As the ripple effects of the current recession continue, businesses
are being forced to look at not just the impact, but at how things will
be run in the future.
At this years Truckload Carriers Association
conference in Orlando, survival was the one word on most participants
minds, but as many leaders have stated over the last few months, there
is also an opportunity to implement new ideas and knowledge from past
In recent years when the economy seemed to be on
steady ground, trucking companies were more willing to spend money on
expanding their fleets to meet anticipated demands.
Today the trend is shifting toward being more
conservative with estimations and looking to increase profit by raising
As a result, equipment used by trucking companies is also beginning to have an effect on the industry across the board. Carriers
in a position to, or who have the need to add capacity are avoiding
buying new equipment or opting for used equipment, which is driving
prices down across the board.
The carriers who are not doing as well are then
finding themselves owing more on equipment that they’re still paying on
than it is actually worth, making it tough to get out of the business
even if they wanted to.
The news isn’t all bad though…a report from Transport Capital Partners
released findings from the Orlando conference says that while tonnage
is off, some carriers are starting to see a boost that might imply that
at least the recession has hit bottom.
With that, some of the healthier carriers are
looking to merge or acquire companies that can expand their business,
or are looking at companies that they feel can be fixed.
The result may be that when the economy does turn
around, we may have a “capacity crunch” without enough tonnage
capabilities to meet demand.
These days though, that sounds like a pretty nice problem to have.