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Obama’s Policy Changes And The Trucking Industry

Last updated on November 8, 2011 by Sozo Staff Leave a Comment

President Obama has enacted many new regulations for the trucking industry. The idea is to create more jobs and befriend the environment. Through increased fuel efficiency there should be lower fuel consumption and possibly more money to support the newly created jobs. Two policies that The Tenney Group of Houston, Texas are watching closely, time will tell if they benefit or hinder the industry as a whole. New fuel efficiency standards and a controversial cross-border trucking pact with Mexico definitely take control away from trucking business owners, but not completely.

Fuel Efficiency

August 2011 saw the beginning of the new fuel efficiency standards for the trucking industry. Starting in 2014 and lasting until 2018 truck manufacturers must deliver a product that cuts fuel consumption by 20 percent. These new semi-trucks will save approximately 4 gallons every 100 miles. Likewise, heavy-duty pick-ups and delivery trucks have to deliver a 10 percent decrease in fuel consumption.

Praise for less dependency on foreign oil and green house gas emissions come from larger organizations like American Trucking Association. However, the changes could strangle independently owned businesses. Reducing fuel costs means higher prices for new high-tech trucks. These prices may cause some smaller businesses to close due to inability to meet the new regulations due to overhead cost. Fuel efficiency is important and addressable in other ways. Many trucking companies would benefit from driver training that teaches fuel-efficient driving techniques.

Mexican Pact

The United States and Mexico signed a pact this past summer that abolished tariffs on many goods trucked over the border. This new flow of traffic halls everything from beef to Christmas trees. New business opportunities were created, however established private trucking companies are worried. The new rules allow Mexican carriers to begin competing with American trucking companies and undercut their prices. Along with the added costs of more fuel-efficient trucks, this pact could shut down privately owned American businesses.

While the government it trying to create new jobs and improve fuel efficiency, they are actually erecting barriers to the progress of established businesses. The sensitive economic state of the entire country means that these regulations are more boon then blessing. Regardless, 70 percent of products moved throughout America are in trucks. Profit potential is available for savvy business owners who are willing to stick out through harder times. As struggling businesses close, more opportunities for entrepreneurs and established professionals will open up. The experience of a transportation industry broker will help any individual in take advantage of these instable economic realities. Trust The Tenney Group to help you determine the best first step towards the future.

Filed Under: Business Tips, Transportation

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