Higher Wages May Be the Key to Fixing the Driver Shortage

The continuing shortage of qualified truck drivers is nothing new.  The trucking industry has been experiencing a truck driver shortage for the past several years – and will continue as a trucking trend. With demand for freight hauling increasing, however, some carriers are looking at paying higher wages to stem the tide.

According to the American Trucking Associations, the shortage currently sits over 30,000 drivers and is expected to rise substantially in the next decade. At the same time, however, the unemployment rate is holding steady at six percent. A combination of safety requirements, long-term contracts, and a slew of potential other factors have depressed driver wages to a point that they are insufficient to draw new drivers into the industry.

Carriers such as national trucking giant Swift Transportation plan to enact significant wage increases in the current or following quarter to fill empty units and take on more of the nation’s shipping jobs. Swift will pass on at least some of the increased cost through higher shipping charges. Other efforts to attract new drivers include signing bonuses and more driver-friendly schedules that allow for more home time.

As shipping volume and demand increase, savvy trucking companies will be poised to reap the benefits of the shortage and to offer greater compensation to their drivers at the same time. Factor Finders’ transportation factoring programs can provide the working capital you need to remain competitive, recruit new drivers, and set your company up for success. Contact us to learn more about the benefits of factoring freight and to request a free same-day quote.