Please ensure Javascript is enabled for purposes of website accessibility The Trucking Industry Heading into 2023

The Trucking Industry Heading into 2023

By November 10, 2022Trucking Information
truck driving with freight

Many carriers and owner-operators are trying to get a picture of where the trucking industry is now so they can make plans for 2023. In previous years, it was easy to say if things were good or bad, but the truth is that right now, the outlook is far more complex. The trucking industry in the United States is feeling the impact of issues both domestically and abroad. In some cases, the results have given positive momentum to things like employment. In others, like gas prices, foreign conflicts have placed a squeeze on the freight industry. Before setting any plans in stone, let’s take a look at the state of the trucking industry.

Employment

Unemployment in the trucking industry has reached record lows and the job market has room for expansion in the workforce. Theoretically, this is great news. However, if you scratch the surface, there is still a driver shortage in the trucking industry, and many of those open positions are vacant due to high turnover rates and retirement. Recruiters are trying to reposition their efforts to draw in a new generation of drivers with a focus on what appeals to new drivers, instead of looking at traditional incentives.

semi-trucks at gas stationFuel Prices

Fuel prices at the pump dropped after skyrocketing, yet the biggest cut was for non-commercial vehicles. Trucks and other diesel-powered vehicles are still paying around $5 per gallon. The reason for this can be traced to petroleum production being cut in the Middle East, and in Russia, because of its ongoing invasion of Ukraine. This has pushed many trucking companies of all sizes to make a push for energy independence from diesel by investing in electric vehicles.

Equipment Availability

Related to purchases of electric vehicles, there is a backlog of orders for trucking equipment, ranging from cabs to trailers of every type. A large part of this is due to a slump in manufacturing related to the pandemic. Another portion is due to supply chain issues and getting the raw materials necessary to match production with demand. The positive news is that because of infrastructure packages, trucking equipment manufacturers are ramping up production and more people are working again, so carriers will get the vehicles, trailers, and other items that have been on backorder.

Emergency Hours of Service

Once the COVID-19 pandemic was in full swing, the FMCSA issued allowances to increase hours of service for the trucking industry. The pandemic caused lockdowns, which severely threatened supply lines. Inventory shortages in grocery stores and hospitals spurred the emergency hours of service waiver, which gave the trucking industry to meet the demands of consumers, agriculture, and the healthcare industry. While supply lines in other sectors may be facing a crunch, the essential industries needed to sustain the United States during the pandemic are doing much better. Because of this, the FMCSA has discontinued the emergency hours of service waiver, returning carriers and drivers back to pre-pandemic guidelines.

Industry Growth

Even though there are doom and gloom headlines about inflation and banks raising their requirements for loans, more owner-operators are launching their own small trucking companies. Small trucking companies have the ability to service areas that major carriers cannot reach, plus they can hire a workforce that is younger and can help pull the industry into the future. From long hauls to fleets of medium-sized vehicles providing last-mile service, new and small trucking companies are proving to be the influx that the trucking industry needs.

Planning for 2023

First and foremost, to roll out any plans for the upcoming year, trucking companies need access to working capital. Trying to make headway in January when there are still unpaid customer invoices from December and November is going to limit the financial potential necessary to meet big milestones. Instead of waiting and hoping, trucking companies are using freight bill factoring from Single Point Capital. We will turn your unpaid receivables into cash and make funds available within a single day. This allows you to boost cash flow, cover overhead, and build up capital reserves so you can roll out plans and jump on opportunities in 2023. Position your trucking company for success by contacting Single Point Capital today.

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