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In the US, the transportation industry is extremely competitive. And yet, multinational firms are doing everything in their power to facilitate the stream of goods as best as possible throughout the largest consumer market in the world.
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The Transportation Industry in America and the Role It Plays
In the US, the transportation industry is extremely competitive. And yet, multinational firms are doing everything in their power to facilitate the stream of goods as best as possible throughout the largest consumer market in the world.
Both domestic and international companies in this business, profit from relatively low costs, a highly professional workforce, and regulatory burdens. Overall expenses in the transpiration and logistics industry reached $1.33 trillion in 2012. 8.5% represented the GDP (annual domestic product).
An exceptionally integrated supply chain network in the US, connects consumers and producers via several transportation modes, including express and air delivery services, maritime transports, freight rail, and truck transport.
To live up to the expectations of all customers, domestic and multinational firms offer tailored transportation and logistics solutions that guarantee coordinated goods movement from start to end through a supply chain network sector.
Companies rely on the transportation industry Companies of all sizes rely on the services of the transportation industry in the US. Their goal is to deliver products securely and maintain speedy delivery times around the country. The trucking industry in particular, deals with a lot of cargo, much more than planes, ships, or trains.
Without trucks, goods cannot reach their final destinations. The US economy may collapse if the trucking industry would suddenly stopped rolling, so it's safe to say that the transportation industry in the United States plays a vital role in its economy.
Trucks bring a great economic contribution by distributing unprocessed materials directly to the manufacturers. For instance, trucks transport material from suppliers like farms, mines, loggers, and quarries to industrial units that need them to craft the products. The finished products are dispensed on trucks and sent to retailers and wholesalers.
Employment prospects in the US transportation industry According to Business Insider, there are 800,000 truck drivers working in the US, together making close to $30 billion annually. Small trucking companies often function after a specific model called owner-operator, which basically means most truck drivers are self-employed.
As for larger companies, these are used to employing union drivers. Trucking associations strive to protect the interests of the industry, while unions are in charge of protecting the interests of the drivers.
There's a major union called The International Brotherhood of Teamsters, which has an extraordinary impact on the US economy, and one large-scale strike would be enough to bring down the financial system. The transportation industry - the trucking sector in particular - collects yearly revenues of about $650 billion.
This means it makes 84% of the entire transportation industry. Because of the great importance and size of the trucking industry, local, federal, and local governments have settled that imposing some regulations is imperative.
For instance, to guarantee public security on the road, truck drivers can only use certain roads, and they're compelled to reduce the speed and have a proper 8 hour rest between drives.
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