Every day, freight and parcels travel back and forth across the globe to reach customers and business owners. With the interconnectedness of 21st-century commerce increasing every day, businesses of all types and sizes are taking advantage of the convenience of utilizing logistics franchise companies for their shipping services.
And customer service is never compromised: logistics franchise owners get to work directly with individual business owners. These franchises offer viable solutions to shipping needs and challenges and have become major players in a booming Logistics Industry.
If you’re looking to make a lucrative change in your career in the coming year, it may be time to consider investing in logistics franchise ownership. Why?
- Upward Trends in Shipping Expansion
- Recession-Resistant Growth
- Low Barriers (and Plenty of Space) for Market Entry
Sounds promising, right? Let’s take a closer look.
Trends in Shipping Expansion
With the consistent growth of technology–and quick-fix solutions being readily available–the need for shipping also increases. Year after year, more companies are joining in the consumer goods market. People want their products faster than ever before, so more and more items are shipped each year. These high expectations for speed and volume are part of what will drive up demand for a logistic franchise.
And according to the IBISWorld Report, total trade value increased at an annual rate of close to 2.9%. This tells the market that more products require transportation, which boosts demand for additional carriers.The IPI is also rising at 0.8%. IPI growth increases trucking demands due to the fact that the manufacturing industry makes up for about 50.0% of trucking that covers long distances.
Growth After Recession
As economies recover from a recession, retailers and manufacturers begin to rebound, driving up the demand for logistics services. Add to this the fact that trucking is still the chosen method of shipping commercial goods, and you have a win-win outlook for a logistics franchise business.
Low Barrier to Entry
The logistic franchise industry still boasts a low barrier to entry, even with a high demand for services. Since the logistic franchise business requires a rather low investment to enter the market, business owners can get loans, buy required merchandise, and be in business with little effort (compared to most other franchise options).
In addition, there are no major added (or hidden) costs for someone in the logistics business. Costs like fuel surcharges (and other additional shipping charges) are passed on to the buyer. [Along with keeping overall business costs down, this provides volatility in price and service, allowing a quality logistics franchise to stand out.]
Space for New Logistics Businesses
Industry growth and demand means there’s plenty of room for smaller shipping companies to enter the market. [The largest 4 companies in the national trucking business add up to less than 10% of the earnings, and no individual logistic business has captured more than 3% of the market!] And keep in mind that the larger shipping companies will often need to make use of smaller logistics franchises to meet their own needs.
As you can see, logistic franchise companies are the perfect means to meet the growing demands of the industry, and their relevance will only grow in the coming year.
What do you find most exciting about the upward trends in the shipping industry? Tell us in the comments!