Bergey’s Truck Centers Acquires Cumberland Truck
Bergey’s Truck Centers Acquires Cumberland Truck
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With the holidays behind us, we are all looking into the face of 2022 and wondering what it holds. Beyond the normal everyday issues we faced in 2021, distribution and supply chain issues will not be going away any time soon. We have reviewed a number of resources to come up with a 2022 Outlook for fleet managers.
The American Trucking Association (ATA) publishes an annual U.S. Freight Transportation Forecast, and the 2022 report highlights a 24-percent increase in freight tonnage. This is great news for carriers of all sizes, as the ATA estimates this increase will result in a 66-percent revenue increase for the trucking industry as a whole. How do you harness this increase? Awareness of what is happening now and planning new initiatives will help drive change in organizations and meet ever-increasing demands. Let’s look at what’s coming our way in 2022.
Driver Shortage – this will continue and grow with the increase in freight tonnage. It’s a driver’s market if you will, so companies will need to focus on improving working conditions – hours, wages and benefits. Short hauls are gaining popularity and are expected to grow into 2022, so if you can manage routes for shorter hauls, it’s a win for you and your drivers. Retention of drivers is also key. Keep who you’ve got with inventive programs for safety, on-time delivery performance and driver training.
Fuel Costs – we all know that fuel prices directly affect your bottom line. They also affect your freight rates. The same holds true for fuel supply chains, and that, in addition to crude oil prices are driving up costs at the pump. But good news is ahead. Experts are predicting that oil production will increase in the first half of the year to meet demand. This will equate to an expected decrease in diesel prices by Q4. According to the Department of Energy, this will be a decrease of about $.20 per gallon.
Equipment Production – the lag in medium and heavy duty equipment continues due in large part to microchip shortages overseas. The best way to overcome this seemingly uncontrollable situation is to look for ways to extend the life of existing equipment. Utilize preventive maintenance programs, introduce new buying cycles and evaluate scheduling and routing. If you foresee a need for new equipment in 2022 and even into 2023, the best advice we can give is order NOW to get in line.
Parts & Materials – it’s not just chip shortages putting a strain on the trucking industry. Demand and ultimately prices on parts materials like copper, aluminum, nickel, iron ore and other metals will continue to rise. This will have an impact on both new equipment prices and replacement parts prices. And lest we forget about how all this equipment, carrying all this freight tonnage gets from place to place – tires. Natural rubber is also in short supply and will continue to affect availability and pricing for commercial tires of all sizes.
Proper planning moving into 2022 is vital. Keep on top of all the areas that affect your business and it will help your fleet and your business run at max profitability. If you have questions on equipment needs or service, the team at Bergey’s is ready to help. Let us be your first choice in transportation partners and you will see what our customers see – integrity in all we do, accountable to all we serve, a commitment to continuous improvement, a passion for excellence, and faithful stewards. Learn more about us.
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