Loaded up: Rising consumer spending has benefited demand for industry services

The Local Freight Trucking industry slowly expanded over the past five years, undergoing volatility on the way up. Industry operators provide general freight trucking services over short distances such as metropolitan areas or within states. Initially, consumer spending and industrial output increased demand for industry services, causing revenue to grow. Nevertheless, recent declines in diesel prices resulted in lower fuel surcharges, and at times, lackluster manufacturing output in California tempered demand. Therefore, in the five years to 2017, industry revenue is expected to increase at an annualized rate of only 0.8% to $6.8 billion, including a severe decline in revenue in 2016. However, revenue is expected to climb 5.0%...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
0.8%
Forecast Growth 17-22
Profit
Employment
54,610
Businesses
33,793
What Our Customers Say

Industry Threats & Opportunities

  • Consumer spending has grown at a moderate rate, supporting demand for industry services
  • Consumer spending in California has increased, benefiting industry demand
  • Due to higher diesel prices, the industry will have higher surcharge revenue
  • Industry Report - Industry Analysis Chapter

    Over the past five years, the Local Freight Trucking industry struggled to expand. Industry operators provide general freight trucking services over short distances such as metropolitan areas or within states. For the first half of the five years to 2017, industry revenue expanded as a growing state economy increased freight volumes and thus demand for local trucking. However, demand from key markets, such as manufacturing, remained lackluster. Moreover, the recent fall in diesel prices reduced fuel surcharges, causing revenue to fall in 2015 and 2016. Nevertheless, in the five years to 2017, industry revenue is expected to climb at an annualized rate of 0.8% to $6.8 billion, including a 5.0% in 2017 due to increasing fuel surcharges...purchase to read more.

    Additional Insights for the Local Freight Trucking in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Local Freight Trucking in California Industry are

  • Market research and understanding
  • Access to quality personnel management
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Consumer Spending in California and Manufacturing GDP for California in the Local Freight Trucking in California industry impact industry performance..

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    What is the Local Freight Trucking in California Industry?

    Operators in this industry provide general freight trucking services over short distances. General freight companies handle a variety of commodities, which are usually palletized and transported in a container or van trailer. Local general freight trucking companies commonly provide trucking within a metropolitan area that may cross state lines, and the trips are typically same-day return.

    Industry Products
  • Mixed freight
  • High-value goods
  • Other goods
  • Industry Activities
  • Local truckload delivery
  • Local less-than-truckload (LTL) delivery
  • General freight trucking on a local basis
  • Bulk mail truck transportation on a contract and local basis
  • Similar Industries
  • Long-Distance Freight Trucking
  • Local Specialized Freight Trucking
  • Tank & Refrigeration Trucking
  • Toll Roads & Weigh Stations
  • Long-Distance Freight Trucking in California
  • Local Freight Trucking in New York
  • Long-Distance Freight Trucking in New York
  • Local Freight Trucking in Illinois
  • Long-Distance Freight Trucking in Illinois
  • Local Freight Trucking in Texas
  • Long-Distance Freight Trucking in Texas
  • Local Freight Trucking in Florida
  • Long-Distance Freight Trucking in Florida
  • Local Freight Trucking in Massachusetts
  • Long-Distance Freight Trucking in Massachusetts
  • Local Freight Trucking in Ohio
  • Long-Distance Freight Trucking in Ohio
  • Local Freight Trucking in Pennsylvania
  • Long-Distance Freight Trucking in Pennsylvania
  • Local Freight Trucking in New Jersey
  • Long-Distance Freight Trucking in New Jersey
  • Long-Distance Freight Trucking in Georgia
  • Local Freight Trucking in Michigan
  • Long-Distance Freight Trucking in Michigan
  • Local Freight Trucking in Wisconsin
  • Long-Distance Freight Trucking in Wisconsin
  • Local Freight Trucking in Washington
  • Long-Distance Freight Trucking in Washington
  • Local Freight Trucking in Virginia
  • Long-Distance Freight Trucking in Virginia
  • Local Freight Trucking in Tennessee
  • Long-Distance Freight Trucking in Tennessee
  • Local Freight Trucking in North Carolina
  • Long-Distance Freight Trucking in North Carolina
  • Local Freight Trucking in Minnesota
  • Long-Distance Freight Trucking in Minnesota
  • Local Freight Trucking in Maryland
  • Long-Distance Freight Trucking in Maryland
  • Local Freight Trucking in Colorado
  • Long-Distance Freight Trucking in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Spending in California
  • Manufacturing GDP for California
  • Price of diesel
  • Freight transportation services index

  • Current Performance
  • Demand grows
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Income, manufacturing and fuel
  • Other trends
  • Table: Local Freight Trucking in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Local Freight Trucking in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Wholesale Trade
  • Retail Trade

  • Key Selling Industries
  • Auto Parts Wholesaling
  • Automobile Wholesaling
  • Gasoline & Petroleum Wholesaling
  • Tire Wholesaling

  • Products & Services
  • Other goods
  • Mixed freight
  • High-value goods
  • Chart: Local Freight Trucking in California Industry Products and Services Segmentation

  • Major Markets
  • Los Angeles market
  • Other California
  • San Francisco market
  • Sacramento market
  • Fresno market
  • San Diego market
  • Chart: Major Market Segmentation for the Local Freight Trucking in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent, utilities, depreciation and marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Local Freight Trucking in California

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Local Freight Trucking in California Industry

  • California Cartage CompanyFedEx FreightGardner Trucking Inc.Reddaway
  • Table: California Cartage Company - financial performance
  • Table: FedEx Freight - financial performance
  • Table: Gardner Trucking Inc. - financial performance
  • Table: Reddaway - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Local Freight Trucking in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Local Freight Trucking in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Price of diesel (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fuel Surcharge
  • An additional charge introduced by transportation operators to cover the cost of fuel.
  • Just-In-Time (Jit)
  • A strategy implemented to improve profitability by reducing inventory and purchasing raw materials for the immediate term only.
  • Less-Than-Truckload (Ltl)
  • Truck shipments between 100 and 10,000 pounds.
  • Owner-Operator
  • A person who owns and operates the business. Many truck drivers in this industry are self-employed owner-operators.
  • Truckload
  • Truck shipments that weigh more than 10,000 pounds and are generally carried by semitrailers.
  • Why buy this report?

    IBISWorld’s industry research report on Local Freight Trucking in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Local Freight Trucking in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Local Freight Trucking in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Local Freight Trucking in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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