(Lafayette, La.) — Recently, the Louisiana Motor Transport Association (LMTA), under the direction of Chairman of the Board Doug Place, partnered with the Moody College of Business at the University of Louisiana at Lafayette to survey Louisiana trucking industry executives on their view of economic indicators associated with the trucking and logistics industry. The survey is a significant tool for Louisiana CEOs because trucking activity is indicative of trends in future economic activity.
“In Louisiana and across the U.S., the logistics industry serves as a real barometer for the economy as a whole because of our central position in the supply chain,” said Place, CFO of Lafayette-based Dupré Logistics. “Surveys like this point toward future trends in the shifting business landscape and can assist professionals in making smart business decisions.”
The sentiment index conducted in October and November 2011 surveyed 28 trucking industry executives in Louisiana. The survey concluded that the Business Sentiment Index for the 3rd Quarter of 2011 was 54.5 out of 100. A reading of 50 is normal; therefore, 54.5 indicates “better than normal,” although the number is down nearly two points from the previous quarter.
“This survey indicates that trucking activity may have declined slightly from last quarter, but is still slightly above normal,” said Dr. Linus Wilson, Assistant Professor of Finance in the Department of Economics & Finance at the University of Louisiana at Lafayette. Regarding the findings of the study Wilson continued, “Despite the slow overall national economy, transport companies have found orders to be steady. Costs are increasing for most trucking companies, forcing them to raise prices to maintain steady profit margins. 75% of respondents said they expect business prospects in the next 3-6 months to improve either slightly or greatly.”
Respondents answered questions about orders, prices, new business prospects and drivers. The LMTA conducts this survey quarterly, making results available to the logistics industry in particular and the Louisiana business community as a whole.
The Louisiana Motor Transport Association promotes “The Success and Support of the Trucking Industry.” The Association fosters and advances safety on Louisiana roads and protects and defends the interests of its 400+ members.