At a time when everyday people are experiencing uncertainty about the U.S. economy, American Trucking Associations President Chris Spear appears optimistic about the futures of women and men who earn a living hauling freight.
In a recent interview, Spears echoed the pain points that have working families on edge. After two quarters of negative economic growth and the federal government implementing policies designed to curb rising costs, July inflation still hovered at a stunning 8.5 percent.
“We’re starting to see a lot of the impact of the Federal Reserve decision to raise interest rates, and the impact it is really having. We have 40-year highs in inflation, nearing 10 percent, and record highs on fuel. Even though it’s coming down, it’s still over what it was a year ago, and it’s certainly going to be impactful on our industries and our ability to serve and help climb out of this,” Spears reportedly said. “The Fed tried to tap the brakes to slow the economy, and instead we’re hitting the emergency brake, we’re sliding around corners. That creates a lot of uncertainty, not only in trucking but the entire economy.”
If there’s a silver lining for CDL holders, it’s the fact the country continues to struggle to fill the more than 80,000 truck driver shortage. Essentially, no qualified trucker is going to lose their job anytime soon. Most can anticipate maximizing their hours of service opportunities heading into autumn.
American Trucking Associations Chief Economist Bob Costello recently pegged the possibility of the country sliding into recession at 50-50. Some argue that two consecutive quarters of economic contraction indicate we have already entered a recession.
“You have to look at a collective number of factors, and I think that’s what Bob (Costello) and his team have been really analyzing,” Spear reportedly said. “There are so many factors within the economy that remain very strong and are resilient against these factors — such as inflation and fuel costs — that it gives us a little bit of hope we can come out of this very quickly. But we still have at least three to four quarters before we see anything positive in that sense.”
The leadership team at the trucking organization is also monitoring the fallout of California’s AB5 law, which effectively bans truck driver self-employment. Some 70,000 CDL professionals face reclassification as employees or would need to move their owner-operator businesses out of the Golden State. Protests have broken out at major West Coast ports and Oakland’s docks were temporarily shut down. A recent self-employment versus independent contractor ruling that went against Wisconsin-based Schneider National has some worried the courts will apply the California standard across the country.
“I continue to say that Sacramento is the breeding ground of all bad policy. I haven’t seen a thing come out of that town that has helped our industry or our economy,” Spear reportedly said. “They continue to set standards that not only impact California but spill over to that region and the entire country. We’re recipients of that because we are interstate commerce.”
Although the industry faces significant challenges involving inflation, government policy, and economic growth, truckers continue to garner good-paying salaries and possess unprecedented job security.
Sources:
https://www.freightwaves.com/news/schneider-driver-ruled-an-employee-in-federal-court-appeal
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