DANBURY, Conn.--(BUSINESS WIRE)--Nearly 70 percent of trucking business leaders believe that fuel prices are placing the business at risk, according to an international survey of 1,200 trucking industry leaders in the U.S., U.K., Canada and France. The survey, commissioned by GE Capital Solutions, a leading provider of financing for the commercial trucking industry, also reveals that driver shortages (69 percent) and excessive regulation (40 percent) are top threats to business performance. These concerns are compelling managers (92 percent in the U.S., 87 percent in France, 86 percent in Canada and 80 percent in the U.K.) to explore new methods for achieving efficiencies and additional cost savings.

Conversely, low business volumes were among the least of international executives’ concerns, most likely to be seen as a problem in the U.K. (12 percent) and least likely to be a problem in the France (6 percent), vs. the U.S. (9 percent) and Canada (8 percent).

“The transportation industry, which contributes more than 10 percent to the United States gross domestic product, is vitally important to the world’s economy,” said Dan Clark, General Manager for GE Capital Solutions Equipment Finance Group. “Seeking new methods for achieving greater operational and financial efficiencies to address economic and regulatory pressures will clearly remain the top priority for trucking industry leaders over the next 12 months.

“As business volumes continue to increase as expected, trucking companies will have to seek alternative ways of managing these market pressures to take advantage of future growth opportunities and maintain a healthy balance sheet.”

Despite a recent decrease in fuel costs, nearly nine in ten trucking executives believe fuel prices will increase over the next 12 months, and report that fuel costs represent approximately one-third of their overall costs. Despite an urgent need to address the impact of rising fuel prices on business performance, the study reveals only 7 percent are currently using alternative fuels, with the U.S. leading in this area. Trucking businesses in the U.S. were also most likely to be receptive to the idea of using alternative fuels (65 percent), while Canadian executives are the least likely (45 percent).

Trucking executives in each country say they will look to offset current and future fuel expenses. In addition to passing costs to shippers, trucking executives are focusing on other options, including:

• tightening supplier management (41 percent overall), (43 percent in the U.S.),
• seeking alternative green initiatives (36 percent overall), (34 percent in the U.S.), or
• leasing trucks to free cash flow (18 percent overall), (14 percent in the U.S.).

Driver Demand

Trucking industry leaders report that they are struggling to keep up with demand for drivers. A fifth (22 percent) of trucking businesses believe the shortage will impact their ability to deliver goods on-time to existing customers, and are concerned that the shortage will significantly impact their ability to service additional business. In the U.S. in particular, 20 percent of additional freight opportunities are at risk of being impacted, and as a result, companies are aggressively seeking ways for attracting and retaining drivers. More paid leave was cited as the number one recruiting and retention method across the U.S. and Canada (nearly 50 percent) and the U.K. (41 percent), followed by reducing paperwork (36 percent) and improving cab facilities (31 percent). Conversely, in France, better cab facilities were cited as the best method for attracting drivers.

Identifying Additional Cost Savings

One in four trucking leaders in the U.S. cite maintenance and insurance costs as the best areas for cost savings followed by salaries and general efficiencies (both 8 percent). Reducing hefty maintenance fees and improving cash flow are driving decisions to lease versus own their trucks.

Nearly half (47 percent) of international businesses claim that purchasing new trucks could greatly reduce business costs and save management time. In fact, more than half (54 percent) of international truck businesses overall intend to acquire new trucks in the next year. Of U.S. trucking businesses in particular, two thirds intend to acquire new units in the next twelve months.

About the GECS International Trucking Industry Study

GE Capital Solutions in cooperation with Dun and Bradstreet, conducted a survey including 1,200 interviews with owners, partners, managing directors, finance directors, directors or managers of truck operating businesses in the U.S., U.K., Canada and France. Interviews were conducted anonymously by telephone from July 24 through August 18, 2006.

About GE Capital Solutions

GE Capital Solutions (www.ge.com/capitalsolutions) provides leasing, lending and capital investment products and services to help business customers grow. It has over $90 billion in assets, serves more than a million clients around the world and is headquartered in Danbury, Connecticut, USA.

For more than 30 years GE Capital Solutions has been helping transportation dealers, manufacturers and end users grow their businesses. GE Capital Solutions has approximately $5.4 billion in served assets, 30,000 customers and over 120,000 assets in the global transportation industry.