Posted October 25, 2017 by Administrator
The American Trucking Association released the findings of their latest study on the shortage of truck drivers in the U.S. The report, released October 20, 2017, indicates that the trucking industry is expected to have a shortage of 50,000 truck drivers by the end of 2017.
In addition to the general lack of new applicants, the lack of qualified drivers is a significant factor in the overall problem. This is a serious concern for the industry as a whole, as well as a concern for the supply chain infrastructure and the U.S. economy.
This is the first study that has examined the truck driver shortage since 2015. Researchers found that the truck driver shortage decreased from 45, 000 in 2015 to 36,500 in 2016 but has increased to an expected 50,000 in 2017.
The reason for the decrease in 2016 was a reduction in the demand for cargo deliveries, triggered by the collapse of oil prices at the end of 2014. When fuel prices drop, carrier revenues fall due to declining fuel surcharges. This is called a “freight recession.” Freight volume and rates finally started to come back in mid-2016 and a boom market in November and December 2016 for the demand for truck freight boosted truckload rates.
If the current trends continue the shortage of truck drivers in the U.S. could increase to more than 174,000 by 2026. In addition to the overall lack of drivers and lack of qualified drivers, the ATA study found the following contributors to the current truck driver shortage includes:
- an aging driver population
- lifestyle issues
- regulatory challenges.
In order to address this increasing shortage, fleets are increasing wages and offering other incentives. Fleets are also reaching out to women and other non-traditional workforce demographic populations. Industry advocates are calling for policy changes, such as reducing the age of drivers while simultaneously putting in place a graduated licensing system and making it easier for returning veterans to qualify for a CDL. These, and other innovative programs are working to make it easier – and more attractive – to enter the truck driving profession.
Cline Wood is more than just an insurance agency. We tailor insurance and risk products and services that improve your bottom line. As a Cline Wood client, we care about your business; you can depend on the knowledge and experience of Cline Wood to help analyze and solve your needs. To learn more about how Cline Wood can help your trucking business, click here.
This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.
Posted July 13, 2016 by Administrator
It may be that millennials can help solve many of the problems currently facing the agribusiness industry, including the driver shortage. The diversity of this generation now taking over the US workforce may help agribusinesses attain and hold their competitive advantage.
Diversity Attracts Top Talent
A recent study by groups such as the UCLA Study for the Center for Inequality found that:
- Businesses that are ethnically diverse are 35% more likely to have better financial returns
- Businesses that have gender diversity are 15% more likely to have better financial returns
- Minorities in the US grew 37% in 2014
- 44% of Millennials identify themselves as a minority
- 38% of Millennials are bi-lingual
With millennials becoming the largest generation in the workforce, their importance will only increase as baby boomers retire. This diverse group can help companies prove that they truly equal opportunity employers. Diversity and tolerance help to create better workplaces, which in turn attracts employees who are at the top of their respective fields.
As with many industries, agribusiness is currently facing a driver shortage. Companies are doing whatever they can in order to attract and retain qualified employees. When this candidate search includes ethnic minorities, the company gains a reputation as being a fair and progressive organization.
To learn more about the latest in agribusiness news, contact the experts at Cline Wood.
Posted June 17, 2015 by Administrator
Nominations for the 2015 Trucking’s Top Rookie Award contest are now open! The nomination period will close Friday, June 26, 2015 at 5:00 pm ET. The annual Trucking’s Top Rookie contest is designed to recognize and increase professionalism among new truck drivers in America. Truck drivers have an extremely high new driver turnover rate. In 2014, fleets that earn more than $30 million per year, have an annual astounding 103% turnover rate in truck drivers. In fleets that earn less than $30 million in annual sales, the turnover rate is 94%, up 12 percentage points. (American Trucking Association)
Turnover rates are especially high for drivers who have been on the job for less than 1 year. More importantly, 39% of truck drivers leave the industry after 90 days. (Wright Management Consultants)
There are many factors that are affecting the truck driver shortage, such as:
- An aging workforce,
- Rising freight volumes,
- Tightening of requirements for truck drivers,
- Lack of appreciation, and
- Lack of respect for the profession.
The premise behind Trucking’s Top Rookie Award is that recognition leads to retention. Now, more than ever, fleets that identify and recognize the efforts of new hires will increase their odds of success in the marketplace.
To learn more about the contest and submit a nomination form, visit Trucking’s Top Rookie Award webpage. Nominations may be made by motor carrier employers, training organizations, and/or other interested parties.
Cline Wood offers commercial and agribusiness trucking insurance and is focused on that which is important to our customers. Contact us today at 888-451-3900 for more information on how we serve our customers in the best way possible.