A recent study released by CIT Group Inc., a company that provides financing to major transportation companies and carriers, suggests that ‘the industry is bracing for an era of higher energy prices and increased regulations.’
‘This study highlights the fact that transportation executives are preparing for a future of uncertainty, both in terms of fuel prices and regulations,’ says Jeff Knittel, president of CIT Transportation Finance.
‘They are implementing strategic business plans in response to the potential for a protracted era of higher energy costs and growing concern regarding current and proposed emissions regulations,’ he adds.
Forbes Insights conducted the study, which questioned transportation executives in the aerospace/airline, maritime, trucking and rail sectors about various trends. A key finding is that nearly 80% of those executives expect energy costs to increase over the next three years.
Moreover, about three-quarters are ‘concerned by current and proposed emission regulations,’ and nearly half say ‘the state of emission regulation is contributing to higher energy costs.’ The latter sentiment is even more prevalent (64%) among trucking-company executives.
In turn, the study revealed that 77% of manufacturing executives are working to develop vessels, trucks and rolling stock that are more energy-efficient, and more than 80% say they are ‘working more closely with transportation companies to 'engineer' greater transportation efficiency.’
In terms of fuel types, all eyes are on oil and natural gas. Ninety-four percent of executives consider oil an important fuel for their company, and 90% say natural gas is important.