This has been the worst economic downturn of my business career, and I believe 2010 will be just as tough. Economists try to prove we are on the road to recovery, but businesses of all kinds still struggle, continue to fail, consolidate and close. Credit for small and medium-size businesses remains tight and difficult to establish. Tremendous capacity is available across all transportation sectors, and the demand for utilization will remain low into the foreseeable future.
I believe we will see some significant movement in domestic transportation sectors as stimulus money for infrastructure projects flows into contracts, but will it be enough considering the need for a total infrastructure overhaul? What happens after this money is spent and the nation is dealing with the debt? 2010 appears more promising than 2009, but our concern should be the next five years rather than just 2010.
What is significant? We will see more sustained business, and not this start-and-stop spikes we are experiencing now. Growth of 1.5 to 2 percent in the flatbed truck market as these projects start moving into the construction phase would be significant compared to today’s market.
The big question is: What will the next five years bring? I think most businesses will remain conservative while adapting to a slower economy.