Talkable Topic: Checking in with the 2023 Economy in Q1
Almost everything—even the state of the economy—has to do with perspective. So, when we talk about the highs and lows of our industry, it's important to keep in mind what's all gone down over the last few years and compare "today" to what we've known for so long—which is that nothing is entirely predictable.
According to a recent article published by Transport Topics that covers American Trucking Associations Chief Economist Bob Costello’s take on the current economic landscape, the US is in position to experience what they call a “short and shallow recession” in the second part of the year. They go on to note that many factors will play a part in what actually shakes out, including shifting interest rates, a slower moving housing market, and of course that darned inflation.
Another major factor that was touched on in the article is the topic of labor shortage and the need to shift away from traditional four-year education for those who are ready to roll up their sleeves and get to work. Costello specifically called out the transportation industry noting that trucking is, “particularly challenged,” adding, “It’s OK for young people not to go to college . . . [It’s] something we are going to have to tackle as a society.”
Labor shortage, housing market, inflation, and other hot topics aside, we know that it is normal for the trucking world to fluctuate throughout the year. With such a spike in transportation demand after the pandemic, there is bound to be a downturn, which in actuality is simply a return to a more normal state of freight movement. Demand is still there, we are simply starting to catch up.