Freight brokers operate in an envoronment of constant change and constraints. Freight brokering is no different than any other business in this respect.
Some of these changes and constraints come from the government, both state and federal. Specifically, increasing governmental regulation at the state level has far reaching effects and may actually backfire against the intended results.
There is an economic term called "elascity of demand" which measures how the demand for a product changes as the price changes. Some products with price changes have little effect on demand for the product. Some have a gigantic effect.
Then let's look at an example: the state of California. They have become increasingly burdensome on business by over regulating. So, the price of doing business goes up. The elascity is high because companies start relocating to states where there are fewer regulations and constraints. Fewer regulations mean lower costs which means a lower elasticity, so to speak.
In those states with a more pro business environment, like Texas for example, the effect of over regulation in other states is gaining new business due to others fleeing the highly regulated states.
It apalls me that those in power cannot see the effects of their actions. Regulators are trying to achieve certain effects (like going green) but they end up biting the hand that feeds them. It doesn't make sense.
We are in a time of very, very crucial balances where one slip one way or the other will upset the cart and new businesses and old will be reeling to find a foothold.
The end result, businesses will scramble to relocate to those areas of fewer constraints. And everyone gains but not after a struggle.
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