Keep A Competitive Advantage, Gain Market Share, Expand Your Truck Fleets NOW
We’ve all heard a lot of buzz about supply chain disruptions on the news this year. The pandemic has been a substantial contributing factor to the global supply disruption, from clogged ports to the shortage of truck drivers, affecting the products we need, from your favorite beverages and essentials like toilet paper to electrical components and computer chips. To achieve a stable and more robust future, all players along the global supply chain need to find short-term technology solutions to arm supply chains with more stability and better operational effectiveness, preventing bottlenecks and disruptions. Eventually, everything will find balance again. But to keep a competitive advantage, gain market share, and continue seeing business growth, it’s essential to expand your truck fleets now, even when supply chain challenges persist.
A silver lining does exist — as the economy is expected to rebound for the next two to three years. The current administration anticipates more stimulus for rebuilding infrastructure, bridges, and schools. This expansion will result in the need for trucking companies’ trailers and increase the demand for qualified truck drivers. Opportunities exist even in this environment, so now is the time to expand your fleets and believe in your business. We are here to help you every step of the way with great financing options.
Global Supply Chain Disruptions: The Root Causes
Our nation has faced many challenges over the past couple of years, many of them are related to a global supply chain that remains the weakest link. In a nutshell, heightened demand far outweighs the market’s capacity. The global supply chain infrastructure that exists can’t handle the volume of products streaming through the economy. One root cause could be the government stimulus that has accelerated consumer demand to buy physical products. Production halted while the U.S. economy switched to demand overdrive. As production slowly started again, the manufacturing sector responded by fulfilling a massive backlog of orders. In addition, container volume increased at capacity-constrained facilities, awaiting trucks for movement and delivery. But containers sit idle with a shortage of trucks and drivers.
The Trucking Industry Tackles Supply Chain and Driver Shortage Issues
Trucking, a vital link in the supply chain, has been the hardest hit, from a truck driver shortage to a lack of trucks. Trucks propel our economy. Trucks transport nearly seventy percent of freight in the U.S. With a shortage of truck drivers, exacerbated by the pandemic, the problem lies in driver demand exceeded supply. Everything we purchase is delivered to us via trucks. The current truck driver shortage affects prices since increased driver rates are typically passed on to the consumer.
Truck driver retention remains a strong focus as the economy rebounds. According to the Minnesota Trucking Association, the trucking industry saw 60,000 fewer drivers, resulting from canceled driving school classes and early retirements due to COVID-19. The pool is not growing, either, and the demand for goods will remain in overdrive. Turnover rates are over 90 percent for sizeable long haul carriers and over 72 percent for small carriers — meaning that drivers are regularly leaving companies or leaving the industry altogether, according to a U.S. Department of Transportation press release. If we don’t work on the solutions to the truck driver shortage now, the issue will worsen in the years to come. That goes hand-in-hand with the lack of trucks and trailers on the road to handle the surging consumer demand.
However, amid all the chaos and challenges, good things happened. “The second quarter of 2021 builds on a remarkable story of an industry that has continued to deliver essential goods to the American people every day through one of the most challenging periods in the industry and country’s history,” said Geoff Freeman, president and chief executive officer of the Consumer Brands Association.
Every day, every industry, from trucking to manufacturing, strives for normalcy. There is no new normal, and the way forward is through innovative solutions and transformation. American Trucking Associations (ATA) said the trucking industry must hire about 1.1 million new drivers over the next ten years, or an average of nearly 110,000 per year, to keep pace with retirements and growing transportation needs.
Business leaders are committed to being a force for good, and change will extend in every industry. Opportunities will follow. The marketplace is enormous, and you have the potential to obtain a sliver of that growth. So, expand your fleets now. The exceptional staff at Commercial Fleet Financing is ready to help you develop your fleet and grow your business.
About Commercial Fleet Financing, Inc.:
At Commercial Fleet Financing (CFF), our pros have given smart advice to fleet owners and owner-operators in the transportation, moving, towing or construction industries for more than two decades. With CFF, finding the right financing solutions is a phone call away and most borrowers secure commercial vehicle financing with ease. To talk directly with one of our finance pros and get started with credit approval in as little as two hours, CFF’s phone number is (469) 281-2962.