Quarterly reporting by the American Trucking Associations shows driver turnover of more than 90 percent going into a third consecutive year, according to Business Insider.
High turnover does not mean that most drivers are leaving their positions; it does, however, indicate that many new drivers are changing carriers within a matter of weeks to months. Reasons for turnover include low pay, restrictive driving schedules that keep drivers away from home, and a lack of interest in trucking among young adults.
Many independent drivers found other employment when the recession left them without the resources to continue operating, and despite recovery a large number have not returned to the industry. Of those who have, a great deal move from over-the-road driving to local less-than-truckload positions that allow them to be home more often and earn a steadier pay check.
Federal regulations have also contributed to increased driver turnover. Drivers are less productive and earn less under the FMCSA’s new hours-of-service regulations, which have also forced many fleet owners to seek more drivers to cover the same loads – another contribution to the shortage. As many as seven percent of drivers will be pushed out of the industry for compliance issues.
The truck driver shortage is not restricted to the United States: a number of Canadian carriers have announced plans to adapt their operations to both recruit and retain new drivers. To combat high turnover and a growing driver deficit, trucking companies on both sides of the border will need to attract new drivers with better pay and keep them with increased benefits and a more responsive business structure.
Carriers and trucking associations must address the shortage now before it has a significant detrimental impact on the rest of the economy. Trucking companies can find the immediate working capital they need to invest in finding qualified drivers by factoring freight bills with a competitive trucking factoring company. Factor Finders’ truck factoring programs for U.S. and Canadian carriers will provide the cash flow to overcome the shortage – find out more and request a free quote today.