The Little-Known Influence of Consumer Demand on Trucking

The Little-Known Influence of Consumer Demand on Trucking

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The Little-Known Influence of Consumer Demand on Trucking Even asCDL training schools acrossthe country are struggling to keep up with the demand for new truck drivers, Wall Street analysts are warning investors not to put their money into trucking company stocks in the coming months.

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Published 15 March 2016
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The Little-Known Influence of Consumer Demand on Trucking Even asCDL training schools across the country are struggling to keep up with the demand for new truck drivers, Wall Street analysts are warning investors not to put their money into trucking company stocks in the coming months. This seeming dichotomy makes it appear as though the trucking industry is suffering to the point of losing big. Not only is the trucking industry not suffering, but big losses are also not expected in 2016. The difference between reality and perception is one of consumer demand and its effect on the industry. Wall Street is advising against putting money into trucking due to annual growth projected to be not as strong as in previous years. But weaker growth does not translate into losses. Companies such as C.R. England will continue hauling freight from coast-to-coast and making money doing so. Yes, growth may be a bit less than anticipated this year thanks to falling freight prices, but those prices will have little impact on our daily operations. They will certainly have no impact on our need for new drivers.
Consumer Demand Drives TruckingWe often report the commonly known statistic that between 70% and 80% of all of the freight shipped in this country is moved by way of truck. But here's another interesting stat that does not get reported that much: the trucking industry is subject to roughly 70% exposure to consumer and retail markets. What does that mean? It means that about 70% of the freight that trucks move is directly affected by consumer and retail trends. While it is true that trucks move everything from manufacturing equipment to industrial supplies, most of what travels on the backs of trucks are those finished goods and food products destined for retail shelves. Therefore, an increase in consumer demand increases the pressure on trucking companies to deliver. They can raise their prices accordingly. A loss in consumer demand reduces pressure and, therefore, freight prices.
The concern among Wall Street analysts is one of consumer demand remaining flat for 2016. If that is the case, trucking companies will not be able to raise their freight prices as expected. That does not mean financial losses; only that profits will not be as high as they were in 2015. Business will still be strong for the average truck driver and logistics worker even if Wall Street investors are not keen on putting money into logistics. We Need DriversLike just about every other company in the logistics sector, C.R. England is in desperate need of new drivers. We need experienced company drivers, team drivers, and independent contractors looking to work with one of the best refrigerated trucking services in America. But it gets even better. We are also looking for completely inexperienced drivers who have never sat behind the wheel of a big rig. C.R. England partners with Premier Truck Driving Schools to train inexperienced drivers who want to work for us. They operate CDL training schools in multiple states, making it possible for you to get your CDL license in a rather short amount of time. Every driver who graduates from this training program is guaranteed a job with C.R. England as long as the remainder of our hiring requirements is met. The logistics industry will keep moving along in 2016, just as we have in previous years. Freight prices may not rise as high as we would like due to flat consumer demand for finished goods, but it will not prevent us from doing what we have always done. If you are interested in finding out more about C.R. England, we want to talk to you. Sources: 1.BenZingaht-be-haking-mig-ivgni-stloco16r/alant-ys/936curt/20/8476com/nga.enziww.bgn/saritsy-tnalaw//:ptth worst-year-since-2007-says-2.C.R. England-http://www.crengland.com/truck-driving-schools