Shopping Habits of Millennials is Helping Boost the Trucking Industry

Consumers, especially millennials, are becoming more dependent on online shopping. Traditionally, “big” items, such as mattresses, furniture, and appliances were purchased in stores where the buyer could browse options, try it out, and use the store’s own delivery service. Times are changing. Studies have found millennials are comfortable purchasing everything online. eMarketer reported that online furniture purchases were expected to grow by 18.2% in 2018 hitting $50.32 billion total. In 2017, Amazon’s furniture sales more than doubled year over year. Searching for the best price, reading reviews, and setting up a delivery all with a few clicks makes online shopping all too easy and convenient. National trucking companies are benefiting from this boom in ecommerce. With the growth in online sales of these “big” ticket items, the need for more delivery options is rising as companies like UPS and FedEx are unable to accommodate these large items in their network. The growth rate is so fast that trucking companies are acquiring local operators to help fulfill the needs of national online merchants. Last month, J.B. Hunt (America’s third-largest trucking company by revenue), acquired Cory 1st Choice Home Delivery for $100 million. Last year, J.B. Hunt acquired Special Logistics Dedicated, for $136 million. With ecommerce expected to continue growing, we think we’ll be seeing see more acquisitions like this in the near future. It’s an exciting time for national trucking companies. And another reminder just how much the trucking industry is growing. More Info: https://www.cowenlaw.com/