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Trucking Industry

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Submitted By ramatou
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P.A.M. Transportation Services, Inc. (NMS: PTSI)
Industry/market in which the firm is seeking to grow: Size, growth rate, product offering, customers, competition, potential entrants, substitutes, suppliers.
P.A.M. Transportation Services, Inc. (P.A.M.) is a holding company. Through its subsidiaries, the Company operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces. It also provides transportation services in Mexico under agreements with
Mexican carriers. The Company’s operations can be classified into truckload services or brokerage, and logistics services. Truckload services include those transportation services, in which the Company utilizes Company-owned trucks or owner-operator owned trucks for the pickup and delivery of freight. The brokerage and logistics services consists of services, such as transportation scheduling, routing, mode selection, transloading and other value- added services related to the transportation of freight, which may or may not involve the use of Company owned or owner-operator owned equipment.
According to the American Trucking Association’s “American Trucking Trends
2011” report, the trucking industry transported approximately 68% of the total volume of freight transported in the United States during 2009, which equates to 8.8 billion tons and approximately $544 billion in revenue. The truckload industry is highly fragmented and is impacted by several economic and business factors, many of which are beyond the control of individual carriers. The state of the economy, coupled with equipment capacity levels, can impact freight rates. Volatility of various operating expenses, such as fuel and insurance, make the predictability of profit levels uncertain. Availability, attraction, retention and

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