According to the National Association of Small Trucking Companies, only 15% of trucking companies make it to their second year! Ouch.
It would seem the odds are stacked against a newly formed company. But take heart, the rate of small business failures has been decreasing for the last 30 years. New tools, new technology and more efficient cost management strategies are breathing life into the trucking business.
Not only that, but tight capacity and rising demand in trucking is driving improved sales growth. Fleet efficiency and capacity utilization are ticking upwards as well, leading to trucking rate increases–good for a company’s profitability.
Since most trucking companies are smaller, less than 20 employees according to the U.S. Census Bureau, they are well positioned to scale down or up as demand dictates and can react to meet new opportunities.
With new opportunities, trucking companies are seeing an expansion in their average net profit margins. Being able to reliably track the company’s biggest expenses in real time goes a long way towards budgeting and revenue forecasting in this growing market.
Fuel and driver wages are commonly at the top of the expense list. And here is more good news: fuel costs are down. This factor along with trucking demand should outweigh wages pressures and low unemployment.
To be profitable, trucking companies also need to run as efficiently as possible. A great way to insure that, is by having automated systems in place to save valuable time for your staff. DrayMaster specializes in rate management & digital delivery software that allows you to send out accurate, complete quotes, in just minutes! To take advantage of new efficiencies, schedule a demo with DrayMaster today.