Around 85% of logistics businesses say that they're operating close to full capacity, as chaotic economic conditions and supply chain disruptions have fueled a dramatic surge in demand.
In a survey of 521 U.S. freight and logistics industry professionals, technology news platform Tech.co found that 63% of respondents have seen an increase in demand over the last year, 24% of whom reported a "significant" surge. More than 60% pointed to economic conditions as the reason behind that trend, while 48% blamed disruptions to supply chains.
"On the surface, it's good news," said Tech.co editor Jack Turner. "However, it's a volatile time for the industry, and the increased demand is in danger of stretching some companies to breaking point."
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As Tech.co's report points out, supply chains could break down quickly if businesses can't keep up with growing demand, meaning that "the slightest disruption could put a lot of strain on their bottom line." That has 43% of freight businesses highlighting on-time delivery as the part of their operations under the most pressure right now, followed by driver availability at 42%, cost control at 39%, and customer expectations at 37%. An ongoing trucker shortage has also become a "persistent problem," as recruitment and retention efforts have failed to keep up with the growing demand for drivers.
A variety of factors have slowed recruitment efforts for truckers, with nearly 40% of potential drivers complaining about low pay, while 38% voice concerns over long hours, and 33% saying that regulatory burdens are their biggest barrier to entry. To address those issues, 73% of businesses say that technology has already helped them address workplace challenges, with 51% adopting route optimization software, 46% using driver monitoring and coaching platforms, and 41% using telematics and fleet tracking.
