The current bull economy the United States is experiencing is acting as a double-edged sword for the transportation industry; freight volumes and demand are on the rise, but the current truck driver shortage is magnified as the increased demand leads to job creation. In addition, this economy means people are able to buy more products, only inflating the demand for quality truck drivers to ship goods across the U.S.
Nearly every item sold in the U.S. touches a truck at some point. According to the Chief Economist at the American Trucking Association, the current shortage is 35,000 to 40,000 drivers. This will certainly increase transportation costs in every facet and the weight will likely be placed almost entirely on the consumer, putting their consumer power on the decline. In fact, shipping costs have already risen (link: https://www.forbes.com/sites/patrickwwatson/2018/05/21/rising-shipping-costs-threaten-stocks/#3be858d055fb) in 2018, sharp enough to concern investors that the increases could affect stocks. If the trend continues, a 2017 report ATA projected the shortage will grow to more than 174,000 by 2026.
This, of course, requires the economy to keep growing as it is. What goes up, must come down, and the current boom won’t last forever. Regardless, this problem will not erase itself and the demand for truck drivers will remain until solved. But if this driver shortage continues, it could eventually weigh down the economy. What can’t move, can’t sell; but what exactly is causing this driver shortage?
Booming economy and e-commerce
The booming economy and convenience of e-commerce allow consumers to buy more products easier than ever. This only increases the demand for shipping jobs to the extent that it’s outpacing the transportation industry. As the internet advances, the use of e-commerce will certainly grow with it.
Demographic Issues
The average commercial truck driver in the U.S. is 49 years old, compared to the average U.S. worker at 42 years. This demographic is likely to retire in the next 10-20 years, only increasing the driver demand. Women make up 47 percent of the nation’s workforce, but only 6 percent of commercial truck drivers.
Industry anxieties
There are many anxieties associated with the future of truck driving, but online orders and shipping are only going to increase as technology and the web advances. Innovations are destined to occur in the upcoming decades, but the demand for transportation isn’t going anywhere. Future generations should not fret, but embrace these changes, as anyone who can capitalize on these innovations is destined for success.
The industry is tough
The difficulty of truck driving could also be a reason why future generations choose to avoid the industry. The current driver shortage is largely in long-haul trucking, where drivers can spend a week or two away from home. This is hard on both the drivers and their family.
Health is also an issue. Drivers are on the road for long periods of time, with little time to move—let alone exercise. Truck stops do not serve the healthiest of food and the copious amounts of fast-food joints along the way lead to temptation and unhealthy habits. Plus, mental fatigue is bound to happen when you spend so much time focusing on the road.
More job alternatives
Unemployment in the US is at it’s lowest point in half a century. In fact, there are currently more job openings in the U.S. than unemployed people. Workers now have multiple job options, making it difficult for transportation companies to recruit drivers in an industry that many see as a last-resort type of job.
Solutions
Driving companies are increasing pay for truck drivers. In 2017, drivers saw an increase in wages from 8 to 15 percent. FCC has already increased their wages twice in 2018. These wages are expected to increase as the driver shortage continues.
Companies are also buying newer vehicles in order to attract drivers. These vehicles are safer than older models which helps all drivers on the road. In addition, newer vehicles almost always bring better fuel efficiency. Saving companies money and shrinking their carbon footprint.