Consider these facts about the trucking industry in the U.S.:
- To move 9.2 billion tons of freight annually requires nearly 3 million heavy-duty Class 8 trucks and over 3 million truck drivers. It also takes over 37 billion gallons of diesel fuel to move all of that freight. That’s according to the American Trucking Associations (ATA), an industry trade group.
- Average pay for truckers is up 17 percent in the last two years, according to the Wall Street Journal. Sign-on bonuses can top $5,000 and companies are actively recruiting drivers from other companies. ATA estimates the industry needs an additional 25,000 drivers.
- Forecast, an industry survey conducted by ATA and IHS Global Insight, projects a 28.6 percent increase in freight tonnage in the next 11 years and an increase in freight revenues of 74.5 percent to $1.52 trillion in that same period.
Of course if you’re operating a trucking company, none of these trends are surprising. You’ve been working on solutions on a daily basis, and we’d like to help.
The Waypoints blog will discuss trucking-industry topics every quarter, such as driver demand and increasing wages, fuel cost volatility, mergers and acquisitions, government regulations and impacts from other industries. Our perspective on the industry gives us a unique view of both the challenges you face and suggestions for responding.
Here are some of the issues we expect to discuss in the coming months:
- Driver shortage is expected to continue because of continuing pressure from government regulations to limit hours driven. The shortage will accelerate an increase in wages, as companies strive to maintain employees through competitive compensation. How will your company recruit and retain qualified drivers?
- Fuel is the largest expense after wages in the industry. As crude oil prices rise and fall, what strategies are available to you to control your fuel costs and how can you prepare proactively for upcoming volatility?
- Mergers and acquisitions are on the rise in the industry. Is your company considering buying or selling? If so, you’ll need to develop a plan and create a team experienced in mergers and acquisitions.
- Increasing driver productivity, meeting environmental regulations and addressing driver needs on the road may involve acquiring new equipment. Although the capital outlay may initially seem prohibitive, identifying potential tax breaks to alleviate the costs incurred can make acquiring a new fleet possible.
- Other industries, such as manufacturing and wholesale, have a powerful impact on the performance of the trucking industry. Your company can learn from trends in other industries and use that knowledge to respond to challenges in the trucking industry.
HORNE aims to take a deeper look into these trends throughout the course of the year with the purpose of creating awareness that can lead to sustainable success within the trucking industry. We hope you’ll join us.
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