Truck Driver Shortage: The Problem At Hand, Its Impact And Solutions To The Issue
The American trucking industry is facing a mass shortage of drivers, as well as the unexpected rates of truck drivers turning over to other more feasible jobs. Trucking companies are daily faced with increasing administrative costs and rising managing costs.
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The American trucking industry
The American trucking industry is a crucial part of America’s economic boom and prosperity. It’s a fact that many Americans unfortunately tend to look over. Every day trucks carry an immense amount of freight and cargo across and into the United States allowing the industry to employ and manage approximately 3.5 million truckers from coast to coast. However, the trucking industry is currently going through a tough phase and there are plenty of reasons to study and analyze their long its term effects. The combination of rising prices of fuel, driver turnovers, and the highest inflation rates not seen since the 2008 crash have caused truck movements across the country to go down, resulting in freight volumes decline, which has impacted the supply chain industry to face constant losses.
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Reasons for the shortage of truck drivers
The American Trucking Association or the ATA recently reported that the American trucking industry is facing a shortage of close to 80,000 drivers. The reason for such a vast shortage of truck drivers is the aging population of truck drivers in America. Meaning fewer people want to enter the profession.
The average age of a truck driver in America is anywhere from 50 to 60, and several many are expected to retire in the next 5 years. The number of young people who are entering the profession is unfortunately not enough which would make managing the future shortage a difficult process. As per ATA reports, less than 10% of truck drivers are aged 30 or less which shows lack of youth is a due factor responsible for this issue. And if the list of problems wasn’t long enough, new regulations from the Federal Motor Carrier Safety Administration (FMCSA) have made the process of getting a commercial driver’s license (CDL) even stricter leading to a decline in the number of people applying for CDLs. Other reasons also affecting the declining rate are constantly long on-road travels, the stressful nature of being on time, the physical tiredness, and at times zero motivation to keep on going.
Its impact on the overall trucking industry and economy
The trucking industry will need over 1 million drivers within the next 3 years to somewhat mitigate the looming threats caused by this issue. The threats are shortage of truck drivers impacts the supply chain and logistics aspects of a business. Since approximately 72.5% of all freight and cargo movement is done by trucks, a healthy amount of individuals are needed to counterbalance the increasing rates year on year. A large portion of the economy relies on truck movements and the services provided by truck drivers. Most of the goods delivered by trucks include different varieties of food, drinking water, raw materials for industries, and other essential resources. Since nearly 80 % of the United States relies on truck movements to deliver final goods to the final consumer, scarcity of essential items and resources can create a huge disparity between demand and supply. In short, when there is a high demand for something, there is usually not enough supply available to meet that demand. This can have serious consequences for businesses that rely heavily on transportation services such as trucking companies or those who rely on essential items such as food or water suppliers. ..
Essential initiatives
- The government is investing in new truck drivers.
- The government is providing more money to companies that provide truck driving services.
- The government is working to reduce the number of truck drivers needed by 2020.
Most trucking companies are willing to offer higher pay, coupled with a comprehensive benefits package to keep their truckers from retiring and turning over to other jobs. DOT (dept. of transport) and FMCSA are in favor of various state depts. of motor vehicles who are willing to issue CDLs to people at a healthy rate and even bring young truck drivers to the road who can help match market demands with efficiency. Reducing turnovers: The US government in partnership with companies has introduced registered apprenticeships. The aim of introducing an established program into the trucking industry is to enhance workforce training within the industry and reduce career turnovers. Recruiting veterans: As per govt-backed data, there are about 70,000 veterans who very likely have certified trucking experience. The govt via multiple initiatives wants to connect job-seeking veterans with trucking associations and companies that require committed and skilled drivers.
Conclusion
The American trucking industry is the backbone of many businesses across America. The driver shortage is impacting the American economy and businesses negatively. The problem can be fixed, but it will take a long process. ..
