Should Automotive Business Owners Be Optimistic About the Economy?
New reports on industry growth are suggesting that the automotive industry may be finally showing signs of recovery. A recent Business Insider article points out that the industry was particularly hard hit after the start of the economic turmoil beginning in 2008, plagued by high prices for fuel, diminished sales volume and the effects of the poor economy at large. Similarly, in the commercial trucking industry, growth has been stagnant due to a fear of risk on the part of small business owners who are not comfortable pursuing expansion projects with the uncertainty surrounding taking on more capacity in a negative economic climate.
Only now, with signs that recovery is finally coming into place can these business owners start thinking about their expansion without the timidity associated with trends in recent years. In fact, the possibility of a “capacity crunch” on the part of the trucking industry is possible if retail volume increases during a period of rapid economic development, according to American Trucking Associations Chief Economist Bob Costello, as quoted by truckinginfo.com. While trucking firms have been reticent about expansion in ways that reflect the sentiments of their counterparts in the automotive industry, this means that if the economic recovery were to pick up to a brisker pace, needs for shipping could outpace the actual capacity of companies and small businesses that have been playing it safe. A possible outcome from this will be a scramble to finance expansion, where alternative providers of commercial trucking financing could be poised to play a large role through their lower requirements for credit and faster approval processes.
Photo Credit to Jeremy Vandel on Flickr