Facing a critical shortage of drivers, the trucking. A government official expert at analyzing labor trends contends that trucking is not experiencing a driver shortage, rather she sees the problem as one of painful turnover in one segment of the. The topic of this first blog will be, in my opinion the most important issue within the trucking industry. Trucking drives americas economy, but a shortage of truck drivers is putting the future of the countrys economy in peril. Since 2005 the american trucking associations ata has been releasing reports on the driver shortage. A shortage of truck drivers that has been simmering in the u. If current trends hold, the shortage may balloon to almost 175,000 by 2024. The ability to find enough qualified drivers is one of our industrys biggest. During the last recession, beginning in 2008, the driver shortage had been eliminated due to industry volume plummeting, but as it began to recover in 2011, so too did the reemergence of the shortage come about as well, growing to 38,000 jobs by 2014, and 48,000 by the end of 2015, says rod suarez, economic analyst for american trucking. Trucking companies are not yet willing to share the wealth with theyre drivers, so the shortage keeps growing. North america is facing a huge shortage of truck drivers, and the. The driver shortage vanished during the 2008 recession. Most recently the ata estimated that the trucking industry ended 2018 with a shortage of more than 60,000 truck drivers. Truck driver shortage analysis 2015 supply chain 247 paper.
To combat the shortage, many companies are looking for ways to gain an advantage over other carries that are competing for the same few commercial truck drivers. Trucking companies are recruiting from a shrinking pool of commercial truck drivers. Atas driver shortage report 2019 american trucking associations. Mar 31, 2020 ebbs in the economy will not necessarily solve the driver shortage. Critical reasons why the industry is suffering from a truck driver shortage 14.
There is no denying that the trucking industry is in a state of flux right now. The ability to find enough qualified drivers is one of our industry s biggest challenges, said ata president and ceo bill graves. The nationwide shortage of truckers has overtaken the number of hours a driver can spend behind the wheel as the trucking industry s number one concern, according to an american transportation research institute atri survey. New ata report shows growing shortage of qualified truck drivers. Throughout the past decade, the trucking industry has struggled with a shortage of truck drivers. Trucking industry struggles with growing driver shortage. Apr 23, 2015 the driver shortage continues to be a significant challenge that has expanded into ltl and private fleet segments.
According to a report from the american trucking association ata, thats how many commercial drivers will need to be hired between 2015 and 2025 to counter the driver shortage that is currently affecting our industry the trucking industry, as we all know, is a complex system of employees, companies, supplies. Its not any one part of the industry, its the whole trucking industry, said tom hicswa, commercial drivers license director for clark state community college. Motor carriers and commercial drivers agree on just four of the top 10 challenges facing the trucking industry, according to the american. Motor carriers and commercial drivers agree on just four of the top 10 challenges facing the trucking industry, according to the american transportation research institutes atri annual study the shortage of forhire, longhaul drivers was the top issue in atris annual survey that has taken the industry s pulse for the last 15 years. Arlington, virginia today, the american trucking associations released its latest examination of the driver shortage, finding the industry needed 60,800 more drivers at the end of 2018 to meet the countrys demands for freight services. While the shortage of overtheroad truckload drivers nationwide is. The demand for truck drivers is actually increasing, despite the dragging recession. Truck driver shortage continues into year 2015 trucking blog. This latest report plainly lays out the problem as well as some possible solutions to the driver shortage. Today fewer people want a career as a truck driver. Critical reasons why the industry is suffering from a truck driver shortage 15. People working in the trucking industry say a shortage of drivers is looming larger than ever and freight and logistics companies say they cant fill positions as fast as baby boomers are leaving. Even so, trucking companies, especially truckload carriers, often have great difficulty finding, hiring and keeping drivers.
