Investing in Transportation – Logistics is a Logical Choice

Smalltime investors often soak up all information they can before dreaming of stock purchase agreements, the foreign exchange, or commodities, but consider America’s infrastructure. Transportation and freight is the backbone of our society, and investing in automotive and transportation logistics can be a smart move. While much of the world’s economy is facing an uphill battle, the logistics sector keeps on trucking. In fact, it’s the fourth-largest sector in the United States economy and is estimated at over a trillion dollars nationally. The large fragments and big profits have made it an attractive place to start investing, and progressive investors can help the country step into a cleaner, more efficient infrastructure.

As for logistics and air freight investments, you can’t do much better than UPS. The United Parcel Service consistently ranks ahead of the rest on the stock exchange and is closely followed by FedEx. One up-and-coming logistics company, with a watch interest at 2%, is Express-1 Expedited Solutions. Other companies to keep an eye on are UTi Worldwide, Hub Group, and Air Transport Services Group. Investing in logistics is logical because without these companies, there would be no products being put out on the shelves for consumers to buy. And investing in small, third-party logistics companies can prove just as fruitful as investing in the major trucking and railroad industries.

Investing in trucking and small-time logistics has been a smart move for at least the past two years, all while other investment industries have taken a major hit. Some of the smaller companies like Hub Group are still carrying bargain prices for which shareholders will be hard-pressed to miss. Smaller investors may even consider buying into local trucking companies or even purchasing big rigs that can be leased to companies for quite a hefty profit.

Opportunities for this type of investment even exist across the rest of the world. Freight forwarding services in China are being developed due to the overwhelming opportunities that exist there, mostly without competition. Investing in companies that are taking these freight forwarding businesses abroad may be the ideal solution. Domestic railroads are another good option because distribution and manufacturing facilities will often use railroads as well as trucking services to bring goods and services to the masses, and with environmental concerns ever more present, the railroad may be one source of technology that we look back on and revive within the next couple of decades.

About Richard Wilson