Trucking Industry Still Struggling

The Federal Reserve recently reported that trucking activity was still sluggish in many areas of the United States. Although economists are hopeful the economy has hit bottom and are pointing to economic indicators to confirm their hope, the trucking industry is still waiting for improved economic activity to help their businesses.

According to the Fed’s Beige Book, the six week period ending on October 12 showed that the health of the trucking industry was mixed. A couple of regions showed a slight improvement in activity during the period, many regions were flat during the period, and a significant number still showed declines in shipping activity during the period. Two regions that were highlighted as showing some improvement were Chicago and Cleveland, which had slight increases in freight transport volumes. Atlanta, Dallas and San Francisco were three regions that showed declines during the period.

While the trucking industry is reliant on manufacturing output to fill their trucks, manufacturing output numbers have not been all that promising lately. Many manufacturing firms are hesitant to increase production until they are certain that consumers are capable of buying their products. Additionally, with the construction market suffering like it is, flat bed truckers who traditionally haul construction materials are struggling to find freight to haul. Another factor hurting the manufacturing sector is the tight credit market and lack of financing available at banks. This has led many manufacturing companies to use manufacturing invoice factoring services to fund their businesses. 

I personally know of three truckers, all friends of mine, who are having trouble finding quality loads to haul. We can continue to hope that the economists are correct that we are coming out of the recession, and we should all pray that the recovery comes quicker than predicted. I will continue to watch the Fed’s reports and see what improvement comes for the trucking industry.

Back On The Road 2010

Although I advocate the benefits of freight bill factoring as a way for trucking companies to finance their business and survive the tough economic times, I recently discovered another way of ensuring your survival in the trucking industry – be the recipient of a free truck and other support services. Arrow Truck Sales sponsors a program, along with many other contributing partners, where they will give away a 2007 Volvo VNL 670 truck, as well as a one-year work agreement, business consulting services, insurance and extended warranty, plus many other great products and services.

The purpose of the program is to give someone who has been in the trucking industry, but for personal or hardship reasons had to stop driving, a second chance at a career in trucking. Thus they call it the “back on the road” campaign. Arrow Truck Sales is looking for people to tell their stories of why they are the most deserving of a second chance. I kind of look at it as the Extreme Makeover: Home Edition for truckers. One deserving driver, who has fallen on hard times yet continued to give of themselves, will be named the winner of the campaign in March of 2010.

In addition to a 2007 Volvo VNL 670 truck and a one-year work agreement with Heartland Express, the 2010 Back On The Road winner will receive:

• Custom truck paint job courtesy of Dickinson Fleet Services
• X One® tires courtesy of Michelin
• TriPac auxiliary power unit courtesy of Thermo King
• Monthly $500 fuel cards courtesy of Pilot Travel Centers
• One year’s worth of filter products courtesy of Genuine Volvo Parts
• Business consulting tools courtesy of ATBS
• Insurance provided by the Owner Operator Independent Drivers Association (OOIDA)
• A 3-year / 300K mile warranty from National Truck Protection, Inc.
• Truck accessories and fenders courtesy of Minimizer Products

Anyone interested in entering the promotion can visit the Back on the Road 2010 web site at www.backontheroad2010.com and click on the registration form link. Who knows, you or a loved one just might be the one lucky winner. Good luck!