The truck business is one of the industries that are facing severe problems. According to the American Transportation Research Institute’s (ATRI) report, truck companies are facing a crisis that might lead to their extinction.
The ATRI is a nonprofit organization that works in favor of truck businesses. They are on a mission to conduct research in transportation and come up with ideas to make the truck businesses more profitable.
The recent work and documentation of the ATRI show that due to the lack of attention on truck businesses, the truck business industry is lacking behind compared to the other industries.
What Are The Challenges Faced While Running A Truck Business
Despite the growing effect of the geopolitical unrest, truck businesses are still in their prime form. However, the size and complexity of businesses bring various challenges that need to be overcome.
Crumbling Infrastructure
The crumbling infrastructure has always haunted the truck industry. Over the past few decades, every industry has seen improvement in its infrastructure. However, the truck industry’s infrastructure has remained the same.
When we talk about the infrastructure, we are not only talking about how the industry works. We are also taking Bridges, Roads, Tunnels, and toll taxes into the consideration.
Having a good infrastructure does not only means having a good truck business; it also means having a safety element to the business.
Shortage Of Truck Drivers
The shortage of Truck drivers is one of the major issues for the crumpling of the truck business. People are now more into driving prepaid taxis, Uber cabs, and much more short-distance travel oriented vehicles. These practices have led to a steep decline in the number of truck drivers over the years.
Despite getting constant paycheck increments, over the past few years, the demand is far from being met. The challenges continue to grow, and with the lack of good truck drivers, the truck industry continues to crumble down.
High Variable Costs
Running a truck company is still one of the most operated businesses in America. You will find several truck companies with just 6 or fewer trucks for the business. Running a business means you need to have a steady cash flow to maintain the business into existence.
Here are some of the extra variables that put extra pressure on the businesses.
- Fuel
One of the most consistent expenses that vary on the amount of distance you have covered is fuel consumption. It covers up to a quarter of the total operating costs.
- Lodging
To combat fatigue in the long-distance traveled, truck cabins are replaced with real beds and other necessary utilities.
- Maintenance repair
Trucks are made up of mechanical parts. Hence, there is always a possibility of breakdown. Repairing them also cost quite a lot.
Truck Regulation and laws
Truck businesses come with too much regulation to follow. From fuel emission requirements, E-log devices to the hours of services, there are several regulations that you need to follow. How truck businesses will operate themselves is mostly regulated by the government.
Most of the rules and regulations are meant to keep the drivers safe and secure. However, these regulations also tend to increase expenses.
Then there are the expenses on the truck accidents and repairs. The truck accident regulation can be complex; if you find yourself in one, it is best to have Los Angeles truck accident lawyers. They offer one of the best legal services.
Onboard Truck Technology
In the era of technological innovation, only the truck industry is left out. Technology plays an important role in the growth and development of any industry. However, in the truck industry, there have been only limited technologies that can be incorporated in the system.
The truck industry understands the importance of the technologies and takes help from every possible technology. However, there are hardly any improvements. The most prolific technology that is currently used by the tech industry is the Electronic Onboard Recorders. This tool is used to monitor the HOS compliances.
Conclusion
The Truck industry is rapidly growing, but it also presents challenges for small and large size businesses. If you are in the truck business industry. These are things that you need to know.
