Last Mile Transportation May Signal Economic Improvements

As analysts sift through 2020, the big takeaway is that jobs were in a decline in December. However, as small businesses were impacted by the pandemic and other pressures, last mile transportation provided by smaller trucking companies showed big gains.

COVID-19 Partially Drove Last Mile Numbers

Non-store retailers saw a gigantic increase in sales over the last year. Customers who were used to driving to their local big box stores had to stop and self-quarantine. Instead of risking exposure, those customers looked to online businesses for the products they needed. While large carriers had the major routes covered, there will still individual cities and towns they could not reach. Smaller trucking companies were able to fill in the gaps by offering last mile transportation, dropping off products to people’s homes, if not their local post offices. Local delivery jobs are currently competing with commercial trucking like never before.

The Larger Impact of Last Mile Transportation

The pandemic has transformed our lives in a number of ways. One of the biggest is the market shift to e-commerce. Online shopping, whether B2C or B2B, resulted in a greater need for last mile transportation. That need created more jobs in the trucking industry, and resulted in more businesses investing in warehouses and storage facilities for their products. The manufacturing sector showed growth to meet customer demands and shows an upward trajectory from the previous year, as well. The big lesson in all of this to the number-crunchers is that the economy can make some serious headway in 2021 and beyond if the proper logistics are in place. As every industry leans more on trucking companies that offer last mile services, businesses that were previously gated by the shift to e-commerce can reach their clients and thrive.

Owner-Operators Are Making the Shift

With the rise of e-commerce and the demand for last-mile transportation, many owner-operators are shifting from the open road to launch their own trucking companies. A small fleet that is a mix of Class-8 vehicles and commercial vans can take on both long haul shipments as well as delivering last-mile transportation to generate revenue from both types of customers. This forward-thinking approach will help as logistics are reconfigured to adjust to the post-pandemic economy. The key is to start planning early, and having all forms and paperwork in order to ensure a smooth launch so you can get an edge on the competition and carve out a large market share before the industry adjusts.

At Single Point Capital, we help entrepreneurs and owner-operators who want to launch their own trucking companies. Our team will assist with the proper forms and permits to make sure everything is in order, so you can launch your trucking company quickly without any snags. If you want to get a foothold in last mile transportation, and you are currently using our factoring services, contact our offices and we will get the ball rolling on your new venture. To learn more, reach out to the team at Single Point Capital today.