The US transportation and warehousing sector has experienced a surge in research and development (R&D) investment, with an increase of US$3 billion (c. £2.3bn) in the past year alone.
According to industry data from the National Centre for Science and Engineering Statistics, companies in this sector have collectively invested $10bn (c. £7.8bn) in R&D, up from $7bn (c. £5.4bn) the previous year – a 30% increase. This rise is reportedly nearly three times higher than the average increase in R&D spending across all US sectors, which stands at +10.65%.
The findings, reviewed by R&D tax credit specialists at Source Advisors, indicate that the transport and warehousing sector has seen the eighth-highest increase in R&D spending among all US industries. This substantial growth is part of a broader trend of long-term investment in innovation, with R&D spending in the sector having grown nearly twenty-fold over the past five years.
Jordan Fazio, senior director of R&D tax credits at Source Advisors, underscores the strategic importance of this investment: “Investment in R&D is no longer optional but a strategic necessity to stay ahead in the competitive landscape. We’ve seen through working with national and international firms in the transportation and logistics sector the increased importance placed on being at the forefront of technology to improve existing services and identify new innovation routes.”
The surge in R&D spending is driven by a variety of investment areas, including custom software development for fleet, inventory and workforce management, advancements in digital monitoring capabilities and the adoption of robotics and other automated technologies. These innovations not only enhance operational efficiency but also position companies to capitalise on substantial tax savings through R&D tax credits.
Source Advisors emphasises that many companies in the transport and logistics sector may be missing out on potential tax savings and encourages them to review their R&D expenditures in relation to the R&D tax credit qualification criteria.
The research conducted by Source Advisors analysed up to 10 years of R&D investment figures across various sectors in the US.
