The Future of Freight will be Shaped by these 5 Forces

In a recent survey of 305 US & European executives of transportation and manufacturing corporations, Deloitte uncovered five major forces that will impact the transportation industry’s future success:

• Onshoring and Nearshoring – there is an increased interest to bring manufacturing closer to the end consumer
• Well-curated Data – respondents expect data to improve visibility into assets and goods, improve customer relationship management, and help with workforce optimization
• New Competition – Cloud service providers, megaretailers, vehicle manufacturers, and tech startups are all starting to compete with legacy logistics companies, prompting new models of collaboration
• Restructuring Core Capabilities – 60% of respondents are outsourcing noncore capabilities while 59% are seeking acquisitions to expand capabilities, all with the hopes of aligning core capabilities to a changing environment
• Next Generation Vehicles – As technology advances, there’s a new wave of vehicles using electric power, autonomous driving, and IoT data that will become strong competitors in today’s transportation systems

Canaan Group continues to reposition itself to respond to these changes. If our clients are concerned about their strategy moving forward, we would be happy to discuss with you.

Source:
1. 5 Forces Shaping the Future of Freight, Wall Street Journal, Jan 13, 2023. Access March 20, 2023.