Trucking Industry Churn

The trucking industry is dynamic, and has been growing along with the economy. Many companies have come and gone, but many have been in business for many years. An increasing number of motor carriers can indicate a healthy industry and economy. While an increasing total number of motor carriers may indicate the vitality of the industry, perhaps more important than the total number of trucking companies is the longevity and churn of trucking companies. If there are 100 companies this year and 120 companies next year, have we merely added 20 companies? Or have 80 companies gone out of business and 100 companies started up? There is a major difference between the two scenarios. The stability of firms in the trucking industry impacts their ability to adopt new technologies, the relationships they have with shippers, their safety records, and their ability to compete on a regional, national, and international basis. Churn is to firms what turnover is to employees. There will always be some level of churn and zero churn would not be healthy. “Capitalism, then, is by nature a form or method of economic change and not only never is, but never can be stationary” (Schumpter, 1950, p. 82). Churn can be considered a process of creative destruction. However, churn carries a cost, and in the case of the trucking industry, that cost eventually falls on the shippers and consumers, not to mention the personal and career costs of those involved in the trucking company.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: 17p

Subject/Index Terms

Filing Info

  • Accession Number: 01103408
  • Record Type: Publication
  • Report/Paper Numbers: MPC Report No. 08-193
  • Files: TRIS
  • Created Date: Jun 20 2008 12:03PM