The current demand for truck drivers is high. Or is it turnover that’s the problem? Or freight to carry?
A combination of driver shortage, high turnover, stressful life, and stagnant pay have contributed to a widespread rush to lure new drivers with financial incentives. If the shortage persists, the imbalance between supply and demand in this labor market will cause disruptions in the supply chain.
This post is based on the USA Today article, Trucking Firms Offer Up to $8,000 for Drivers to Ease Shortage, by T. Evanoff, December 26, 2017.
1. What are the reasons for an apparently short supply of drivers?
Guidance: The main reasons seem to be low pay, demographics, difficult living conditions, and lack of privacy. The pay has been relatively flat since the 1980s, and like in many other industries, it has not fully recovered from the negative effect of the great recession. The large trucking companies’ hiring of inexperienced drivers seems to have heightened that effect. Many drivers are baby boomers and are retiring, further exacerbating the shortage. Truck drivers work many hours and are away from home most of the time. The addition of cameras in the cabins Continue reading