Why NOW is the Best Time to Apply for Semi Truck Financing?

Best Time to Apply for Semi Truck Financing

Data shows that the trucking business had reached its peak demand in recent years, though it’s been going on for nearly 15 years. A recent report filed by the American Trucking Association (ATA) has shown that despite an increase in demand and the fact that trucking had collected $726.4 billion in gross revenue or 81.5% of the nation’s freight bill in 2015, the shortage of truck drivers is at its worst in history. With all this in mind and considering that owner-operators earn more than the average company driver, the time may be right for you to apply for semi truck financing.

The Facts

  1. The mentioned ATA study shows that the shortage of truck drivers had started roughly around 2011, when the shortage was around 10 thousand. However, by 2013 the industry was 20 thousand drivers short, which only escalated to 38 thousand at the end of 2014.
  2. The projections show that this demand is on a steady increase and the shortage is about to become the worst in history. If the current trend holds, the shortage is estimated to be over 150 thousand in 2024.
  3. Not only will this cause a huge supply chain issue across various industries, the fact is that the shortage cannot be compensated for by other means of transportation such as rail or airfreight.

What Caused The Shortage?

There are several determining factors that resulted in trucker shortage, as experts claim. From other opportunities, to age and demographic change, here are the most common factors responsible for this ever-growing trend:

Job Alternatives

The booming economy now offers alternative opportunities to individuals who might have otherwise chosen trucking as their profession. First and foremost, the construction industry has seen a rise in demand and employment and has become the biggest employment rival. Furthermore, new technologies like Uber emerged and offered an alternative that simply did not exist a few years ago. These job opportunities tempt potential truck drivers away from the job.

The Average US Truck Driver Age

The average age of a US truck driver is 50 years, while the average age of workers nationally is 40. However, younger drivers tend to explore opportunities like Uber, rather than trucking. With many drivers going into retirement and few willing to take up the mantle, the demand is only going to increase.

Demographics

Did you know that only 6% of truck drivers are women? Did you also know that women make up 47% of workers in the US? For some reason, women either do not find themselves in the trucking industry, or the trucking industry is reluctant to welcome them. This vastly contributes to the shortage of truck drivers nationwide.

Why You Should Apply for Semi Truck Financing and Start an Owner-Operator Business

While the salaries have not risen significantly for most industries, the trucking business has seen a steady increase in the average yearly salary. Due to the shortage of truck drivers, those employed in this industry enjoy an increase of around 17% in yearly salaries. Another significant reason is that due to an increase in imports, the demand for truckers has increased further. Add to that the fact that on average, an owner operator earns more that a company driver, even after all the deductibles, and you see why this option should be tempting to many. Owner-operators make up 20% of American truck drivers today, and some of the most successful business moguls started out as owner-operators themselves

However, despite the alarming studies published by the American Trucking Association, most are reluctant to apply for a semi-truck financing, as they are afraid that they would be rejected due to their bad credit score. And while there might be some difficulties, in most cases leasing a truck is easier than any other piece of equipment. There are certain factors that can make semi-truck leasing easier, such as industry experience, low down payments and options for different types of leases to suit your business goals and capital needs. However, if you are interested in becoming an owner-operator and getting a truck or trailer, your best course of action is to contact Go Capital for any questions you might have about leasing a semi-truck with moderate to bad credit. With our best rates, we guarantee that you will be on the road to success in no time.

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