The trucking industry in this country is growing rapidly and promises continued prosperity in the coming years. Yet, this rapid growth is presenting some challenges for small to medium-sized trucking companies who are struggling to remain competitive. Here are just a few of the common challenges of today’s trucking companies.
The trucking industry is highly regulated. If you are a trucking company, you need to be concerned with such things as hours-of-service, emission requirements, DOT standards, and maintaining e-log devices. This creates an added expense to most trucking companies.
The cost of diesel fuel may be low at the moment, but fuel prices tend to fluctuate and rising costs will eat into a company’s profits. Some trucking companies use fuel card programs to produce some discounts long-term.
Most small to medium-sized businesses struggle with cash flow issues, and trucking companies are no different. Some of these businesses could wait up to 90 days to be paid for a haul, while still needing to make payroll and pay for fuel. Factoring, or accounts receivable financing, is often a fast and affordable cash flow solution for a trucking company.
Finding qualified drivers is a common issue for many trucking companies. There is a shortage of trained drivers nationwide, and the turnover rate in this industry is quite high. Moreover, driver health in the trucking industry isn’t as it should be. There are programs for recruitment and better health that are making inroads in both areas.
With more trucks on the highway than ever before, safety is an important issue for trucking companies. Technology is helping to improve safety, and these companies are finding that better safety rates increase their business success long-term.
Our country’s infrastructure has much to be desired, and there are a lot of improvements that need to be made on roads and bridges. Until the funding is committed for these programs, trucking companies can expect continued delays on the road, which could eat into long-term profits.