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MPC Research Reports
Report Details

Title:Trucking Churn Industry
Authors:Julie Rodriguez
University:North Dakota State University
Publication Date:Mar 2008
Report #:MPC-08-193
Project #:MPC-228
TRID #:01103408
Keywords:commercial vehicles, industries, motor carriers, trucking

Abstract

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.

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