More than seven in 10 fleets are either feeling the force of this year’s truck shortage on their business operations or expecting to feel it soon, according to a survey by CK Commercial Vehicle Research. But how does the shortage affect putting a truck business for sale? That depends in part on each owner’s business strategy. Yes, market impacts value – but so do your choices as a leader.

Normal Fluctuations

Surpluses and shortages are nothing new. Freight transportation businesses have always been sensitive to economic changes. When retailers and manufacturers cut inventory, truck companies are often the first to suffer. It was only natural that during the most recent economic downturn, many owners made the hard decision to reduce fleets and drivers or list their trucking company for sale. Now that demand has rebounded slightly, the inevitable result has been a truck and driver shortage. While this presents a challenge for business owners, it also presents strategic opportunities.

Strategic Investment

For an investor unfamiliar with the transport industry, a shortage may seem like a bad time to enter the market. But for an industry veteran like the owner of a successful trucking business, it may represent an opportunity. By acquiring or merging with a truck company for sale, a buyer can better serve customers by significantly expanding his fleet. Because buying an existing inventory is almost always cheaper than building one piece-by-piece, strategic buyers may be willing to pay more than the appraised value received in a trucking company valuation. For sellers and buyers willing to think outside the box, a shortage can be a mutually beneficial time to make a deal. For business owners not ready to sell, falling prices for used trucks may make this an ideal time for inventory reinvestment.

Better Rates

While the truck shortage offers strategic solutions, there will always be a large segment of the industry focused on immediate profit. Financial investors interested in buying a job might be interested in the relationship between the shortage and potentially higher prices. When trucks and drivers were available in surplus, rates were driven painfully low, reducing profitability and making the recession especially difficult for many companies. Now that transport companies, trucks, and drivers are limited, increased demand may finally allow business owners to adjust rates. When chances for greater profits and market share increase, value may as well.

At first glance, a shortage might look disturbing. But remember, this is the industry that has successfully absorbed drastic fuel changes, roadway privatization, and frustrating regulation and legislation. More than 80 percent of U.S. commodities are moved by truck. The freight hauling business may have its ups and downs, but it’s not going away any time soon. For businesses able to make wise reinvestments, provide reliable service, and go with the flow, the trucking business remains a valid and valuable industry.

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