TAMPA, Fla. (WFLA) — When it comes to ongoing supply chain issues, inflation pressures, and delayed delivery of consumer goods, policymakers across all levels of government and politics are pointing to America’s truck drivers.
Specifically, concerns over labor shortages for qualified drivers to deliver the products consumers want, need and buy in bulk. The American Trucking Association, a labor organization, reported that as of December, truckers were responsible for transporting 72.5% of all domestic freight in the U.S. The organization has repeatedly warned of a shortage of drivers, and that it will only continue to grow over the next decade.
On Feb. 2, the ATA again presented concerns over the driver shortage, based on data from the BLS. ATA President and CEO Chris Spear said there was a shortage of about 80,000 drivers, and that changes to the commercial driver’s license testing process could help recruit more to the driver workforce.
“Of the 7.8 million people employed throughout the economy in jobs related to trucking activity, 3.5 million were truck drivers in 2018. There are over 10 million CDL (Commercial Driver’s License) holders in the U.S., but most are not current drivers and not all are truck drivers,” the ATA said in 2020. “There are roughly 3.7 million trucks on the road today that require a driver to have some sort of CDL. The Department of Labor says there are 1.8 million are heavy and tractor-trailers drivers. We are only focused on the over-the-road tractor-trailer drivers.”
Both the ATA and the BLS expect the driver shortage to grow, with the ATA estimating a potential 160,000 driver shortage by 2030. Exacerbating the shortage is a demographics issue, a problem that existed even before the COVID-19 pandemic began in 2020. The ATA reported the problem with the trucker labor force centered on multiple factors, largely the low number of female truck drivers, the high average age of the current workforce, mandated minimum ages to get a commercial license, and long times away from home and family.
While women make up just under half of the U.S. workforce at 49.7%, according to the BLS, the ATA says only 7% of truck drivers are women.
Marijuana drug test positivity also adds to pressure on drivers crossing state lines, according to the ATA. The drug is still not legalized for recreational use federally, adding to problems of passing required drug tests for drivers.
The ATA also said many drivers left the industry during the COVID-19 pandemic while driver training schools “trained far fewer drivers than normal in 2020.”
WorkHound, a web-based employee engagement platform, reports that turnover rates for America’s truckers are high, and that they’ve been high for years. NBC News reported other issues with retention are poor working conditions and low salaries.
“The Trucking industry suffers from a massive 95% driver turnover rate. This means that 95 out of every 100 drivers you hire are going to quit. They may work for you for a few months or a few years, but eventually, they will seek other opportunities,” WorkHound reported.
The company estimated the cost of hiring a new driver can range from $5,000 to $8,000, with a cost of close to $500,000 just to hire 95 workers. The turnover rate is lower in smaller fleets, but still high at 70% each year. Such high turnover, and fairly constant according to reports from the ATA, has prompted state and federal leaders to create new strategies for increasing the number of drivers available.
“ATA estimates that over the next decade, the industry will have to recruit nearly 1,000,000 new drivers into the industry to replace retiring drivers, drivers that leave voluntarily (e.g., lifestyle) or involuntarily (e.g., driving records or failed drug test), as well as additional drivers needed for industry growth,” the labor organization reported.
They say the lack of a single cause for the workforce issues facing the trucking industry means there isn’t a single solution, complicating processes to address the supply chain crisis.
Florida Gov. Ron DeSantis has prioritized funding education and vocational programs that certify and train younger drivers to operate big rigs, while President Joe Biden has pushed to change the driving age requirements for cross-country haulers to give more opportunities to fill the delivery needs of the U.S. While both options could prove fruitful, neither will solve supply chain issues immediately.
As consumer demand continues to rise, exacerbated by delivery delays and pandemic shortages. Rising fuel costs due to inflation are also having an effect on supply and delivery. Meanwhile, the cost of goods goes up and few drivers means few products. Everyday goods like milk, eggs and bread are getting pricier, thanks to inflation and delays. Those delays are also preventing new trucks from being built, according to US Bank, adding to a problem made worse by the need for drivers.
Drivers also leave due to work conditions and stagnated wages. The BLS’ Real Earnings Report shows the ongoing inflation problems are having an effect on take-home pay, or “real wages.”
While hourly earnings went up on paper, inflation made them decrease 1.7%, from 2021 to 2022. Average weekly earnings were $1,091 in January. It was about $44 more per week than in 2021, but workers are getting a half-hour less time on shift per week, according to the BLS data. The bureau reported the average American hourly earnings in January was $31.63.
As a result of inflation, BLS said Americans are only taking about $11.22 home per hour, factoring in the latest Consumer Price Index. The ongoing issues with bringing in supplies and products across the globe, and then transporting them across the country continues to add to consumer costs, hitting wages as a result.
The stresses of driving a long-haul truck won’t be solved by hiring more people, as turnover stays high. Less money, higher costs, and a workforce that can’t keep up with business demands make inflation a constant concern for the recovering U.S. economy.
America’s truck drivers could be part of the solution to some of the issues, if their own labor needs are met.
