportation industry plays a considerable role in the global economy, many industries will be affected and will undergo their own set of changes in order to keep pace.
Ready for the Change?
At BlueGrace, we work with you every step of the way. We’re here to help you understand your current freight issues and make sure your supply chain is ready for any changes in the industry without ever missing a beat. For more information on how we can help you simplify your supply chain and achieve your goals without labor or technology investments, contact us today using the form below: