A new report dealing with the U.S. economic outlook estimates that the economy will grow by about 3% in 2014. The report, which was published by the Equipment Leasing and Finance Foundation, shows the fastest rate of growth since the 2008-2009 economic recession. The American Trucking Association claims that the economic recovery will mean both more jobs for drivers and an increase in driver turnover.
According to Bob Costello, chief economist for the ATA, “the market for experienced, qualified drivers remains exceptionally tight.”
Costello pointed to both an increase in freight volume and ‘regulatory pressure’ as two main reasons why there will be an increased demand for drivers. The ATA expects that the increase in demand will result in higher driver turnover.
In an interview with Fleetowner, Costello reported that he expects that “as the economy continues to pick up, we’ll see that market get even tighter,” but made no mention as to how carriers would be responding to increased demand for drivers.
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Source: fleetowner
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I’m not sure how a better economy will mean higher turnover. If drivers are getting more miles shouldn’t they be happier where they are? The tighter the driver pool the more the companies will do to retain their drivers. Can somebody explain to me what Costello is talking about?
Billy answered your question… Its not about miles anymore.. u want more miles then work for an owner op or yourself.. u better be playing your log book(s) right in this case. But the turnover rate is more so for company drivers whos’ pay sucks.. and never get to be home with family. After a while its not worth the $. More and more drivers will result to moving onto non-driver jobs or bouncing around from company to company until they feel the pay equals the labor and stress. Just my 2 cents.
Other companies offering better pay/benefits. After being with a company for five years, no accidents etc, seeing them give newer trucks etc to entice new hires. While getting the run around concerning replacement for my million mile truck…. Yeah..
Ray, In a perfect world it would work the way you’re suggesting, but not in reality. More jobs means drivers will be more picky as to where they work, and ditch current employers not treating them as good as they could. It would be nice if companies treated their more loyal drivers better to retain them, but history has not shown that to be the case.
not just the above, but there are more jobs opening up outside of the crazy over regulated pre- sleep apnea, camera watching you while you drive, being told when you have to sleep, QUALCOMM’s, and companies almost telling you what kind of underwear you have to wear life of driving a truck.
Plus trucking is just not fun anymore.
In my opinion, Bob Costello using the word “tight” to describe the market for experienced, qualified drivers, especially in a supposedly growing economy, is severely flawed, at best. What exactly does he mean “tight”?? And how can this relate to driver turnover?
If Bob gets out in the REAL world, instead of pushing pencils, he’ll see that driver turnover is due to all these mega-carriers paying slave wages and training the inexperienced newbies… with inexperienced unqualified newbie trainers.
The trucking companies create their own problem of turnover.
With the better enforcement of the HOS rules getting more miles as a driver is impossible. When you talk driver turnover it is not a disease but a problem that has solid cause and effect. Low wages, bad home time, deplorable living conditions , DOT enforcement and even local attitude towards drivers all have negative effect.
What good R more miles if you still get the same tiny check every week?they’ll run you harder and then find a way to take it all back..it never changes
In the uk we went through all these issues 25 years ago. Employers were adamant that they would go bust if drivers were paid hourly. They didn’t. Then employers said they would all go bust if the 48 hr maximum work week was applied to drivers. They didn’t .
As drivers, we have the power to achieve anything we want.
North American truck drivers need to stop crying and stand up.
I would be interested in how wages compare in the UK to the US. I know most jobs in the UK pay a living wage. I know your benefits are outstanding as far as vacation and paid sick leave etc.
Thank you, thank you, thank you !!!
Thanks for the perspective Jon! If you don’t mind me asking, what sort of hourly rate are you guys making across the pond? Can you translate that to a “quality of life” level in the US?
If the economy is getting better a lot of folks are going to go find other jobs. With all of the government interference drivers miles are down meaning lower bring home pay checks. This coupled with companies forcing their drivers to stay out longer away from their families and many more companies putting in no rider policies to where you can’t even take your wife with you because of increased insurance rates. All these things put together are going to cause some folks to just say ENOUGH.
