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From Teeka Tiwari, editor, Mega Trends Investing: The U.S. economy is expected to grow to $36.7 trillion by the year 2045.
That’s a 115% gain from today.
Historically, the transportation sector represents about 5% of the nation’s gross domestic product (GDP). This means the transportation industry will grow to represent around $1.8 trillion of the GDP in 30 years.
U.S. cargo will grow by 45% to nearly 30 billion tons in volume. The value of this cargo will exceed $39 trillion—a 125% increase over current levels.
Now, freight is usually transported via four methods: truck, rail, watercraft, and aircraft. The most common way to move large volumes of cargo is the trucking industry. It’s moved about 81% of total cargo in 2015 so far.
But America’s highway infrastructure can’t handle continued cargo growth…
Around 65% of U.S. roads are in “less than good” condition. Worse, 1 in 4 bridges are in need of significant repair… or are unable to safely handle today’s traffic.
Traffic congestion wastes approximately $27 billion in time and fuel. By 2040, the government estimates more than 30,000 miles of our busiest highways will be clogged on a daily basis.
At this level, moving cargo over highways means shippers will be losing around $60 billion per year.
Bottom line: Without significant infrastructure investment, the nation’s roadways can’t support the coming increases in commercial traffic. That means a different part of the U.S. transportation network will see a massive influx of new business over the next 25 years.
I’ve found the one company that’ll benefit the most from this shift. When the markets make their next move lower (see today’s first item), you’ll want to pounce on this stock.
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