New survey rates the best and worst states for the trucking industry in 2016
Last month, alternative financing organization Merchant USA surveyed 3,287 individuals involved in the trucking industry, through an email and social media campaign to find out where the best and the worst states to be a trucker or own a trucking company were. The survey included asking questions such as cost of parking overnight, certain fees/regulations in particular states, if location in the U.S. mattered, and how friendly states were to drivers.
The U.S. trucking industry is booming with almost 500,000 for-hire fleets on the road today, with that number is steadily increasing each year. There are also many trucking firms and independent operators that are struggling, especially in California.
Although the industry made a record $700 billion last year, many smaller trucking firms in California are plagued by new government regulations, rising equipment costs, the hiring of new drivers, limiting driving hours and competition to raise pay. It’s getting more and more difficult for small trucking companies to be able to afford new equipment – a new truck now costs 60% more than it did just 8 years ago.
Small to medium sized trucking companies are having a hard time adapting to new regulations, with many not having the cash reserves larger firms have to help with hiring or if an emergency occurs. Without small trucking companies, the cost of shipping could possibly rise throughout the U.S., the survey said.
Today, most traditional banks won’t even consider giving out a business loan that is less than $200,000. This leaves many business owners, who are looking for a smaller amount of cash, out of luck. Alternative financing is quickly becoming one of the top ways small business owners get funding. Merchant cash advances provide business owners a way they can get lower amounts of fast capital to help expand their business or in case of a business emergency. Trucking owners can get money to help fix a truck, or purchase new equipment/inventory within a matter of days.
Trucking owners know that to keep up with larger companies, they need to make sure they have drivers on the road at all times, and equipment is running efficiently. If an accident occurs, a rig breaks down, or another emergency happens, many small business-trucking owners turn to cash advances as a way to acquire quick cash flow.
Merchant Cash USA, CCO, Darrin Landau, says, “The trucking industry is in higher demand than ever, but costs to operate are also at an all-time high. Certain states are accommodating to truckers and the trucking lifestyle, but not all states operate that way. A merchant cash advance is there to help a small trucking company get the equipment they need in case of an accident, when something breaks down, or if demand for goods increases.”