effect of Big 3 auto slowdown?

[larrybadger]

With the Big 3 automakers sales expected to drop next year as incentives lose their punch, rising costs, Asian and European automakers boosting production, how will this affect the expediting industry? There may be two distinctive schools of thought here; one being expediters may see an increase in business because the automakers will be leery to stock much inventory, the other opinion might be a decrease in expediting business because of the slowdown in the entire food chain for the automakers? If your carrier has a large percentage of auto business, how have slowdowns in the past affected the expediting business? If there are newcomers just entering the expediting industry (in the near future), this might be an important factor in which one chooses as a carrier?

Larry Badger

 

[Glen Rice]

Being specialized and unique is what makes expediting so desirable! When in doubt I suggest investing in being better than the competition. The usual items make you as a contractor more desirable. A liftgate and tag axle for the hands on customers, running a team to complete every run on time without transfer hassles, again there's that liftgate again, a reefer unit [now there's a no brainer], and the best of the best in well maintained equipment displaying a professional attitude and image on the road and on the dock make you what expediting was founded on. Good luck to all for 2005. I believe next year will be a record setter, and not for fuel prices but for number of loads and record revenue to those that have the drive to go and get it.

 

[simon says]

I think the slowdown will continue well into '05 and this will impact those expediting co's that concentrate on begging for the crumbs of NLM runs. We all know there are cats and 1's out there running on the cheap...I have not had an NLM run since I can remember- but that's not our speciality. I don't see the inside of auto plants much any more, but suppliers to suppliers shipments have also slowed. However, more transplants are opening in the deep south so that should help some carriers. As Glen said, we are unique haulers, but I would not advise newcomers to come in expecting a yellow brick road.