The past 12 months have been brutal for the trucking industry. But that is not a surprise when looking at the overall state of the U.S. economy. But as economists are saying that the recession is ending, what has been the impact on the trucking industry’s job market and what are the prospects for employment growth in the near future?

While the trucking industry has shed significant numbers of jobs from payrolls over the past year, many drivers remaining in the business have had to take pay cuts to keep their jobs. Additionally, small owner-operators have struggled to find loads that pay enough to make it worth their time to drive. So the true impact on the trucking industry labor market is far worse than the numbers lead us to believe.

A long-time single power unit owner based in Hesperia, California recently lamented to me about his struggles in finding quality loads. He stated that with the slump in demand and the large number of people trying to survive in the trucking industry has driven down rates and spread the freight so thin that it makes it nearly impossible to pay all of the bills. And our friend from Hesperia is not alone. Many drivers around the country have experienced the same problem and have either sold or leased their trucks to others who are trying to ride out the storm. And while freight bill factoring services have helped accelerate cash flows, the lack of available freight has brought many to the end of the line in their trucking career.

Reports have recently come out stating that trucking activity, which has a direct correlation to manufacturing and import activity, is showing signs of improvement in select regions around the country. One such area that is seeing increased activity and projecting the need for additional truck drivers is in Oregon. Experts predict that with the stabilizing economy, Oregon will see increased demand for truck drivers over the next decade. Moreover, large trucking firm CRST recently held a job fair in Long Beach, California. Reports state that truckers flocked to the job fair where job offers were made with pay ranging from roughly $400 – $1,000 per week.

So while there are signs that the job market for truckers may be recovering, true recovery could still be 18 – 24 months away. For real recovery in the trucking industry’s labor market, economic recovery must be strong and sustainable, credit markets must be loosened to allow for financing expansion in trucking, and tonnage must increase enough for the current excess capacity to be absorbed before significant numbers of jobs will be created in the trucking industry.

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.

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!

The fact that the supply in the trucking industry has outweighed the demand for shippers and cargo has been “an accident waiting to happen”, to borrow a phrase, and the recent downturn in the economy is the symbolic banana peel in the footpath.  When any industry becomes top-heavy, as the trucking industry has over the past few years, a few of the blocks must tumble.  Call it survival of the fittest, call it classic free market economics, call it the best or worst thing that could happen to your business, but for better or worse, only the leanest trucking companies will survive until the pending rebound of the current recession (fingers crossed).

The result may be similar in result to the shake up of the airline industry over the past decade where many companies who couldn’t trim the fat and become more technically savvy were run into the ground with ballooning costs and stiffer competition.

The number crunchers and veterans of the trucking industry have predicted several outcomes resulting from the over capacity of the current market.  In terms of keeping the business afloat until the life boat arrives, price will keep customers or lure them away from someone else. Lower rates and better discounts are the bottom dollar for trucking customers who are trying to keep their heads above water too.

Companies who can survive the price cutbacks and drop in tonnage will have to make the most of every mile which might mean technological updates, better behind the scenes coordination, and higher density loads to keep things more efficient.  Stricter guidelines for coordinating hauls will mean fewer empty miles, less damage and loss, and satisfied customers.  It also means you can still pay your employees because you’re still open for business.   These kinds of reminders might make it easier to ease them into the changes you might propose. Additionally, accounts receivable factoring is another financial resource available to trucking companies to help weather the economic storm.

If you can make it to the other side of the current dearth, then your position is all the stronger as weaker competition falls away, your company has adapted to run more efficiently and prices adjust upward to reflect the newly balanced industry and improving economy.

There are three areas where the swine flu and the repercussions of that type of pandemic flu could potentially hit the trucking industry the hardest.  The main areas are focused on livelihood, personal health and political relations.  For starters, the business side of the issue ranges from delays in shipment due to health checks and inspections to outright bans that could affect the lucrative and industry-sustaining Mexico-U.S.-Canada cross border trade relationship.  Although such bans are premature at this point, U.S. government officials have warned it’s on the board and will be enforced if conditions worsen.

