Smaller carriers considering leaving industry if business doesn't increase
Even though the trucking industry may be generating $650 billion annually, according to a recent report, a considerable number of motor carriers are contemplating leaving the industry, a new poll indicates.
In its recent third quarter Business Expectations Survey, Transport Capital Partners reports that 15 percent of trucking fleets are contemplating exiting the industry.
What's driving this appears to be related to the volume of products that carriers are moving. Richard Mikes, a partner at TCP, said that 20 percent of fleets earning less than $25 million in revenues and nearly 12 percent of fleets making more than $25 million said they would give strong consideration to leaving.
"Ironically even though smaller fleets are more optimistic about volumes over the next 12 months, they still indicate that they are more serious about leaving the industry," said Mikes.
The size of fleets tended to be related to this consideration. The survey found that 40 percent of smaller carriers had reflected about leaving the business within the next 18 months compared to just 23 percent of large motor carriers who said the same thing.
Lana Batts, another TCP partner, said any mass exodus would "significantly change the face of the industry."
In its recent third quarter Business Expectations Survey, Transport Capital Partners reports that 15 percent of trucking fleets are contemplating exiting the industry.
What's driving this appears to be related to the volume of products that carriers are moving. Richard Mikes, a partner at TCP, said that 20 percent of fleets earning less than $25 million in revenues and nearly 12 percent of fleets making more than $25 million said they would give strong consideration to leaving.
"Ironically even though smaller fleets are more optimistic about volumes over the next 12 months, they still indicate that they are more serious about leaving the industry," said Mikes.
The size of fleets tended to be related to this consideration. The survey found that 40 percent of smaller carriers had reflected about leaving the business within the next 18 months compared to just 23 percent of large motor carriers who said the same thing.
Lana Batts, another TCP partner, said any mass exodus would "significantly change the face of the industry."
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