Top 3 Challenges in the Transportation Industry
What do your peers think about Transportation Industry?
Transportation professionals state that they have to face 3 main kinds of problems: different regulations have an impact on their operations, underdeveloped infrastructure and lack of investment, and lastly, dealing with various costs related to operations.
Transportation Top 3 peer challenges
Regulations & Legislation
Keeping up with and implementing transportation regulations; regulations on equipment, free trade limitations, government regulations to enter the industry, etc.
Addressing the pressing transportation and infrastructure challenges faced by the industry; meeting development goals, and the need for additional investment and financing.
Costs in the industry can become very high depending on the country. For example, developing cost efficiencies while guaranteeing timely delivery, exchange rates, ground handling prices, etc. can be issues for certain companies/countries. Also, there’s a constant need of searching better programs to control the budget.
Innovation can also be a concern in the industry. There is a strong conscience about the importance of innovation in knowledge management to better understand the customers and the concurrence, and in technology to rethink on the new ways of delivery. This wide subject includes also sub topics as:
- Global competition
- Customer needs
- Market stability
Research-based trends and short-term forecast
Between 2014 and 2025, global transportation industry will profit of an annual 5% of increase of investment, with Asia and Latin America as the main investors (PWC).
Therefore, in the next years, the industry will have to face new challenges. Environmental issues can change rules and legislations, and companies will have to be aligned and prepare to pull it through. According to COMCEC, in 2012 the transportation industry contributed with a 23% of global CO2 emissions, being the second largest CO2 emitter of the world (COMCEC). The main challenge will be turning into an energy-efficient, sustainable and respectful of the environment company.
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