There’s a need for more efficient truck driver management and recruitment services in the U.S. to solve the shortage of drivers in the industry even if salaries are on the rise, according to UBS economists.
The shortage of drivers exists due to younger Americans, particularly Millennials, who consider trucking to be a less attractive career option. For this reason, companies need to think about how they can convince them to sign up for the job.
Consequences of a Shortage
The trucking industry serves an important role in the logistics and supply chain networks. Any disruption on service would be crucial for other sectors, such as retail companies that rely on trucks to ship goods either to physical stores or deliver parcels bought online.
However, the shortage has been detrimental to retailers as transportation costs become higher. This scenario may cause them to prioritize other shipments like perishable goods, or simply raise their own product prices to offset the more expensive shipping costs.
Another industry problem involves a constrained truck capacity, indicating a strong economy that leads to a larger demand for distributing consumer products. On the contrary, the electronic logging device (ELD) mandate further complicates the situation not only for a capacity shortage, but also for the problem of fewer drivers.
UBS expects the shortage of truckers to continue in the next two years, so companies should rethink their plans for hiring and retaining employees. Businesses that rely on trucks should also gauge if they are willing to pay expensive transportation cost that may further increase in the future.
One of the best ways to solve the shortage of truck drivers could be a significant increase in wages, which should be even higher than other industries such as mining or construction. If you still find it hard to hire new workers, consider the help of third-party recruiters.