A question about wages and job openings.

A recent Yahoo news article stated that there are approximately 200,000 job openings for truckers in the U.S. and that that number will increase as the economy improves.

Does that number sound accurate to you veterans? And if it is, why are wages so comparatively low? With that much demand, why are we seeing such low net wages for truckers, even rookies? I'm no Ben Bernanke, but the economics of this doesn't make sense.

I'm considering a career in trucking, so any feedback would be greatly appreciated.

Thanks!

 

Trucking is not a very glamorous or respectable job. It's very hard on families and marriages. Currently the driver needs segment is being fed mostly by trucking schools which are attracting those new to the industry and unaware of the pitfalls of trucking. The bottom line is drivers (new and old) are quitting at phenomenal rates the last 20 years. Faster than they can be replaced. So this creates the void (empty seats) that we see today. It's not being fed so much by demand/need, but rather trying to replace quitting drivers. Frankly, in today's seemingly permanent weak economy and with so many out of work and unable to buy non-essentials, there is not a shortage of trucks to meet demands even with carriers having empty seats. Nobody is going to pay a new, non-experienced driver $60k year to start. All the money in the world is not going to change the facts ... driving requires a special breed, a special talent and ability, and a special tolerance for a far less than ideal job description. You can't "buy that" with higher wages.

 

There are 200,000 openings because 200,000 newbies quit or were terminated . Did you know OTR trucking has a turnover rate of over 90% ? That means a carrier with 5,000 drivers replaces 4,500 drivers a year . Wages stay low because desperate wannabes will accept 1980's wages . Then they find out they can't survive on 1500 miles a week at $.25 a mile so they leave and are replaced temporarily by another newbie .
Here are the facts .

http://allamericatrans.com/blog_95-Trucking-Capacity-Remains-a-Top-Concern-for-Shippers.html
​

 

To supplement what was said in the earlier posts ... just because a carrier has 5,000 power units and only 4,000 drivers, does not mean the carrier NEEDS 4,000 drivers to meet demand. Just having an additional 1,000 manned power units in the pool does not mean that magically freight is going to appear to keep those additional trucks rolling near capacity. Bottom line is, there is truly only a finite amount of freight and the more truckers you put in the pool, the less miles there is for everybody involved. It's about tax breaks and hiring incentives and goofy, ineffective stimulus programs. It's about government trying to "create jobs" out of thin air with meaningless hiring tax credits rather than create an environment that supports increased productivity in all industries and removing expansion obstacles and penalties on profits.

 

There is NO driver shortage>there is NO driver shortage>there is NO driver shortage

If this myth was close to being true then several things would have happened by now. Remember the ATA has been crying about this for close to 15 years now.

Firstly, if there was a driver shortage the value of drivers (like the value of corn and soy beans right now) would have sky rocketed! Wages and any form of remuneration for drivers has barely gone up in the majority of circumstances so using the supply and demand theory>there is NO shortage

Secondly, if there was a shortage warehouse keepers and manufacturers would be sreaming from the rooftops that they can't find trucks. Is the head of traffic @ Ford, GM or Chrysler complaining that they can't get trucks? EVERY business paper would be covering the story on a daily basis if there was any truth to it>it's just not happening because the freight gets moved. Sure there are sporatic shortages when volumes increase dramatically (produce) but for the most part freight that pays the prevailing rate moves on time.

As has been mention above, fleets suffer from "driver churn". The trucking industry (OTR especially) is notorious for high driver turnover. A few years ago driver turnover reached 138%! What other industry could sustain that kind of churn other than fast food?

http://www.truckinginfo.com/news/news-detail.asp?news_id=75820

 

All stated is true! But there are great carriers out here. Pm me some info I can see if I can help. Best of luck!

 

Due to my research I believe a new driver can find a decent company and earn at least $35k his first year. Comments from newer drivers in this forum also support this. I hope I am not being naive.

 

They've built their business models around the value of the driver, and they've discovered that value can be relatively low and they still make money. They're always hiring because they're always firing, or guys are quitting. To them its a cost of doing business; cheaper to churn newbies than keep experienced veterans of a few years. Why pay one good driver what you can get for three fair drivers right out of CDL school?

The biggest problem is the annual turn-over rate, but this a price these companies are willing to pay if they always have the cheapest labor available to them. Constant recruiting, schools, training and fresh meat making .28 cpm is cheaper than keeping around dependable grissly old veterans at .44 cpm. There is collusion among these companies to keep things exactly as they are - - because its a successful business model.

Ask yourself this; if the economy is so bad, why is demand so high for drivers to haul product?
It's unskilled labor that must be drug, DUI, accident, ticket, felony free and able to pass a health exam.
In a bad economy, people desperate for any work, there is a larger pool to select from. Selling them romantic notions of the open road and freedom to see the country, only entices them further.

 

Yes you can earn anywhere between $35K and $40K depending on miles, circumstance and luck.
It's HOW you earn it that's important to note.
You either drive or are waiting to drive 12 hours a day for 28 days straight, for which you earn 4 days off at home and then start the cycle all over again. This varies wildy, depending. But if you can do this you will make that much.

If $35K seems like good money it's not. You do this because you want to get out and drive, not for money.
It's practically a subsistence living. You're paying THEM (with your time and effort) for the privilage of driving a big rig on the open road. There are people that understand this and are fine with it.

 

Ditto Keyster's comment ... so sad, but so true. But to be fair, once a driver gets a solid, dependable, safe driving history, there are a number (not many) of outfits that pay well and apply a premium to these experienced drivers. But the carriers who have the largest issue of hiring newbies and the resulting negative consequences, also haul the bulk of the freight and tend to control the industry directly and indirectly.