Top Trucking Giants Are Utilizing Economic Slumps As Valuable Opportunities
While trucking jobs are known to fluctuate as the occupation depends largely on the success of its partner companies, most of the larger names in the industry can enjoy relative stability and even growth regardless of economic factors. But recent numbers show that this isn’t always the case. A combination of multiple factors has led to lost revenue and slower-than-normal growth for many of the top performers in the trucking industry. While previous years have been good for many of the top trucking companies in the country, many are using the downtime presented in 2016 to branch out.
While some companies have experienced growth, rates haven’t been as large as in the past. With some companies generating only about 33% of their forecasted growth when compared to past years, it’s clear that multiple issues have led to the change.
Though numbers aren’t alarming, the sudden change is worth taking notice of. For so many well-known trucking companies to experience slumps simultaneously, the answer likely lies in the compounding effects of multiple small changes within the trucking industry. These types of changes are not uncommon, but their continued presence concurrently has created negative effects on even the most successful names in trucking.
A dip in demand is one of the most likely culprits anytime trucking companies notice losses or slower-than-normal growth. The lack of regular output from partner companies was indeed shown to be a source for the setbacks trucking companies have experienced, as are fluctuating fuel prices. The presence of inventory surpluses at businesses with lackluster sales as well as changes in fuel surcharges has made normal business less profitable than usual. However, some trucking companies are utilizing these opportunities to give more attention to expansion and changes within their organizations.
Some companies see economic slumps as nothing more than hard times that will eventually pass. However, the most successful organizations use these opportunities to grow their brand. XPO Logistics, a company that consistently ranks in the top 50 trucking companies in the country, has shown favorable shares recently due to their commitment to versatility and adaptability within all types of economic conditions. With new management being added and new partnerships being developed with other companies, XPO Logistics has taken steps to ensure their company continues to grow. This type of long-term strategy is vital – especially in rough economic times.