Fewer fleet failures in 1Q, report finds
The trucking industry has experienced a strong recovery in 2012, as fewer trucking companies have failed in the first quarter of 2012 than in recent years, according to the Paragon Report, which examines investment opportunities in the trucking industry. Companies who have survived the recent recession will be well-positioned to profit going forward, the report finds.
According to Avondale Partners analysts’ “failures report” in the first quarter of 2012, there were only 160 companies with an average fleet of 13 trucks that went under, compared with 295 failures in the first quarter of 2011.
“Almost by definition, if a trucking company made it through the last couple of years of turmoil in the macro economy, industry marketplace and regulatory environment, it is a result of being fairly well capitalized and fairly well operated,” the analysts said. “Or put another way, if they made it this far through the tough times, then they can make it through easier times.”