Reducing operating costs to increase profit margins
Managers in the trucking industry often find themselves balancing on a very thin profit margin. Volatile fuel prices, rising salaries, and regulatory requirements each carve away at revenue, and other operating expenses take a toll as well.
How can transporters boost their profitability? The first step is reducing overhead costs as much as possible. Many of the operating costs that auto haulers bear are beyond their control. However, there are ways to reduce them.
The number one expense of most transport companies is driver salaries. As industry veterans retire, fewer qualified operators are stepping up to take their place. This shortage drives up demand and the cost of hiring new, qualified drivers.
While it may not be possible to counter this trend, it is possible for auto transport companies to retain drivers for longer. A healthy salary is clearly important to job satisfaction, but other factors such as comfortable work conditions and reduced stress levels also have an impact on an employee’s decision to stay in a company.
After salaries, volatile fuel prices are the largest chunk of most transporters’ operating expenses. The past two years have seen a decrease in fuel prices, but experts are anticipating 2017 will be a particularly unstable year for the oil and gas industry. Auto carriers can expect to see price hikes this year, but they can offset those costs with greater fuel efficiency practices.
Fuel efficiency decreases as vehicle weight increases. A lightweight truck requires less fuel to operate, reducing operating costs significantly. Trailers like KART Performance Trailers’ Rapid that are constructed from lightweight aluminum alloy components can reduce empty truck weight by thousands of pounds, saving hundreds of gallons of wasted fuel each year.
Regular maintenance of trucks and trailers contribute to overall fuel efficiency while also increasing the lifespan of a vehicle and preventing unforeseen failures. Each of these factors serves to lower overhead costs.
Investing in a high-quality combination of truck and trailer will mitigate maintenance costs as well as the need to frequently replace fleets. The total cost of ownership (TOC) of durable trucks and trailers is much lower when they’re made of modern materials using innovative fabrication techniques.
KART Performance Trailers manufactures chassis that are hot-galvanized and pre-tensioned, making them more robust than conventional trailers. We also offer a corrosion-resistant electric system and superior quality iron and aluminum alloy components. It’s this attention to detail and consideration of our clients’ needs that make our trailers among the most cost-efficient for auto haulers.
How KART Performance Trailers reduces overhead
KART Performance Trailers builds auto transport trailers that exceed international regulations while increasing the comfort and safety of drivers. Our trailers are built lightweight and aerodynamic to increase fuel efficiency, yet they’re robust enough to last for decades, decreasing TOC. If you’re ready to reduce your company’s operating costs, contact our service representatives today to learn more about our line.
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