6. Increased Operating Costs
Why is it so expensive to run a trucking company?
The cost of running a trucking company continues to increase during this freight recession. At PGT, from 2019 to 2024, we have seen significant increases in costs:
| Category | Cost Increase for PGT |
| Insurance | 45% |
| Purchase Price of Trailers | 36% |
| Purchase Price of Tractors | 26% |
| Tolls | 36% |
| Maintenance Parts | 41% |
| Maintenance Labor | 47% |
| Tires | 18% |
These increases have greatly outpaced the consumer price index (CPI) during that same time period, which noted a 23% increase in costs.
During the ongoing freight recession, higher costs are forcing carriers to make cuts or go out of business entirely. In an industry with historically thin operating margins, these rising costs are leading to tightened capacity in the flatbed trucking industry.
What is PGT Trucking’s Solution?
As our operating costs continue to rise, PGT focuses on controlling costs through operational efficiency and safety management. Our Fleet Managers (operations dispatch) are extensively trained to fully utilize our equipment by enforcing a five-day dispatch policy (drivers work five days a week at PGT). Our Operations Management also closely monitors deadhead miles (trucks moving without a load) and out-of-route miles (drivers adding unnecessary mileage). In addition, PGT maintains a modern fleet, purchasing 250 new tractors and 400 new trailers in 2025. While the purchase price of the equipment has increased, we plan to recoup savings by lowering our overall maintenance costs.
PGT also takes a proactive approach to fleet safety, ensuring that our trucks have the latest technology and safety features. Our dash camera system, backed by artificial intelligence, helps to provide a clear picture for risk management and driver coaching, and advanced features like collision mitigation systems are now standard in our company units. By encouraging our drivers to adopt safer driving habits and utilizing the latest technology, we can lower our risk of accidents. Being a safer carrier helps to reduce our costs for insurance, risk claims, and maintenance repair. PGT received the Truckload Carriers Association (TCA) Fleet Safety Award for 2025, which is a testament to our safety program and intentional management strategy.
