7 out of 10 Small and Medium Concrete Mixer Companies Say "Trucks Are Far Insufficient Compared to Shipping Capacity"

Korea Federation of Small and Medium Business, Announces 'Survey on Supply and Demand Adjustment of Mixer Trucks for Ready-Mixed Concrete SMEs'
More than Half of Companies Say "At Least 6 Transport Trucks Short"
74.3% Struggle with Rising Transport Costs... "Vehicle Registration Restrictions Must Be Lifted"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Junhyung] It has been revealed that the number of ready-mixed concrete transport vehicles (mixer trucks) is far insufficient compared to the shipment capacity of small and medium-sized ready-mixed concrete companies.

The Korea Federation of SMEs announced on the 3rd that, as a result of conducting a "Survey on Mixer Truck Supply and Demand Adjustment for Small and Medium-sized Ready-Mixed Concrete Companies" targeting 300 small and medium-sized ready-mixed concrete companies from the 12th to the 19th of last month, 7 out of 10 companies (71.3%) responded that the number of owned and contracted ready-mixed concrete transport vehicles (mixer trucks) is insufficient compared to their shipment capacity. In the metropolitan area, 83.1% of companies responded that they are lacking.

The level of mixer trucks owned and contracted by small and medium-sized ready-mixed concrete companies compared to their shipping capacity.
[Photo by Korea Federation of SMEs]

Regarding the degree of vehicle shortage, "5 or fewer" accounted for the highest at 47.7%. "6 to 10" (39.3%) and "11 to 15" (10.3%) followed, with responses indicating a shortage of 6 or more vehicles exceeding the majority.

More than 8 out of 10 companies (83.3%) answered that it is necessary to lift the restriction on new vehicle registration for ready-mixed concrete transport vehicles. Other necessary measures included "Excluding ready-mixed concrete trucks from supply and demand adjustment targets" (39.6%), "Allowing new registrations in areas with vehicle shortages" (31.2%), and "Temporary lifting and application after market analysis" (27.2%).

Additionally, 74.3% of small and medium-sized ready-mixed concrete companies reported that the prolonged restriction on new vehicle registration has caused transportation costs to soar, causing them headaches. More than half of the companies also responded that they faced difficulties due to "Excessive demands beyond transportation fees by transport operators (drivers of transport vehicles)" (55.7%) and "Transportation disruptions due to vehicle shortages" (50.7%).

Management difficulties experienced by small and medium-sized ready-mix concrete companies due to prolonged adjustment of transport vehicle supply.
[Photo by Korea Federation of SMEs]

The industry’s government recommendations regarding the restriction on new vehicle registration prioritized "Establishing a dedicated channel to respond to illegal collective actions by transport operators" (61.7%). This was followed by "Overall reform of adjustment methods such as delegating supply and demand adjustment authority to local governments" (50.7%) and "Including ready-mixed concrete industry members in the supply and demand adjustment committee" (40.7%).

Bae Jo-ung, Chairman of the Korea Ready-Mixed Concrete Industry Cooperative Federation, stated, "The problems caused by the restriction on new vehicle registration for ready-mixed concrete transport vehicles, which has continued for 12 years since 2009, are worsening." Chairman Bae added, "The lifting of supply and demand adjustment measures is urgently needed," and emphasized, "It is necessary for the government to show interest and prepare measures to understand the industry's reality, such as establishing communication channels between the industry and the Ministry of Land, Infrastructure and Transport, and allowing participation of small and medium-sized ready-mixed concrete companies in the construction machinery supply and demand adjustment committee."

This content was produced with the assistance of AI translation services.