A recent article in Transport Topics, “Economist Noel Perry Says Strong Freight Market, Driver Shortage Won’t Last,” highlights industry expert Noel Perry's views that the current favorable trucking industry tailwinds will not be sustained though 2019. Presenting at the Transportation Intermediaries Association conference, Perry told attendees to “take as much as you can (in rates from shippers), but don’t bet the company on next year being as good.”
KSMTA continuously studies the domestic transportation market, and this report by Perry is the first bearish prediction for 2019 that we have encountered. However, in our own Transport Topics article, “Maximize Value in the Short-Term for Long-Term Gains,” we had similar advice for carriers to not "bet the company on next year being as good.” Our article goes on to encourage trucking companies to enjoy the current tailwinds and to use this respite from the "normal" trucking environment to work ON their business. Carriers should not just settle for price improvements from the favorable market, but should instead use this time to work on "growth, key factor improvements, and profitability supported by a strong management team.” Making an effort to improve in these areas will provide increased profitability and cash flow in the short term, as well as more exit value in the long term.
To discuss how you can work ON your business, please contact David Roush at firstname.lastname@example.org.