July 24, 2020 Finding Opportunities in Today’s Transportation Sector

Leading by addressing the underlying certainties the industry has faced for years.

Transportation, like many other sectors, is hurting. In fact, Deloitte found that, by the end of 2020, up to 45 percent of the transportation sector’s operating profits could erode. However, the outlook isn’t entirely bleak; because it is so essential to the global economy, the transportation sector has been notoriously resilient. Deloitte’s latest report, “Finding opportunities in today’s transportation sector,” outlines how transportation companies that have the ability – and willingness – to challenge sector issues (many of which have existed for years, well before COVID) may find opportunity to thrive and perhaps even redefine the sector as a whole.

Key insights from the report include:

• COVID’s impact could actually accelerate long needed transformation in the sector and facilitate stronger long-term stability. While a quarter of transportation companies are in dire straits due to the current environment, most transportation companies have greater degrees of freedom to survive this crisis and invest in a stronger future.
• Regardless of the pandemic’s impact on a company, there are certainties to address. Among them are the need for new tech and data for holistic decision making and meeting customer expectations for the connected community.
• With low revenue multipliers relative to other sectors, transportation companies that demonstrably shift business models could help break out of their trading range.
• Overall, the pandemic has added new pressure to existing opportunities with a renewed focus on meeting customer expectations, especially around fast and free delivery; managing inefficiencies, congestion and fragmented supply chains; integrating new technologies; adjusting to shifting talent models; and tackling disruptive entrants.

Download the Report

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