And professionalization?

February 20th, 2017

By: Arturo Chávez, National Treasurer of the National Chamber of Freight Transportation (Canacar)

Freight trucking in Mexico represents 2.9% of the country's Gross Domestic Product (GDP), generating 2,300 direct jobs and 3,700,000 indirect jobs. According to data from the General Directorate of Federal Motor Transport In 2015, there were 134 thousand 726 permit holders registered with 806 thousand 405 units, up to this point figures known by all.

The interesting part comes, making a comparison between the data of 2007 and those of 2015, microenterprises that have between one and five units (badly called Truck Man), increased from 84 thousand 566 to 109 thousand 890 permit holders, growing by 29%, and in transit units from 157 thousand 950 to 206 thousand 416 increasing by 30 percent . In the referred period, the large companies that have more than 100 units, increased by 53% as permit holders and 69% in number of units.

Big difference in growth right? Taking into account that the transport microenterprise sector represents 81.5% of all permit holders and 25.5% of registered units, it is worth analyzing why they do not grow at the same rate as large companies, is it due to lack of training, Unfair competition, inexperience, high costs such as SMEs, lack of credit or high cost, corruption or lack of professionalism?

There are many individual factors and what the sum of them represents. As an SME entrepreneur, I have had to live them and face them. The first point is inexperience, most entrepreneurs in Mexico have developed empirically, without any previous experience or academic preparation to face the responsibility of running a company.

Small trucking companies normally originate from drivers who, thanks to their efforts, were able to get their own truck, and they drive their unit themselves, if they manage to grow, a direct family member drives the other units, This is where the term “Truck Man” originates, which I do not share, that is where the error comes from, he is not a “Truck Man”, he is already a microentrepreneur who requires advice and training to manage his company.

This challenge is even greater given the demands of the current market, in which customers request recent model units, trained operators, documented processes, customer service and certifications, It is also worth mentioning to comply with all current tax obligations; If we add the over-regulation of the sector and the collection of local transit regulations, this becomes a real viacrucis for the micro-entrepreneur.

This is where training and professionalization play a key role. Valuable and concrete efforts have previously been made by institutions such as Canacar, ANPACT, ANTP, CCMX and supported by local and federal authorities; however, this should be a permanent issue promoted by local and federal authorities in coordination with business chambers.

The micro entrepreneur must be trained to know how to comply with their tax obligations, know all the regulations and standards with which they must deal, how to train and retain your workers, know and manage your costs, assess the profitability of your business, provide driver education to your operators, and how to boost and grow your business.

Although the Secretariat of Communications and Transportation (SCT) has made a great effort in favor of road safety, we need to redouble efforts together with chambers and truck assemblers in favor of this important business sector, 134,726 microenterprises are well worth it, let's not forget that this sector literally moves Mexico.

A good friend and great businessman in the sector once told me: "I'm not afraid of the competition, I'm afraid of the lack of training of my competition", totally agree.

Twitter: @EArturoChavez

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