With an expected industry growth of more than 64 percent in the next 9 years, and a steady increase of tonnage from the 68.5 percent in 2012, the trucking industry is poised to continue its growth and development into the years to come. This growth has been attributed to the steady improvement and strengthening of the economy and the cautious but optimistic expectation that it will continue to do so. Providing financing for trucking companies to purchase new trucks and trailers seems like a solid investment.
So if you want your company to get a share of the potentially more than $700 billion pie. Here are two suggested areas that are expected to grow and might add nicely to your portfolio.
Financing trucking equipment
The cost of a new 18-wheeler truck can run anywhere from between $30,000 to about $250,000. However, the investment is usually a sure one as the demands in the trucking industry are great and the truck acts as valuable collateral on its own. In addition to that is the consideration that the recent recessions left a lot of owners unable to sustain their trucks so there are plenty of high-quality used trucks that are already fitted for the road and can come at an even cheaper price. This can be a solid investment for both you and the company or individual that you are financing.
It is of note however, that you should do some research into the pros and cons of the recent regulations for truck driver hours and the feasibility of the driver being able to make the situation viable by the number of trips they are able to make in a given time span as more trips means more money from your investment.
Financing small businesses
An investment opportunity has been identified for financing small businesses that need to acquire trucks and trailers for their various needs. These businesses could be involved in any of the 4 industry areas that are set for growth and development as the economy continues to strengthen. Big banks seem to have found that it is more economical and prudent for them to invest in large companies, which leaves small businesses out in the cold.
Big banks tend to be more stringent in their lending habits due to more intense regulations. As a result companies or individuals with bad credit history or less lucrative assets need an active financial source. The risk here is less at this time as the indicators such as low interest rates, liquidity, positive economic growth and low rates of default on loans are indicators of serious success.
Contact a trailer sales company, such as Arentco Rental & Sales, to further discuss these options.