|Need To Get Paid Now?|
|Water Truck Conference|
|Friday, 13 July 2012 09:45|
I have had calls from people asking about the water truck business. Many are concerned about when and if business is coming back, and want to know how everyone else is doing.
In answer to that question, the general consensus is that the work has been sporadic. Just as we get back to work, it drops off again, unless you are lucky enough to land a long job and stay there for a while. The only issue with that is the fact that all your eggs are in one basket and if that company goes defunct or takes months to pay, you have no other avenue for income. In the “heyday” many of us worked for several companies and were not totally dependent on just one company. If you find yourself in that situation, there is one other option.
You can factor your invoices for a fee. The charge for factoring is anywhere from 5% to 8%, all depending on the pay history of your contractor, and a few other conditions that they will take into consideration. I have used
REV Finance Group in Irwindale, CA their phone number is (626) 739-2848. They are fair and easy to work with.
Want to get in business?
Some folks want to get into the water truck business since we are not as “regulated” as many of the other trucking industries.
The one big question is should they buy a new water truck or an older one? In my opinion….unless you have a written contract for a long job that would support large payments for a new truck, (if you could even qualify for a loan, it’s much harder to qualify these days), I would buy an older much less expensive truck for the time being—say until 2015 when the CARB rules outlaw older trucks.
First you need to make sure you can secure work for your truck, if you find work is sporadic, you won’t be on the hook for huge payments, and if you decide to sell out, it will not be as hard of a hit. You just need to keep in mind that you will need to make as much as you can on the truck before you have to put a PM filter on it, or CARB deems it obsolete.
In these economic times buying a new truck, which can cost anywhere from $70,000 to $120,000 depending on size and options, can be a financial disaster! If you have good enough credit to qualify, is it a risk you are willing to take?
Construction will eventually come back to some degree, and there will be slim pickins’ for equipment when that happens, as many of the water truck companies will have thinned out. The other consideration is how will the new trucks fare in the dirt? I have been told there will still be problems with the emissions systems still not running effectively on these types of applications. Time will tell! On the other hand, if you do choose to buy a newer truck, you will be set no matter how the CARB regulations will come into effect.
What a crime!
I feel it’s a crime to disrupt the natural recycling of over the road trucks. After these trucks run for 4 or 5 years, its next life is a water truck, dump truck, or some kind of construction vehicle for the remainder of its perfectly serviceable years. There is so much at stake with CARB rules coming into effect. What will happen to the used truck sales lots, and mechanic shops and so many more avenues of business and jobs in the trucking industry?
The trucking and construction industry’s uneasy future is at the hands of these voracious giants ready and willing to take us out. I believe our future for a potentially positive outcome lies with the CCTA. California Construction Trucking Association….CARBS’ only “biting dog” with their team of lawyers, and ever-growing membership…..fighting for our future.