Trucking industry works to get drivers on the road again (Courtesy of the Jacksonville Business Journal) — One of the many consequences of the Covid-19 pandemic has been an overall disruption in the supply chain. Among the issues: a shortage of drivers to transport goods across the country.
The American Trucking Associations estimated that the driver shortage was over 80,000 last year and could reach 160,000 in 2030.
Over the next decade, the industry will have to recruit nearly 1 million new drivers, the ATA estimates.
“Increased demand for freight, pandemic-related challenges from early retirements, closed driving schools and DMVs, and other pressures are really pushing up demand for drivers and, subsequently, the shortage,” ATA Chief Economist Bob Costello said.
“Before the pandemic, we were adding drivers to the industry – even though we had a shortage, more people were entering the industry,” he said. “The issue is that new entrants into the industry didn’t keep up with demand for goods.”
Abigail Lawson, director of recruiting with Miami-based transportation and logistics company Ryder System (NYSE: R), said the biggest reason for the shortfall is an aging workforce. Plus, “you’re away from home, you’re always sitting, it’s dangerous, an unhealthy lifestyle,” she said, ticking off reasons fewer people are getting into the occupation.
“And then Covid came along, which shut down the driver schools. And when they were able to reopen, it was at a limited capacity,” Lawson said. “The supply of drivers coming in was already not enough, and it [was down] 45% in that first year.”
The pandemic caused a lot of people to retire earlier due to health and safety concerns, plus other complications, Lawson said.
“During the very beginning, everything shut down, there were a lot of furloughs, even with truck drivers,” she said. “It gave them time to really look and say, ‘Do I want to do this?’ [They looked] at other occupations … and they saw they could make the same, or just a little bit less, money [and be] home every day, and maybe have a better type of job.”
Taking the wheel
While wages are a big part of the conversation, so are incentives. While sign-on bonuses have been standard in the industry for some time, Lawson said, Ryder also offers referral and retention bonuses.
She said that, with all the demand, Ryder also increased its recruiter headcount 180% in the past two years.
“It takes a lot more work than it has in the past,” she said, “because, instead of people just coming to you, you’re going to find [them].”
Ryder has about 8,600 professional drivers, including approximately 530 in Florida.
“The industry is raising pay at five times the historic average, but this isn’t just a pay issue,” ATA’s Costello said. “Companies are doing more and more to address some of the structural lifestyle issues that have traditionally been a challenge for truck drivers.”
Chief among those challenges is scheduling.
“People want some consistency. They want to plan,” said Peggy Hinkle, group human resources director at Ryder. “Every place that we can pull out that variable about what that schedule’s going to look like helps everybody a lot.”
And making sure drivers have the right tools to do their job creates a safer environment and allows them to do their job more efficiently.
“The truck is an indication of the respect we have for our drivers,” Hinkle said, as they can spend 10 or 12 hours each day – and sometimes sleep – in their vehicle.
Moving forward
Last year, U.S. senators reintroduced the Developing Responsible Individuals for a Vibrant Economy (DRIVE-Safe) Act to address the driver shortage and enhance safety training and job opportunities for young truckers. It establishes an apprenticeship program that would allow commercial driver’s license holders under age 21 to operate trucks in interstate commerce.
This year, the federal government announced the creation of the Women of Trucking Advisory Board. The board will help inform efforts to increase the number of women in trucking by reviewing the challenges facing female drivers and those interested in joining the profession, such as barriers to entry, on-the-job safety risks, mentorship, quality training and opportunities for advancement.
“Finding ways to let younger people enter the industry, like the DRIVE-Safe Act, [and] reaching out to women and minorities will open this career path … [and] we can put a significant dent in the shortage,” Costello said.
BY THE NUMBERS
$732.3 billion
Gross freight revenue from trucking, representing 80.4% of the nation’s freight bill in 2020
10.23 billion
Tons of freight transported by trucks in 2020, representing 72.5% of total domestic tonnage shipped
7.65 million
People employed throughout the economy in jobs that relate to trucking activity in 2020, excluding the self-employed
3.36 million
Truck drivers employed in 2020 – a decrease of 6.8% from 2019
Source: American Trucking Associations