{"id":89189,"date":"2022-02-24T11:11:31","date_gmt":"2022-02-24T16:11:31","guid":{"rendered":"https:\/\/envistacorp.com\/?p=89189"},"modified":"2024-05-22T09:32:33","modified_gmt":"2024-05-22T13:32:33","slug":"the-impending-evolution-of-the-trucking-industry","status":"publish","type":"post","link":"https:\/\/envistacorp.com\/en-au\/2022\/02\/24\/the-impending-evolution-of-the-trucking-industry\/","title":{"rendered":"The Impending Evolution of the Trucking Industry"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>\n

The domestic trucking industry is currently valued at $791.7 billion<\/a>, a reflection of physical assets and proprietary technologies under ownership of industry participants. The industry at large is responsible for hauling approximately 72.5 percent<\/a> of all freight transported across the U.S. Further, the industry employs nearly 6 percent<\/a> of all full-time workers comprised in the domestic labour market. As a result, the trucking industry carries significant implications for the American workforce through means of gross employment, while the fundamental performance of the domestic economy itself is broadly supported by successful outcomes across the trucking industry.<\/p>\n\n\n\n

Current Industry Dynamics: Driver Shortages<\/strong><\/h3>\n\n\n\n

Throughout the past several decades, various structural labour market forces have contributed to a challenging environment for the trucking industry, coupled with a negative disposition regarding employee engagement in light of diminished hygiene factors. The shortage of truck drivers<\/a> is presently estimated at 80,000 individuals, which is up over 30 percent from a 61,000 driver deficit in 2018. The difficulties pursuant to present day employee retention are centered upon working conditions and compensation. The industry has consistently demanded onerous labour commitments from drivers, often approaching 300 days<\/a> on the road per calendar year. Presently, this length of time has only been further exacerbated due to increased operator shortages in the contemporary trucking environment.<\/p>\n\n\n\n

With the perception that the long-term expectation of trucking is a zero-sum game for operators due to impending technological advancements, the industry has been hampered by swift departures and a diminished supply of employable prospects. This circumstance is accentuated by the industry\u2019s challenges in attracting and retaining younger operators, which has left it acutely vulnerable to an aging workforce. Further, the pandemic has induced an early retirement movement, which immediately and significantly reduced qualified labour availability. An estimated 37 percent<\/a> of currently employed truck drivers could also leave the industry if the current administration\u2019s vaccine mandate is implemented.<\/p>\n\n\n\n

How Can These Structural Issues Be Remedied?<\/strong><\/h3>\n\n\n\n

To circumvent these obstacles over the immediate horizon, freight companies have several tools at their disposal, chief amongst them being compensation increases. For instance, companies could determine to offer heightened salaries, particularly with concerns surrounding inflation, and they could provide increased bonuses predicated upon objective measures, such as miles driven, or subjective measures, including stakeholder performance reviews. Moreover, companies could offer additional premium benefits to drivers in the realms of insurance coverage or pension plans, in light of increased cost-of-living expenses that will certainly impact retirement savings objectives. If resource constraints subside, companies may also offer workers more flexible hours of operation or additional paid time off, both of which could lead to improved physical and emotional health. <\/p>\n\n\n\n

These solutions, however, are not viable or economically sustainable over the longer term, as the pace of technological development could ultimately render the use of human drivers as unnecessary. Throughout the previous decade, several advanced technology companies, including Tesla and Waymo<\/a>, have invested millions of dollars into research and development efforts aligned to develop and implement devices that will support driverless trucks, such as sensor systems and robotic equipment. Over the previous year, Walmart has also implemented autonomous trucks that traverse middle-mile routes in several jurisdictions, with additional advanced fleets expected to be developed and broadly leveraged nationwide across the next decade. Ultimately, the appeal of increased operational efficiency and consequently bolstered profit margins continues to entice trucking companies and retailers alike to explore options to construct fleets of autonomous, self-driving trucks.<\/p>\n\n\n\n

Why are Driverless Trucks Going to \u201cFill the Void\u201d?<\/strong><\/h3>\n\n\n\n

Driverless trucks will provide operational and financial benefits to carriers and customers alike. In addition to benefiting operators and customers, these changes are likely to become a necessity to support increasing demand with declining driver availability. Efficiency, cost and environmental benefits stem from increased utilization of driverless trucks.<\/p>\n\n\n\n