That being said, smart companies should outline a contingency plan not just to protect their assets, but their employees as well.  The government has issued a pandemic guide to help highway and motor carriers prepare, respond and recovery.  Because trucking will be a life-line during times of medical emergency, a strategic outline is important to your company’s financial and physical well being.  Truckers are front line responders because they provide the means to get food, clothing, medical supplies, and other essential items to the affected areas. 

On the health note, the swine flu can threaten those closer to home as well as those you only read about in the newspaper.  The health of your employees should be paramount and because of the increased risk that long hauler truckers who travel extensively face, they should be educated about precautions, symptoms and the risks associated with swine flu.  Vigilance in safe health habits is more important than ever and inform them of what they can to be more cautious.

The long term impact of the swine flu might be seen in the political impact this could carry for cross-border relations.  The shutting down of boarders could delay ongoing tariff negotiations between Mexico and the U.S. as well as deter consumers from purchasing products from Mexico.

A web host is an important partner to your online presence and marketability.  The web host is the company who administers your web site. Web hosting is a service offered by companies that own the necessary computer equipment that is connected to the Internet so the web site you’ve designed is available for your customers to access. I hope this post will help you find the best web hosting provider for your trucking company.

You don’t have to be a technology guru to figure out which web hosts are the best providers.  You do have to be a smart consumer, and do a little homework.

The major area of concern is uptime, which is the amount of time your website is available to view on the Internet.  Downtime can be caused by a number of problems from viruses to equipment failures to power outages, and should be expected from time to time,.  A respectable claim from any web host is a reliability rate of 99 percent.  Be sure your service contract ensures some type of satisfaction guarantee, and go over the fine print to make sure that you understand reliability standards, time limits, set-up fees, and refund policies. A reliable web host is critical to your website’s success.

After you figure out the numbers game, then it’s just about some detective work.  Look for companies with at least a year under their belt who have a proven track record or at the least, show some stability.  Comb through message boards and testimonials.  Look up the host on reliable web sites that rank or recommend these types of services, many of which will give web hosting reviews.  Find out the actual physical location of their servers and make sure it’s in a safe area of town.  Better yet, ask if they are located in the same area as their business offices so you know they are keeping a close eye on your information.

As you check out different web hosting providers, click on their “Contact Us” links and see how they respond.  A little sampling of their product could let you know if they’re quick and helpful in their responses.

Getting your trucking company on the web could sound a little out of your league, but if you break it down into a few steps, it’s really something anyone can do.  If you don’t believe it, then just surf the Internet for a few minutes and check out all the strange stuff out there, and then you’ll be a believer – just about anyone can build a website.

The first step is designing the website.  It’s similar in idea to creating a document on your word processor but you just use software geared specifically to creating web sites (common programs include Macromedia Dreamweaver, Adobe GoLive, or Microsoft FrontPage).  These programs are designed to be user-friendly which is code for you don’t have to be a techy to understand how to use it.  If this still feels like to much of an undertaking than just hire someone to design and maintain your website for you.

Next, register your domain name.  Once you find an address or domain name that is available and identifies your company then you register it with a domain registrar or web host for a yearly fee. You can register your domain name for 1 to 10 years, but be aware if you let it expire the name will be up for grabs by anyone.

Last, contract a web hosting service.  They are the company who will take the web site you’ve built and put it out there on the “www” under the domain name you’ve registered.  They are the car lot of the internet world.  It’s where you park your trucking company website and wait for customers to come take a look. 

At every step along the way, it’s key to do your homework, ask questions from people who have done it before, and look for assistance from companies be it web designers or web hosts who have built a strong reputation for customer service and reasonable rates.  If you shop around and get a sense of the going rate, then once you’re in the ballpark of price ranges, just look for those companies who come with the highest recommendations.  As with most services, you get what you pay for.

