The “Great Recession” has finally ended, and the American economy is finally booming again. This should spell a period of optimism and prosperity for every industry.
However, the Great Recession, amongst all of its negative repercussions, delivered one that went all but unnoticed by economists, and is only now starting to cause concern in the business world- there is a large shortage of truck drivers.
According to Reuters, the American Trucking Associations declared that the United States’ trucking industry has a shortage of about 35,000 drivers. This poses a serious issue, as the trucking industry is one of the most crucial cogs in the American economy. Naturally, it doesn’t do much good if the economy is booming if there is nobody to transport and physically conduct the trade that accompanies economic prosperity. What’s more, the ATA predicts that the shortfall in drivers could grow substantially, and reach 240,000 unfilled positions by the year 2020.
The source of the problem? The average truck driver is in their late forties and fifties, according to CCJ. That means that in the next ten or fifteen years, over half of all truckers will be retiring.
For some reason, the upcoming generations are not becoming truck drivers. The trucking industry attracts among the lowest rates of 18-24 year olds of any job field. Thus, America’s trucking industry shortage is not going anywhere quickly. In fact, it is going to increase exponentially.
What does this mean for the economy, and for those in the trucking industry?
Well, for those who depend on trucking and shipping agencies to move goods, it means that the rates of transportation are going to skyrocket. For current truckers, that will come as good news. Basic economics forecasts a big payday for truckers. They are in high demand and short supply, which means higher wages.
Reuters reports that the average earning of truck drivers per mile is up 8% to nearly $1.80 per mile, and in certain types of shipping, is approximately $1.92. Almost all trucking services are following this trend. Swift Transportation, the largest truckload carrier in North America, told Business Insider that in one business quarter of last year, they had to increase their total payroll for drivers from $238.1 million to $223.9 million- a $14.2 million increase.
So, economically speaking, the severity of the driver shortage is rather obvious. For all industries (and they are many) that rely on truckers to ship their goods, it is bad news. Conducting standard business operations is about to get really expensive. But for truckers, the news isn’t half bad. They are about to be paid far more for their services, which is cause for some optimism.
