Growth Possibilities for Small Trucking Operations
Truckload carriers have it rough given the current economic landscape. A decline in output and an increased number of bankruptcies at the beginning of the year have shown just how serious the problem is for many established carriers. But small companies have also felt the harsh conditions as onboarding new talent, complying to new mandates, and acquiring new equipment has proven to be a costly burden to deal with in a field where demand is down.
But this slump does have a positive side – it means that growth I possible for many trucking companies. Given that many large companies have achieved success after they acquired competitors, many small operations have room to grow and may be able to bounce back by taking the right steps. Many small carriers that have remained successful through smart logistics management and long-term thinking can benefit greatly by looking to acquire other organizations.
These types of acquisitions and consolidations can prove very valuable. In most cases, carriers that are looking to sell their operation traditionally have a few organizational problems or financial limitations that are causing them to struggle given current economic conditions. This means that instead of spending money on entirely new equipment and drivers, a carrier may acquire another who is willing to sell, and then adapt said operation to be more successful.
However, not everyone is onboard with the idea of these types of business practices. Some maintain that this puts drivers in an unfair position as it requires them to travel more or adapt to business practices they don’t agree with in order to remain employed. But if an organization is in bad shape and will fold if they don’t sell, sometimes this can be the best option. Smaller companies can often grow exponentially by acquiring these types of operations and refining them according to better practices.