The COVID-19 pandemic-induced lockdown changed the way the world functioned. Homes have become offices; shops have turned into warehouses and restaurants into takeouts. As we struggle to adjust to this new normal as individuals, we also see the industry struggling to adapt, scale, and meet this changing world's demands.
Industries across the world suffered a lot during the lockdown. As governments scrambled to shut their borders to the outside world, and in cases even between cities, factory workers could no longer get to work, bringing the industry to a grinding halt. Production was hit, and as supplies vanished from shelves, both B2B and B2C outlets began to face the heat.
The transportation industry was one such industry that was hit as hard as the others. Still, innovative players such as Trukkin were able to expand and scale their operations during the lockdown. Their agility in pivoting from a mover of heavy equipment to essentials helped them stay in business.
Increase in demand fuels growth in logistics post lockdowns
The transportation industry in the Middle East bounced back as soon as the lockdowns eased, helping them reach, and in some cases, even exceed the scale at which they were operating before the pandemic hit. The logistics industry has also gotten a massive boost with the sudden increase in demand from regional and international e-Commerce players, making up for the lockdown revenue.
Some numbers
The $300 billion+ logistics industry in the Middle East is growing faster than ever before. Fueled by backlogs and a staggering increase in demand from industries, projections of growth have reached a CAGR of 4.37% by 2027. This growth rate is nearly equal to the projections from pre-pandemic times. Contributing over 10% to the total GDP of the region and employing more than 6% of the total workforce, the logistics industry is a key enabler that is helping millions of individuals bring food to the table and contribute to the regional and international economy.
How can the logistics and transportation industry sustain this growth?
The industry today relies on traditional methods for business growth. However, sustaining this sudden spurt in demand will be difficult. As supply lines resume normalcy, this demand will slowly reduce, thereby affecting the CAGR of the industry as a whole.
The key factors that can help in the sustained growth of this industry include:
- Adaptability
A rigid approach to business—including relying on a singular solution can be detrimental to business growth. If your business traditionally shipped glass or construction equipment, a minor investment in adapting to new needs such as last-mile delivery, movement of essentials and utility goods can instil operational efficiency and a steady income flow for a long time to come.
- Adoption of technology
Traditional brick-and-mortar businesses are facing losses due to the lack of demand. The primary reason for this lack of demand is visibility. Moving your business to the internet will increase your visibility tenfold and will allow formerly untapped sources to be leveraged for business growth. Technology also helps integrate your business with an aggregator, helping you get business from someone who has their hands full.
- Scalability
Many businesses fail to meet the growing demands of their customers due to the problem of scale. Technology comes to the rescue of these businesses by helping them to scale rapidly. Technology helps you find new avenues for growth and investment and sustainably scale your business to ensure continued and long-term success.
How is Trukkin helping the logistics industry meet these new demands?
Trukkin strives to revolutionize the trucking industry from the inside out by empowering everyone involved in the business to reap the benefits of using world-class technology and infrastructure. Using AI, IoT and a well-researched, highly innovative user interface, Trukkin simplifies transportation for everyone involved. Enhancing transparency, demand and profits while reducing overheads, Trukkin empowers drivers, brokers, shippers and transporters with its multi-lingual app, a powerful web portal and an experience that is unmatched in the industry.
Closing thoughts
Utilizing the benefits provided by these three key factors is important for any business as it will boost business growth and provide a steady revenue source for years to come. Today's new world relies on agile companies that can pivot to use exceptional situations to their advantage. Leveraging the power of technologies such as AI, IoT, and the internet will help regional and international players grow—no matter how hard the times get for everyone worldwide.
© Press Release 2021
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
