Bankruptcies, consolidation and cut-backs are sweeping the entire industry. A recent study by a major investment brokerage showed that the rate of bankruptcies in trucking hit a record high of 1,320 in the third quarter of 2000. In addition, there were 1,365 trucking companies that went bankrupt in the first two quarters, resulting in a total of 2,700 declaring bankruptcy through the third quarter of 2000.
Adley added that consolidations in the manufacturing, distribution and financial service industries have had a dramatic effect on the trucking and leasing sectors. The financial services industry is also experiencing major consolidation, as well as a slumping market, said Aldey.
Companies such as Citibank and General Electric are acquiring the likes of Associates First Capital, European American Bank, and others, all of which were major finance players for the trucking industry.