Quote:
Originally Posted by ::matthew
the article doesn't say that the profit is gross, net, a number he pulled out of a hat, or whatever else...It also doesn't mention what, if any health care expenses or maternity leave he pays.
but a net profit of 50K seems like a fairly low return on 35 trucks.
Government at all levels has heavily subsidized trucking for many years. 90% of damage to interstates and federal highways is due to commercial trucking; which is a cost that is paid by all taxpayers, not just those who benefit from the goods being transported. As government budgets get tighter and the true environmental costs of transport begin to get factored into the cost of products sold, I imagine we will see a lot less of the cheap plastic crap that comes in through long beach or whatever port and gets put on trucks.
People are going to be put out of business by increased environmental regulations and it's not always a bad thing at the macro level. Ron Faulkner might do fine with a dozen 2012 Volvos for his fleet...it's not like it's just him that's having to buy new trucks or have his current ones re-fitted. Maybe he’ll score some low cost financing from the government to help him come into compliance.
|
Matt,
It is naturally assumed that if a trucking company has 35 trucks in its fleet...they are paying benefits and such. I have my commercial drivers license and I have been in the business for almost a decade. Who are you to say or anyone for that matter especially the government how Ron can run his business. He should be able to run 100 trucks if he wants to. I can also verify that if 50,000 was gross, he definatly would not be in business. That doesnt even cover cost of fuel for a year for one truck. You missed my point entirely. After EVERYTHING is paid at the end of the year....insurance, CHP certificates, licenses, driver physicals, tolls, and everyones salary...he puts 50,000 dollars into a bank account that the company has at its' desposal next year.
I totaly agree with you that transportation is the most heavily regulated industry around...that is why it is so expensive to opperate the business.