Long-Term Effects of COVID-19 on the Transportation Industry

COVID-19 has changed the way the transportation industry is viewed, as well as how it is utilized. Following a successful vaccine and lifts of all travel restrictions, a long-term shift in mobility patterns might emerge. There may be an increase in private vehicle, scooter, motorcycle, and bicycle sales to avoid public transportation or shared methods of transportation. Rideshare services may not be used as frequently. As many workers continue to work from home, there will be a net decrease in travel from the workplace to home and vice-versa. Tourism may decrease, especially trips planned by planes.

The transportation industry will need to adjust and plan for these potential long-term shifts while continuing to maintain its network that is moving essential freight and providing worker travel. Maintaining enough capacity to ensure that workers can practice social distancing will be key to transitioning to a long-term plan. Companies will also need to plan for the availability of key workers to ensure that there is always a person on staff with the critical skills and training needed to keep networks operational. This may mean creating a new skill set based training program for key roles in the organization.

Executives and board members will need to remain aware of changes occurring throughout the pandemic. There are many key questions they should be asking that can help keep their business on track, including:

• How can we work with the government and our stakeholders to safeguard the long-term financial viability of our transportation network?
• How do we protect our essential workers to ensure they are available to work and keep the network up and running?
• Is the company’s supply chain exposed to COVID-19 risk? Where does this risk come from and what effects will it have on operations?
• Do we need to reorganize capital investments as a result of the unexpected decrease in revenue and potentially make permanent changes to the use of our transportation network?
• Are there ways to make the company more cost-efficient?

What Are the Next Steps?

Employees and stakeholders will look to company leadership for a response to the COVID-19 pandemic. The fate of each company will be defined by the responses it takes to the changes happening in the transportation industry. Can the company recover from financial losses and thrive?

Some important steps for staying afloat during this crisis include:

• Determining the cost and revenue implications of consistently decreased ridership;
• Maintaining core assets;
• Prioritizing protecting essential personnel with appropriate protective equipment and training
• Building a larger pool of available workers for mission-critical roles;
• Engaging with government officials and leadership to remain in compliance with all regulations, restrictions, and safety measures; and
• Creating a contingency plan that includes a potential rapid surge in demand – the return to normal travel again.

The coronavirus has impacted all forms of travel in some way this year. Staying aware of rapid changes in travel restrictions, monitoring changes in traveler behavior, and ensuring supply chains remain as functional as possible will be essential to navigating through this time.

‍