How Profitable is Trucking Business?
Starting, sustaining, and growing a trucking industry takes a lot of hard work and dedication. You need to know how to deal with people in a business sense, make the right decisions, and take the right actions.
Factors Affecting the Trucking Industry:
• Variations in fuel price.
• Production of goods.
• Unpaid invoices or delayed payment.
• Regulatory requirements.
• Big competition.
According to the National Association of Small Trucking Companies (NASTC), only 15% of new trucking companies survive in their 2nd year of operation.
Trucking business success can be measured by the profit that the company makes on an annual basis. Companies that run longer on dead miles will lose money.
Every other company offers different types of services, but on average base, it’s 6-8% profit of the annual income per truck.
E.g., Consider 7% as average profit on an annual base, and you make a total profit of $200,00, so you get:
• 93% or $186,000 to cover the overall expenses.
• 7% or $14,000 average profit per truck.