It's Going To Be A Long Downhill Slide For The Economy

Well, we're deep into a recession and there is no chance that things are going to get better any time soon. Why? Because the core of our financial system, and the world's financial system for that matter, has been crushed and it's going to take a long time for these problems to work their way through the system and allow the economy to move forward again. How will this affect the trucking industry? If you're considering becoming a truck driver, what are the chances of getting through truck driving school and finding a truck driving job? The same way it affects the rest of the country - it's not going to make it any easier. But the news is not all bad.

As fuel prices have dropped, so has the amount of freight available, and so does the price per mile the trucking companies will be able to charge for hauling freight. Drivers that had been sitting because deadheading for freight was too expensive when fuel prices were high, will now be sitting at times because there isn't enough freight available.

What about hiring? Will trucking companies still be hiring drivers? You bet! At least most of the larger carriers will. You see, the larger carriers prosper more than smaller carriers in hard times because they tend to have better financing options available and their size allows them the leverage to negotiate better prices on fuel, parts, and maintenance. They also tend to offer important services to larger shippers like making extra trailers available for drop and hook loading and unloading, quicker response times when freight is ready to roll, trailer storage options, and greater flexibility when freight speeds up or slows down. Because of these factors, larger trucking companies tend to hold on to some of their higher paying accounts without the big falloff in freight prices compared with the smaller companies.

So truck driving jobs will still be plentiful in the trucking industry, and there will be enough freight to make a living if you're a driver, but times are going to be tough in our economy for a long time to come. The banking industry is de-leveraging - meaning they are cleaning up the debt on their balance sheets and writing off bad loans. The world's economy is based on the flow of money, and until the source of those money flows, the banking system, is able to begin lending again, growth will grind to a halt. Companies that count on banks for lines of credit to maintain operations may see their funds dry up and could possibly face bankruptcy. Even companies that have stable cash positions, yet count on financing for their growth, may not have any financing available and all potential growth projects will be suspended.

This type of market meltdown will likey take years to work through. But for the foreseeable future, truck drivers will have work and will be in demand. How much money they will make in the coming years may be less than it is in a prospering economy, but nonetheless they will have work and will be making a living - which is more than a lot of blue-collar workers will be able to say.

Until next time - here's more resources for ya: