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Truckers needed to keep economy rolling
By Barbara Hagenbaugh, USA TODAY
BORDENTOWN, N.J. — Companies have created jobs at a sluggish rate in the past few years, but there's one occupation for which employers can't hire fast enough: truck driving.
A severe shortage of drivers could hurt the U.S. economy, which relies heavily on trucking. Those in the industry say openings number in the thousands, if not tens of thousands.
The shortage is unlikely to end soon. The government estimates the number of truck drivers will rise 19% from 2002 to 2012, making driving one of the fastest-growing occupations during those 10 years.
Trucking companies are trying to fill jobs by offering drivers cash bonuses and prizes such as boats and vacations to refer fellow drivers who switch to their firms. Base pay is rising, and trucking companies are guaranteeing drivers more time at home. Firms are offering generous 401(k), stock option and health care packages and other perks. Truck stops now have massage therapists and Wi-Fi computer technology.
Still, the number of drivers is woefully inadequate. It's not just an issue of recruiting. Retaining drivers has become a constant headache: The turnover rate at large trucking companies was 116% in the second quarter, according to the American Trucking Associations.
"I define this as the most serious problem the industry has," says Duff Swain, president of Trincon Group, a transportation consulting firm in Columbus, Ohio. Companies he has been speaking to recently say 10% of their trucks are idle because they can't find enough drivers.
It goes way beyond trucking. Trucks carried more than three-quarters of the goods that traveled in the USA in 2003. If there aren't enough drivers to haul the nation's products, the economy runs the risk of stumbling. Plus, if drivers can be found only by raising pay and benefits, those costs could be passed along and eventually could show up in higher consumer prices.
"If we don't have enough truckers, then the whole global transportation system bogs down and just makes life difficult and less lucrative for retailers and other businesses," says Mark Zandi, chief economist at Economy.com in West Chester, Pa.
Truck driving's a tough job
The shortage is perplexing, given that job creation has been lackluster and 8 million people were unemployed in September. But issues unique to the industry are keeping jobs empty. Truck drivers often stay on the road for weeks at a time, keeping them away from family, friends and the comforts of home. That can make driving a tough sell.
"You have to like it to be in it," says Kevin James, 45, of Rochester, N.Y., a driver for 22 years. He travels coast-to-coast with his girlfriend, Carrie Green, 43, who became a driver four years ago after she was laid off from Kodak, and their three dogs.
"It's as much a lifestyle as an occupation," says Jim Larson, a former driver who teaches at Smith & Solomon Driver Training, adjacent to the truck stop. "For those of us who are crazy enough to enjoy it, there is no better way to make a living."
What's behind the driver shortage:
•Demand. After sinking into recession in 2001, the economy has picked up speed in recent quarters. That means retailers need more goods on their shelves, and manufacturers need more parts to build machinery. Demand is especially strong this time of year, as stores stock up ahead of the holiday shopping season.
Also leading to increased demand is businesses' desire to keep their inventories lean to reduce costs. This just-in-time technique means that businesses receive fewer bulk orders, and when they place an order, they need speedy delivery. That requires more drivers.
•Age. Mirroring the U.S. population, the average age of truck drivers is rising, meaning more are retiring or nearing retirement. Plus, the government bans truck drivers from crossing state lines until they are 21, creating an impediment to recruiting drivers as they graduate high school. By the time they are 21, many workers have been trained in other occupations.
•Bottlenecks. More traffic on the nation's roads means it takes longer for a driver to get from one stop to another. That means more drivers are needed to haul existing demand. Additional port and border security following the Sept. 11 attacks has also contributed to longer trips.
Every 3% decline in trucking productivity requires an additional 60,000 trucks to haul the same amount of freight, estimates Bob Costello, chief economist at the American Trucking Associations.
•Regulation. Trucking firms and drivers say new rules on how many hours truckers can spend on the road, implemented in January, have fueled increased demand for drivers. The rules add an hour to the time a trucker can drive before stopping to rest, but also require a longer break between trips. The new rules also state that once the clock starts for the day, it can not be stopped. That means time for meals, bathroom breaks or other rests count toward driving time, potentially leading to reduced time on the road.
