Driver Shortage? What Driver Shortage?

Cybergal · Mar 2, 2009

Driver Shortage? What Driver Shortage?
3/2/09
Supply Chain Digest - OH

For many years, we have been hearing dire predictions about the current and future shortage of truck drivers, especially long haul truck load drivers.
In 2005, for example, a report by research firm Global Insight, commissioned by the American Trucking Associations (ATA), predicted that the US market would see a driver shortage of 111,000 by 2014.
For many carriers, the problems associated with driver turnover and the constant need to replace those drivers was among the largest operational challenges they faced.
The predictions of even worse shortages, of course, were based on a set of predictions about both the growth in freight movement and the relative attractiveness of truck driving versus other occupations, especially construction.
More>>> http://www.scdigest.com/assets/On_Target/09-03-02-2.php?cid=2301
Click to expand...

rocknroll nik · Mar 2, 2009

Wow they are finally catching up with the truth. Now if the companies would be honest as to why they have always had so much turnover the industry might make a change for the better.

Sure there are alot of crybaby drivers that aren't happy unless everything is gold plated for them, but I'm just as sure that the deciet that alot of companies have used on drivers contributed to that turnover also. IMHO

EZX1100 · Nov 4, 2012

http://www.truckinginfo.com/safety-compliance/news-detail.asp?news_id=78287&news_category_id=7

Back to the Future: The Current and Coming Driver Shortage
By Deborah Lockridge, Editor in Chief

LAS VEGAS - At least one industry analyst has predicted the driver shortage could reach 500,000 by sometime net year. The American Trucking Associations recently reported that driver turnover at large truckload fleets is now at 106%, the highest level since early 2007. What's driving this shortage, and what can be done about it?

That was the question addressed during a panel discussion this week at the American Trucking Associations' annual Management Conference and Expo in Las Vegas.

The name of the panel was "Back to the Future: The Current and Coming Driver Shortage." Kenny Vieth, president and senior analyst at ACT Research, started off with a blast from the past. An article from a 1914 issue of Traffic World noted, "employers complain of the great difficulty of securing drivers who are competent Ã¢â‚¬Â¦ and yet a majority of truck owners will hire the men who will work cheapest."

Vieth asked whether we really are looking at a driver shortage problem today, or if it's really a driver retention problem.

"If you have 100 % driver turnover, finding drivers is not the problem, retaining drivers is the problem," he said.

Vieth showed a chart comparing the pay of truck drivers to that of food service workers. Back in 1981, a driver was making nearly five times the salary of a food worker. In 2010, that had dropped to only about twice as much. "The pay in relative terms was halved compared to a food service worker," Vieth said.

Vieth also posted graphs comparing turnover in the truckload sector with National Private Truck Council benchmarking statistics. NPTC numbers were pretty stable at around 10 to 12%. These drivers get home more often and have better pay and benefits, he said.

The Pay Question

Derek Leathers, president and chief operating officer for Werner Enterprises, also talked about driver pay, showing how since 2006, the average weekly wages for truckers has stayed largely flat (except for a dip during the recession), yet the consumer price index, a measure of inflation, has mostly continued to rise throughout that period, meaning that same pay is buying less.

However, the panelists noted, an across-the-board pay increase may not be the answer. They prefer more targeted pay increases, ones linked to things such as performance or the difficulty of a particular type of trucking job within a fleet. Drivers who are able to get home more often, for instance, may be happy with lower pay than those who are required to be away from home for long periods.

When asked about the possibility of pay by the hour instead of by the mile, the panelists were uncomfortable with that idea.

"I think it's dangerous to disconnect how we pay our drivers from how we get paid," Leathers said.

Equally important to pay, panelists said, are "softer" issues such as benefits and home time, a good corporate culture, CSA coaching, improved driver services like terminal amenities and technology to provide better connectivity between the driver and his family.

Kevin Burch, president of Jet Express, honed in on how the rest of the company relates to the drivers. "We will spend millions of dollars on technology, and that's all well and good, but we won't train a dispatcher to teach them how to communicate with a driver."

"Nothing is more important than network design," Leathers said. In 2008, only 38% of Werner drivers got home at least once a week. Today that number is 71%. The freight hasn't changed significantly; it's all a result of more efficient and thoughtful routing.

Demographics

The panelists explained that changing demographics will make it harder to find drivers, as fewer younger workers enter the market and more of the older, experienced driver pool reaches retirement age.

Burch said the average driver currently is 48 years old.

"I would encourage you to identify the average age at your company," he said. "At mine it's 55. There's a lack of interest from the next generation." Burch said the average age of a truck driver training student is 42 years old.

"The other thing that's a concern to us is the less-than-truckload driver age is even older," Leathers said, "and there's a clearcut financial incentive for drivers to transition out of truckload into the LTL industry."

The Training School Conundrum

Panelists lamented the general lack of respect for truck driver training. At a time when the government is trying to create new jobs, they say, trucking can put to work a large number of people - but they have the hurdle of paying $4,000 to $6,000 for the training needed, and sources of financial assistance have been drying up.

"We need to train, we need to develop, and most important, we need to communicate and mentor young drivers," Burch said. "This industry keeps kicking the can down the road."

Lou Spoonhour, board member emeritus for the Commercial Vehicle Training Association, said if the industry wants to attract new drivers, it's going to have to start hiring more new training-school grads.

