The transportation industry could soon experience a significant increase in delivery schedules and a rising need to implement route planning software as domestic manufacturing is set to rise substantially. Data suggests manufacturing within the U.S. will pick up in the coming months, and companies will need to have their products shipped across the country to ensure they get to consumer markets promptly.
Car production rates expected to jump
Automobile manufacturing is staging a comeback, and carriers will likely need to ship parts and materials across the country to ensure domestic facilities can complete production on schedule. Now that the economy appears to have stabilized, more people are willing to purchase cars, so supplies will be in high demand at facilities nationwide. According to data from the Center for Automotive Research, U.S. auto manufacturers are expected to double the number of employees they hire during the last half of 2013. Most major auto companies including Chrysler, Honda, General Motors, Mercedes-Benz and Ford plan on adding jobs to improve production rates.
Bringing manufacturing and jobs back home
It's not merely automobile production that is experiencing a steady increase and creating busier schedules for U.S. carriers. For several years, companies have been focused on "reshoring" production jobs, or bringing outsourced jobs back to America. Rising foreign labor costs, quality management issues, high overseas transportation expenses and longer shipping times have led many businesses to rethink their outsourcing processes and cut costs and inefficiencies by building domestic production plants.
These facilities are producing all types of consumer goods, including toys, clothing and tools. Even electronics, which U.S. companies typically produce in Asia, are slowly being brought back to the states. But it's not just American companies that are moving their facilities back to the U.S. Foreign companies are also expressing interest in acquiring American manufacturing capabilities. The rising interest in producing goods in America will lead to more demand for carriers to transport these products to market.
This trend makes it absolutely critical for transportation companies to best utilize all available resources and ensure they can make scheduled deliveries and pickups on time. With route optimization software, carriers can spend less time planning which roads to take, save on fuel expenses and choose the most direct route as the number of stops they are required to make rises substantially.