US Logistics Industry Labor: Update on the Truck Driver Shortage
How The Truck Driver Shortage Is Affecting Logistics Industry
The US logistics industry has been experiencing a shortage of personnel over the past decade. The shortage has a significant impact on all businesses, especially those that rely on shipping to distribute their products across the country. The good news is the US Logistics industry is gaining traction in a younger population. More and more college graduates are entering the workforce which is considered more of a white-collar industry than ever before thanks to the increase in technology.
Even with the rise in popularity among college graduates, one area that is still a cause for concern is the truck driver shortage logistics companies are experiencing across the United States. One report released by the American Trucking Association estimates the industry will need to hire 900,000 drivers just to maintain the existing workforce over the next decade. With more and more consumers relying on digital shopping to fulfill their needs, it is a problem the logistics industry can’t afford to ignore.
For logistics companies to overcome this setback, they need to understand why there is a truck driver shortage and the impact it will have on their future.
Understanding the Truck Driver Shortage
One of the most significant setbacks in the trucking industry is that drivers have to be at minimum 21 years old to hold an Interstate Commercial Driver’s License. This age restriction prevents high school graduates from becoming licensed truck drivers when they first need a job, and by the time they are old enough, they have already found a different career.
The truck driver shortage is the first domino to fall in a long line impacting the US logistics industry. Due to the shortage, many truck drivers are in high demand, forcing companies to pay a higher salary to drivers.
Trucking companies not only have to pay a higher salary to truck drivers; they also risk having to turn business away if they can’t hire enough drivers to meet demand. Because of the rise in delivery costs and inability to meet demand, many delivery companies are forced to increase their rates. Businesses are then forced to increase their prices and consumers pay more out of pocket.
What Steps Should Logistics Companies Take Next
To fix the truck driver shortage, companies need to make the truck driver lifestyle more appealing and worth waiting for after high school. Although every delivery service can’t completely transform their salaries and training plans, there are a few steps courier services can begin to implement.
- Change Payment Structures: Drivers can be paid of variable factors, such as per mile based on the percentage of the load. When drivers are headed cross-country, a per-mile payment is ideal. But when courier services are needed for trips to New York or Boston – a much short but more skillful drive, the payment structure should be redeveloped to give each driver ample opportunity to profit.
- Improve Work Culture: While salary is a major incentive for any job, the work culture also plays an important role. Take steps toward fostering long-term relationships with your drives and logistics team. That’s why Econo-Courier put personal relationships at the forefront of our business. With over 45 years under our belts, we have made strong lasting relationships with drivers and customer alike.
Econo-Courier is a full-service courier, delivery company, and logistics warehouse that helps businesses deliver their products on time. Despite the fluctuating demand for drivers over the years, our dedication, support, and reliable services have remained a constant for our customers. Contact us to experience the benefit of our courier services.
75 Lackawanna Ave, Unit B
Parsippany, NJ 07054
Phone: (800) 526-9094