Did you know that trucking companies, warehouses, and private sectors in the United States employ approximately 9 million people in trucking-related jobs? In fact, there is an estimate of 15.5 million trucks operating in the United States alone. That’s something you may not think about too often, and it’s quite a surprising number.
The fact is that many people, across the states, work in the trucking industry. They may be delivering goods from one location to another with a single truck or they have a larger business with a network of trucks. In either case, it’s a business like any other and requires capital.
What kind of costs are associated with transportation?
If you are asking this question, you are likely not thinking about the way in which trucking and transportation is like any other business. It’s slightly different in the typical sense that it’s not a physical store or service, but it’s a business nonetheless. If you have a truck or a fleet of trucks, that is essentially your livelihood. In this sense, your business still requires capital, still consists of employees, daily spending, and other miscellaneous costs. The numbers way surprise you. What’s the average total cost of operating a truck each year? $180,000!So, let’s simplify things and break down the basics of what really goes into the trucking and transportation industry. That’ll help us talk more closely about transportation funding.
- Truck Insurance:Who knew there are nine different insurance policies for the trucking industry? In fact, to be completely covered, you can expect to pay over $6,500 per year!
- Truck/Trailer Payments:This will vary, depending on whether you own your truck or if you have actual lease payments to make. In either case, this could be a sizeable cost, especially if you run a business with more than one truck. This could make up a significant part of your overall cost throughout the year.
- Fuel and Oil Costs: The cost of fuel is going away up. The worst thing in the world is watching an older movie, coming across a scene that takes place in a gas station, and seeing the sign indicate that gas is less than a dollar. The fact is gas is expensive for the average person living in an everyday life, driving an everyday car. So, imagine what it’s like filling up an entire truck and driving across the country throughout the year. The average cost of filling up the tank of a commercial truck every year is $70,000. That’s definitely a significant cost to keep in mind!
- Repair and Maintenance: If you thought getting new tires on your sedan was expensive, try thinking about getting a set of 18 tires for your 18-wheeler! The cost of tires for a truck can be well over $4,000 and, for obvious reasons, this is somewhere you don’t want to cut corners. In addition, since you are putting your truck to work each and every day, you can expect to pay up for maintenance. There are a number of things you will have to think about here, including basic maintenance to replacing wires and brakes.
- Employees:Well, that truck isn’t going to drive itself, is it? You likely have a number of employees on your payroll if you have multiple trucks as part of your business. That’s a significant amount of cost that you will be setting aside per month and per year.
Where do you go if you need transportation funding? If you require additional capital or financing, where can you get the money you need? It’s a question that may come up if not now then eventually. It’s important that you are aware of all your options, so you know where you can turn in the event that you need transportation funds.
MyBusinessLoan.com connects business owners with lenders who can provide business financing within the range of $350,000. If you need transport funding, you may want to look into the possibility of getting a business loan. There are a lot of costs that is required of this industry, so you will want to make sure you are as prepared as possible!MyBusinessLoan.com helps you grow your business and stay prepared for all financial obstacles.