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Why is the transportation industry cyclical in nature
Course:- Case Study
Reference No.:- EM13879000




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Question 1. Why is the transportation industry cyclical in nature?

Question 2. In terms of capacity, what steps can transportation companies take to avoid or at least mitigate the negative effects of economic downturns like this most recent one?

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A cyclic industry can be defined as an industry which is sensitive to the cycle of business i.e. the revenues in such business are higher in times when there is economic prosperity and expansion whereas the revenues drop down in times when the economy is weak or is contracting. Transportation industry is one of the main industries that are required for the survival of all business organisations throughout the world. Business organisations need various modes of transportation to import raw materials, semi-finished products etc. and to export finished and semi-finished goods to the market.




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