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Population shift will soon drive trucking tidal wave, an expert says

This week, we present an article by another trucking industry expert and colleague of Bob Rutherford: Jason Cannon. Jason reports here on a keynote speech given by Ken Gronbach on the shifts of industry in “Population shift will soon drive trucking tidal wave, an expert says.”

Author, demographer, and generational marketer Ken Gronbach delivered the keynote address Monday morning at the Truckload Carriers Association annual convention in Nashville.

A freight trough that has plagued trucking since emerging from the COVID-19 pandemic is temporary, and recovery will be spurred by the largest housing, construction and consuming market in U.S. history, said author, demographer and generational marketer Ken Gronbach in his delivery of the keynote address Monday morning at the Truckload Carriers Association annual convention in Nashville.

There are currently 170 million people under the age of forty in the U.S.

“This is a record for our country,” Gronbach said, adding that trucking is a business of moving stuff, and the need to move stuff “is coming your way, and you better prepare for it.” 

Generation X is nine million people smaller than the Baby Boomer generation, pulling a tide of would-be workers and consumers out of the pool and helping cripple the housing market and the automotive market in the early 2000s. As those 170 million mature and participate in the economy, “what is going to happen to the United States is unprecedented,” Gronbach said.

“The bad news is, you have to change,” Gronbach added, noting that legacy business practices are unlikely to win over a consumer base that makes decisions based on three key factors: “Make my life easy. Save me some time. Don’t rip me off.” 

Staring down the barrel of a hotly and, at times ugly, presidential election cycle, Gronbach said math suggests liberals will win the political wrestling matches in the immediate future simply because there are more of them by several million, adding that people generally move from liberal to conservative as they age. 

“We’re losing a conservative every eight seconds,” he said, “and we’re gaining a liberal every eight seconds.”

Not only is the population base skewing younger, its racial and cultural makeup is shifting. 

The generational population gap between Baby Boomers and Generation X was filled by Latinos, and Latinos are currently driving the U.S. labor force, Gronbach said, adding Caucasians are now a minority in the U.S., and the level of immigration into the U.S. is as high as it was in the early 1900s.

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Daimler and Volvo announce truck tech partnership

A paper by Jason Cannon

 

Aloha

I thought that I should share this across our blog community because of what this represented. 

Volvo and Daimler sharing software is a truly significant happening. I congratulate them for thinking about their customers first. 

If only there was a standard platform for all equipment manufacturers so allow their customers to select software that they want to track all of their equipment regardless of brand. Think about the possibilities. Electronic Catalogues. Standard Times for Repairs and Maintenance. Instructions on performing repairs. Special glasses like BMW Augmented Reality from the 1990’s to talk to a technician performing a repair and telling them the tools to use, the specification, the repair steps all with graphics on the glasses. Just imagine that.  

Daimler and Volvo announce truck tech partnership.

By Jason Cannon

Volvo Group and Daimler Truck have reached a preliminary agreement to establish a joint venture to develop a common software-defined vehicle platform and dedicated truck operating system, which the companies expect will provide the basis for future software-defined commercial vehicles and make the new joint venture a leading developer of standardized hardware and software. 

 

This technical basis, the companies said, will then enable Volvo Group and Daimler Truck – 50/50 partners in the joint venture – and potentially other partners to provide “differentiating digital vehicle features for its products, ultimately enhancing customer efficiency and experience.” The joint venture is set to be headquartered in Gothenburg, Sweden, incorporating existing assets and resources of both companies into the new organization. The goal, both stakeholders said, is “to set the industry standard for a truck operating system and offer its products to other OEMs as well. To that end the joint venture will provide a common developer platform as a service, on top of which its customers can build differentiating software layers.” 

 

The two commercial truck giants in 2020 established a joint venture to develop hydrogen fuel cells. That joint venture, named cellcentric, included operations in Nabern, Germany, headquarters of the Mercedes-Benz Fuel Cell, with production facilities in Germany and Canada.

 

“Given the rapid transformation of our industry, it makes sense to collaborate to accelerate development, increase volumes and share costs. Software-defined heavy-duty trucks represent a paradigm shift in the transformation of our industry,” said Martin Lundstedt, Volvo Group president and CEO. “Making the truck a programmable device with standardized hardware and operating system for fast product updates will give both companies the opportunity to create value for our customers and their customers though differentiating digital services and solutions. Partnership is truly the new leadership.”

 

The Volvo Group and Daimler Truck venture will operate as an independent entity, with the two continuing to be competitors in all other areas of business.

Jason Cannon has written about trucking and transportation for more than a decade and serves as Chief Editor of Commercial Carrier Journal. A Class A CDL holder, Jason is a graduate of the Porsche Sport Driving School, an honorary Duckmaster at The Peabody in Memphis, Tennessee, and a purple belt in Brazilian jiu jitsu. Reach him at jasoncannon@randallreilly.com. 

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