December 18th, 2012
According to the Fourth Quarter 2012 Business Expectations report for Transport Capital Partners (TCP), a large majority of carriers were not impressed with the state of politics on the US. When asked about reasons for their dissatisfaction, executives cited the “fiscal cliff” as an example. The looming problem has businesses and individuals alike concerned about financial decisions and the future of the economy. Naturally, carriers are just as concerned since their operations depend on what consumers are doing in terms of spending.
Truly an industry that is driven by demand, carriers are solely dependent upon businesses to keep selling products and consumers to keep purchasing them in order to stay in work themselves. If the economy takes a downtown and people stop purchasing goods, carriers are left with nothing to carry, no work to be done and no money to take care of their own companies and, by extension, their own families. When surveyed a total of 52% of truckers said that they are waiting to hear more information about what will be done with the fiscal cliff before making any big financial decisions or plans. However, the survey also indicated that small carriers were much more affected by the issue at 30%. Only 23% of large carrier companies were worried about impending issues. Despite less worry, large carriers are still in no hurry to make big decisions with nearly everyone simply waiting until the government handles the cliff issues.
Regardless, with 2012 coming to a close and nobody being certain of the country’s fiscal future, carriers are being pressured to make deals. Though the government claims to be addressing the issue, it is easy to see that heir indecision is impacting carriers’ financial decisions during the last weeks of 2012.