In a new video released by OOIDA, President and CEO Todd Spencer breaks down what he calls “The Driver Shortage Myth.” He also reveals who the myth benefits and why.
Industry groups like the American Trucking Association have been warning about a driver shortage for a long time now. In fact, Spencer claims that he’s been “hearing about it for 25, 30 years” or more. Currently the ATA claims that the driver shortage stands at 50,000 and will go up to 175,000 drivers by 2026.
But Spencer points out something that drivers have been saying for a long time: It’s not a driver shortage issue, it’s a driver pay issue.
“Those that perpetuate the notion of a driver shortage ask you to believe that basic laws of supply and demand simply don’t work,” Spencer says in the video. “In that they say we’ve got a shortage, yet if there’s a shortage of anything, it will be reflected in the price or value of that particular service. Incomes for drivers adjusted for inflation going back to 1980 would be twice what they are right now – or more – if they had just kept pace for inflation.”
Over 400,000 new CDLs are issued every year. The only reason that enormous number isn’t enough is because most new drivers that enter the industry leave within a year. And Spencer knows just who to blame for that.
“Those that talk shortage are interested in having new people simply because they will pay them a starter wage. And they’ll keep their cost down,” says Spencer. “It’s a crazy way to do business.”
You can watch the whole video here.