Shortage of drivers causing a crisis in transportation. The shortage of qualified truck drivers in canada may reach the tens of thousands by the start of the next decade, according to a recently released report from the conference board of canada, leaving the industry scrambling to find ways to fill those future empty seats. Trucking companies report lots full of idle trucks and ready cargo, but not enough drivers to move them. Commercial truck driver shortage spectrum driver recruiters. He also stated that one of the largest truckload carriers in the industry is. Jan 02, 2015 today, one of the biggest challenges for the trucking industry is driver shortage. What is causing the truck driver shortage and how can we. The american trucking associations figures companies need about 60,000 drivers, a number that could top 100,000 in just a few years. The current cdl driver shortage causes increased competition among trucking companies for the same. The atri is a research committee for the american trucking associations ata. This is part of the first article in a threemonth series examining the driver shortage, measuring its impact on trucking operations and exploring methods to mitigate the crisis. Theres a shortage of 51,000 truck drivers nationwide, the ata says, up from 20,000 in 20 and 36,500 in 2016. The trucking industry could be short 50,000 drivers by the end of 2017, warned american trucking associations chief economist bob costello. Given the key role of trucking to commerce, so is the economy.
The shortage of truck drivers available to forhire trucking companies. While large motor carriers, such as those represented by the american trucking association and the trucking alliance, have stated that the trucking industry is being plagued with chronic driver shortage, realworld facts. Why the driver shortage is causing sleepless nights for. Truck drivers are the basic unit of transportation capacity and the glue that holds supply chains together. To move all this freight requires experienced and dedicated truck drivers, however, one of the major problems the american shipping industry is facing is the shortage of truck drivers. The american trucking associations says the industry. Covid19 and truck driver shortage may threaten food. Follow this link for the previous part in this series. For private fleets, the median age is 52 years old.
A truly qualified driver is becoming increasingly difficult to find. Americas trucking industry faces a significant driver shortage. The ata projects the driver gap will increase to nearly 100,000 by 2021. In todays economy, if an industry has 25,000 open positions that no one is willing to fill, its a problem. The american trucking association estimated that the industry was short roughly 50,000 drivers in 2015, the wall street journal reported wednesday. Sep 01, 2016 truck driver shortage is a shortage of imagination. The american trucking associations says the industry needs to hire almost 900,000 more drivers to meet rising demand. And with the shortage increasing driver pay, it can have a significant impact on supplier costs and therefore consumer pricing. Trucking associations truck driver shortage analysis for 2015. More than 70 percent of the goods we consume are carried by truck drivers on the nations highways. The trucking industry is facing a shortage of truck drivers that threatens to raise costs for freight transportation buyers.
The driver shortage affects the entire economy, as over 68% of all freight is moved on u. Drivers arent always in it for the long haul the u. Over the past 15 years, weve watched the shortage rise and fall with economic trends, but it ballooned last year to the highest level weve seen. Employment of heavy and tractortrailer truck drivers is projected to grow 5 percent from 2018 to 2028, about as fast as the average for all occupations. Thats the conclusion from the american trucking association, a national trade association for the trucking industry, where chief economist bob costello warns driver shortages. Apr 03, 2018 with a shortage of 175,000 drivers, the industry is in for a lot of hurt, costello said. The truck driver shortage in 2020 the dirty truth no one. Logistics industry news impact of the driver shortage in. This is industry churn very different from the shortage of driver s and calculated using a completely separate method. Combating the driver shortage problem with transportation.
According to the american trucking association, 70% of all u. Nearly every period of economic growth is accompanied by a driver shortage, including the recovery that began in 2009. The trucking industry has faced a shortage of drivers for years, but the problem is compounded now with baby boomer retirements, increased freight demands and a high turnover rate. The american trucking associations says the industry needs to hire. The shortage of truck drivers is set to continue into 2015 as the industry continues to push for the hiring of more drivers. Labourhrdriver shortage archive ontario trucking association. With trucks moving 70% of inland freight, the shortage of between 35,000 and 40,000 truck drivers nationwide could lead to higher prices. The truck driver shortage and driver turnover rates, which are running high in the forhire truckload industry, are not the same. American trucking associations president and ceo chris spear is among the selection of transportation leaders named by president trump to the administrations great american economic revival initiative, which is convening bipartisan groups of industry leaders from across all sectors of the u. Outlook and trends for employment amid the job losses of the past decade and the overqualified, inexperienced worker saturated job market, the trucking industry still faces a driver shortage.
