Trucking Industry Statistics You need to Know
The trucking industry is one which is constantly growing but it is also one that is quite difficult to break into due to the number of businesses already existing. If you are thinking about getting into this industry, then it might be helpful to find out some more about how it operates.
Here, we have put together some vital statistics that you should know about this industry. Keep reading to find out more about this.
Did you know that more than 70% of domestic freight tonnage in the USA is transported by trucks? This is quite a high percentage and it is something worth considering if you are thinking about getting into the industry. Regardless of how difficult it might be to get into the trucking industry, you will find that it could be very worthwhile.
Surviving The First Year
For any business surviving the first year can be very tricky. In the trucking industry, it is evident that only 15% of new trucking companies can actually make it through to their second year of business. This is quite a low statistic and it is one to consider. Of course, there is financing for trucking companies that you can use to increase your chances of surviving and creating a sustainable business. You can use a factoring company for trucking for instance to increase cash flow for example.
Another challenge that you might face in the trucking industry is the profit margins that are standard. In this industry, the profit margins are pretty tight, and this can often be problematic. In the trucking industry, you will find that there is $0.05 in profit made for every dollar that is made by the average trucking company.
When you are starting any kind of business, it is important that you understand the competition and who you are going to be coming up against. The truth about the trucking industry is that there are over half a million companies in the USA alone that are focused on trucking. On top of this, you will find that 80% of these businesses are actually small businesses just like yours will be if you are trying to break into this industry.
Is It Worth It?
The trucking industry might be tricky to break into, but this doesn’t mean that it isn’t worth it. There is a lot of profit to be made if you can get the right customers on board and find the contracts that are going to last through the first year. As long as you have the right financing then you will be able to make it a success.
Now that you know a little more about the trucking industry, you can make an informed decision on whether this is the right industry for you. Remember to consider all of the statistics carefully and establish the potential profit that you will make. Soon, you’ll have your own trucking business and will be making a profit in no time at all.