Across the United States, the economy is gaining momentum and shows signs of being stronger than previous years. With the demand for capacity trucks, an increase in production form other businesses, the rise of e-commerce, and customers with more revenue to spend on orders, how are fleet owners handling industry growth.
Because industry growth is in full swing, fleet owners are allocating revenue to acquire new trucks. Whether these vehicles are added to meet customer demand, or to make the transition from gas to electric power, fleets are bulking up to take the strain off of drivers and attract more client accounts.
The shortage of drivers in the trucking industry is still an ongoing concern among fleet owners. To combat this, fleets are offering sign-on bonuses for new drivers, as well as increased salaries. As of June, the average salary for new drivers was $7,000 higher than it was just five years ago. Newly licensed and trained drivers stand to lock in a substantial earning during this period of industry growth.
When there is industry growth, it doesn’t hurt to cast a wider net. Fleets are launching marketing campaigns to reach often-overlooked segments to get more business. Since Ryder trucks have started offering “last mile” delivery, other carriers have followed suit. Even smaller fleets are contributing to trucking industry growth by taking capacity loads into areas that aren’t normally served by larger carriers, forming a symbiotic relationship with big fleets.
Building Capital Reserves
While taking advantage of industry growth to build momentum is a smart strategy, some fleet owners remain cautious. A strong economy is part of a cycle, and no one can predict how long the good times will last. To that end, fleets are building up reserves so they have a financial buffer “just in case.” Unfortunately, trucking receivables are usually on staggered payment schedules, which means fleets have to wait a month or longer before they see revenue. To speed things up, fleets of all sizes are using freight load factoring, which converts unpaid invoices to cash within 24 hours. Freight load factoring improves cash flow so fleet owners can take advantage of growth projects while simultaneously building up capital.
Take Advantage Of Industry Growth
Express Freight Finance is a leader in the trucking industry, offering the easiest and most comprehensive program for freight load factoring. Contact us today to get fast access to revenue from your invoices, and start growing your fleet.