A new report says the industry needs to hire roughly. Regulations next to the airline industry, trucking ranks as among one the most heavily regulated industries in the world. The truck driver shortage is getting worse and more dangerous. Jan 09, 2018 trucking industry struggles with growing driver shortage more than 70 percent of goods consumed in the u. The trucking industry is short almost 48,000 drivers now, and that number could rise to 175,000 by 2024 if current trends continue, the associations report estimated. Trucking industry faces driver shortage springfield, oh news. Bob costello, american trucking associations chief economist, provides an update on the driver shortage in the trucking industry, which is seeing. Rather, the driver shortage presents itself as an ongoing perennial concern. No container or straight truck or trailer moves without, at some point, a truck driver. Ata releases updated driver shortage report and forecast. For the truckload industry, driver turnover rates have been over 95% for the last three years. This means the trucking industry has been dealing with the growing problem of a driver shortage in particular, longhaul drivers for while.
Apr 01, 2015 bob costello, american trucking associations chief economist, provides an update on the driver shortage in the trucking industry, which is seeing high turnover rates and the need for approximately. Amid the job losses of the past decade and the overqualified, inexperienced worker saturated job market, the trucking industry still faces a driver shortage. Google the term truck driver shortage and youll find an endless string of articles from various local newspapers lamenting the lack. Trucking industry struggles with growing driver shortage more than 70 percent of goods consumed in the u. Costellos data showed that turnover rates in the industry last year were about 87%, but in the less than truckload sector, it was 9%. Trucking industry trends show that, in addition to a shortage in qualified drivers, the need for. Analysis and forecast 1 executive summary the truck transportation industry in the u. Growing shortage of drivers remains top trucking industry. Survey says driver shortage, driver compensation top. Shortage of truck drivers could impact inland shipping costs fortune.
Hes also, in many ways, the face of the trucking industry s labor problem. In 2016, the industry still suffered a shortage, but it was less than. Jan 23, 2015 for 2015, as the trucking industry is dealing with the worst driver shortage and capacity crunch in its history, heavy duty trucking is delving into the topic of truck drivers. Atas costello projects out the driver shortage, and its a. Survey says driver shortage, driver compensation top trucking. How a freight brokerage helps navigate the driver shortage. Ata chief economist discusses the driver shortage youtube. The forhire trucking market does not have a driver. Over the course of about 15 years, the supply of truck drivers in the u. But why is there a shortage of drivers, and how can we turn it around. To deal with the driver shortage, trucking companies are focusing resources on retaining labor. While a recession would temporarily lower the demand for trucking industry workers, that could mask the severity of the driver shortage, the briefing adds. Data shows there are more truckers than ever, but experts.
The trucking industry carried nearly 10 billion tons of freight in 2014 more than. How to deal with driver shortage tip trailer services. Moreover, he said that the census bureaus report reflects all truck driving jobs, while the driver shortage pertains to a specific sector of the industry. However, since the recovery in 2011, the entire trucking industry came under the grip of a driver shortage. However, the shortage is expected to surpass 50,000 by the end of 2017. As trucking continues to be the primary means of moving freight across the country, the shortage of drivers continues to be a crucial factor in moving that freight. While alberta experienced an economic downturn between 2015 and 2018, for example, the number of truck driver job vacancies surged when the provincial economy began to recover. The shortage of professional truck drivers in the canadian forhire trucking industry is escalating more rapidly than industry analysts previously thought, according to a new study prepared for the canadian trucking alliance. The shortage is most acute for longhaul drivers, where the average age is 46, and workers are on the road for weeks at a time. The forhire trucking market does not have a driver shortage problem. Ebbs in the economy will not necessarily solve the driver shortage. The majority of the current generation of european drivers are over 45 years old and there is an insufficient pipeline of talent to replace them on their retirement. Addressing americas truck driver shortage industry today.
