In the fast-paced world of last-minute shipments, the trucking industry hums along quietly behind the scenes. One might assume it runs on the cogs of seasoned professionals and advanced technology, and they’d be partially right. However, it’s a surprising revelation that many of these "trucking & logistics" operations are steered by those still learning the ropes, supported by high-end tech and the allure of modest promotions and small bonuses.
Trucking Entrepreneurship
When you think of a truck driver, “hero” might not be the first word that comes to mind. Nor does “CEO” typically follow an introduction to one. Yet, that’s often exactly what they are—business owners in jeans and boots, managing their operations with a surprising entrepreneurial spirit. Initially, this sounds like a winning strategy—locals running their own show. However, the reality is a bit more complicated. While some truck drivers indeed know their trade inside and out, a significant majority, unfortunately, lack essential business knowledge.
The pandemic saw many from various industries pivot to trucking as an accessible business venture, often with little to no background in the field. This influx of newcomers, combined with longstanding industry challenges, has made the trucking landscape a tough road for many. Truck drivers are no strangers to tough deals and losing out on profits, often caught in cycles of disadvantageous business practices.
The story gets even more interesting with freight brokers—or “BRO-kers” as some call them. These are the folks who connect truckers with customers, yet they might lack the on-the-ground experience of their truck-driving counterparts. Many brokers are young, tech-savvy sellers, but they might lack a deep understanding of logistics, compliance, and fair pricing. Their role, crucial as it is, often lacks the stringent oversight that might prevent missteps.
This scenario isn’t just about individual failures but highlights a systemic issue. The industry’s heavy reliance on traditional knowledge and the slow adoption of continuous learning might spell trouble, especially as artificial intelligence begins to offer more efficient alternatives. The real question is about the long-term effects of these challenges—on small business owners, the economy, and the unsuspecting taxpayer when debts from failed businesses come due.
And then there’s the FMCSA, which unfortunately stumbled significantly by failing to verify crucial updates for months. This oversight led to significant security breaches, affecting countless legitimate businesses.
What can we do?
In essence, the trucking industry faces significant hurdles, with ignorance and inexperience at the forefront. Despite the resilience and entrepreneurial spirit of many truck drivers and brokers, the need for better education, effective and relevant regulation, and a more robust oversight framework is clear. As the industry navigates these challenges, the stakes are high—not just for those directly involved but for the broader economic landscape they support.
Partner with OperFi today to get a customized quote and help you understand the path that it takes to grow your trucking business in order to qualify for bank financing down the road.
