Growing your business means testing the waters, looking at your industry, and how the market is holding up. Each specific industry comes with its own set of unique challenges. The haulage industry is a market that can be argued is crowded, almost too crowded. But, is this an industry that is on the horizon for a massive change? When you are looking at starting up a company in the haulage industry, what factors do you need to be aware of in the modern climate?
Small Fleets Mean More Competition
Businesses start out small, and so, if you’re running a fleet that has fewer than 100 trucks, there is a lot of competition out there. As a means of common sense, is it better for you to acquire more finance upfront to grow your fleet, so you are head and shoulders above this competition? This is a double-edged sword of course, and it could result in massive overheads that could bankrupt you. Considering how you finance your fleet, it’s always beneficial to get the advice of reputable truck financiers, you can read more about this via any truck financiers’ webpage. Small fleets are usually akin to small fry, it’s beneficial to bear this in mind.
You could benefit from organically growing your fleet, and as your business increases clients and revenue, you can invest a portion of this back into the business. Building any business organically is manageable, and doesn’t require a massive shakeup in operations when the time comes for change. Thinking about how you can grow your business organically is down to you as the entrepreneur.
The most vital commodity for the haulage industry isn’t the products being transported, it’s the drivers themselves. Investing in drivers that are up to the task of working unsociable hours, driving up and down the country, is a very hard sell. Instead, if you can work regionally, and pay drivers an hourly wage while guaranteeing that they are home most nights, this will benefit you more in the long-term. The health and safety of your drivers, as well as their mental well-being, has to be the biggest priority.
Haulage firms are, in some ways, in the past. And now, while we’ve seen self-driving trucks in the testing stage, this brings up a lot of questions as to the security of the employability of drivers, but also, the possibilities that lie ahead. For those starting in haulage industry now in an entrepreneurial guise, utilizing technology to transport goods up and down the country is a very exciting prospect. It’s going to be met with a lot of trepidation, especially from drivers, but this is, seemingly, the future.
Is the haulage market overcrowded? It’s argued that it most definitely is, but if you are looking to push the boundaries, jumping on the bandwagon with regards to automation is going to push your business into new and uncharted territories. The haulage market is still in demand, and as you need to find a way to keep you ahead of the competition, automation may prove to be the tool that you so desperately need, especially if you are starting out.