While it might seem contrary to our economic knowledge, it turns out that long haul trucking could be quite healthy in times of deep recession.
It would seem that the trucking sector would be in disarray since 80 percent of U.S. industrial production relies on trucks for freight transportation. A lot of these companies are closing down. Even though trucking bankruptcies rose in 2008’s first three quarters, many companies have managed to keep their successful fleets in operation thanks to the efficiencies of industry consolidation and lower diesel costs.
The trucking industry’s outlook is much better. Why is this? The reason is that the trucking industry has been experiencing a shortage of truckers for several years. With current unemployment rates so high trucking companies have been looking for new drivers.
North South Leasing is a Michigan-based truck leasing firm that has seen its application for leases triple since June 2008. North South Leasing leases semitrucks to owners-operators, who manage the trucks like small businesses. Bob Anderson, General Manager, reports that 80 active leases were signed from clients who offer more collateral or accept shorter terms. “Other finance and lease companies made their standards so high that people who would receive credit just a few years ago can’t get it today,”Anderson. “We keep our standards reasonable.”
Many students are taking trucker training classes at driving schools. Every economic group, including blue-collar and non-white-collar workers, now see trucking as a viable way of earning a weekly salary.
“Like many other industries, trucking is experiencing a very difficult time during the current economic recession,”Bill Graves, President and CEO of American Trucking Association. “But looking at recent trends, all signs point to a strong, vital, long-term future for our industry.”
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