Top 4 Reasons Why you Should NOT Invest in Trucking for your Investor Visa

Top 4 Reasons Why you Should NOT Invest in Trucking for your Investor Visa

By: Elizabeth Tran, Business Development Analyst at Visa Franchise

Introduction

Visa Franchise has researched over 1,200 franchises and businesses over the years. The businesses we work with have gone through our rigorous due diligence process. We have carefully curated 90+ franchises and independent businesses that we find most suitable for our clients seeking E-2, EB-5, and L-1 investor visas. Throughout our search, we have had to filter out industries that are not worth investing for immigration. In this article, we will share the top four reasons why E-2 investors should not invest in trucking and logistics.

1. It Is Too Competitive

The trucking industry is almost entirely dominated by the big players. Trucking is an industry that benefits substantially from economies of scale. Increasing regulations have caused more consolidations among companies. One notable high-profile merger is UPS buying Coyote Logistics for $1.8 billion. Merges are also occurring among smaller and regional trucking companies. In this current situation, it is too risky to invest in a new trucking business against this sort of competition.

2. Tight Margins

Trucking company failures continue as fleets’ costs are increasing two times faster than revenues. Increasing costs are due to a shortage in qualified truck drivers, fluctuating gas prices, vehicle and trailer registrations, and increasing regulation. Many carriers have failed because their profits were not able to make up for their losses.

3. Increasing Regulation

There are not enough capable truck drivers in the industry. There is too much risk involved in a trucking business. There is always the risk of an accident and breakdowns often occur far from the central hub. Therefore, the U.S. Department of Transportation has created more regulations on drivers, sleeping hours, etc. While these regulations increase safety, they can have a negative impact on the profit truck carriers can make.

4. Disrupting Technology: Driverless Trucks

Visa Franchise focuses on emerging concepts because many established industries are being disrupted by growing technology. In the trucking industry, several large corporations like Google’s spinoff Waymo and Tesla have been developing driverless trucks. Although driverless trucks will reduce expenses, it is estimated millions of drivers will lose their jobs and smaller trucking businesses that cannot invest in self-driving trucks will fall.

Conclusion

It is with these reasons we recommend E-2, EB-5, and L-1 investors avoid investing in the trucking industry at all costs. We have even seen families lose nearly $500,000 from a trucking fraud that specifically targeted foreign national investors. Visa Franchise will help you avoid investing in failing industries. We strive to make sure the franchise you choose is sustainable for you and your family to live in the U.S. over many years to come.

About The Author

Elizabeth Tran, the Business Development Analyst at Visa Franchise, supports the sales, marketing, and channel management efforts globally. Prior to working with Visa Franchise, she coordinated one of the largest charity modeling events in Florida that raised over $120,000 for Children’s Miracle Network Hospitals. As a first-generation American of parents from Hong Kong and Vietnam, she looks forward to working with clients to pursue their American Dream much like her parents did before.

About us


Visa Franchise guides investors in identifying and analyzing the best investment opportunities tailored to their specific objectives.

We are the trusted advisor for foreign nationals who qualify for the E-2, L-1 or EB-5 visa and would like to own a U.S. franchise, with a minimum investment amount of $150,000.

Read More