NAFTA and Used 18 Wheelers Created a New Marketplace
The North American Free Trade Agreement (NAFTA) was one of the first major pieces of legislation to be signed into law during the Clinton Administration.
Twenty years later, trade among the United States, Canada and Mexico has more than quadrupled.
Other economic benefits associated with NAFTA's implementation include: a new market for used 18 wheelers and new opportunities for entrepreneurship in transportation.
As trucking demand has multiplied over the years, so have the number of trucks in service.
As trucks reach a certain mileage or the end of a long-term lease, they are sometimes removed from a company's fleet.
Large trucking companies operate on economies of scale and have an interest in keeping all of their trucks under a certain mileage.
These companies may be able to invest in a new truck or simply allow a certain fleet to shrink by attrition.
Since the NAFTA's existence, a consistent demand for long-haul trucking has developed, but a large fleet is not necessarily required to satisfy this demand.
Smaller trucking companies, many of whom operate with used rigs, fill new supply chain gaps.
It might be argued that the additional trucking demands, created directly by the NAFTA, has increased the value of used 18 wheelers because they now play a significant role in maintaining new increased levels of trade.
Smaller businesses may profit more from investing in a set of used 18 wheelers than using the capital or credit required to finance a new fleet.
The market for used 18 wheelers in the United States includes rigs from manufacturers associated with the highest quality and safety standards.
These trucks were built to last for decades, and a lease can end for any reason.
Second hand does not mean second tier.
Most of these trucks were major investments for the original owners and have been well maintained.
The availability of used rigs has expanded the number of independent truck drivers and small entrepreneurial trucking businesses operating in the United States.
The U.
S.
Bureau of Labor Statistics predicts a 13 percent increase in the employment rate for self-employed truck drivers between 2008 and 2018.
According to the Bureau, the demand for long-haul truckers is higher than short distance delivery drivers.
If the demand for used 18 wheelers mirrors the climb of the demand for drivers as we move toward 2018, then the smart business decision is investing in a used and well maintained long-haul truck.
Twenty years later, trade among the United States, Canada and Mexico has more than quadrupled.
Other economic benefits associated with NAFTA's implementation include: a new market for used 18 wheelers and new opportunities for entrepreneurship in transportation.
As trucking demand has multiplied over the years, so have the number of trucks in service.
As trucks reach a certain mileage or the end of a long-term lease, they are sometimes removed from a company's fleet.
Large trucking companies operate on economies of scale and have an interest in keeping all of their trucks under a certain mileage.
These companies may be able to invest in a new truck or simply allow a certain fleet to shrink by attrition.
Since the NAFTA's existence, a consistent demand for long-haul trucking has developed, but a large fleet is not necessarily required to satisfy this demand.
Smaller trucking companies, many of whom operate with used rigs, fill new supply chain gaps.
It might be argued that the additional trucking demands, created directly by the NAFTA, has increased the value of used 18 wheelers because they now play a significant role in maintaining new increased levels of trade.
Smaller businesses may profit more from investing in a set of used 18 wheelers than using the capital or credit required to finance a new fleet.
The market for used 18 wheelers in the United States includes rigs from manufacturers associated with the highest quality and safety standards.
These trucks were built to last for decades, and a lease can end for any reason.
Second hand does not mean second tier.
Most of these trucks were major investments for the original owners and have been well maintained.
The availability of used rigs has expanded the number of independent truck drivers and small entrepreneurial trucking businesses operating in the United States.
The U.
S.
Bureau of Labor Statistics predicts a 13 percent increase in the employment rate for self-employed truck drivers between 2008 and 2018.
According to the Bureau, the demand for long-haul truckers is higher than short distance delivery drivers.
If the demand for used 18 wheelers mirrors the climb of the demand for drivers as we move toward 2018, then the smart business decision is investing in a used and well maintained long-haul truck.
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