Driving Through Alabama: Economics of Alabama's Trucking Industry

In the heart of the South lies Alabama, a state where ongoing logistics and freight transportation mark its bustling highways. Beyond its rumbling noise, this industry is vital to the state’s economy. The trucking industry is much more than moving goods from point A to point B; it’s the cornerstone of the state’s economy, providing ample jobs, supporting small businesses, and ensuring company logistics run smoothly. Let's dive into a series of fast trucking facts, gathered by the ATA and recent data studies.

Fueling Opportunity

The trucking industry boasts a major employer as 131,190 trucking industry jobs were reported in Alabama, accounting for 1 in 13 jobs in the state.

Supporting Local Businesses

It is recorded there are 32,120 trucking companies located in Alabama. The vast majority of these businesses are small and locally owned, serving a wide variety and range of businesses across the state and nation.

Competitive Wages

In 2022, the trucking industry wages in Alabama surpassed a staggering $7.2 billion, supporting an average annual salary of $54,536. Within the industry, heavy and tractor-trailer truck drivers accounted for 36,730 jobs. From these jobs, the national average annual salary stood at $69,387.

Keeping Alabama Moving

The trucking industry plays a pivotal role in Alabama’s transportation network. Responsible for transporting 81.7% of the manufactured tonnage in the state, this amounts to roughly 161,180 tons per day. In addition, about 86.1% of communities in Alabama rely exclusively on these trucks to transport their goods, highlighting the industry's indispensable role throughout the state.

Supporting State Infrastructure

The trucking industry in Alabama carries a significant tax burden, paying roughly $699 million in state and federal roadway taxes. Despite only representing 9% of all vehicle miles traveled in the state, the trucking industry contributes 30% of all taxes by Alabama motorists. This further represents the significance of this industry in funding infrastructure and development in Alabama.

Tax Contributions

As of January 2024, a regular five-axle tractor-semitrailer combination in the state paid highway user taxes and fees amounting to $6,575 in state tax and $10,556 in federal tax. These amounts far surpass typical taxes paid by many businesses in the state. This further illustrates the substantial financial contribution the trucking industry holds to Alabama’s economy.

The trucking industry is far more than a collection of vehicles traveling across Alabama’s highways. This industry is an intricate ecosystem that plays a vital role in the state’s economy, sustaining livelihoods, and ensuring the seamless flow of goods and services. As the state continues to grow, so will this industry, continually acting as an indispensable force in this state’s livelihood.

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