Become an owner driver - your country needs you
If ever there was a time to consider going it alone, then it’s now. While the number hauliers shrink and the sector consolidates so the need for the discerning owner driver(s) ever grows.
Think about it; haulage is gradually becoming a contract-based sector, and as always catering en masse is done with a moving target. For example, XYZ Logistics is contracted to make, on average, 100 movements a day but demand shows that falls to 80 but can rise to 120. It can’t afford to have 120 trucks and 120 drivers with up to 40 trucks/drivers sat waiting for the work when things are slow. Chances are it’ll have just the required minimum in place; say 85 trucks/drivers, to allow for fluctuations in demand. For the rest it’ll sub-contract as many as 35 trucks to compete the work from a list of ‘approved’ hauliers and owner-drivers.
And times are tough for those long established hauliers like Father & Son Ltd who have a few small contracts but rely on sub-contracted work, traction only and spot haulage work to keep utilisation levels up. They represent the most exposed to the vagaries of competition, cut-throat rates, fuel hikes and the downturn in the economy. What if XYZ Logistics stops the subby work? What if the local widget manufacturer goes under?
Could you, with some profession advice, see an opportunity within your transport sector to go it alone? It may not be as daft as wizened naysayers (normally other drivers who want an easy life) might have you believe. Weigh up the odds, and talk to the people who know the answers, not Dave the Tramper down the pub.
· Talk to transport managers, decision makers and local businesses, they’ll tell you straight.
· Pick the brains of other owner drivers, find a few out and talk to them, they will be more honest with you than you can imagine. They will tell you how to set up, and how to avoid unnecessary spending.
· Most importantly talk to the bank, rental companies, manufacturers, financial institutions. And don’t put up your money unless you have to…
OK, my apologies for the following metaphors, but based on the above, here’s your next step.
· If it’s clear your project isn’t a goer then be brave enough to admit it. God loves a tryer but this has to be a decision made with the head.
· If there is light at the end of the tunnel then go to the light until it’s extinguished, otherwise you’ll never know and opportunity may never present itself again.
· If it lands in your lap…
And, arguably, there may never be a better time. A survey from the RSA Group (that’s the rebranded title taken from its original name, Royal and Sun Alliance) said an economic recovery requires an influx of 300,000 small and medium-sized enterprises (SME) to underpin it.
The study reveals that the average SME is worth £130,000 per annum to the UK economy, that SMEs contribute 52% of private sector Gross Value Added (GVA) to the UK economy. The downside for haulage is that SME growth is driven by services sector, while Manufacturing declines.
Valuable Assets, published by RSA, reveals that private enterprise will grow faster than the UK economy as a whole over the coming years, helping to offset the effects of fiscal austerity measures, such as 800,000 job losses over five years.
Tara Kneafsey, SME director at RSA, said: “Our study shows that an ‘enterprise army’ will be the driving force for growth. Measures announced in the Autumn Statement, such as the 1% cut in Corporation Tax, extended doubling of small business rate relief, and a new export finance facility will help to encourage SME growth and are an important step in the right direction.
“With growth, though, come challenges as well as opportunities. As an essential element of the UK business landscape, it is crucial not only that they are supported from inception through to growth – whether that is at home or abroad – but also that they maximise the opportunities that technology and an increasingly flexible and global workforce can bring.”
RSA said the number of large businesses declined by 11% per cent over the last 10 years, while the number of small businesses rose by 35% over the same period showing the growing strength of the burgeoning SME population.
SMEs are entering specific sectors like Administrative & Support Services and Information & Communication Technology, both increased by more than 20% during the last two years, while Manufacturing grew by just 1%.
In road transport the goalposts continually change and, if you look hard enough, you might just find yourself faced with an open goal.
