Key Takeaways
- Tech.co data reveals that 61% of logistics professionals have either delayed or cancelled their trials of Electric Vehicles (EVs).
- This has occurred soon after President Trump lowered the standards of pollution cars and trucks are allowed to emit, making diesel cheaper for logistics firms.
- Our findings suggest that sustainability initiatives within companies are more likely to come about as the result of favorable government policies.
New Tech.co data has revealed that 61% of logistics professionals have either delayed or cancelled Electric Vehicle (EV) trials, following the latest government rollbacks on diesel.
In early December, President Trump eased efficiency standards for diesel cars and trucks, ultimately making them a cheaper option for logistics companies than EVs.
Professionals have reacted immediately to this change by wavering in their adoption of EVs, which shows how much influence government policy has on sustainability initiatives within the logistics sector.
Logistics Industry Slows EV Adoption Following Trump Diesel Rollbacks
Our data shows that trialing for EVs in November more than tripled, with 38% of logistics professionals stating they were trialing the technology.
However, our December data indicates a shifting mindset. Trialing for EVs among logistics professionals has since dropped to 11%, suggesting that the sector is no longer intending to move to more sustainable methods in the long-term.
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Likewise, for the first time in our research, trialing alternative fuel among logistics professionals dropped to 0%, suggesting a wider acceptance of diesel following the new laws.
Trump Lowers Fuel Efficiency Standards, Making Diesel Cheaper
Our data suggests a correlation between the number of EV trials and recent changes in US regulation surrounding heavy trucks. In early December, President Trump lowered the standards of the amount of pollution cars and trucks can emit.
This change made diesel trucks cheaper for logistics businesses, because they would no longer need to purchase expensive and complex emission-reduction technology alongside them.
Therefore, it becomes more cost-effective for professionals to invest in diesel, and makes the prospect of adopting EVs much more expensive comparatively.
Not only is the upfront cost of diesel trucks compared to EVs far less, but it also can take years of investment and use for businesses to actually see return-on-investment.
Is Sustainability Within Logistics Dependent on Government Policy?
As the percentage of EV trials being delayed or cancelled increased, so did the percentage of businesses claiming adapting to regulations as their top priority in December. Meanwhile, the percentage of professionals claiming sustainability was their top priority, regressed to 6%.
This suggests that logistics professionals are more concerned with navigating a new regulatory environment than investing in sustainable initiatives, and that the US government has a significant impact on the priorities of logistics professionals.
But does this hold concerns for the future of the industry, particularly when it comes to sustainability? It’s very likely that logistics professionals will only start to take more bold steps towards a more sustainable future when the government makes it in their best interest to do so.
