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Transportation and Warehousing Industry Resources
Transportation & Warehousing – Sector Overview Transportation & Warehousing - List of Businesses Transportation & Warehousing - Resource Directory TRANSPORTATION & WAREHOUSING - SECTOR OVERVIEW The first step in determining how to write a business plan at Trident Consultants involves identifying the correct business sector to which our client’s business belongs. The transportation and warehousing services sector is a vast industry classification as per the NAICS – North American Industry Classification System. It covers businesses like air transportation, water transportation, general freight transportation, specialized freight transportation, household and office goods moving, urban transit systems, taxi service, limousine service, charter buses, scenic and sightseeing transportation, port and harbor organizations, motor vehicle towing and many others. (A detailed listing of transportation and warehousing businesses has been included at the end of this page.) There are over a 380k larger businesses (with employees) in this industry sector that employ over 4.1 million people with a total payroll of $154 billion. On average the larger transportation and warehousing firms have at least 11 employees and the average income nationally for each of these employees is about $37k. In the small business world covering firms with no employees, there are 962k such transportation and warehousing firms with total gross receipts of $58 billion and the average annual income as reported by each firm of around $60k. When writing a business plan for any firm in the transportation and warehousing sector the single most important element that must be mentioned is how important the cost of oil is to this sector. As we all know the cost of oil has been moving up regularly resulting in an increase in the costs of gasoline and diesel. A business plan must address the huge impact of this increase to the profitability and viability of any business operating in the transportation sector. Business plans for firms operating in trucking for example must account for the increased cost of keeping these trucks operating and at what point the business owner may start passing that along to the consumer. Sound business planning also must make some mention of forward hedging contracts that the larger firms may want to consider to lock themselves into better prices for fuel. The cost of gasoline and diesel directly affects the profit margins of a transportation firm and it may a sound idea to have a business plan that accounts for different scenarios of inputs costs. The availability of relatively skilled labor is yet another challenge facing the transportation and warehousing sector. Many firms in the freight and household goods moving business for example use undocumented workers and they are now facing increased threats of fines and penalties as the federal government starts cracking down on the widespread use of undocumented workers. By the same token firms employing cheaper undocumented workers are able to undercut their competitors since their own labor input costs are lower than those paid by firms playing by the books and paying their labor market rate along with providing for workman’s compensation and other disability benefits. There is also a trend amongst corporate customers to want to deal with reputable transportation and warehousing contractors who do no employ undocumented workers and thus a business that does play by the books may be able to use that to their advantage as well. Job related injury is very common in this industry sector and it affects the productivity and profitability of the firm directly. A sound business plan must also account for some loss of labor and business due to injuries on the job and the resulting costs in disability premiums to the firm. Spending on appropriate safety equipment for employees can also be a costly preposition and business plans should address these costs as and where possible. Limo services depend largely on the corporate customers and thus are very vulnerable to the overall economic strength of the region and the country. If businesses start scaling back on their corporate travel, it has a direct impact on the limo business and a good business plan must account for the state of the overall economy and also address the local economy. If you are starting a business, or are already established but are looking to grow, secure a partner, venture capital or business loans, we would be happy to help. TRANSPORTATION & WAREHOUSING - LIST OF BUSINESSES
![]() The following is a list of the various businesses that fall under this industry sector: Air Transportation Water Transportation Truck Transportation Transit and Ground Passenger Transportation Pipeline Transportation Scenic and Sightseeing Transportation Support Activities for Transportation Couriers and Messengers Warehousing and Storage
Small Business Owner Resource Center
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