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Driver Shortage, Retention Top List of Issues
The driver shortage surpassed diesel fuel costs as the most critical issue facing the trucking industry in 2006, according to a comprehensive study conducted by the American Transportation Research Institute (ATRI). Driver retention ranked third on the list of top-10 issues. The results, based on surveys and interviews of more than 4,000 trucking executives, are intended to provide insight into the critical short- and long-term issues confronting the U.S. trucking industry.
"With a growing economy, industry capacity issues are taking precedent over stabilizing/declining fuel prices," the report stated. "This is readily apparent with respondents indicating, particularly in the truckload sector, that the driver shortage is forcing companies to turn down freight transportation orders and raise driver compensation to historic levels. In both cases, fleet operating margins are seriously impacted."
According to the study, the trucking industry has had "moderate success" in attracting new entrants, with the for-hire sector employing 25,500 new hires during the first nine months of 2006. Nevertheless, industry research indicates that by 2014 the projected driver shortage will exceed 110,000.
The ATRI proposes the following strategies to combat the problem:
1. Expand the pool of applicants with recruitment campaigns that enhance drivers' image and lifestyle. (Alternately, target recruitment research and campaigning to identify candidates best suited for truck driving.)
2. Advocate for improved quality, funding and availability of new entrant CDL training. While it's unclear whether this approach would raise the overall population of drivers or driver candidates, it would likely improve driver safety and retention rates.
3. Work with the Veterans Administration to expand training opportunities for veterans.
The study noted that even though the trucking industry has recently hired more than 25,000 new drivers, driver retention and driver turnover remain major concerns for carriers. With the per-driver cost of hiring and training at an estimated $4,000 to $8,000, carriers are extremely concerned about high turnover
Proposed strategies:
1. Advocate for improved driver training that adequately prepares entry-level drivers for the truck driver lifestyle. Fatigue and stress are major concerns for drivers, and adequate preparation for the “trucker lifestyle” may help retain both new and experienced drivers.
2. Examine impacts of different driver compensation schemes and related human resources issues. Since driver retention is a greater problem in certain sectors of the industry, research is needed to investigate the role of sector-customized compensation approaches.
3. Research use of technology to improve driver safety, ease-of-driving and driver comfort, and any requisite relationships to driver satisfaction and retention. The more comfortable and safe a truck driver’s in-cab experience is, the more likely the driver is to stay in the job.
The report is available online at: www.atri-online.org/research/results/economicanalysis/index.htm.
