Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/771645
BY RAFAEL MOISEEV PRODUCT MARKETING MANAGER, ITS DISPATCH Driver Shortage Can No Longer Be Ignored Rafael Moiseev is the Product Marketing Manager for ITS Dispatch. He received his MBA in Marketing and Operations from Norwich University in Vermont. Rafael is based out of Canada. I s there a shortage of truck drivers in North America? Yes, absolutely. ere are several online sources that provide statistics and figures expressing the decline in driver numbers relative to the growing demand. Not only is there a consensus by North American trucking companies that this problem is prevalent, but there's a shared concern that the problem is escalating. For the most part, the statistics and projections of the shortage remain consistent across the board, with an estimated 35,000 empty seats that currently need to be filled, respectively. In terms of the projected shortages in the upcoming years, the estimated figures are exponential, ranging anywhere from 175,000 to 200,000 by 2025. e truck driving sector has been linked to some of the most astonishing turnover rates on the industrial map, with rates peaking beyond 90 percent. is means that more than 90 percent of truck drivers quit their job within the first year. So, why is this happening? e ever-increasing problem can be attributed to several reasons. Homesickness, fatigue and the stresses of road congestion are all potential factors behind the shortage of qualified labor. But these problems aren't new, and, for the most part, haven't changed over the years. e most pressing reason for the shortage, as expressed by the countless truck driver confessions available online, can be narrowed down to one thing: money. In conjunction with the cost of moving freight has decreased to an all-time low, driver compensation has remained relatively stagnant over the last two decades or so, and that's a big problem. e average salary for a truck driver 10 years ago was about $43,000. Today, the average wage has slightly decreased to about $41,000. Sure, it's a subtle drop, but what needs to be taken into account here is just how much regulation has been implemented (more than ever before), in addition to the increases in the cost of living. Expenses are up, and driver pay isn't keeping up with inflation, so your average driver is working hard with not much to show for it. In short, a quick cost-benefit analysis will, 90 percent of the time, beckon our drivers to throw in the towel and call it quits. In the '60s, '70s and '80s, truckers' wages were fair. A trucker was considered a middle- class wage earner, fully capable of supporting his family. Within 10 to 15 years, the majority of the experienced, highly-qualified drivers will retire, leaving the industry in a tremendous state of flux. Something needs to be done to save the profession and abandoning the status quo is the first step in the outset of action. A new beginning for the truck driving sector would imply significant industry change. Some have argued that the redistribution of funds is necessary to reignite the once strong appeal of highway heroics. Foreign labor isn't the answer here. Better salaries and improved working conditions, sign-on bonuses and increases in mileage rates would be an excellent start. EXPENSES ARE UP, AND DRIVER PAY ISN'T KEEPING UP WITH INFLATION, SO YOUR AVERAGE DRIVER IS WORKING HARD WITH NOT MUCH TO SHOW FOR IT." " 32 IT MAGA ZINE V o l . 1 1 , N o . 1