It doesn’t seem possible that 2025 is less than a month away. Where did 2024 go?! Is everyone ready for the new year? No? Me either.
The trucking industry has been riding the ups and downs of a post-pandemic economy for several years now. From the boom of everyone ordering things while stuck at home, to the near-crippling inflation that has gripped the entire world for more than a year, the transportation and warehouse industries have had to deal with these issues just everyone else. The most recent of these being the Great Freight Recession. (For more information on this topic, please see our blog from August 28, 2024.) The trucking industry has still surged forward, though, and, now, it seems poised to begin its slow recovery. What can truck drivers and motor carrier companies expect from 2025? According to some, “The trucking industry is on the verge of a transformation, marked by advances in technology, a drive towards more sustainable operations, and an evolving market and supply chain.” Check out the information below to see what this means for truck drivers and the trucking companies moving America forward!
“It’s the economy, stupid.”
Isn’t it always? This has been true since it was first said back in the 90s. Millions of voters left their polling places last month with the economy as their top priority. Now, there are many different facets coming together to determine the economic future of trucking for the coming new year. Many experts are cautiously optimistic that 2025 will bring “a continued improvement in market conditions, with increased demand for transportation services…” However, like most everything else in the world, the road from here to a full recovery is littered with concerns and issues.
The ATRI (American Transportation Research Institute), in their yearly report on the top trucking concerns, states that “the trucking industry is still grappling with a sluggish freight economy,” but there is so much more to what is happening. The first half of the 2020s started with a pandemic and is bookended by a contentious presidential election, with each side claiming to have the best solutions for the country’s economic woes. However, with a Republican president taking office next month, the trucking industry is waiting with bated breath to see what happens next.
“Tariff” has become one of the most Googled terms in the past month, and those in the trucking industry understand that these import taxes could come with more than just higher prices for consumers, which could exacerbate problems for consumers already struggling with the costs of goods and services. On the flip side of that, though, the Inflation Reduction Act, which was passed in 2022, has included key pieces of legislation and investments for the trucking industry, offering “up to $40,000 in tax credits for clean commercial vehicle purchases, as well as incentives for infrastructure and clean hydrogen.” The incoming Trump administration is expected to make some changes to this act, but none of the experts seem to think it is in danger of a full repeal.
The previous four years also saw several other changes to regulatory measures poised to make waves in the trucking industry. Two areas expecting changes are in the state of California and within the Federal Greenhouse Gas emission standards. The Biden administration granted California authority over their own emissions standards, hoping the state could do more to moderate greenhouse gasses over their diverse economic industries. However, the Trump administration is expected to withdraw that waiver very early in the new year. Along with that, Phase III of the federal government’s attempts to curb emissions could see some changes. “…set to begin in 2027, [Phase 3] mandates progressively stricter [carbon dioxide] standards for medium and heavy commercial vehicles through 2032. Although it does not require the sale of ZEVs [zero-emission vehicles], it does encourage indirectly them through the tightness of standards.” The Supreme Court also overturned Chevron Deference, a legal doctrine that promoted the use of a government agency’s experts, which will see increased legal challenges to the EPA’s rules and regulations. Together, all of these things seem to throw doubt on a quick recovery for the struggling transportation and warehousing industries, but it isn’t good to dwell on only the negatives.
“We’ll take a cup of kindness yet…”
The trucking industry also has a great deal of exciting things to look forward to in 2025. Changes in the global supply chain, still recovering from the effects of the pandemic, are made daily, and trucking companies and owner-operators are being forced to rethink their strategies. “Diversifying suppliers, implementing better inventory management practices, and exploring regional transportation and freight options emerged as key strategies.” As retail and transportation logistics strategists work on these issues, many are beginning to believe that only more drivers can help. For those wanting to join the industry, some experts are also seeing an increase in the amount of cargo needing to be transported. Both of these things, researchers say, will lead to additional driving jobs being available. “This,” according to TransPlus, “translates to a surge in available truck driver jobs, presenting a wealth of career opportunities…”
There is also a great deal of expectation and excitement surrounding the technological advances being made around autonomous trucks and electric and alternative-fuel vehicles. (For more on both of these topics, please see our articles from January 10, 2024, and February 14, 2024, respectively.) Briefly, the companies behind autonomous trucks, like Aurora Innovation, have been testing their driverless vehicles in Texas since the spring of 2024. They hope “to mitigate the issue of driver shortages, safety concerns, and high operational costs” as these vehicles begin to become more prevalent. As for electric trucks, it is common knowledge that the trucking industry adds a great deal of greenhouse gasses to the atmosphere, and many companies are taking the steps to mitigate that issue. While electric trucks are starting to make their way onto U.S. highways, though, they are faced with the problem of not enough charging stations and facilities to ensure they can make it to their intended destination. So, along with the electric vehicles, hydrogen fuel cells and solar panels for trucks are also being developed and tested. 2025 will see these technologies becoming even more common. All can agree that “Trucking companies that embrace these technologies can expect to see increased productivity, reduced costs, and improved efficiency.”
Conclusion
TransPlus’s experts have written that “As we navigate the road ahead in 2025, trucking companies must proactively adapt to the future trends facing the trucking industry.” What exactly does that mean, though? Basically, the trucking industry understands that they are not fully clear of the Great Freight Recession, yet. Many of the same supply chain and driver shortage issues are still at the forefront of the minds of experts in both trucking and retail. With the promise of coming tariffs, it can seem like there are more troubles on the horizon. However, there are also new and fascinating technologies coming down the line, and they are promising better safety features for drivers and the passenger cars around them, as well as more ways for trucking companies to improve their bottom line by making smarter deliveries with less fossil fuel emissions. Looking ahead to 2025 can seem daunting, but there are so many good possibilities coming in the near future that it is hard to not be at least a little excited for what is to come.
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Meaghan Goldberg covers recruitment and digital marketing for Lionzone. A Patterson, GA native, after graduating from both Valdosta State University and Middle Tennessee State University, Meaghan joined Lionzone in 2018 as a digital recruitment strategist before becoming the social media manager.
Resources:
https://www.transplus.io/blog/top-trends-facing-the-trucking-industry-in-2025
https://www.ttnews.com/articles/ftr-truckload-spot-rates-rise
https://www.startus-insights.com/innovators-guide/trucking-industry-trends/
