California’s Economy Booms | LTL Intermodal Trucking in California
November 19, 2022
If one were to go by the popular media narrative, California would be the last place to expect business to thrive. From natural disasters like earthquakes and wildfires to a regulatory environment supposedly so hostile to an industry that it drives successful companies out, the story has long been that the country’s most populous state should be on the verge of collapse. A recent report from Bloomberg, however, shows that is far from reality.
After showing steady growth from the turn of the century to the present day, California’s gross domestic product is poised to overtake that of Germany, making the state’s fourth largest GDP in the world, after the U.S., China, and Japan. The state has been steadily moving up the list in recent years, passing Brazil and France in 2015 and overtaking the United Kingdom in 2017. While many of California’s current figures won’t be finalized until 2023, at least one forecast suggests that the state has already surpassed Germany by $72 billion, considering the state’s recent growth rate.
While the past few years have seen both uncertainty and volatility affecting economies around the world, California has proven remarkably resilient in its trajectory of growth. Corporate California revenues and market capitalization rose 147% and 117% during the last three years; by contrast, Germany had gains of only 41% and 34%. In addition, California’s top three industries, technology hardware, media, and software had sales increase by 63%, 95%, and 115% in the same time period, raising market valuations by 184%, 54%, and 58%.
The fastest-growing industry in the state is renewable energy, with a market capitalization in California companies in this field growing by 731% over the last three years. Individual examples have even surpassed that mark, such as Fremont-based Enphase Energy Inc., a global energy management technology company providing residential and commercial solar and storage solutions, which was up 916%. The strength of companies like these has fueled remarkable job growth despite the challenges of the pandemic—unemployment fell to a historically low rate of 3.9% in the state in July, the lowest number recorded since 1976.
This is not to say that the state doesn’t face challenges. High cost of living, inflation, and homelessness are ongoing issues California leadership is taking on with a $52 billion financial assistance package designed to help individuals and businesses fight rising costs. This includes $26 billion in direct payments, $15 billion in tax relief, grants for businesses, and more. However, the numbers show that despite these issues, California companies continue to defy predictions of doom in an environment that prizes innovation and entrepreneurship.
Your Best LTL Intermodal Solution in California
For California businesses expanding and growing, keeping shipping costs down is an important means of saving money. In the past few years, this has become more difficult, as shocks to the freight industry made moving goods more expensive and shipping times harder to predict. Clear Lane Freight has been focused since our founding on providing economical and reliable options for small and medium-sized businesses to move non-time-sensitive goods throughout the state and around the country. As a non-asset-based carrier, we flexibly use LTL and intermodal to determine and provide the best solutions available for our client’s needs as the market changes.
Throughout the pandemic, we’ve pursued strategic partnerships to build and strengthen our network of regional freight partners in California and around the country to give our customers the coverage they need wherever they’re shipping. By pairing regional LTL service with intermodal service between key hubs, we’ve been able to mitigate the effects of high fuel costs and inflation to continue providing efficient economy service. In addition, we’ve made continual investments in our customer service team and technology to provide a full array of online self-service options as well as experienced hands-on assistance when you need it.
To find out more about how Clear Lane Freight can support your business growth in California through efficient, competitively priced shipping, contact us here