Are you wondering what state is best to open a trucking company in USA? If YES, here are 5 best states to start a trucking business.
Trucking is the backbone of America’s economy. American Trucking Association notes that the trucking industry employs nearly 8.7 million people, of whom 3.5 million are truck drivers. This sheer number speaks volumes of the significance of trucking not only for the economy but also for the lives of people.
The steady smooth movement of merchandise is crucial to the economy of any country. The wheels of America’s trucks grease the wheels of America’s economy.
According to The American Trucking Association, out of the 3.5 million truck drivers in the United States, one in nine are classified as independent. The majority of these are more or less owner-operators. And some states are simply not as friendly to small trucking companies as other states, whether for traffic, consistently bad weather, slow economies or harmful politics.
A trucking-friendly state will place fewer regulations on drivers and trucking company owners. Strict regulations often cause a small business to struggle, and this impact the ability to pay drivers the salary they deserve. Also note that how much you pay the drivers compared to the cost of living in that particular state is another factor that dictates the best places to start a trucking company.
This is why Washington and Indiana fare better than other states. Both rank in the top 10 for paying the highest trucking wages. Have it in mind that workers in Washington and Texas are lucky because they are not required to pay personal income tax.
Tennessee only pays an income tax on revenue, such as dividends and interest. This makes Washington and Texas appealing to those who want to avoid paying income tax. When picking the ideal place to settle, those in the trucking industry understand through firsthand experience that it is not necessarily all about the money.
The best places will offer many amenities like truck stops that provide adequate parking, quality food, and valuable service. All these are pertinent when drivers are on the road. If you need help determining what is the best state to start a trucking company, then read on and see why these states make the list.
Best States to Start a Trucking Business
According to reports, there is hardly ever any traffic in Oklahoma, and since gas is produced in the state, it is inexpensive, making it exceptionally profitable to start a truck company here. What also sets Oklahoma apart from other states is its geographical location.
Oklahoma is an oil-producing state and the state government encourages the consumption of its own oil by keeping fuel taxes low.
Naturally, this entails cheaper diesel fuel prices. Furthermore, there are fewer regulations in the trucking industry when compared with other states. Congestion-free roads and a safe driving environment contribute to the state as being one of the best for trucking companies.
When comparing the number of trucking businesses in Oklahoma to the state’s population, it is evident that the location, low fuel costs, regulations, and driving conditions are drawing many business owners to the trucking industry in this Midwestern state.
North Carolina is more or less the single most consistent across board, according to WalletHub’s metrics. To buttress my point, Missouri actually beats North Carolina on Cost, Traffic, and Access, but in terms of Safety, Missouri is the second-worst in the country, beating only Montana on the Safety metric.
The fact that North Carolina does not have a skewed category to weigh it down helps it push near the top of the list as one of the best places to start a trucking company.
- Cost: 8th
- Traffic: 29th
- Safety: 21st
- Access: 11th
In terms of low-regulation of the industry, Texas is a close second to Oklahoma. Texas has tons of businesses that need transportation services to help ship their products, but it does have a couple of cities that struggle with severe traffic.
However, it has cheap fuel and little red tape– those two things make the traffic from Dallas and San Antonio worth the trouble. The Lonestar state is large enough to carry the business of several smaller states, so take advantage of all it has to offer.
Although North Carolina may be the most consistent in having decent metrics across the board, Iowa has the best average ranking. Both Cost and Traffic are in the top 10, and its worst aspect, Safety, is only two places behind North Carolina’s worst aspect.
These numbers add up and average out to make Iowa the highest scoring based on WalletHub’s list of best states for trucking businesses.
Truckers love working in Tennessee, and it is very obvious why. Tennessee’s major cities don’t have heavy traffic, so if you have to drop off a load in Nashville you won’t have to worry about stopping and starting all the way through the capital.
Note that the Volunteer State also has more major highways than almost any other state– and those highways rarely boast any traffic.
According to AAA, Tennessee is almost always among the states with the lowest diesel fuel prices in America. Tennessee is also big enough to provide trucking companies with tons of business in the form of loads, but not so big that they stifle productivity. I
The states ranking on this list all share a few common aspects. First, these states are well positioned along major transportation routes. Each state also offers drivers adequate amenities and a massive amount of opportunities for employment, making it simple to find success as a trucking company owner.