New report quantifies canadas driver shortage truck news. At the same time, there is even a greater demand for shipments to arrive to consumers quickly. Even though demand is rising, the industry as a whole is facing a monumental shortage of qualified drivers. According to a 2015 ata study, 88% of fleets said they were getting enough. The american trucking association claims that theres a current shortage of between 35,000 and 40,000 truck drivers nationwide. The driver market continued to tighten, and the shortage skyrocketed to roughly 45,000 by 2015. Posted thursday april 09, 2020 in imagepr, labourhrdriver shortage as the trucking industry continues to receive overwhelming support from the public and all levels of government during the ongoing covid19 crisis, many truckingtransportation companies and truck drivers are paying it forward by giving back to their communities. Canadas truck driver shortage will grow by half in less than a decade as the industry grapples with an aging workforce and difficulties recruiting young people and women. Truck driver shortage is a shortage of imagination. Turnover is a reflection of demand for drivers, with higher rates generally indicating strong demand for drivers. First and foremost, the reasons behind truck driver shortage are numerous. Sep 16, 2019 since 2005 the american trucking associations ata has been releasing reports on the driver shortage. The ata is the largest national trade association for us truck carriers.
According to a new analysis by the american trucking associations, the shortage of truck drivers has grown to nearly 48,000 and could expand further due to industry growth and a retiring workforce. Why is driver turnover so high in the trucking industry. What is causing the truck driver shortage and how can we fix it throughout the past decade, the trucking industry has struggled with a shortage of truck drivers. Alan adlerfreightwaves motor carriers and commercial drivers agree on just four of the top 10 challenges facing the trucking industry, according to the american transportation research institutes atri annual study. Once you realize that the trucking industry is plagued with turnover the next logical question to ask is why. There isnt widespread agreement about whether there even is a truck driver shortage. Driver shortage ripples across trucking industry wsj. Why america is facing a shortage of truck drivers youtube.
In what way the trucking industry can face with truck driver shortage. A shortage of drivers is the top trucking concern, overtaking how many hours truckers can drive in a day, according to an industry trade group. Thanks to detailed analyses following the first one in 2005 by the american trucking associations, the driver shortage has become a media staple. The average turnover rate for trucking companies large and small is 96% per year. Poor pay, hours plague drivers in trucking industry supply chain dive. Why is there a trucking shortage and how does it affect. According to industry experts, a crisis is looming in the transportation industry and at the. People working in the trucking industry say a shortage of drivers is looming larger than ever and freight and logistics companies say they cant fill. Apr, 2018 the truck driver shortage is getting worse and more dangerous. The vast majority of driver turnover is churn in the industry drivers going from one carrier to another. The lack of drivers is due to an aging workforce, demand for higher. Driver shortages surpassed hours of service hos as the top industry concern. The ata estimates that 160,000 driver positions will go unfilled in.
There are multiple variables at play, but here is a list of common reasons that we think causes turnover within the trucking industry. Truck driver turnover often runs at elevated rates when drivers are in high demand because the drivers know they can jump from motor carrier to motor carrier. What the trucking industry has done to help solve the driver shortage. Also, driver turnover and the driver shortage are not the same. By attracting more drivers and fleets into our industry, we are creating more capacity at a time. The trucking industrys driver shortage isnt improving, and its getting worse fast back in 2015, the american trucking associations ata estimated that the trucking industry could face a shortfall of almost 74,000 drivers by the end of 2016. The american trucking associations estimates that there is a nationwide shortage of more than 30,000 drivers today. These problems contribute to the high driver turnover rates that are responsible for the truck driver shortage. Americas trucking industry is the lifeblood of the u. Trucks move almost all of the food and other items americans purchase, and the shortage of drivers is driving up shipping rates. Yet, one of the most crucial factors that have caused truck driver shortage is the high average age of the existing workforce truck drivers. Dire driver shortages in us trucking companies could hit.
The report, atas fourth major analysis since 2005, shows that by the end of 2015, the driver shortage will reach nearly 48,000. Driver shortage will likely have a negative impact on j. The industry driver shortage narrative is helping to destroy the truckload markets economics by attracting more drivers and fleets to our industry. A shortage of qualified drivers has challenged the trucking industry for several years and is only getting worse. There isnt widespread agreement about whether there even is a truck driver shortage, for example.