I think that there are 2 major economic factors that have a negative impact on the expedite industry. The first was alluded to as a shift in manufacturing, and that is an accurate appraisal. Since the year 2000, 3.5 million manufacturing jobs have vanished from the USA. These include everything from heavy industry, such as steel production, to smaller niche industries such as the company that made Lionel Trains. These jobs WILL NOT COME BACK!!!!! The reasons are many, and just a few are high wages, and over regulation in the USA. Add to this is the next round of auto plant closures by 2012. I believe that GM plans to close 8 plants and Ford 12 plants, but my numbers may be wrong. Couple this with a horrible trade imbalance, unbalanced budgets, uncontrolled deficit spending, a negative savings rate, along with an entitlement mind set culture, and a perfect economic storm is brewing.
The second factor is the number of carriers. This is reminiscent of the early 80's when deregulation hit trucking. Well paying, family sustaining jobs disappeared, and the reason, just as expediters are seeing now, is that everyone thinks that they can haul freight a little cheaper than the next guy. So in a now slowing economy there are more trucks chasing less freight.
Though I expedited for a brief time, maybe too brief, I began to see a consistent lack of revenue during what was usually the busiest time of year. My net was around 6cpm. I bailed out, cut my losses, and spent the next 2 years paying off the debt that I incurred. Right now I am driving a school bus, and busting my butt taking on extra work to take home $450 a week. The wife lost her job--downsized-- and is looking for another. (WalMart????). But I am thankful to the Almighty every day that He has made provision for us. My thoughts and prayers go out to all drivers, especially expediters. May you all earn a million!!!!
Be safe out there, and merry Christmas.
God Bless
DooWop