•Pay. The average annual pay for a truck driver was $32,134 according to a July 2003 survey by the Labor Department. That was slightly above the average pay for all so-called blue-collar occupations, but below the $37,784 average for all workers. Although base pay — cents per mile — has risen 22% in the last 10 years, inflation has risen 27%. Some in the industry and economists argue pay needs to go higher.
"There are not an awful lot of people who are raising their children to be truck drivers," says Scott Arves, president of the transportation sector at Schneider National, a trucking firm in Green Bay, Wis. "Until we are able to move wages up significantly, I'm not sure we are going to be able to attract vast amounts of people."
Trucking companies, which are also facing record diesel prices and huge increases in insurance costs, have been able to pass along some pay increases to their clients. But with competition stiff, they say there are limits to how much added cost they can pass along, which limits how much driver pay can rise. Owner-operators, drivers who own their trucks and contract with companies, say they're having an especially tough time passing along higher costs.
Corey Coffin, 34, is getting hit on both sides. He owns three trucks and is having trouble finding people to drive them. At the same time, he's paying more to fuel the truck he drives, although he hasn't added up his costs for the year, yet. "I don't want to look at it," says Coffin of Lockeford, Calif., who has been driving for 14 years.
•Lifestyle. Even if pay were to rise substantially, it's still unclear if the trucking industry would be able to recruit drivers. Truckers, often lonely while spending weeks on the road, also can develop health problems, such as bad backs from sitting for hours at a time, and obesity, associated with grabbing often-unhealthy food on the go.
Nearly 7% of truck drivers and couriers suffered from non-fatal work-related injuries or illnesses in 2002, above the 5.3% seen among all workers, according to government data.
High demand for drivers
All this means that truck drivers have become hot commodities.
"It's almost like they're athletes being drafted out of school," says Larry Caringi, placement director at Smith & Solomon, who says some students go from being unemployed to, six weeks later, earning at a rate of $50,000 a year.
Kathy Shepard, 47, of Delran, N.J., received her trucking license Sept. 23 and was hired less than two weeks later by UPS. With a lifelong passion for travel, she decided to go into trucking after being laid off from her job in the billing department at a trucking firm. She is making $14.70 an hour to start, 34% more than at her last job, and her pay is set to go up in a month.
"Everything is just falling into place," Shepard says. "I'm still pinching myself."
Many trucking firms are trying to emphasize that once someone goes into the industry, there are many paths their careers can take. Last week, Tracey Edwards, a recruiter for Swift, the nation's largest trucking company, told a group of students about his time at the company, which has included stints as a driver, a trainer and now a recruiter.
"This is a career now, this is not a job," Edwards says. His presentation could have easily been given to a group of MBAs: It focused on the company's 401(k), stock purchase and health care plans, as well as a discussion of frequent-flier miles.
Trucking firms are also trying to become more family-friendly, offering drivers the option to take their spouses, kids and pets on the road. Many are developing regional routes, where a driver sticks to one region. If a load needs to go from Maine to California, the trailer could be passed from one trucker to another across the country, like in an Olympic relay race, giving the drivers more time at home.
Some carriers are offering tuition reimbursement programs and are giving their drivers newer, plusher truck cabs that some nickname "condos" to make the time on the road more pleasant. Other firms are turning to expensive incentives. Little Rock-based Maverick Transportation not only gives its drivers cash bonuses for referring drivers who sign up with the company, the drivers enter drawings for prizes. In January, Maverick gave away a Harley-Davidson motorcycle worth more than $16,000.
Maverick recruiting manager Brad Vaughn says his 13 recruiters also try to make their efforts more personal, sending birthday, graduation and get-well cards to prospective drivers and their families. "I'll ask, 'Did little Susie win her T-ball game?' "
But while trucking firms have gotten more creative in their approach, drivers such as Gary Word, 56, of Scottsboro, Ala., predict it will always be difficult to find people who can adjust to the lifestyle.
