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Professional Truck Driver Shortage Could Delay Growth in US Economy

  
  
  

For years, the mantra in the trucking industry is that it needs to change significantly in order to provide enough trucking capacity to move all the freight.  And while “the end of the world is near” mentality has probably been overblown, we can finally see the seeds of significant change being sewn.

Economy has flatlinedSince deregulation, trucking had been the “shock absorber” in the supply chain.   We have enabled logistics costs to be reduced significantly over the last three decades, which has been a great driver of economic growth and competitiveness for the American economy.  And that’s largely a good thing, when you consider the vast expanse of the United States and immense size of our economy.  However, that shock absorber is worn out and in need of replacement.

For those who haven’t heard, there’s truck driver shortage, and it’s getting worse, especially for good drivers.  In order to solve that, the industry needs to do three things:

  1. Attract more new entrants than we’re losing
  2. Compensate professional truck drivers better
  3. Make the truck driving job more attractive and satisfying

First off, in order to make the job more attractive and satisfying, the industry needs to do a much better job of identifying and communicating those aspects that make it a challenging profession.  Everyone wants a consistent paycheck, predictable home time, and a minimum of unproductive time on the job.  In order to achieve that, we need to work with customers to build more predictable freight flows, coordinate schedules better, and build density through our major hubs.  Large peaks and valleys in volumes, inflexible scheduling practices, and arcane pickup and delivery practices create waste and inefficiency.  Trucking Companies are investing in trailers with a seven-twelve year life, class 8 trucks with a three-six year life, and professional truck drivers who want a lifelong career, so we need commitments from customers that better match the investment that quality trucking companies are making.

Professional Truck Driver at DuskWhen you mention the word compensation in the trucking industry, the nearly reflexive response is “what’s the per mile rate?”, whether it’s from the perspective of a truck driver, carrier, or shipper.  As an industry, we need to start taking better care of the professional truck drivers who take care of us; the safest, most responsible, and efficient drivers should make a premium over the “average” driver who’s just getting the job done.  By having more of those top truck drivers, we can serve the needs of customers more safely, reliably, and at higher service levels.  By consistently demonstrating that performance, we can make the case that the overall cost to serve is more than just the rate per mile, but in derived value from less claims, better “in stock” rates, and less fines from retail customers.

Finally, if we can get better at making the truck driving profession more appealing and tell the story effectively, we can get more people to see trucking for the great occupation it can be.  The industry continues to grow, it has some of the best people anywhere, provides a great atmosphere for teamwork and belonging, and best of all can’t be outsourced abroad!

Comments

Well said. So... When does the trucking companies do away with the debunk CPM, its been in place for far too long, it currently isnt serving the driving force as most companies govern their equipment & most states are going back to split speeds. As far as work to pay ratio- i believe in an honest day of work for an honest day of pay, that said; i can only do what is expected of me within the constraints of the ever changing csa and dot regulations as well as the ever present self rightous groups who claim to fly the banner of safety never having the luxury of providing for an ungratefull society.  
Yes things have to change in order to attract the work for that is getting older. Unfortunately no-one wants to replace the old guy that they have kicked for the past 30-40 years, largly because they dont want to be kicked for 30-40 years. It all has to change for the better. Im a firm believer in .... Intra-state trucking for OTR trucking, it affords hometime practically every night and gets freight moving 24/7/365 . Just my thought
Posted @ Tuesday, December 20, 2011 5:30 PM by Glenn koehler
There's a driver shortage because the industry doesn't pay enough, plain and simple. OTR drivers have to work 60+ hrs a week 6-7 days a week with minimal off time. Raises are few and far between and the work conditions can be poor.  
Unfortunately consumers demand low prices on the products our industry transports and increased compensation for drivers equals higher prices for those products. Therefore I don't see a fix anytime soon.
Posted @ Tuesday, December 27, 2011 10:37 AM by Greg
The ever changing safety and hours of service regulations certainly make for a challenging environment for professional truck drivers and trucking companies alike. Pay and benefits are a big part of making the job more appealing and satisfying and we routinely communicate the need for improvement in freight rates to help fund an increase in driver pay. More consistent routes, flexible pickup and delivery schedules, and preload at pickup and drop trailer at delivery are also things that help improve the professional driver’s quality of life and we routinely lobby with customers for improvements in these areas as well. The comment about consumers is spot on. Ultimately, consumers define the health of the trucking industry based on the demand for the goods and products that the industry transports. As demand goes up, product pricing increases which funds shipper’s transportation budgets. Shippers with bigger trucking budgets are willing to pay better freight rates which helps trucking companies invest in improvements in driver compensation and newer equipment. Rates have improved to be near pre-recession levels but the increase in costs to run a trucking company has increased more. Equipment, parts, maintenance, and fuel are all costs that have increased substantially. If consumer demand improves to pre-recession levels it will be very difficult for trucking companies to grow fast enough to support the consumer demand because of high driver turnover rates, a shortage in qualified driver applicants, and an equipment and parts supply shortage.
Posted @ Wednesday, December 28, 2011 10:19 AM by Corporate Communications
I suggest that Gordon set up terminals just inside Mexico like CR England and other large Companies are doing, and hire Mexican solo and team drivers once they are allowed to pick up and deliver product within the US which will be soon. There will never be anywhere near enough domestic drivers to fill the need.
Posted @ Wednesday, January 25, 2012 9:38 PM by Ed Dawes
There is not now nor has there ever been a "professional" driver shortage. However there has always been a shortage of nickle a mile steering wheel holders. In times like these I am thankful to be making $60+ a year doing OTR, and if you are not doing the same or better thank the driver in the mirror for all those tickets or maybe spend a little less time at Mommas house.
Posted @ Tuesday, February 07, 2012 7:55 AM by Norm Johnson
maybe truck companies need to give more benefits to truck drivers. Also make sure that their truck is in good condition. Give award to those truck drivers who knows how to take care of their truck.
Posted @ Sunday, February 12, 2012 9:09 PM by johnyS
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