1 - The Rate of Change - Have You Noticed How Fast Things Are Changing These Days in Our Industry? Seems Like By the Time You Take the Steps to Comply With New Government Regulations, They Are Already Talking on the News About How Your Steps Are Outdated and You Should Really Be Focusing on the Next Latest and Greatest. This Rate of Change is Effecting All Facets of Business and Requiring Successful Business Owners to React and Forecast Quicker Than Ever Before in Order to Stay Ahead.
As With All of These Issues, There is No Solution I Can Post Here to Make a Light Go on in Your Head. They Are Complex Issues That Can Be Addressed At Many Different Angles. I Will Provide a Direction in Which Us at Prime Trailer Leasing Feel is the Correct Way to Go.
Solution: The Direction We’re Headed in is a Focus on Efficiency. With the Combination of Better Business Practices and Technology We Are Able to Process, Analyze and Create Information and Change at a Closer Pace To What The World Appears to Be Moving Towards. Better Business + Technology = Efficiency = Competitive Edge and Success
2- Government Regulations on Environment and Safety - With the EPA, FMCSA, and DOT Requiring More and More Regulations That Force Change, It is Critical to Fully Understand The Changes in Our Industries Dominating Regulations. For Example, the New EPA SmartWay Deadline is Becoming a Huge Cost Factor for Most Trucking Companies Regardless of the Compliance Path They Chose. Likewise, CSA Regulations Are Increasing Costs for Hiring Drivers Due to the Higher Standards of Health and Safety Brought Forth Through the 7 BASIC Rules.
Solution: To Remain Simple I’ll Call the Solution Education. Awareness of the Regulations Can Often Equip Your Company With The Proper Foresight to Avoid the Negative Repercussions of the Regulations. Proper Education Leads to Better Budgets and Forecasts and HR Decisions.
3- Supply and Demand of Trailers – Ever Since the Downturn in Our Economy in 2008, We Have Had a National Trailer Shortage. This Was Caused by All of Us Holding Onto Our Trailers and Not Buying New Trailers For a Few Years. New Trailer Production Slowed and Consequently Had a Ripple Effect on the Trailer Supply over the Last Few Years. In Addittion, with Scrap Prices So High and Many Storage Trailers Becoming Scrapped, the Local Cartage-Type Equipment Has Also Been Low in Supply.
Solution: Nothing Short of a Stable Economy Will Solve the Fluctuations in Trailers, and That Isn’t Likely to Happen Anytime Soon. In Reality, a Better Solution Would to Adapt Your Business Model to Be More Flexible in Terms of Fluctuations in Trailer Supply. This Can be Done in Many ways such as Better Maintaining Your Current Equipment to Improve it’s Life or Making Repairs and Adaptations to Your Equipment so It Lasts Longer. Many Trucking Companies are Holding on to Their Equipment for 2012 and Putting Money Into Them Instead of Buying New as the Prices Are Still Higher Than Desired. Adapting Your Business Model is Key to Prevent a Loss in Revenue Due to Lack or Surplus of Equipment. As Heraclitus Says, The Only Constant in This World is Change.
