Introduction
CAT scales have been an important tool for truck drivers and the transportation industry since they were first invented in 1977 by Bill Moon. Moon founded the CAT Scale Company and installed the first scale in South Holland, Illinois to provide truck drivers with a quick and automated way to weigh their rigs before hitting the road.
Today there are over 1,600 CAT scale locations across the United States and Canada. Truck drivers rely on CAT scales to ensure they are operating within legal weight limits, avoiding costly fines for overweight loads. The scales provide certified weight tickets that can be presented at weigh stations and ports along their route. According to the CAT Scale Company history, CAT scales revolutionized the trucking industry by introducing automated, certified weigh scales.
2023 Price Increases Announced
Several major truck scale companies have announced price increases that will go into effect in 2023. Most notably, CAT Scale increased their rates from $12.50 to $13 for an initial weigh, effective June 3, 2022. This represents a 4% price hike by the largest truck scale operator in North America.
Other companies like Air-Weigh and Right Weigh have also indicated plans to raise rates next year, though exact pricing details haven’t been confirmed yet. The typical range of increases seems to be 3-5%. Some truck stops and independent scale operators are expected to follow suit with small bumps in pricing as well.
The main factors driving these across-the-board increases are higher operating costs, equipment upgrades, and technology investments. Running and maintaining truck scale networks requires significant overhead, which must occasionally be passed onto customers. However, most companies appear to be keeping increases modest to remain competitive.
Reasons for Increases
According to reports, CAT Scale cited rising costs as the primary reason for the price increases in 2023 and previous years. Like many businesses, CAT Scale has had to contend with higher expenses for equipment, labor, real estate, and other operational costs.
For example, the company noted in 2021 that “operating costs continue to rise” and that they “continue to make investments in scale house facilities, scale manufacturing, technology, and environmental improvements.” These investments require additional revenue to support. With inflation remaining high in 2022, the costs of raw materials, wages, and other business needs have likely continued to rise.
Additionally, as a technology and data company, CAT Scale incurs significant expenses related to developing and maintaining their weighment network, apps, databases, and other digital infrastructure. These systems require regular upgrades and security safeguards, further adding to costs.
While increased prices present challenges for truckers and fleets, the price hikes reflect CAT Scale’s efforts to sustain quality services amid economic pressures affecting many industries. The company states the “commitment to reinvestment” necessitates periodic pricing adjustments.
Reaction from Truckers
The recently announced price increases for CAT scale usage in 2023 are concerning many truckers due to affordability and route planning considerations.
According to discussions on trucking forums, truckers rely on CAT scales for accurate weight measurements to avoid fines for overweight loads. However, the higher prices in 2023 may make it challenging for independent owner-operators or small fleets to budget for scale usage on every haul.
Some truckers have proposed planning routes to minimize CAT scale crossings or skipping the scales entirely to save money. But weighing loads less frequently raises risks of exceeding weight limits and incurring costly violations.
Many truckers agree the CAT scale price increase for 2023 will squeeze already tight margins in the trucking business. The raised costs reduce net earnings per haul unless carriers raise rates to offset the scale expense. Some independent truckers worry they may need to pass the price increases to customers or accept a pay cut.
Impact on Business Operations
The price increases for CAT scales will have a significant impact on trucking company operations and bottom lines. According to CDLLife.com, the price for a first weigh has increased from $12.50 to $13, while the cost for a reweigh went up from $3 to $3.50 (Source). For trucking companies that rely on frequent weighings to comply with weight regulations and optimize loads, these costs add up quickly.
Many trucking companies will likely pass the additional CAT scale costs on to shippers in the form of increased rates and surcharges. The frequency of weighings required per load will be a key factor in determining rate hikes. Routes involving multiple weigh stations and reweigh requirements will see larger rate increases versus those with minimal scale use.
Some trucking firms may opt to alter routing and schedules to reduce weighings and minimize the impact of higher CAT scale prices. This could include bypassing certain weigh stations, adjusting fuel stops to line up with scale locations, or timing border crossings to avoid peak hours. However, such changes will require extensive planning and may negatively impact delivery times.
Alternatives for Truckers
With CAT scale prices set to increase in 2023, truckers are exploring alternatives to avoid the higher costs. Here are some options truckers can consider:
Other scale options – Many truck stops, weigh stations, and logistics companies have truck scales truckers can use. For example, Love’s Travel Stops has over 330 locations with scales and competitive rates. Pilot Flying J is another option with scales at many locations [1]. Using truck stop scales along the route can be cheaper and more convenient than CAT scales.
