This study examines the trends and outlooks for four
different ground transportation industries in Canada: bus
passenger service, railway service, trucking, and taxis. Ground
transportation is less spectacular in its growth and outlook
for the future than air transportation. Nevertheless, rail and
truck freight revenues have consistently been more than 3
percent of Canada's GNP during the past decade, with value
added in just these two industries somewhere between 1.5
percent and 3 percent of GNP. These nominally small percentages
are actually quite large for two industries as narrowly defined
as these two have been for this study.
In all four of these industries, there has been a tendency
toward increased specialization with fIrms serving increasingly
narrowly defined market niches. This finding holds for all four
of the industries studied, despite their considerable
differences in both past growth and projected future growth.
The primary reason for the observed increases in specialization
is that the costs of specialization have declined, especially
for communication and organization tasks.