Companies are going to have to increase mileage pay or they won’t be able to accept freight. When there are enough empty trucks sitting on their yards and not enough income coming in, it will happen. They’re not there yet!
I am a new owner operator trying to make a go of it, and I read about the problems with truck maintenance (affordability) before I started, but didn’t really believe most of it! Now, I believe it. Shop visits are going $500 to $6300 per visit, is not affordable for the new electronic trucks. No one seems to know how to work on them and what all the sensors mean when they indicate probs. This is really expensive learning for me. Using a 2004 Volvo with 800,000 mi and learning what wears out when and wondering when I am gonna get it fixed so that I can drive it. Economy needs to really pickup enabling rates to go up so that, hopefully some of that can be passed through for truck maintenance. I agree with most of the DOT requirements for truck safety, but is proving to be very expensive to maintain equipment to those specs. Every little air leak means another $200 fix.
Sounds like you’re not too mechanically inclined. I’m starting a new fleet, and my biggest headaches is the paperwork/permits, etc. I have three guys itching to get on the road. I have a good broker for them, too. They have been informed, to their great pleasure, that they will be responsible for the maintenance of their vehicle, and fully intend to “get their hands dirty” to save money. I’m already a full out inspector capable of doing annuals, long before I was an OO. Now, I have a responsibility to pass that on to my guys, with me doing the inspections and monitoring them while they effect maintenance/repairs. They also know I don’t pull punches when it comes to safety, and I have even taken my own truck out of service at times. Air leaks are easy to fix, and I fix them even if its not my equipment. If I was you, I’d find a full repair manual to help with the maintenance. Also, one needs to know when the repair is better off in someone else’s shop, like for the ECM, until you can afford the software, usually around $6k. Best of luck.
Just another excuse by the big name carriers to bring in more foreigners to drive for less money. They will eventually take over the trucking industry like they have construction.
I’ve said it before and I’ll repeat it now: Drivers should be paid for everything we do. We don’t get paid to pre-trip, post-trip, fuel, drop, hook, sweep out trailers or any of the other things we do in addition to driving. Until we do, companies can expect to see us hopping around looking for a better deal. Look at the turnover rate for mechanics, janitors or dispatchers (“driver managers” at some companies to make them feel important). They get paid for everything they do from start of the day to end – AND they only average about 9 hours per day, breaks included.
You can’t blame the “Big” trucking companies! If I owned a trucking company and I had drivers who expected to be paid $1500-$2000 per week, and I drivers willing to do the same job for $400-$500 per week, guess which ones i’m going to hire? You can only blame yourself as a professional driver, willing to work for these slave wages! If nobody would agree to work for them, they would have no choice but to either pay a decent living wage, or go out of business. I’ve been driving local, home every night, for over 20 years. I get paid by the hour, I get paid for every minute from the time I clock in, till the time I clock out! I work between 50-55 hours per week, and I gross between $1300-$1500 per week. I have never driven OTR and I never will, not for me, but I can see why some drivers would enjoy that.
That being said, if I did decide to drive OTR, I wouldn’t even consider doing it for any less than $2000 per week. I talk to OTR drivers at truck stops and shippers, and i’m horrified when I hear their stories about the all money they’re NOT making, and all the BS they put up with! To the people saying its a “competitive business” and these companies are just trying to stay in business, you’ve been brainwashed my friend! To believe this, you obviously have no idea how the trucking industry, or any industry works! Sure, fuel prices, insurance cost and the general cost of doing business has risen dramatically but so have the rates. Have you ever heard of a fuel surcharge? I work for a small local LTL, that has between 30-40 drivers. How can they afford to pay me a decent wage plus no cost benefits, and still be competitive, successful and more importantly, profitable? These “Big” companies could do the same if they cared at all about their drivers! But no, they would rather remain competitive, turn HUGE profits, while paying the drivers little or nothing!
The bottom line is, if they have drivers willing to work for slave wages, usually less than minimum wage if you do the math, this will NEVER end!