Driver shortage prompting carriers to rethink how to recruit new talent

The shortage of drivers in the U.S. trucking industry is its greatest challenge in the years ahead. According to a report from the American Trucking Association, the industry is currently down about 50,000 drivers. That is expected to more than triple to 175,000 drivers by 2024.

The organization cites several reasons for the scary forecast with the difficulty of finding eligible candidates at the top. Most carriers have strict criteria for hiring, which includes driving history and experience, and these companies are unwilling to lower their standards because they know that increased insurance premiums and likelihood for accidents will be costly.

The result is that the greater demand for drivers is increasing turnover rates as qualified drivers jump from carrier to carrier based on better pay, benefits, and routes. Companies like Kenan Advantage Group (KAG), an Ohio-based bulk transport and logistics provider, are paying more to meet capacity. KAG announced in September it was instituting guaranteed pay increases over the next three years specifically to ward off a drive shortage.

“As the flagship carrier in the tank truck segment, it is important that we boldly assume the responsibility of protecting our customers from the painful impacts of the driver shortages,” CEO Dennis Nash said. “A potential tsunami is building now that presents serious consequences if not addressed.”

Solutions like that are expected to slow the rate of drivers leaving the industry. But experts say more is needed to attract a workforce that is younger and more diverse.

Millennials are not turning to the trucking industry for different reasons, one being the fear that with the rise of automated trucks, their career could be obsolete in coming years, so they are turning to carriers like UPS and FedEx instead. Other reasons include state laws that require truck drivers to be 21 to cross state lines and low salaries. Timothy Judge, a director of research at Stay Metrics, a driver-retention consultancy, says that the current trend toward bonuses in the industry represent “an act of desperation.”

“What are you communicating to the drivers? That it’s all about the short-term,” he told Bloomberg.

The industry also suffers from gender and racial inequality as nearly 100 percent of drivers are men and 75 percent are white.

Some say that automation depends on healthy driver pools and the industry needs messaging to tell potential candidates that automation is not intended to replace drivers but to create increased safety on the road. In fact, autonomous trucks may still need drivers in cabs to prevent potential breakdowns and more.

Bob Biesterfeld, president of North American transportation at third party logistics and supply chain management provider, told Bloomberg autonomous trucks may still need a driver in the cab to make sure nothing goes wrong.

“Companies are not developing technology with a goal of replacing drivers,” he said. “Their goal is creating safer highways.”

What are your thoughts on driver shortage in the trucking industry? Have you been involved in solutions to increase driver pools or to incentivize drivers to remain in the industry? Let us know in the comments below!