"Until recently, when I talked to fleets at job fairs, I used to hear a pretty strong refrain -- all the trucking companies wanted experienced drivers. I would ask the question, if you all want experienced drivers, how is anyone ever going to start in the industry?"

Spoonhour asked fleets to help the driver training school industry in its lobbying for more funding. "When our carrier partners are there with us, and the carriers are saying, 'I can hire every one of the graduates from this school, it does have an impact," he said.

Werner, which does hire new-training-school graduates, agreed.

"We've got to push our government to consider all jobs to be important and quit picking and choosing as they have of late," he said. "Funding toward our industry has been drying up, with funds being diverted to perhaps more sexy alternatives."
Click to expand...

seems like more anti-truck driver and pro-mega carrier propaganda

windsmith · Nov 4, 2012

Exactly. You want to end the 'shortage', stop hiring incompetents and start paying decent wages.

drvrtech77 · Nov 4, 2012

Werner complaining that the govt is cutting off their funds for training drivers... I think that's a good thing to a point....maybe it will make them look in the mirror and see they are the problem and not the drivers for the most part!

Hopefully but I won't hold my breath...but maybe with less govt $$$ coming in to operate a driver mill like they have been doing and start what they should be doing...having responsible training program..but like I said, I won't hold my breath.

Buffalo Chip · Nov 6, 2012

drvrtech77 said: ↑

Werner complaining that the govt is cutting off their funds for training drivers... I think that's a good thing to a point....maybe it will make them look in the mirror and see they are the problem and not the drivers for the most part.
Click to expand...

It's high time the government stopped this corporate welfare ... let Werner pay to train it's own drivers ... let them retain the drivers they train ... that would be a small change that would have giant benefits to the industry's image, driver's paychecks and the public at large in the form of lower taxes.

Now can we work on cutting the other welfare program?

EZX1100 · Nov 15, 2012

ATA Claims Driver Shortage Not Trucking Companies' Fault
The ATA has just published a paper titled "Truck Driver Shortage Update" written by Bob Costello, Chief Economist and Vice President for the ATA which you can see here. While I'm sure Bob is a very nice person who is doing his best with the information provided to him, anyone who is familiar with the industry will see more than a few anomalies in the report. The ATA is claiming that on average, the industry will need to generate 96,178 new drivers every year. Since I have no information to the contrary, I will accept that as fact. What follows is a little more dubious... Read the full story here.

EZX1100 · Nov 15, 2012

Buffalo Chip said: ↑

It's high time the government stopped this corporate welfare ... let Werner pay to train it's own drivers ... let them retain the drivers they train ... that would be a small change that would have giant benefits to the industry's image, driver's paychecks and the public at large in the form of lower taxes.

Now can we work on cutting the other welfare program?
Click to expand...

yes, there is corporate welfare, farmers welfare, trailer park welfare, ghetto welfare, oil companies welfare, foreign aid welfare, and politicians welfare

we need to cut out the most costly of them, and just help the needy, not the greedy

DealBreaker · Nov 15, 2012

EZX1100 said: ↑

ATA Claims Driver Shortage Not Trucking Companies' Fault
The ATA has just published a paper titled "Truck Driver Shortage Update" written by Bob Costello, Chief Economist and Vice President for the ATA which you can see here. While I'm sure Bob is a very nice person who is doing his best with the information provided to him, anyone who is familiar with the industry will see more than a few anomalies in the report. The ATA is claiming that on average, the industry will need to generate 96,178 new drivers every year. Since I have no information to the contrary, I will accept that as fact. What follows is a little more dubious... Read the full story here.
Click to expand...

They completely left out the dubious new med standards automatic downgrade's from failure to recertify or report your new card.
Carrier's discriminating against fat people. Low pay etc..
Had my neck measured today. told me they would see me again in two years lol
Keep that weight down ,when the noose is tightened you will have no where to go .

chalupa · Nov 15, 2012

I have always maintained there is no shortage and I'm willing to prove it, I simply need a free hand and your checkbook. I promise you I can bury you in qualified applicants .......... and I never get any takers........

My fee? the same $5000 you would invest in a rookie minus the damage. ( A deal! ) And $2500 more when he / she makes 90 days and yes, you'll have to terminate the cute 20 year old with the short skit you chase around the office. The money to pay the drivers has to come from somewhere doesn't it? Or you can keep her and can your brother in law, he sucks at ops anyway.

So are you ready to hire drivers and go trucking or do you still want to deek around?

Not their fault huh? Funny,

Log in or Sign up

Forums

Find Trucking Jobs

Driver Shortage? What Driver Shortage?

Cybergal Road Train Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

rocknroll nik High Risk Load Member

EZX1100 Road Train Member

windsmith Road Train Member

drvrtech77 Road Train Member

Buffalo Chip Light Load Member

EZX1100 Road Train Member

EZX1100 Road Train Member

DealBreaker Light Load Member

chalupa Road Train Member

Trucking Jobs in 30 seconds

Wait, employers can't reach you!

Log in or Sign up

Useful Searches

Find Trucking Jobs

Driver Shortage? What Driver Shortage?

Cybergal Road Train Member

Wait, employers can't reach you!

rocknroll nik High Risk Load Member

EZX1100 Road Train Member

windsmith Road Train Member

drvrtech77 Road Train Member

Buffalo Chip Light Load Member

EZX1100 Road Train Member

EZX1100 Road Train Member

DealBreaker Light Load Member

chalupa Road Train Member

Wait, employers can't reach you!