In a time when the economy has more dips and dives than a roller coaster, many companies simply cannot survive. Avondale Partners said that trucking companies were more immune to the collapsing economy than other many other types of industry.
According to a recent report, 160 trucking companies went under the first quarter of this year. That number may sound bleak to some, but it’s actually an tremendous improvement over last year’s number of 295 companies that folded.
Almost by definition, if a trucking company made it through the last couple of years of turmoil in the macro economy, industry marketplace and regulatory environment, it is a result of being fairly well capitalized and fairly well operated, the Avondale analysts said. Or put another way, if they made it this far through the tough times, then they can make it through easier times.
Even companies that were on the brink of disaster last year have began to pull themselves out of the hole. Kansas City-based YRC, faced some struggles last year and even cut 126 jobs, has recently announced it is now hiring 200 new drivers and has seen its stock increase 8 percent Wednesday to close at $7.35, making it one of the biggest gainers on the Nasdaq.