Many new investors want to focus their search in on areas that also have high population growth. Population growth does contribute to package growth. However, as we cautioned before, beware of route businesses in cities where outsized growth contributes to low unemployment rates and upward wage pressure. These can be expensive markets with substantial hiring challenges.
Our team of actual FedEx contractors worked through the math of new FedEx trucks versus used FedEx trucks in our own operations. We always want to make the most efficient choice for our fleets. We have compelling data that shows new trucks are the superior option for routes that are 150 miles per day or less. Why is this the case?
Healthy fedex route businesses demonstrate profit margin ranging from 15% to 45%. Where you fall within that range depends on the type of routes you own, the composition of those routes, and how efficiently you manage your business expenses.
This is a year of huge change for FedEx Ground contractors. How are the largest contractors in the nation preparing for these edits to their operations? Come network with them and learn from them in Q&A panels. You can also connect with dozens of industry vendors and leaders who can support transitions in your business.
Although it feels as if our world is already dominated by e-commerce, the market is not nearly done growing! We predict the e-commerce expansion to rise steadily for the next ten years. The total e-commerce volume will be so significant that we believe there will be enough business for all the current logistics players to sustain themselves and for new players to enter the market and thrive.