Small Carriers Struggle to Grow

LAKE BUENA VISTA, Fla. — Small carriers planning to grow quickly should hire owner-operators rather than buy new trucks and grapple with driver shortages, according to a panel addressing small carrier issues.

Handling growth, however, may be the least of worries facing small carriers today. Panelists said many small trucking operations are at a crossroads as business opportunities open up to them while a trend toward consolidation could be closing in on them. Consolidation will only become more prevalent as shippers narrow the number of core carriers they work with, said panelist Earl Scudder, an attorney in Lincoln, Neb., who specializes in mergers and acquisitions.

Interest in the small carrier’s dilemma over how to compete in a changing trucking industry was evidenced by an overflow crowd of about 200 people at a morning seminar held on March 19 during the Truckload Carriers Association’s conference here.

Panelists presented a scenario in which a 60-year-old executive faces the opportunity to more than triple his fleet size in four years if he makes a significant investment of time and money. The executive is given the choice of directly managing that growth, forming an alliance with another company to handle increased business, or trying to redeem the company’s value by selling it.

For the full story, see the Mar. 27 print edition of Transport Topics. Subscribe today.