Every day more and more bad news seems to grab the national headlines in regards to the economic downturn. Moreover, that limelight is frequently engrossed by the collapse of the U.S. Banking system, or the U.S. Auto Industry. However, this downturn is so bad that one industry who has been heavily impacted yet seldom gets mentioned is the livery industry better known as limousine and chauffer services.
The industry has been hard hit since 2008 when gas prices swelled to over $4.00 a gallon. This forced companies to raise STC charges (service and transportation) to levels not seen since the early 80's when gas prices swelled to then record highs. STC costs are usually but not always in relation to oil and gas prices. Furthermore, livery companies have been subject to some of the harshest licensing fees in any industry. These fees have had a crippling affect and lead to high operating costs, and reduced profits. Exorbitant licensing fees are often assessed by multiple county governments, which the limousine operator will operate in. Therefore, if a limousine. company picks up a client in County A and then travels to County B, the limousine operator may have to have an additional license to operate in that county. This is in addition to any licensing fees by city municipalities, state governments, and the federal licensing fees such as the ICC (Interstate Commerce Commission). Limousine workers often bear the brunt of this taxation, which has been interpreted by some as double, and even triple taxation. Furthermore, can be subject to excessive fees and fines.
As many companies succumb to the excessive government taxation and current economic conditions, corporations who rely on these necessities for travel have to find new vendors. Choosing a livery company can be an arduous task, especially when you are considering a company for the safety, security, and use in emergencies for your employees and loved ones. Prime Time Limousine, Inc., a Global Corporate Car Service headquartered in Stamford, CT., has witnessed the vast changes affecting the industry.
"Some of our most significant competition has gone under. It is a shame that many of these companies cannot even be sold. I have had many companies come to us asking us to buy their fleets, and their accounts, but the value is just not there," says Leo Pedone Vice President of Prime Time Limousine Inc.
Less corporate travel means more workers unemployed, and more Americans unable to contribute to the economy. More workers out of work in turn affect the economic outlook for companies in the auto and financial industries. Moreover, Car Service companies like Prime Time Limousine Inc. update their cars every two years. However, with less corporate travel and more companies going under this means less companies will be purchasing vehicles. This all equates to a longer turnaround before the auto industry makes a recovery.
As the larger livery companies look to find new ways to expand, an industry that caters to the corporate world is changing faces as the smaller companies go under. Prime Time Limousine Inc. is not insulated from the economic downturn, and like many companies must adapt to the changing market.
"You have to be creative in these times. We have launched a bold initiative and have recently went global through our affiliates and partners around the world," says John Pedone President of Prime Time Limousine Inc. "In fact, we have just completed a new state of the art website and have switched from myprimetimelimo.com to primetimeglobal.com and in the coming months we aim to add unparalleled user functionality to further grow our global presence. "
Companies like Prime Time started off as small business before growing over the years. This entrepreneurial spirit is at the core of what it means to be an American. One has to wonder if this is the changing face of America on a whole where smaller businesses can no longer survive. If it is then the hopes and dreams of many Americans who wish to open a small business will never be realized. If this is the case, then it is a sad day in America.
Posts
No comments:
Post a Comment