Sunday, 28 November 2010

Effects of the Economic Slump on the Road Haulage Industry

Now that the price of fuel has somewhat subsided, the road haulage industry is now gaining back a sense of normalcy. The global economic slump raised a lot of questions as to how the once booming road haulage industry would ever recover. It is very much common knowledge that once fuel prices finds itself in a volatile state, the price of transporting essential goods from one place to another is also very much affected. Companies are likely to jack up the prices of the goods they are transporting which eventually will leave the ordinary consumer confused as to why prices have gone up so much.




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The once rising price of oil also had a toll on those who wanted to delve into the road haulage industry. Since trucking companies also had to drive up the prices of their services, the manufacturing institutions had no choice but to either limit the production of goods or to just raise their prices as well. Let's explore the pros and cons of these options. If manufacturing companies were to limit the production of goods, this would bode ill for the road haulage industry as they would have to also limit the number of truck drivers that they have on their roster. This means that those drivers fresh out of LGV training school would have spent their hard earned money in vain. If these companies went for the second option and raised their prices, consumer demand would drop as well. Less demand means manufacturing companies will have to cut production. This means more people with no jobs.


So if you're one of those fresh graduates of LGV training school, what you would be looking for is for the prices of fuel to be relatively stable. Yes, you'd want them to go down as well, but stability means that companies can more or less predict and make preparations when it comes to pricing their goods and services. This is good for you because this means that you will have a greater chance of getting a gig. After all, you did undergo LGV training and you wouldn't want this to go waste. And of course, as a consumer yourself, you'd want the prices of the goods that you buy to be at least stable.


This is the effect that the prices of oil have on not only the road haulage industry, but also the entire economy as well. From this point of view, you can clearly see how important the road haulage industry really is. The goods that you buy in the supermarket or at the mall were all transported using the very able truck drivers of the road haulage industry. If this fundamental industry is weakened by outside factors (like the unstable prices of oil), you can bet that everything else is also affected.


These are just a few concepts that is essential for everyone, especially those who've just had LGV training and are planning to go into the industry, should be aware of. A little knowledge goes a long way.


Pathway HGV have been at the forefront of LGV Training [http://pathwayhgv.co.uk] for over 10 years and have seen the effects of fuel prices and are in a informed position to offer a expert point of view of what is on the horizon.

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