COVID-19 has posed unique challenges for trucking companies & also signalled opportunities.
Truck drivers are the unsung heroes of the COVID-19 pandemic. While many people are confined to their homes for work, trucking companies continue to do the hard work of upholding a healthy material flow in the supply chain – ensuring everyone gets the essential goods they need and the non-essential goods they desire.
But, like steering around obstructions on a busy highway, trucking companies have had to navigate certain challenges along the way. In this post, we’re taking a closer look at some of the difficulties COVID-19 has posed and some of the opportunities it has offered. We’ll also discuss how WiseCap can help you stay afloat and plan for future growth.
How COVID-19 Has Affected Commercial Truckers
COVID-19 has impacted a large swath of industries, commercial transportation included. The impact is neither straightforward nor simple. In some ways, the pandemic has been difficult for commercial trucking companies, as many have contended with slow growth and cratering demand. In other ways, it has signalled future opportunities.
Whether your company is attempting to stay afloat in the face of low demand or planning ahead for growth, WiseCap can help. For more information, contact us today through our website.
Slow Growth Was Already Predicted for 2021
While it’s easy to blame a global pandemic for all the challenges we faced this year, the truth is that COVID-19 represents the latest front in a perfect storm.
Even before March, when governments imposed widespread restrictions, conditions were set for a 2020 economic slowdown. In an interview with Transport Topics, Jean-Dominique Bonnet, Frost & Sullivan’s mobility principal consultant, said that growth was slowing as early as fall of 2019, and that COVID-19 further accelerated the slump.
COVID-19 and a Drop in Consumer Spending
The trucking industry is tied to the overall market. When COVID-19 hit in late March, the widespread loss of consumer disposable income trickled all the way down to trucking companies. While the transport of essential goods like groceries and medical supplies saw a predictable uptick, many other forms of transportation were hit hard by manufacturing halts and reduced consumer spending.
Thankfully, the light at the end of the tunnel is starting to appear. The road to recovery may be bumpy, but trucking companies can expect some semblance of a rebound in 2021 and beyond.
COVID-Related Changes May Also Signal Opportunity
The move to more remote work may mean that trucking businesses will require less office space. These cost-savings could prove beneficial to companies looking ahead to an economic rebound.
Also, consumers’ increased reliance on e-commerce as a result of COVID-19 restrictions will impact how goods are transported throughout the supply chain, and could have a positive overall effect on commercial trucking businesses. While the first quarter of 2020 was marked by reduced consumer spending, that reduction seems to be disappearing. And the trend towards e-commerce doesn’t seem to be a flash in the pan, either, with analysts predicting a sustained increase in e-commerce use even after governments lift the pandemic restrictions. This should come as good news to last-mile delivery fleets.
Preparing for Growth in 2021/2022
Preparing for growth while attempting to stay afloat may seem like a high-wire balancing act, but it’s precisely what the experts recommend. The IMF predicts a strong, 5.2% rebound in real GDP in 2021, and the Journal of Commerce indicates that logistics and supply chain management companies are “well-positioned to grow post-pandemic” – a boon for trucking companies.
Whether your trucking company is attempting to rebuild after a difficult 2020 or proactively arrange for a booming 2021 – or both – WiseCap can help.
How WiseCap Can Help You Stay Afloat and Prepare for Growth
WiseCap is a commercial equipment financing company comprised of professionals, business owners and entrepreneurs just like yourself. We understand the need for creative solutions to operational challenges, and we understand the hurdles inherent to growing a business.
That’s why we take a holistic approach to your needs. Through our consultative approach, we look at all aspects of your business – your budget, equipment use, equipment needs, etc. – to find the right financing result for you.
If you’re looking to ameliorate cash flow and lower your monthly payments, WiseCap offers refinancing services that allow you to get money from the assets you already own. If you want to expand your fleet through equipment leasing or commercial truck loans, we’ll work on your behalf to get the best deal. And when your fleet runs into problems, including engine rebuilds and tire replacements, WiseCap can provide financing solutions for your major repair and maintenance needs.
WiseCap offers several solutions and services geared toward strengthening your business, including:
- Truck loans
- Equipment financing
- Small business loans
- Private mortgages
- Financial guidance and advice
- Business Line of credit
- Factoring and asset-backed financing
No matter the effect COVID-19 has had on your business, WiseCap will help you build a more secure present and plan for a more prosperous future. Learn more about us by exploring our website, and contact us if you have any questions.