The transportation industry is going through multiple changes. As oil prices increase, more people are looking for alternative shipping methods. Custom Companies is a shipping company in the Chicago area. Over the past few years, it has become much more difficult for the company to earn a profit.
The primary driver behind shipping costs is the price of oil. In 2015, the cost of fuel reached a multi-year low. Transportation companies were making record profits, and everything seemed to be great for the foreseeable future. However, a driver shortage started impacting the industry in 2016. To make things worse, additional government regulations have made it more expensive to ship products around the country.
In the past decade, dozens of new regulations have impacted shipping companies. Companies now have to spend more time and money complying with these rules than ever before. Although some controls help protect workers, other laws only add expenses to transportation companies.
Drivers are not allowed to work as many hours as before. Combined with the driver shortage, this issue has been complicated for companies to solve. Some companies now offer large bonuses for new drivers.
The Growth of Custom Companies
Despite all of the issues in the industry, Custom Companies has expanded in recent years. The company is in a robust financial position. Unlike most trucking companies, Custom Companies does not have a ton of debt on the balance sheet. Many industry analysts believe that Custom Companies could purchase a competitor in the coming years.
Although Custom Companies has plenty of business around Chicago, the company has fewer customers in other parts of the country. The CEO of Custom Companies wants to expand operations to include states like Michigan and Wisconsin. Acquiring a smaller company would be an excellent way for Custom Companies to achieve this goal.