"I just enjoy the freedom of the road," says Word, whose truck, "Style N Grace," shines from a lot of care. "I wouldn't be interested in anything else."
By Barbara Hagenbaugh, USA TODAY
BORDENTOWN, N.J. — Companies have created jobs at a sluggish rate in the past few years, but there's one occupation for which employers can't hire fast enough: truck driving.
A severe shortage of drivers could hurt the U.S. economy, which relies heavily on trucking. Those in the industry say openings number in the thousands, if not tens of thousands.
The shortage is unlikely to end soon. The government estimates the number of truck drivers will rise 19% from 2002 to 2012, making driving one of the fastest-growing occupations during those 10 years.
Trucking companies are trying to fill jobs by offering drivers cash bonuses and prizes such as boats and vacations to refer fellow drivers who switch to their firms. Base pay is rising, and trucking companies are guaranteeing drivers more time at home. Firms are offering generous 401(k), stock option and health care packages and other perks. Truck stops now have massage therapists and Wi-Fi computer technology.
Still, the number of drivers is woefully inadequate. It's not just an issue of recruiting. Retaining drivers has become a constant headache: The turnover rate at large trucking companies was 116% in the second quarter, according to the American Trucking Associations.
"I define this as the most serious problem the industry has," says Duff Swain, president of Trincon Group, a transportation consulting firm in Columbus, Ohio. Companies he has been speaking to recently say 10% of their trucks are idle because they can't find enough drivers.
It goes way beyond trucking. Trucks carried more than three-quarters of the goods that traveled in the USA in 2003. If there aren't enough drivers to haul the nation's products, the economy runs the risk of stumbling. Plus, if drivers can be found only by raising pay and benefits, those costs could be passed along and eventually could show up in higher consumer prices.
"If we don't have enough truckers, then the whole global transportation system bogs down and just makes life difficult and less lucrative for retailers and other businesses," says Mark Zandi, chief economist at Economy.com in West Chester, Pa.
Truck driving's a tough job
The shortage is perplexing, given that job creation has been lackluster and 8 million people were unemployed in September. But issues unique to the industry are keeping jobs empty. Truck drivers often stay on the road for weeks at a time, keeping them away from family, friends and the comforts of home. That can make driving a tough sell.
"You have to like it to be in it," says Kevin James, 45, of Rochester, N.Y., a driver for 22 years. He travels coast-to-coast with his girlfriend, Carrie Green, 43, who became a driver four years ago after she was laid off from Kodak, and their three dogs.
"It's as much a lifestyle as an occupation," says Jim Larson, a former driver who teaches at Smith & Solomon Driver Training, adjacent to the truck stop. "For those of us who are crazy enough to enjoy it, there is no better way to make a living."
What's behind the driver shortage:
•Demand. After sinking into recession in 2001, the economy has picked up speed in recent quarters. That means retailers need more goods on their shelves, and manufacturers need more parts to build machinery. Demand is especially strong this time of year, as stores stock up ahead of the holiday shopping season.
Also leading to increased demand is businesses' desire to keep their inventories lean to reduce costs. This just-in-time technique means that businesses receive fewer bulk orders, and when they place an order, they need speedy delivery. That requires more drivers.
•Age. Mirroring the U.S. population, the average age of truck drivers is rising, meaning more are retiring or nearing retirement. Plus, the government bans truck drivers from crossing state lines until they are 21, creating an impediment to recruiting drivers as they graduate high school. By the time they are 21, many workers have been trained in other occupations.
•Bottlenecks. More traffic on the nation's roads means it takes longer for a driver to get from one stop to another. That means more drivers are needed to haul existing demand. Additional port and border security following the Sept. 11 attacks has also contributed to longer trips.
Every 3% decline in trucking productivity requires an additional 60,000 trucks to haul the same amount of freight, estimates Bob Costello, chief economist at the American Trucking Associations.
