IRVING, Tex. – Nearly three in four trucking companies expect business conditions to improve through the end of 2011, but an increasing number of execs are concerned with underlying factors which can affect profit margins.

According to a new survey by GE Capital, Transportation Finance external and internal factors such as the rising price of diesel, a shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are tempering carriers’ outlook.

“In previous business cycles, the positive volume and rate conditions that we’re seeing now would’ve primed the market for new entrants,” said Serena Tse, GE Capital, senior vice president and transportation industry research manager. “Even though carriers have a tremendously positive outlook on business conditions and revenues, they’re sobered by concerns about profit margins.”

A full 75 percent of respondents said they expect customers to ship increasing volumes of goods and they foresee an increasing rate environment.

Sixty-eight percent said they expect to acquire new customers in 2011.

While shipping capacity is tight, 48 percent of respondents expect the number of competitors in their market to drop.

“As the economic expansion gains strength − although it’s clouded by recent global challenges − trucking companies are working hard to communicate with their shippers exactly what’s involved in moving their freight,” said Dan Clark, president and general manager of GE Capital’s Transportation Finance business. “At the same time, shippers in the U.S. should try to understand the challenges that are impacting trucking executives’ business decisions.”

However, recruiting and hiring quality drivers (74%), rising costs of diesel fuel (67%) and equipment parts and maintenance (41%) are all major challenges to maintaining a decent level of profitability, as well as possible changes to hours of service rules other regulations.

As well, 68 percent anticipate adding equipment to their sleeper fleets and 70 percent will expand their trailer fleets in 2012, while about half expect the average age of their fleets to decline this year. About a quarter – many are planning to continue using their existing equipment, especially in long-haul.

Carriers are also confident they’ll have adequate access to capital this year, with 43 percent expecting it to increase and 46 percent who stay it will remain stable.

For what it’s worth, the survey says that carriers in the Southeast are the most positive about trucking conditions, while the Southwest is the least.

The same trend applies to larger carriers of 1,000 trucks or more (most optimistic) compared o smaller fleets.