How Will Donald Trump’s Plans Impact the Trucking Industry?

Phil Cohen

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Donald Trump and the Trucking Industry

While many didn’t see it coming, Donald Trump secured himself a comfortable victory in the 2016 U.S. Presidential elections. His campaign and ensuing victory were bolstered by his promises to rebuild the country, create jobs and champion the interest of the working man/woman. Among truckers, he was especially popular—of the 29 states in which truck driving is the most common profession, all but three voted the real estate mogul to office. But will Donald Trump and the trucking industry see eye to eye? Why was the support so strong for the Republican candidate among the transportation-heavy states?

The then-candidate prioritized America’s “crumbling” infrastructure. He promised to rebuild— new roads, new airports, new bridges, you name it. The renovation of the U.S. transportation system is integral to his overall economic plan, and he has at times pledged one trillion dollars to the state-of-the-art repair of the American infrastructure. Between the better roads and his desire to do less trade with overseas partners (meaning that trade would have to be conducted more within the U.S.), he was appealing for many truck drivers.

Clearly, the trucking industry got their man. So how will he benefit the industry that helped put him in power? Talk is cheap, and the campaign is over—let’s take a look at the policy and how it will actually change the trucking industry during his term.

Trump’s New Roads—Who Pays?

One trillion dollars for infrastructural upgrades—who doesn’t like that? Better roads mean safer driving, less wear-and-tear on tires and vehicles and, overall, benefits the entire country.

But there may be a catch. Many economists and industry analysts are suspicious of where Trump will draw the funds, as he has already stated that he will not expand the American deficit in order to finance this project. The FTR Transportation Intelligence research firm suspects that a big portion of the onus will fall on the shoulders of the trucking industry to fund the renovations to the infrastructure via tolls and other taxes. Increasing the highway tolls would provide the government with a handsome surplus of revenue, but the American Trucking Associations and other transportation organizations oppose the taxes.

Otherwise, Donald Trump plans on attracting private investors to contribute to the funding—it is a somewhat unorthodox plan, as the government typically funds the entirety of infrastructural projects through tax revenue and issuing bonds. But regardless of the specifics and the private investors, some transportation think-tanks believe that the trucking industry will have to invest in the new roads that Donald Trump is promising with toll fees, whether it wants to or not.

Other Trucking Policy Debates

The Trump effect will be strongest felt in infrastructure. Transportation industry experts don’t think that the President or Congress will pay too much attention to the ongoing debate over the hours-of-service regulations for truck drivers. The current rules are likely to hang around for some time, and the debate will probably be shelved for the foreseeable future.

Takeaways

So what is the verdict? Will the trucking industry see a payoff for helping put Trump in the White House? It is clearly too early to tell.

If Trump’s plans play out as he would like them to, then yes, truckers will enjoy a couple of years of relative prosperity. However—with details on how he will execute his plans still up for debate, it is difficult to say anything with too much certainty. If the administration relies too heavily on tolls to fund the repairs, it could end up harming the trucking industry in the short term. Also, his broader reluctance toward world trade could cause periodic shocks as the international economy adjusts to a Trump presidency. Economic shocks hurt almost every sector, trucking included.

The verdict is out. Donald Trump has the potential to be a great president for truck drivers, but the uncertainty that clouds his administration prevents us from knowing for sure how he will play out. Are financial uncertainties preventing you from expanding your fleet? As an owner-operator or a small trucking company owner, it is hard to continue to do business as you wait for past clients to pay you for your services. Need some cash to take on more loads without assuming debt? We can help. Contact us to learn more about our financing options or fill out the form.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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