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Prairie & Plains Portage Business Analysis

407 Words2 Pages

Introduction:
Prairie & Plains Portage, Inc. is a company that prides itself on its values of safety, integrity, and respect for people. As one of the largest trucking companies in North America, PPP, Inc. is focused on accomplishing its mission of “provid[ing] transportation and logistics… safely and efficiently” through the use of over 22,000 hardworking employees, over 12,000 trucks, and more than 100,000 trailers and containers. Beyond the mission, striving to provide an outstanding financial return on investment while being environmentally conscientious is an essential component of PPP, Inc.’s core values. The transportation market is becoming increasingly technologically advanced, with automation being the single largest evolution of the business. As of now, completely automated driving systems do not exist. …show more content…

The ATA estimates that within the industry there is $726.4 billion in gross freight revenues making up 81.5% of the nation’s freight bill in 2015. The industry had roughly 31.4 million registered trucks on the road in 2014, with a gross mileage of 279.1 billion miles driven by 3.5 million truck drivers. Reports also show that for the past 15 years, demand for trucking has been increasingly harder to fill, and according to a report by the ATA, driver shortages reached 50,000 by the end of 2017. If this current trend holds, the gap in the labor market is predicted to grow to over 174,000 drivers by 2026. This would result in severe supply chain disruptions, significant shipping delays, higher inventory carrying costs, and retail shortages. Combating this shortage of drivers is one of the reasons for the push towards automated trucking. According to CB Insights, in 2017 over $1 billion was invested in self-driving and other trucking technologies by companies and venture capital firms, ten times the level of three years

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