With nearly 2.2 million COVID-19 cases around the globe as of April 16, the world has — in a multitude of ways — shut down. Students are practicing distance learning, many people are working from home, and nonessential travel is a thing of the past. While COVID-19 has inconvenienced many, it has downright destroyed the livelihoods of others. 22 million Americans are unemployed as of this week, with numbers only rising.
In the U.S., the Paycheck Protection Program under the Small Business Administration is a loan program set up for small businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Program was expected to be available from April 3 to June 30, but it ran out of funds on April 16. With Congress now working to replenish the program’s funds, this shortfall is reflective of just how much small business employees are suffering.
Truckers are saving the day, every day
With supply and demand holding more weight than ever amidst these times, businesses that are still standing are relying on truck freight to deliver the supplies they need to keep their businesses — and livelihoods — afloat.
On March 13, the Federal Motor Carrier Safety Administration (FMCSA) released an exemption on Hours of Service regulations for trucks delivering COVID-19 emergency aid. Canada followed suit just 11 days later. With federal regulations lifting in critical areas, the trucking industry is better equipped to meet the rampant demand for essential items, including groceries, medical supplies, and household necessities.
In many ways, this pandemic has shown how truckers are truly the backbone of the economy. Without them, grocery stores, hospitals, pharmacies, and businesses would not receive the supplies they need to distribute to the people who need them. It’s almost impossible to grapple with the concept of how much more difficult this pandemic would be without essential workers like truckers, because society simply would not be able to maintain any sense of normalcy.
How nonessential businesses are faring
If COVID-19 has taught us anything, it is that consumer behaviors can drastically change in a moment. And these behaviors are not only reflected in demand for essential items, but in demand for nonessential items as well. Demand for jigsaw puzzles, for example, has surged 370% in the U.S. with Americans — and much of the world — remaining indoors. Ravensburger, a leading puzzle company based in Germany, is trying to meet the intense demand for their puzzles while abiding by the country’s social distancing regulations.
While just one example, it presents a strong image for our times. Small businesses or large corporations providing nonessential items like crafts and books may fare much better than those providing beauty or remodeling services. For one thing, some of these businesses can remain open if they’re providing essential supplies, and others are able to provide supplies to their customers online. While large, well-known companies may come to mind when thinking of digital retail therapy, small local stores and boutiques have begun doing the same to keep their businesses operating.
How the near future may fare
The American Transportation Research Institute conducted an economic analysis on truck activity in six states — California, New York, Florida, Illinois, Pennsylvania, and Washington — from February 9 through April 18. They found that while truck activity spiked in the initial pandemic stage, it declined by 8 to 10 percent afterward in comparison to the month of February. There is hope, though. New York, one of the earliest states to experience a major COVID-19 outbreak, saw a steady rise in truck activity the week of April 12. In many ways, these numbers further signify the critical relationship between trucking, the economy, and business.
Harvard Business Review recently drew on their own extensive research to provide recommendations, including the importance of analyzing customer needs and focusing on proper accounting, to small businesses during this time.
Regardless of whether or not customers shop in store or online, all businesses receiving demand still rely on truckers for supplies — whether the truckers are delivering the supplies to stores or directly to customer homes. On April 8, President and CEO of the Owner-Operator Independent Drivers Association, Todd Spencer, reflected on how vital truckers are: “Small business truckers and professional drivers are the vital link to it all, putting their lives on the line for the good of the nation.”
At Omnitracs, we are incredibly proud to be a part of the transportation industry. If you’re looking to support truckers during this time, we suggest donating to driver-centric charities like St. Christopher Truckers Relief Fund and Truckers Final Mile. You can also check out our recent blog post highlighting additional ways you can lend your support.