Transportation management system, Kuebix, has predicted that the 2018 transportation market will experience a major shake-up due to recent tax reforms, continued capacity crunch and the focus on the digital transformation of the supply chain.
The company said that with a cut in taxes on small businesses, cash flow could increase, allowing companies to invest more in technology, human capital and business expansion. However, the tightened capacity crunch, driver shortage and higher freight rates may deter some businesses from making purchases.
Tax cuts combined with certain deductions will reportedly add $1trn in growth over the next decade, according to the Tax Foundation, adding .29% to the US GDP and creating 339,000 new jobs.
"Many economic and industry analysts see a positive economic environment for both foreign and domestic markets, giving rise to more investments in tools, like transportation management systems, that can help a business grow and improve customer service levels,” said Dan Clark, Founder and President, Kuebix.
“Supply chains will be a major focus for improvements in 2018 as C-level executives come to accept that the supply chain is central to a business’ success."
Other predictions for 2018 include:
“In 2018, shippers must embrace change in order to succeed. Waiting and seeing what will happen is no longer an option,” added Clark.
“Transportation management systems are poised as the fundamental tool for supply chain transformation, helping businesses to position themselves above the competition with sustainable profits and better service levels.”