The American Transportation Research Institute has gathered research and survey results and published the report. Some key aspects that caught my eye that I would like to comment on.
- The fact that approximately 50% of the transportation industry who responded indicated freight levels as somewhat to much lower due to the COVID-19 pandemic. The medical devices, perishable foods and paper products for the time being have not been impacted to the same degree. The refrigerated trucking industry which I have clients in have done better due to the perishable foods they are involved transporting. Another client who works in the corrugated has also done well due to more and more of us are ordering on-line.
- The element of many transportation businesses (80%) are not and were not prepared with a disaster plan. Again, many the article refers to are the small to mid-size transportation businesses. I can somewhat support this aspect. In my many discussions with these small to mid-size trucking companies, many do not have a succession plan for their trucking business. These are the type of education aspects I can help you with if you are considering selling your business or just have some questions regarding the process, what buyers are looking for or some sound advice exit planning.
- The trucking industry’s perceptions regarding the country’s economic situation over the next several months appear to be slightly pessimistic for the industry. I am looking more favorable on this because I prefer to be more of half-full glass person and the belief our country will come through this stronger than ever!!
- The transportation in general feel the federal government has done a solid job with the states getting mixed reviews on their response. I would agree with the assessment on both the federal and state responses.
Please obtain the article if you want to get more details than what is contained in the e-mail short version. ATRI and OOIDA: COVID-19 Impacts on the Trucking Industry