CHATTANOOGA, TN. — Transport Capital Partners’ (TCP) 2012 Q4 Business Expectation survey results showed that majority of carriers are not happy with the outcome of the presidential election.
The survey showed that 93 percent of carrier executives had indicated they were displeased with Obama’s electoral victory.
The nine percent of smaller carriers, however, who are primarily sole proprietors, were happy with the presidential outcome; compared to one percent of larger carriers.
“The carriers’ response was a surprise in terms of the magnitude of dissatisfaction, but was reflective of TCP’s conversations in the last month with both carriers and suppliers,” said Richard Mikes, TCP partner.
Despite the elections, TCP said the looming “fiscal cliff” has added more uncertainty to everyone’s business and personal decisions.
“Trucking is a demand-driven industry. Carrier executives know that if consumers and business are uncertain about the economy, in general, and their own personal finances, in particular, they will not be buying goods,” said Steven Dutro, TCP partner.
“It’s not surprising that carriers are unwilling to risk their own capital if their customers are also sitting on theirs,” he added.
According to TCP, 52 percent of surveyed carriers indicated they are not making plans until they find out how the fiscal cliff will be handled.
Larger carriers were more concerned about the election results affecting their plans (30 percent) than smaller carriers (23 percent).
“Most carriers are in a ‘parked’ mode and decisions are either deferred or changing until the cliff is addressed,” Mikes said. “The lack of tax decisions is impacting M&A activity as the year closes, and many deals are being pressured as buyers and sellers are uncertain about what 2013 holds for them.”
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