5 Strategies for Growing Your Business During Challenging Economic Times

Key decisions can make or break growth amid layoffs, recession

Photo: iStock

At the beginning of 2021, supply chain and logistics companies were experiencing tremendous demand in the freight market, resulting in significant recruitment efforts. Load-to-truck ratios were as high as 1:12, with an average of six loads for every one truck, as reported by Valoroo's founder and CEO, Nick Schrock.

Now the market has softened. There are more potential sellers than buyers, putting downward pressure on prices. Consumer demand is also slowing due to inflation and the fear of an economic downturn.

With the current surplus of trucks due to reduced demand, many companies are reversing their earlier hiring frenzies to control overhead costs. While this situation may be manageable for companies that have implemented cost mitigation strategies, layoffs have impacted the U.S. economy.

The labor challenges associated with today's soft market should prompt industry leaders to consider leveraging outsourcing to improve profitability, segregate tedious work, and increase productivity. Here are five strategies that freight leaders can use to scale their companies during a down market.

Improve Processes

Flexible, efficient, and seamless processes are vital to staying competitive in today's highly competitive buyer's market. Companies need to create and maintain processes that are adaptable to changing market conditions. Improving existing processes is a quick and easy way to gain efficiency.

Automation and Technology

Leveraging new technologies is a proven method to improve overall efficiency. However, technology can be costly and time-consuming to implement, so outsourcing is recommended for those who want to improve efficiency but don't want to bear the cost of changing software.

Culture and Retention

A positive company culture is the first step toward greater productivity. Organizations need to create policies that elevate employees' experience, such as employee recognition and flexible hours, to help employees feel secure and supported in their role. Keeping retention rates high is important financially as well.

Business Partnerships

Partnerships are key to staying competitive and successful. Companies should partner with companies that embody their strengths to overcome their weaknesses. Partnering with customers and vendors to improve profitability and service performance is also recommended during tough times.

Outsourcing Talent

Outsourcing is the perfect solution for tedious and redundant tasks. Offshore outsourcing can reduce overhead costs by over 60%, making it an attractive option for companies. Domestic outsourcing can also be a great way to save money while retaining control. Working with a company like Valoroo, which provides outsourcing solutions for the transportation and logistics industry, can help free up local teams' time to be more strategic.

The Journey Forward

Market trends will continue to shift, so it is essential to be prepared for all market conditions. Outsourcing is not a new concept, but outsourcing companies like Valoroo that focus on hiring candidates with logistics experience can provide a competitive advantage. Valoroo also has a robust talent pool pipeline and a high-caliber onboarding team that can digitize a training platform to enable scalability.

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