There is absolutely no control over what Mother Nature has in store. You can check the weather reports, you can plan accordingly, but no one truly knows!
Customers don’t want to hear that you were stopped because a flood washed out the road or the highway blocked because of a blizzard. They just want their stuff.
Weather can be a major culprit with driving conditions. It can cause delays, accidents, and even prevent traffic from getting through.
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But the sad part is even on a sunny day you have to beware of the other drivers. They change lanes without looking, run stop signs, brake suddenly.
Then of course there is rush hour, and why do they call it that when all you do is sit in the same spot, no one is rushing anywhere!?
Well, the weather and other drivers can cause you problems. But, unfortunately you or your driver might be the problem.
A minor fender bender may cause a slight delay while and overturned rig could prevent the delivery from ever being made.
Another problem with accidents is their potential adverse effect on your safety rating and possible increase on your insurance premiums.
This one can also be hard to nail down. Because theft occurs in one of two ways, it can be either internal or external (I know some will say or both). Internal is when your employee steals from you. External is when someone not affiliated with your company steals from you.
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Either one is bad for business but internal theft can have a more damaging effect on your company’s reputation and emotional impact to you as an employer.
One of the scenarios for the inside theft can be when your drivers are misusing the fuel purchased with company card. Fueloyal have designed a unique Smart Fuel Cap that can solve that issue for you. This is another factor too that might cause your insurance rates to spike.
Social factors, how can that be an issue? Good question, simple answer; global warming for one. Regardless where you stand on it, the trucking industry is seen a contributing culprit.
As people demand cleaner means of getting goods and services delivered, so the trucking industry must comply. Another issue is buying trends. People buy more during a good economy, and less when it is bad.
This is the one that always gets people annoyed. Legal factors come in many shapes and sizes. You have the obvious federal, state, and local laws. You have both company’s and your client’s rules and regulations.
But you also have other liabilities. So not only must you comply with the government says, you must comply with industry standards, and within socially acceptable legal guidelines as well.
Let’s not forget, you need a crystal ball so that you see the near future of trucking business and how new regulations will affect you.
Government some will say they are there to help, others will say they just get in the way. And if you think about it, perhaps it’s a bit of both. The real issue comes when new influencers gain the seat of power.
Perhaps they will pursue a path of more regulation, or perhaps less. Either way expects change, and these will impact the trucking industry, good or bad.
Now this is another both good and bad scenario. Computers have made communications better and have made it easier to track freight. GPS has greatly enhanced our ability to get from point A to B.
With this comes other issues, governmental regulators have increased their tools as well! Vehicles have electronic components that are costly to repair. Using electronic logs and constantly upgrading systems can be costly as well.
However the benefit of being up to date and taking advantage of the latest gadgets can greatly offset the short-term added cost.
There some issues that are just going to happen. Consumers might stop buying or drought might cripple a crop. Wars can limit imports from certain markets. Increased taxes might add costs to you bottom line.
Trade agreements or embargos all can affect you. If there is shortage in milk production or the sugar crop failed, it not only affects them but every industry that relies on those ingredients. The same is for any materials.
Some might say I should have made this the top of the trucking industry factors for what will have the greatest impact. Leadership comes in many forms. I am not speaking about good or bad but in the personal views one hold true.
Some are all about the bottom line while others are about the public image. But even government leaders affect the trucking industry.
Regardless of your personal views, whoever is in charge calls the shots. So depending on which way they lean, it will determine how the governmental agencies deal with the industry.
This, like so many of the others might have you wondering. But there is a driver shortage, at least in some markets. The government continues to add more regulations that many feel hamper the industry. Also shipping companies can find other ways of sending freight.
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Increased rail and hiring contract drivers instead of outsourcing. Another factor is reduced consumer spending, especially during hard times or after key holidays. There are several factors that cause the industry to shrink.
In a perfect world a company’s budget would always remain constant. However, we live in the real world. There are numerous trucking industry factors that can cause a company to tighten their belt and cut spending.
These can be economic, or the introduction of new regulations, or even just seasonal highs and lows.
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