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Current Opportunities and Obstacles in Iowa’s Transportation Industry


This news story was published on August 21, 2020.
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Covid-19 has crippled multiple segments across the planet and the transportation industry is one of those that were affected in the worst possible way during the lockdown. With airlines and the automotive industry coming in within the top five sectors to be critically impaired by the pandemic, transportation as a whole has not seen a good year in 2020 so far.

The Least Affected Section of the Transportation Industry

Despite how crippling the lockdowns proved to be for transportation, there are a few subsegments which were comparatively less affected by them. Industrial transportation did not suffer as badly as the passenger transportation segments. The need to manufacture and deliver did not come down in all sectors, especially after the initial few months. The fact that the independent supply chain industry primarily deals with delivery of goods in general proved to be a boon for them, as they were not tied down to one specific sector.

Their priorities were shifted in regard to the materials being picked up and delivered, but some were able to make the changes necessary to their delivery trucks and associated facilities to accommodate those changes to the best of their abilities. The charts (linked above) show it is not that the industrial delivery chains were unaffected, but a large number of local and international names in the business were able to turn the situation somewhat into their favor, despite suffering losses just like any other industry.

The shift was primarily made towards delivering essential items such as food, water, basic sanitization products, medication, ventilation machines, oxygen tanks, masks, gloves, syringes and other portable medical supplies. While the focus was primarily on retail, it had simply shifted to medical. The need to manufacture and supply the essential medical commodities was and still is tremendous, which is opening up new opportunities for new industrial transportation businesses to enter the field from Iowa.

High Industrial Traffic Accident Related Fatalities is a Big Problem in Rural Iowa

The roadway features do not favor large trucks in Iowa, and serious accidents are far too common in rural sections than they should be. The primary roadway feature improvements which could make roads in rural Iowa a lot more accessible to delivery trucks, and less deadly for others on the road, can be summarized as the following:

  • Wider, marked lanes with limitations to the accessibility of each lane to different types of vehicles
  • Long country stretches have no street lights whatsoever; properly spaced, low cost lighting could reduce fatalities drastically
  • Rumble strips should be installed periodically to keep drivers more attentive
  • Reinforced road shoulders could prevent trucks and smaller vehicles from serious accidents

Although the accident rates across Iowa and not just the rural sections had picked up alarmingly last year, that is no longer going to be a problem in 2020.

A Major Threat to the Delivery Chain Industry Has Almost Been Removed by the Domino Effects of Covid-19

It is not often that the novel coronavirus has anything to do with growth in business, but there is no doubt about at least one of its effects that has directly and positively impacted the supply chain in Iowa, as well as everywhere else. Traffic congestion is almost a thing of the past and most common cars on the road these days are the industrial/commercial/emergency/essential vehicles.

Delays due to poor traffic movement were a nightmare for the industrial delivery chain in major commercial states such as Iowa, but that is no longer a problem. It would not be incorrect to state that supply chains which do have enough work in these troubled times are able to work at a faster, better rate than they could have ever before.

It remains a temporary situation though, and once a vaccine is out, there is no telling how the “getting back” stage will affect Iowan road conditions. Now might in fact also be the perfect time for state authorities to catch up on pending roadwork, since traffic is next to nothing right now.

Is the Present Time Ideal to Start a Business in Iowa?

The primary obstacles in relation to Iowa’s road conditions and traffic congestions have mostly been reduced indefinitely, and there is a growing need for new companies who can take on the challenges of a constantly changing industry both within and outside the state. The opportunity is most certainly there, and starting with a small fleet or even a retail shop within one of the in-demand segments can be quite profitable. The lockdowns are easing up and the rate of infection/death has been reduced as well. Before the industry gets back to its full-strength next year, now might indeed be the perfect time for considering a new business setup.

However, the setting up process can be quite confusing and time-consuming for delivery businesses, especially in the middle of everything that is going on. Acertus has made things surprisingly easy with their comprehensive support from day one for any new or old delivery/automotive retail/car rental company. The automotive logistics and services giant handles the title and registration needs for fleets of all sizes and across all fifty American states. Additionally, they offer all possible services such as vehicle transportation, storage, maintenance and other associated facilities which would be necessary to set up a new delivery business, car rental company or perhaps even just a small car retail showroom.

It should be understood that the nature of the supply chain industry is such that it provides companies working in the sector with greater flexibility than in any other offline segment. It’s true that Iowa is a great place for a new automotive or transportation business, but after getting started, the company can easily shift its operations outside the state if needed. There are states which can provide more business to an industrial supply chain management company, or a simpler, but quite closely related delivery chain business. The company itself will not need to change its initial registration with the state of Iowa, but depending on which state it is that they shift to, additional registration needs must be checked with the concerned state authorities before making the shift.

 

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