Friday, June 14, 2013

California regs throw kinks into traditional equipment cycles

The end result?  Higher transportation costs for everything.
Many owner-operators have planned on retrofitting as a solution, only to be disappointed that the condition of their equipment made it infeasible. For that reason, Sturdevant said, his company declines 70 percent of customer requests for retrofits.

When it comes time to sell an older truck that is non-compliant or about to become non-compliant, the value has plunged, further jarring the business model for owner-operators and small fleets, said Tennies.

“There’s one or two a week I hear of in my area of California who can’t face the regulations,” and leave the business, he said. Often they don’t know their options or truck values, and can’t get financing.

The new regs add thirty per cent to the cost of a new rig.  Way to go, CA.

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