If your domain name is like your address on the Internet then your domain extensionis your zip code.  Most of us associate domain extensions or top level domain (TLD) with .com which is the most common and universally accepted TLD; however, there are other options.  Whether they are better options is debatable but be aware of what they are.

Originally, the TLD was intended to make a connection between the website and its product, and group it with other like websites.  For better or worse, .com and its subsequent popularity and first choice status has made it the domain extension that most people are conditioned to type in.  The fact of the matter is that it is the best known, most recognizable, and most often used TLD.  For that reason it continues to be the safest bet in selecting a domain extension and the most popular for a reason.
 
There are other unsponsored and unrestricted domains, some more better known and recognizable than others.  For example .info like its name infers is for informational websites; .net for technical network sites; .org for non-profit organizations; .biz for businesses involved in ecommerce; and .coop for cooperatives.
 
Even these specialized TLDs that are aimed at specific sites are still open to anyone who wants a website under this domain extension.  For that reason it’s wise to do your homework before going off the beaten path with your TLD.  Check with business peers to see if it’s a common practice to use an alternative domain extension.  It’s one of those instances in business where it’s better sense to follow the crowd.  Also make sure it’s a legitimate TLD or that if you’re thinking of going over seas rather than just out of state with your website that the domain extension is readily available to those potential customers.

So you’re ready to stake your claim in cyberspace.  Hopefully this post will give you some ideas on how to come up with some cheap domain names. One of the first and most important decisions you need to make is determining how you want to be identified.  Your domain name is basically your calling card as an Internet site; it’s what someone types in to find your site or what a search will pull up when someone is looking for your trucking business.

There are a couple rules of thumb to be aware of as you register a domain name.  They are basically the same common sense rules of advertising or marketing which still apply as you decide what to name your website.  Keep it memorable, simple, and identify it with your business.  If you can use your company name, that is your best bet.  Just remember you may need to drop “little words” from the title.  For example, instead of using the full company name, The Best of the West Trucking, Inc., you could use bestwesttrucking.com.
 
You also have to work with the tools you’re given.  There are certain parameters to selecting a domain name and your name can include letters a through z, numbers 0 through 9, and the hyphen or dash. Words in your domain name are separated by periods or dots, not spaces, and heaven forbid you go with anything this long, but the entire address is limited to 255 characters.

One thing to keep in mind is that you might need a back up plan if your first address choice is taken during the domain name registration process.  Domain names are first come, first serve, and if your first pick is already in use, you’ll have to go another route.   Ask a few reliable sources what they think of your ideas before you buy your domain name.  Make sure they understand the wording, immediately relate it back to your company, and could remember it.

Are you still wondering if this Internet trend has about run its course?  It’s sort of like those people who thought TVs were just a fad.  Truly, if you don’t have a web presence by now, you’re making yourself obsolete in the business world.  If you’re one of the Internet holdouts, often the problem is not understanding that a business web site is must, but overcoming the intimidation factor of where and how to begin can be difficult.

The first step is deciding how you want your website to function.  Do you want to go with the basic business website that is geared toward informing the customer (i.e. company background, rates, routes, employment)? This quite frankly should be a must for any company, and as basic a building block for your business as the open and closed sign on the front door. 

The other option is jumping with both feet into the online game, with a full blown e-commerce site where customers can actually contract your services or buy your products online.  Of course this extension of your company could be as simple or extensive as you want depending on your ambition to get into the online world.  Either choice is going to be a huge benefit to the longevity of your business, and your decision depends on the type of commitment you want to make to your online presence.

A couple things to be aware of as you get into the online game.  It’s more than just simply putting up a website.  Just like a physical setting for a store, it’s all about location, location, location to drive in traffic – so too on the Internet.  Online marketing strategies like getting your name in search engines, email promotions, advertising banners, will position you in prime territory on the Internet and drive hits on your website.

There are also web hosting companies who specialize in businesses web sites, and for a monthly fee provide helps with setting up e-commerce, payment options for customers, and marketing. These hosts are a great resource to online first timers and offer easy to use software and ideas to get you started.