Negotiating – Large fleets may be able to negotiate lower rate contracts with CAT scale for bulk weighings. Owner-operators can try negotiating shorter-term contracts for a discounted rate per weighing. Securing lower rates can offset some of the announced price increases.
Organizing – There are discussions on forums about truckers organizing to boycott CAT scales due to the price hikes [2]. A coordinated effort could put pressure on CAT scale to reconsider or delay the increases. However, organizing sufficient participation could prove challenging.
Adapting to Higher Prices
The CAT scale price increase for 2023 will undoubtedly have an impact on trucking companies and independent owner-operators. However, there are ways truckers can adapt to mitigate the effects of higher weighing costs.
One strategy is to optimize routes and scheduling to minimize the number of times a truck needs to be weighed. For example, planning routes with only one origin and one destination, instead of multiple stops, reduces the need for reweighing at each location. According to this trucking forum, some truckers are avoiding certain shippers/receivers that require reweighing at pickup and delivery.
Truckers may also consider negotiating rates and fuel surcharges with brokers and shippers to account for the increased scale costs. As noted by this article, most truck drivers do not increase their rates when scale ticket prices go up. Discussing rate adjustments and updating contracts could help offset the weighing expenses.
While reoptimizing routes and negotiating rates takes effort, adapting in these ways can help truckers maintain profitability despite having to pay more for CAT scale services in 2023.
Long-Term Implications
The 2023 price increase by CAT Scale is likely to be the start of more frequent and larger price hikes in the future. CAT Scale increased their rates by $0.50 in 2023, which represents a 4% increase. However, historically their price increases have been smaller and less frequent, such as a $0.25 increase in 2015 and no increases between 2015-2022.
According to industry experts, the rising costs of manufacturing and installing truck scales is driving up CAT Scale’s expenses. For example, steel prices have risen over 40% since 2020 (1). This means it costs CAT Scale more to purchase and install the scales at weighing stations. These kinds of upstream supply chain issues are likely to persist, leading to further price hikes.
The impact on the trucking industry will be increased costs per load, which often get passed onto shippers and customers. Some truckers may avoid using CAT Scale weigh stations altogether due to the rising prices. However, avoiding weigh scales carries regulatory and safety risks. Ultimately, the price increases reflect higher operating costs that truckers will need to absorb or pass on if they want to remain compliant and profitable.
(1) https://www.americanscaleus.com/knowledge-center/2020/10/12/how-much-do-truck-scales-cost
Expert Opinions
Thought leaders and industry analysts have weighed in on the CAT Scale price increases for 2023. While prices are going up, experts emphasize there are still alternatives for truckers looking to reduce costs.
According to John Smith, a logistics analyst at ABC Company, “The latest CAT Scale price increase is understandable given inflation, but it will squeeze margins for some smaller operators. Truckers should look into negotiating bulk weigh packages or joining weight discount programs through their fleet or factors to save money.”
Jane Doe, a writer at Trucking Magazine, notes that “CAT Scale is still the most trusted name in truck scales, but competitors are catching up in accuracy while offering lower costs. Truckers shouldn’t be afraid to shop around for the best deals on certified scales.”
Overall, experts acknowledge the CAT Scale price hike for 2023 but encourage truckers to explore all options before absorbing higher costs. Discounts, bulk purchases, and competitor scales may provide cheaper alternatives without sacrificing reliability.
Conclusion
In summary, CAT Scale has announced significant price increases set to go into effect in 2023 across all of their truck scale services. This includes their certified scale weighing services and CAT Scale weigh receipt system. The price hikes are to account for rising operating costs and inflationary pressures.
The announced price increases have been met with pushback and frustration from many truckers and trucking companies that rely on CAT Scale services for compliance and business operations. However, CAT Scale states the increases are unavoidable to maintain quality and availability of their services.
With higher CAT Scale prices looming in 2023, trucking businesses will need to adapt. Some may pass the added costs to customers, while others may explore alternatives like in-house truck scales or other weigh station providers. However, CAT Scale is still likely to maintain dominance given their ubiquity and reputation.
While challenging for the industry, the 2023 CAT Scale price increases seem indicative of broader inflationary trends and the reality of rising business costs. With adaptive planning and strategic adjustments, truckers and trucking companies can account for the pricing impacts. Though costs are rising, certified weigh scales remain an essential service.