The dump truck market in the USA in 2018 was approximately 39 billion USD and grew to 15 billion USD in 2021. Experts predict further growth of 8% CAGR between 2022 to 2030.
Those statistics are encouraging to anyone interested in starting a truck dumping business. The business holds enormous potential for growth in the future, is profitable, and is constantly in demand from construction, waste, and mining companies.
But you might be asking yourself,“how to start a dump truck business?” If you’re wondering what is the first step you should take and how much money do you need? Should you buy a new vehicle or an old one? What about insurance, and is it compulsory? Starting any business involves a significant investment and risk, but it helps to do the proper research, planning, and preparations before starting. You should know the process beforehand since that prevents you from making costly mistakes.
In this article, you will find helpful details related to starting a hauling company, from the kind of truck suitable to the various costs involved.
Things to consider before starting a hauling company
Researching the market
You cannot embark on a new business venture without sufficient research of the present market. Doing so gives you a clear idea about the current demand and future growth scope.
For example, if your area already has plenty of similar companies, you will find it challenging to acquire new projects. Your competitors will attract most construction or mining projects because of their experience, brand awareness, etc.
However, it is helpful to know what kind of hauling jobs your area requires. You could ask around to know about the upcoming infrastructure projects, especially the government-funded ones like streets or highways, as they have a high requirement for dump trucks.
You should also try to contact construction companies that might require your truck to distribute coal, silicon, metals, and similar objects.
Buying the trucks
Buying the trucks is perhaps the most essential part of the process. Since it involves a significant investment, you should decide between buying a new truck or choosing a used one.
A new truck is costlier, with prices ranging between 1,00,000 USD to 2,00,000 USD, depending on the model, make, features, and year of manufacture. You might consider searching the top names in the truck manufacturing industry before choosing one.
Used trucks are a good option when you are looking for a cheaper alternative. However, these usually have higher maintenance costs because of years of usage. Before buying a used vehicle, check if it meets the safety guidelines and regulations and is in decent working condition.
Hiring a driver or getting a CDL license
You can find a driver to drive the vehicle with a median payment of about 48,000 USD. It would also be helpful to decide beforehand the total number of employees you should hire.
The alternative is driving the truck yourself, for which you require a commercial driver’s license (CDL). You can obtain the permit after training at a truck driving school and passing the skills tests and knowledge exams.
The various types of CDL training courses include licensed, credited, and accredited, and each of these determines your capability and ability to handle a truck on the road with safety.
Fulfill the legal obligations
It is advisable to hire a lawyer since they will handle the various legal requirements for starting a trucking company. They will help register your name, submit the necessary paperwork, and successfully register your company. You can also ask them about the local laws and regulations.
The information above will give you an idea of how to start a dump truck business and its various aspects. It is advisable to proceed only after fully understanding its multiple processes and requirements.