There is currently no indication that the economy will recover. What will happen to the transportation sector, and more specifically the trucking sector, as businesses slow down at record rates?
Our economy has been declining since 2006, and it’s getting worse. Some might argue that we should thank the media for that one. Over the past two to three years, the housing sector has come to dominate many media outlets. Prior to talking about the housing bubble and its subsequent burst, they first praised the robust housing market, which contributed to the housing boom that occurred between 2004 and 2006. For some reason the general public has lost all control of what is good and bad anymore and they have turned to the media for their “expert” opinion.
The trucking industry has been significantly impacted by the housing market’s historic lows. Fortune 500 companies like Toll Brothers Inc. (NYSE:TOL) have noticed a significant decline in sales across the nation, which has an impact on both their manufacturing and transportation divisions.
The Federal Reserve lowered interest rates by 125 basis points earlier this month, which should increase some activity in the housing market. Real estate investors and buyers alike must get over their apprehension and enter the market now that interest rates are so low. Millionaires are being made right now. Buyers must be seeking deals at the same time that sellers are.
We should observe an increase in manufacturing activity across the nation within the next two months, which will eventually put the trucking industry back on track. They anticipate a 25–50 basis point cut at the upcoming Fed meeting. This ought to benefit our industry as well.
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