Bronze Star Contracting LLC | Application Preview
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General Information
Business Registration Number: 85-3630521
Location: San Antonio, TX, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: Less than $100k
Annual Gross Expense: Less than $100k
Open to Loans: YES
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Funding Usage
With the funding, Bronze Star Contracting can expand the within the utility trailer rental industry. In order to expand Bronze Star Contracting will acquire commercial space with office, lot and storage to allow for an increase in the number of trailers from one to ten. Office space will allow the customers to have a place to conduct business by reviewing and signing rental agreements and contracts. The office space will also allow Bronze Star Contracting the opportunity to conduct administrative business in an office space.
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Business Plan
The freight transportation index, which is a measure of the volume of freight trafficking, is expected to increase at an annualized rate of 3.4% over the five years to 2028. As a result, industry revenue is expected to rise an annualized 3.4% to $10.8 billion during the five years. In 2019, the car hauling industry saw total revenues totaling in excess of $12 billion (up from $594 million, according to the Global Car Carrier Market Report), spread across some 4,500 companies. This figure has grown by 1.2% between 2014 and 2019. The industry employs more than 57, 000 people in various roles. According to the Global Car Carrier Market Report, open-air car carriers still amount to almost 82%. It is expected that the worldwide market for this industry will continue to grow over the next five years, despite the push for self-driving cars and trucks. Due to this increase in demand Bronze Star Contracting will increase the total number of car haul trailers from one to ten over the next five years. The $82 billion automotive industry is one of the largest operations in the United States. Making up 3% of the country’s GDP, millions of vehicles are sold and transported each year, and the industry, directly and indirectly, employs nearly 8 million people. But while those numbers sound impressive, the auto industry currently faces a series of challenges like never before. From complicated market forces to new vehicle trends, automakers are struggling to produce vehicles in a challenging environment. As a key component in keeping the auto industry in motion, car haulers should be aware of how the industry is operating in order to stay competitive. Industry Trends The global microchip shortage In 2020, the worldwide shutdown due to the COVID-19 pandemic caused microchip manufacturers to temporarily cease production. As people remained at home, boosting demand for consumer electronics built using semiconductors like laptops, the supply of chips became highly strained, resulting in shortages affecting nearly every industry. The auto industry has been significantly impacted by the semiconductor shortage. Not only have most automakers faced production delays and been forced to produce fewer vehicles, major manufacturers like General Motors have also been forced to remove certain features from new vehicles that require high-end chips. By year’s end, it’s predicted that the industry will fall 8 million vehicles short of anticipated production targets. A truck driver shortage For years, the U.S. has also grappled with a persistent shortage of truckers, a problem that’s only been exacerbated by the pandemic. The CEO of the American Trucking Association has claimed that the entire industry is short at least 80,000 drivers. As far back as 2019, a report from Automotive Logistics reports found that carriers are still struggling to cope with the challenges posed by an aging labor force, a lack of new workers, and high competition. The growing popularity of larger, heavier vehicles For those lucky enough to get their hands on a new vehicle, SUVs remain the car of choice throughout the consumer market. The trend towards SUVs, truck SUVs, and crossovers has only grown in the past several years, with the sale of smaller vehicles like sedans falling to around 33%. Electric vehicles, of which 55 different models were available to consumers at the end of 2020, also continue to grow in popularity. Equipped with thousands of pounds worth of batteries, not only do EVs eschew the need for gasoline, but they increase the sheer amount of weight of even the smallest vehicle. The impact on car haulers It’s easy to see how each of these three industry issues will continue to play a major role in the day-to-day lives of car haulers. Strained chip production will continue to produce fewer vehicles, greater demand for SUVs will contribute to the production of larger vehicles, and a persistent driver shortage may make it difficult to get cars transported with speed and efficiency. Fortunately, if you’re in the auto transport business, there are steps you can take to help ensure that you’re able to remain strong amidst these challenges. Investing in new equipment, for instance, can help you handle heavier, longer loads and enable you to remain better equipped to meet the increased demand for larger vehicles like SUVs or larger weights of EVs. The microchip and driver shortages also present an opportunity for owner-operators to maximize their business. With fewer vehicles being moved by fewer people, carriers should be doing everything in their power to make sure that their auto transport business stands ready to meet today’s challenges. Super Dispatch, the comprehensive auto transport platform built for the auto hauling industry, can help replace phone calls and paperwork with an easy-to-use, all-in-one platform that enables vehicles, trucks, and drivers to get on the road faster.
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Self Identified Competition
Bronze Star Contracting main competitors consist of the trucking industry and hotshot transportation. In addition to competing with other autos haulage companies, including national carriers, Military City Trailer Rentals, LLC will compete with rail car transportation. However, for the distances, it intends to travel, and the time it takes to ship via rail transport, car haulage by trucks is an advantage. Shippers choose between trucking companies based on: Their track record of on-time and accurate deliveries Their price Their ability to partner with the shipper to offer logistics expertise and added services. It’s easy to see how each of these three industry issues will continue to play a major role in the day-to-day lives of car haulers. Strained chip production will continue to produce fewer vehicles, greater demand for SUVs will contribute to the production of larger vehicles, and a persistent driver shortage may make it difficult to get cars transported with speed and efficiency. Fortunately, if you’re in the auto transport business, there are steps you can take to help ensure that you’re able to remain strong amidst these challenges. Investing in new equipment, for instance, can help you handle heavier, longer loads and enable you to remain better equipped to meet the increased demand for larger vehicles like SUVs or larger weights of EVs. The microchip and driver shortages also present an opportunity for owner-operators to maximize their business. With fewer vehicles being moved by fewer people, carriers should be doing everything in their power to make sure that their auto transport business stands ready to meet today’s challenges. Super Dispatch, the comprehensive auto transport platform built for the auto hauling industry, can help replace phone calls and paperwork with an easy-to-use, all-in-one platform that enables vehicles, trucks, and drivers to get on the road faster.
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Contact Applicant
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