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Blog / Delivery Contractor Challenges: Prepare for 2023

Delivery Contractor Challenges: Prepare for 2023

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The Transwest Team
The Transwest Team
Oct 06, 2022
FedEx Delivery Contractor Challenges - Preparing for 2023 amidst economic struggles

Over the course of the past two years, FedEx Ground contractors have faced more changes and obstacles then they could have planned for. The macroeconomic changes that contractors have overcome include, but are not limited to: labor shortages, inflation creating rising truck costs, and increasing fuel prices. These obstacles have created a stressful and ever changing working environment. With all of these factors at play, FedEx Ground contractors across the country are faced with the question: where do we go from here? While we do not claim to have all the answers, there are a few items that we think could be helpful from a commercial truck dealership perspective as you evaluate your business going into 2023. As you are planning for next year, consider the following: purchasing FedEx delivery trucks during Q4 of 2022 and/or Q1 of 2023 to capitalize on best pricing levels and tax advantages, establishing and maintaining strong bank relationships, and creating strict maintenance policies to prevent expensive repairs. 

As you look at your 2023 year, consider taking advantage of the inventory surplus in the market and purchasing at the end of 2022 or the beginning of 2023. There currently is an influx of package delivery trucks, so many dealers are willing to offer significant discounts to move aging units. These discounts can add up to substantial savings, equating to more cash in your business’ bank account and/or a smaller loan on the vehicle. Contact our knowledgeable sales team today for additional information on full spec package delivery trucks.

Another item that is important as you look at your FedEx Ground business is evaluating, establishing, and fostering strong banking connections. As the economic climate becomes more volatile, banks will become more conservative with their lending practices. It is important to maintain a strong working relationship with your chosen financial institution. By doing so, lending funds during more trying times will be a bit easier.

An additional item that Transwest sees as important for your FedEx Ground business is to create and maintain strict maintenance standards with all of your vehicles. This is important as it helps prevent major failures, thus, keeping additional funds in your pocket. The last thing that anyone needs to do during tight times is to replace a major component! For more information, Transwest’s CX team would be happy to talk with you more.

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