Nearly Every Business Relies on this Struggling IndustryWe’ve all seen headlines about the need for more workers in many different businesses this year. But the employee shortage in one industry has the potential to create a drag on all others if it’s not resolved soon.
What’s happening?For decades now, the trucking industry has been the backbone of the U.S. economy.
According to the American Trucking Association, almost 12 billion tons of freight is moved by truck every year in the U.S. alone. That’s roughly $772 billion worth of goods.
But right now, the trucking industry is in crisis mode.
During the worst of the pandemic in March 2020, the U.S. trucking industry lost about 6% of its workforce as lockdowns went into place.
Now, as the economy recovers and the demand for shipping goods ramps back up, trucking firms across the country are having trouble filling open driver positions.
Estimates place the current driver shortage at around 33,000 from where it stood before the pandemic. Trucking firms have raised pay in recent months to attract drivers, but still remain woefully understaffed.
After more than a year in which many freight drivers were forced to find other work, many are showing a preference for jobs that keep them closer to home.
To help alleviate the massive shortage of drivers, some of the biggest names in the tech sector are jumping in to bring a modern solution to an age-old industry.
And one company in particular looks poised to be a frontrunner in the future of trucking – and help its investors score big profits while they’re at it.
Where’s the money?Truck driving, by many accounts, is difficult work. Drivers work long hours, covering thousands of miles in a race to meet deadlines. Their work takes them far from home and often doesn’t allow for the most hospitable living conditions.
Small wonder then that trucking companies are having a hard time bringing new drivers onboard.
In response, a number of companies have begun to explore taking the driver out of the equation.
Autonomous – or “self-driving” – vehicles have been in development for years now.
Savvy companies have seen the huge potential in applying that tech to the shipping business. In fact, several firms that had been developing self-driving cars have shifted their focus and resources to freight trucks in recent years.
And the technology is getting close to being ready for a wide scale rollout.
Earlier, this month, an autonomous truck drove from Arizona to Oklahoma in just over 14 hours. That’s roughly 10 hours faster than a human can make that trip – after all, a computer doesn’t need to make pit stops or sleep.
Clearly, there are massive advantages to automated trucking.
Wall Street sees the writing on the wall too, as more than $11 billion have been invested in autonomous truck startups in the last two years.
And I’ve got my eye on one stock in particular that could be a huge benefactor once the autonomous trucking trend really takes off.
How do I get some?Embark Trucks Inc. – a San Francisco-based startup – has developed a universal platform that allows trucking firms to easily convert regular Class 8 trucks (think your typical tractor trailer) into self-driving trucks.
The ability to create autonomous trucks from existing vehicles – as opposed to having to buy an all-new self-driving truck built from the ground up – makes Embark’s model a very attractive option for trucking firms to bring their fleets into the future without breaking the bank to do so.
But the real winner here for investors will be a pick-and-shovel play.
Embark’s technology is powered by advanced microchips developed by NVIDIA Corporation (NVDA).
NVIDIA’s DRIVE family of processors provide the enormous computing power necessary to support autonomous driving systems that include deep-learning algorithms and artificial intelligence.
With Embark’s scalable model, the autonomous trucking business could become a huge new source of revenue for NVDA.
And as demand for semiconductors rises to new heights every day, the future looks very bright for NVIDIA. I like this stock on any pullback as a potentially massive long-term winner.
The Road to Wealth is Paved by TechnologyMichael Robinson has been at the forefront of some of the most dominant tech trends of the last three decades.
Companies that have been on his radar for years are shattering records almost every single month.
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Little-known firms – diamonds in the rough – that have kept America afloat are seeing outsized gains this year.
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In the Spotlight: A big day for DisneyOne of the most highly anticipated earnings reports of the week came from The Walt Disney Company (DIS).
In addition to the latest info on the company’s top and bottom lines, investors were eager to learn the latest about Disney’s popular streaming service, Disney+.
And the latest numbers did not disappoint.
As movie theater chains are now operating at full capacity across the country, the battle between streaming services and theaters is once again heating up.
In yesterday’s earnings report, Disney announced that total subscribers to Disney+ grew to 116 million, far exceeding expectations of around 113 million.
Investors are breathing a sigh of relief after new subscriber numbers disappointed in the prior quarter.
As I highlighted previously, Disney has some of the highest-grossing franchises on the planet – Star Wars and Marvel – in its arsenal.
I fully expect subscriber numbers to continue to grow with ever more content being churned out. In my opinion DIS remains a strong buy until we see Disney+ subscriber numbers begin to plateau. When they do, I’ll be sure to let you know here at Profit Pregame.