How to Use a Loan to Scale Your Trucking Business

Mar 14, 2020

How to Use a Loan to Scale Your Trucking Business

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This is a big time for the trucking industry. Research from the American Trucking Association shows that about 70% of all America’s freight is hauled by trucks, accounting for $796 billion in gross freight revenues. Moving this much freight from point A to point B takes nearly 4 million Class 8 trucks traveling about 181 billion miles a year.

What type of workforce does it take to accomplish such amazing things? There are roughly 3 million drivers, 5 million support workers, and 40 million trucks in America. All told, more than 892,000 US trucking companies have registered with the Federal Motor Carrier Safety Administration. Of those companies, most are small businesses (97% operate fewer than 20 trucks, and 91% have fewer than 7).

If these small businesses wish to grow their operations, they’ll need to acquire the right loans to build the infrastructure necessary to meet the rising demand for freight. The current shortage of drivers means that when you have reliable drivers behind the wheel, you are uniquely positioned to grow.

“It is still too early to tell if we are entering a golden era for truck drivers,” says a trucking industry report from Freight Waves. “However, the heightened efforts to advance the industry in that direction currently involve a wide array of organizations—from OEMs, to system suppliers, to connected vehicle technology providers, legislators, freight brokers, and early-stage companies that deal with computing, IT, healthcare, and simulation, among others. This is all a clear indication that commercial vehicle product planning will continue to focus squarely on truck drivers for many years to come.”

About the Author

Grant Olsen

Grant Olsen

Grant Olsen is a writer specializing in small business loans, leadership skills, and growth strategies. He is a contributing writer for KSL 5 TV, where his articles have generated more than 6 million page views, and has been featured on FitSmallBusiness.com and ModernHealthcare.com. Grant is also the author of the book "Rhino Trouble." He has a B.A. in English from Brigham Young University.

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