What Do You Need to Know About the Looming Truck Driver Shortage?
The American truck driver shortage is not news. Those in this industry sector have been facing labor shortages since the 1980s when deregulation led to an increased number of competing trucking companies. However, industry analysts are sounding the alarm: The situation is becoming direr and those within companies large and small will soon have to deal with ripple effects on their supply chain costs and logistics operations.
Where are all the truckers?
While the number of unfilled truck driving positions varies by source, hovering around 50,000, experts agree it will continue to grow. In fact, to meet demand, the number of new truck driver positions will likely increase to 890,000 through 2025. The problem is the industry will lose about 30% of its career drivers to retirement in the next 10 years. Why? The average driver is 49, and new blood isn’t filling the widening gap. With low wages, the requirement for much time away from home, and the millennial view that truck driving isn’t “cool,” industry insiders can’t seem to retain even those who acquire their commercial driver’s licenses (CDLs). Trucking companies are trying to attract and keep new drivers by offering improved home time, retirement benefits, better pay, advancement opportunities over time, and safe driver incentives. But all these impact shipping costs.
The driver shortage impact
Annually, trucks deliver almost 70% of all freight in the United States, which accounts for $671 billion in manufactured and retail goods. When you add our North American neighbors, truck trade with Canada and Mexico accounts for another $295 billion and $195.6 billion, respectively. That’s a lot of freight dependent on truck transport to keep the supply chain moving. And experts expect that amount will rise due to the growing economy and with the ever-increasing demand eCommerce creates.
Avoid coming up short
Company leaders are increasingly navigating the effects of the shortage through carrier relationship development and by partnering with reliable and knowledgeable third-party logistics (3PL) providers. Almost three-quarters of the respondents to the 2016 Third-Party Logistics Study said the “use of 3PLs has contributed to reducing our overall logistics costs.” Until industry insiders determine how to recruit and retain truck drivers, company decision-makers can rely on experienced supply chain consultants to navigate truck driver shortage limitations.
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