MPC
Research Projects (2002-03)

Identifying Number

MPC-228

Project Title

Trucking Industry Churn and It's Impact on Communities and ITS Adoption

University

North Dakota State University

Project Investigator

Julie Rodriguez
Upper Great Plains Transportation Institute
North Dakota State University
(701)231-7999
julie.rodriguez@ndsu.edu

External Project Contact

N/A

Project Objective

This project seeks to evaluate the trucking industry and identify the continuity of companies, quantify the churn factor, and speculate on the impact of this behavior. A correlation of ITS technology adoption and longevity would also be explored.

Project Abstract

The number of trucking companies has changed over the years. But perhaps more important than the total number of trucking companies is the longevity of trucking companies. If there are 100 companies this year and 120 companies next year, have we merely added 20 companies? Or have 80 companies gone out of business and 100 companies started up? There is a major difference between the two scenarios. The stability of firms in the industry impacts their ability to adopt new technologies, the relationships they have with shippers, their safety records, and their ability to compete on a regional, national, and international basis. How are shippers in the local communities affected by churn? How does churn impact the ITS network? An ITS network in an industry with high churn could be much different than in an industry with low churn. Churn may also impact the rate at which ITS technologies are adopted.

Task Descriptions

• Task 1 – Develop survey for trucking companies to evaluate longevity and ITS adoption. (November 2002)
• Task 2 – Distribute trucking company survey. (December 2002)
• Task 3 – Analyze survey and compile information. (May 2003)
• Task 4 – Analyze historical motor carrier data for churn. (June 2003)
• Task 5 – Develop survey for shippers. (February 2003)
• Task 6 – Distribute shipper survey. (March 2003)
• Task 7 – Analyze survey and compile information.(June 2003)
• Task 8 – Prepare a final report. (August 2003)

Milestones, Dates

• Starting Date: November 2002
• Ending Date: August 2003

Yearly and Total Budget

$40,000

Student Involvement

None

Relationship to Other Research Projects

N/A

Technology Transfer Activities

List of trucking companies that have survived for the entire research period.

• Total number of current trucking companies and the exit and entry rates.
• Correlation between longevity and ITS adoption.
• Influence of shippers with regards to ITS technologies.
• Analysis of churn on local shippers.

Potential Benefits of the Project

The churn rate of the trucking industry impacts the efforts of shippers, states, and vendors in the promotion of ITS technologies. Understanding the relationship between longevity and ITS adoption can also impact efforts to implement ITS technologies. The churn rate may also impact the service and/or competitiveness of communities and local shippers.

TRB Keywords

Trucking industry turnover, ITS, CVO, truck service