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Automated Vehicles, Integrated Multi-modal Freight Systems, and Smart Warehouses are Likely to Transform the Logistics Market
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The Canadian economy is expected to experience steady growth, mainly due to improvements in consumer spending and the business environment. A trend of re-allocation of investment and employment from resource to non-resource is being observed as the economy continues to adjust to low commodity prices. Canada’s labor market is characterized by flexible employment protection legislation (EPL), which increases employment rates. The services sector, including transportation, financial, and business services, will drive GDP growth in the near future. Canada's economy is highly interlinked with the US economy as the latter is the major trading partner for the former's exports and imports. The Canadian Government is keen on expanding FTAs and FIPAs with emerging economies to foster industry growth and exports to these countries. The Canada and EU Comprehensive Economic and Trade Agreement (CETA), which covers goods, services, investment, government procurement, and regulatory co-operation, reinforces Canada’s fundamental relationship with the European Union. Canada’s transportation system needs to adapt to fundamental trends such as shifting trade patterns, new environmental requirements , and technological innovation. Short-to-medium-term employment in the transportation and warehousing space will be driven by low energy costs and investments in regional transit. Warehouse/distribution facilities are seeing increased demand due to the rising exports, coupled with the low transportation costs. Toronto and Montreal warehouse spaces possess a locational advantage that will help to capitalize on export growth. The Trade and Transportation Corridors Initiative (TTCI) will invest $2 billion over 11 years to make Canada's trade corridors more efficient. Road and rail are the preferred means of transporting freight domestically, while air and sea are used for international trade. Smart vehicles, integrated multimodal freight systems, and green technologies play a key role in establishing sustainable logistics in Canada's supply chain management. Big Data analytics, drones, automated vehicles, telematics, and alternate fuel vehicles are the key trends that will gain a strong footprint in the country's future transportation system.
The aim of this study is to research and analyze key developments and trends relating to economy and trade and the freight and transportation and logistics and warehousing sectors in Canada.
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