More than half of Swedish haulage companies admit to having problems with profitability. And the situation is similar in the rest of Europe and the USA. Despite the fact that most forecasts indicate that transport needs will grow appreciably in the coming years, the transport industry is anticipated to have steadily increasing problems with which to contend. Under these circumstances, haulage companies have every reason to seek ways of strengthening their own businesses.
MORE CHALLENGES THAN EVER BEFORE
Something that in the past was a relatively straightforward service – transporting goods from point A to point B – has evolved into a complex enterprise in an equally complex market. A market undergoing rapid and continual change to which companies must constantly adapt in order to remain competitive.
With steadily growing players, slumping prices, a lack of drivers, and increased (not to mention unfair) competition, haulage companies are forced to operate non-stop, chase costs, and attempt to streamline their businesses. If we add to this increasingly stringent requirements on safety and quality assurance and increasing demand for eco-friendly transport, we recognise that haulage companies are facing a multitude of challenges. And the nature of the challenges both reduces revenues and increases expenses.
How can haulage companies adapt their operations to the challenges they face while still improving profitability?
“Many would benefit from an overhaul of their company and their self-image, for example, by considering themselves less as one subcontractor among many others and more like a partner able to offer more services of a high quality. It may sound hard, but, to put it simply, it is no longer just a matter of arriving on time and saving fuel.”
– Ulric Långberg, The Swedish Association for Road Transport Companies
YOU CAN ALWAYS IMPROVE AND DEVELOP YOUR BUSINESS
Although the problems seem to pile up, there is plenty you can do to improve both your business and profitability. And even though many haulage companies have problems with profitability, there are still numerous companies with thriving operations and profitability. There is not, of course, a universal solution able to make every business profitable, but a great deal can be learnt from those who have succeeded well.
Here at VBG we want to help preserve profitability in the transport industry – and not solely through the function and quality of our products. We have therefore compiled tips and advice from industry representatives as well as individual haulage companies so that you can easily see what others have done to preserve their profitability. Read the tips and perhaps they will give you some brand-new ideas and insight into how you can improve your own business.
