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Transportation & Warehousing

Abstract Wavy Lines

Performance Highlights

Consumer spending drives growth, enabling the sector to rebound after the pandemic. E-commerce is providing a robust need for transportation and warehousing. Expanding trade is solidifying the role of transportation and warehousing, though supply chain disruptions have halted some shipments, causing businesses to rethink large-scale orders.

Geographic Distribution

The highest concentrations of businesses are in California, Texas, Illinois, and Florida due to their large populations and economic activity. Sector operators benefit from proximity to industrial production centers and trade flow channels.

Industry Outlook

Revenue is expected to grow at a CAGR of 1.5% from 2024 to 2029, reaching $1.7 trillion. Consumer spending is projected to benefit the sector, with a focus on e-commerce driving demand for transportation and warehousing services. Disruptions related to the conflict in Ukraine are expected to subside, lowering oil prices and stabilizing the sector.

Competitive Forces

The industry is characterized by low concentration and high competition. Barriers to entry are low and decreasing. Companies must navigate complex regulations and manage significant capital investments.

Major Companies

Notable players include United States Postal Service (5.0% market share), United Parcel Service, Inc. (4.1% market share), FedEx Corporation (3.3% market share), Delta Air Lines, Inc. (3.3% market share), and American Airlines Group Inc. (3.2% market share).
Revenue

$1.6 trillion

Employees

11 million

Businesses

5 million

Wages

$486.7 billion

Economic and External Factors

Companies in this sector are under strict regulation. The federal government has regulations handling the level of security, safety, and environmental risk associated with transported goods. The sector is highly reactive to changes in the economy, with consumer spending, trade value, and industrial production being key drivers.
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