Marketing Analysis

Market Segmentation

The commercial transportation and trucking industry is composed of over 2.8 million companies, owners and owner-operators according to the latest reports from the U.S. Census Bureau. Within the US, the American Trucking Association reports – from member surveys — that commercial vehicles affect about 70% of all product movement within the overall economy. And, commercial transportation has an impact in Canada, Mexico and our international trading partners as well.

Most trucking firms involved in different types of hauling normally have various type of trailers to handle their different transportation requirements. Companies may transport freight, steel coils, by (NAICS codes), heavy construction equipment, roll-off dump carrier, and other assorted loads or bulk consumer products. Unfortunately, owning and operating different types of trailers can be costly and wasteful, especially when they are not regularly used.

The I Am Portable Hybrid Trailer provides a convenient, flexible alternative to purchasing more trailers. One portable unit can transport almost all types of goods and products as well as serve as a base for assorted interchangeable cargo carriers. The portable trailer can also help trucking companies improve their efficiency, profitability and overall operations by taking advantage of the clean energy sources built into the trailers and the technologies used to move hauling units on-site.

Within the broad target market, including worldwide commercial transportation, defined sub-industries include:

  • Animal and farm product transportation services
  • Baggage transfer
  • Animal transport
  • Coal haulage, local
  • Farm to market haulage, local
  • Delivery service, vehicular
  • Live poultry haulage
  • Draying, local: without storage
  • Liquid transfer services
  • Dump truck haulage
  • Liquid haulage, local
  • Garbage collection and transport, no disposal
  • Liquid haulage, local
  • Hazardous waste transport
  • Petroleum haulage, local
  • Heavy machinery transport, local
  • Lumber and timber trucking
  • Light haulage and cartage, local
  • Lumber (log) trucking, local
  • Mail carriers, contract
  • Timber trucking, local
  • Star routes, local
  • Moving services
  • Steel hauling, local
  • Furniture moving, local: without storage
  • Truck rental with drivers

We believe that the I Am Portable Hybrid Trailer units can also be marketed to Fire, Police and Military units that have needs for portable power generation and eco-friendly service.

Industry Analysis

Commercial Transportation and Trucking Industry Trends

Transportation is one of the world’s largest industries. Its sectors range from taxis to trucks to airplanes, trains, ships, barges, pipelines, warehouses and logistics services.

In total, during 2009, the U.S. transportation industry (in both for-hire and not for-hire sectors, including support and repair) had revenues of about $1.6 trillion. At a bit more than 10% of America’s economic activity, transportation is remarkably efficient, considering the fact that it is a vital service to every other sector of the economy. In fact, thanks to increasing use of advanced information systems and such strategies as the intermodal containers (sending freight via containers that are easily transferred from ship to rail car to truck as needed, without repacking), the transportation industry’s productivity is excellent.

Globally, the transportation sector has been under extreme pressure since mid-2007. At first, it was pummeled by rising fuel costs. Then, the global recession slashed traffic of all types, including airline passengers and ship cargo. The decline in business was felt by all types of firms within this sector, from freight brokers to car and truck manufacturers.

The global financial crisis created several distinct problems for the transportation industry. For example, in early March 2009, the number of massive container ships sitting idle globally was estimated at an all-time high of 453 vessels.

However, things were looking up for the industry in early 2010. In March, FedEx announced that its global revenues for the most recent quarter were up 7%, led by strong growth in Asia. U.S. revenues increased by 1%. FedEx and competitor UPS are considered to be leading indicators of transportation demand.

Over recent years, globalization placed intense new demands on the transportation and supply chain sector. For example, United Parcel Service (UPS) offers delivery to more than 200 nations worldwide (including every nation in the world where the firm is not barred from doing business due to U.S. government embargoes), and international revenues have been key to its growth to about $45 billion in 2009 revenues.

Transportation continues to evolve, no matter whether the type of transport involved is on the road, on the sea or in the air. For example, China had only about 200 kilometers of expressways in 1989. Today, it has more than 50,000 kilometers of expressways, second in terms of length only to America’s famous Interstate Highway system (roughly 47,000 miles or 75,600 kilometers).

The information age, with its introduction of sophisticated databases that can track inventory levels and shipments on a global basis via the Internet, has created vast transport and logistics efficiencies. As a result, supply chain technology has been one of the fastest growing segments in the information field.

Next, the rapid adoption of outsourcing has led many companies, when shipping is vital to their businesses, to turn to logistics services providers for all manner of shipping support, including warehousing, scheduling and distribution services. The sectors of transport, supply chain management and logistics services are permanently intertwined; creating efficiencies once undreamed of in the transportation arena.

All nations worldwide face a daunting task in maintaining airports, seaports, highways and railroads that can handle commerce and passenger traffic efficiently. The amount of government funds available for roadway development is never enough to keep up with long-term needs. For example, researchers at Texas A&M University’s Texas Transportation Institute estimate that traffic delays cost the U.S. economy $87.2 billion in 2007 alone.

One of the biggest challenges facing the global transportation sector over the mid- to long-term is a focus on lowering carbon emissions and enhancing energy efficiency. (In the U.S., the transportation sector is estimated to create 32% of all carbon dioxide emissions.) Airlines have placed large orders for fuel-efficient jets like Boeing’s new 787, promising efficiency gains of 15% to 20% per passenger mile. Container ship operators are under intense pressure to reduce contamination and emissions while in port and at sea. Automobile and truck manufacturers are struggling to respond to demand for fuel efficient vehicles. (In the near future, many new cars will be electric drive.)

The I Am Portable Hybrid Trailer is perfectly positioned to address recent trends among companies in the industry by creating clean-energy, efficient systems that reduce fuel costs, consumption and carbon emissions while at the same time supporting new technologies and operations that make companies more productive and profitable.

Once the I Am Portable Hybrid Trailer is launched and introduced in the marketplace, there will be significant barriers to entry for any competing products or companies that wish to produce them. The overall design and production are protected by U.S. Patent. Care will be taken when international companies purchase portable trailers to ensure that they do not “reverse engineer” our product lines.

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