How is the economy affecting trucking right now
How has the trucking industry been affected by today's economy
Well, retail spending is definitely down, as is a lot of other spending in the economy such as building, manufacturing and such. People are being conservative now on wasting so even spending on needed items like supplies are down. Because of this fact, trucking has definitely been impacted and will continue to be impacted until the situation changes.
Does that mean that trucking is no longer a good place to start a career.
In my opinion trucking is still an excellent place to be.
The economy hasn't stopped. It has only regressed momentarily until the sickness leaves. Even in these times life goes on, many companies continue to thrive, others may not thrive but they will not go under. Some companies will never go under matter what because of their position in the economy, some won't go under because of who they serve.
People like you and I may suffer through these times until things change. (They just cut our pay at my company by 5% because of the economy) But, I sure feel good know that my job is still in demand despite that. Even if my company goes under (which I doubt it will)I know with out a doubt that I can go and get a job. Here's why . . .
A lot of people still have money to spend. They are going to spend and smart people with money will even make money in these times, a lot of money.
They will spend, they will spend less, but they will spend.
They will spend more in a conservative ways and frugal ways instead of carelessly like fixing their cars, weather proofing their houses, buying items for the house that will save money or add value, buying locally instead of traveling to go on shopping sprees or vacations and on and on.
People will be spending money they just won't be wasting as much money. This keeps a flow, not what we want but it keeps a flow.
Eventually,the banks will feel comfortable enough to do business with the consumers again (if you have good credit at least) and that will boost activity in the economy. That will put more people back to work and they will be able to pay bills and spend a little more (hopefully they will save an emergency fund first)Their spending of course will add to the activity and things start back picking up.
More buildings for companies,new businesses, new products, machines, more efficient equipment, etc. Next thing you know the economy is moving back in the right direction.
You say, "yes, ok but what about now, today, is trucking a good choice for today?"
I say to you, "Don't forget where the industry is in the food chain of the economy."
No matter what, unless there is a complete meltdown equal to 1929 (I will give away my last dollar to someone starving if this happens) the economy is active.
Things are being made, products are being sold, houses ARE being built, businesses ARE being built, new businesses are being launched. ALL activity at some point needs transportation of something. ALL business needs transportation at some point (It may not All be by tractor trailer but still).
Just think about where trucking is materials for building must be transported, raw materials must be transported, equipment must be transported, fuel must be transported, goods must betransported from ports, to ports, finished products must be transported.
Trucks and truckers are not optional in the economy, they are necessary for the economy to function. PERIOD. Unless you give value to the clowns even entertaining the question, "are we heading to a great depression?" (which we are not) then truckers will be needed.
If you don't believe we are still in high demand. Pick up a newspaper in any city that you so desire and look in the help wanted section this Sunday coming up and count how many jobs are available for truck drivers.
Here is the problem, there will always be a need, but not every outfit will survive.
For sure companies will go under and people will be let go. Look around, how many times do you hear drivers that don't care about their work performance, (they think pick up and deliver appointments are a joke) in times like these when the freight moves slow guess which drivers are the last to get moving.
The companies that has too many of those types of drivers and doesn't get rid of them will be the companies with poor management. They are basically wasting money with those types of drivers. Because the most profitable contracts don't need that type of company, they can afford to pay for dependability so their goes the contract.
Depending on what they haul and who their contracts are with. Since they has poor vision with managing employees they probably are lacking in other areas of management.
So yes, they could go under. And many will.
But there is freight and it must be moved and you WILL continue to see ads in the paper and everywhere else for drivers.
So if you go into trucking how can you try to make sure you are not one of the drivers without a job.