•Regulation. Trucking firms and drivers say new rules on how many hours truckers can spend on the road, implemented in January, have fueled increased demand for drivers. The rules add an hour to the time a trucker can drive before stopping to rest, but also require a longer break between trips. The new rules also state that once the clock starts for the day, it can not be stopped. That means time for meals, bathroom breaks or other rests count toward driving time, potentially leading to reduced time on the road.
•Pay. The average annual pay for a truck driver was $32,134 according to a July 2003 survey by the Labor Department. That was slightly above the average pay for all so-called blue-collar occupations, but below the $37,784 average for all workers. Although base pay — cents per mile — has risen 22% in the last 10 years, inflation has risen 27%. Some in the industry and economists argue pay needs to go higher.
"There are not an awful lot of people who are raising their children to be truck drivers," says Scott Arves, president of the transportation sector at Schneider National, a trucking firm in Green Bay, Wis. "Until we are able to move wages up significantly, I'm not sure we are going to be able to attract vast amounts of people."
Trucking companies, which are also facing record diesel prices and huge increases in insurance costs, have been able to pass along some pay increases to their clients. But with competition stiff, they say there are limits to how much added cost they can pass along, which limits how much driver pay can rise. Owner-operators, drivers who own their trucks and contract with companies, say they're having an especially tough time passing along higher costs.
Corey Coffin, 34, is getting hit on both sides. He owns three trucks and is having trouble finding people to drive them. At the same time, he's paying more to fuel the truck he drives, although he hasn't added up his costs for the year, yet. "I don't want to look at it," says Coffin of Lockeford, Calif., who has been driving for 14 years.
•Lifestyle. Even if pay were to rise substantially, it's still unclear if the trucking industry would be able to recruit drivers. Truckers, often lonely while spending weeks on the road, also can develop health problems, such as bad backs from sitting for hours at a time, and obesity, associated with grabbing often-unhealthy food on the go.
Nearly 7% of truck drivers and couriers suffered from non-fatal work-related injuries or illnesses in 2002, above the 5.3% seen among all workers, according to government data.
High demand for drivers
All this means that truck drivers have become hot commodities.
"It's almost like they're athletes being drafted out of school," says Larry Caringi, placement director at Smith & Solomon, who says some students go from being unemployed to, six weeks later, earning at a rate of $50,000 a year.
Kathy Shepard, 47, of Delran, N.J., received her trucking license Sept. 23 and was hired less than two weeks later by UPS. With a lifelong passion for travel, she decided to go into trucking after being laid off from her job in the billing department at a trucking firm. She is making $14.70 an hour to start, 34% more than at her last job, and her pay is set to go up in a month.
"Everything is just falling into place," Shepard says. "I'm still pinching myself."
Many trucking firms are trying to emphasize that once someone goes into the industry, there are many paths their careers can take. Last week, Tracey Edwards, a recruiter for Swift, the nation's largest trucking company, told a group of students about his time at the company, which has included stints as a driver, a trainer and now a recruiter.
"This is a career now, this is not a job," Edwards says. His presentation could have easily been given to a group of MBAs: It focused on the company's 401(k), stock purchase and health care plans, as well as a discussion of frequent-flier miles.
Trucking firms are also trying to become more family-friendly, offering drivers the option to take their spouses, kids and pets on the road. Many are developing regional routes, where a driver sticks to one region. If a load needs to go from Maine to California, the trailer could be passed from one trucker to another across the country, like in an Olympic relay race, giving the drivers more time at home.
Some carriers are offering tuition reimbursement programs and are giving their drivers newer, plusher truck cabs that some nickname "condos" to make the time on the road more pleasant. Other firms are turning to expensive incentives. Little Rock-based Maverick Transportation not only gives its drivers cash bonuses for referring drivers who sign up with the company, the drivers enter drawings for prizes. In January, Maverick gave away a Harley-Davidson motorcycle worth more than $16,000.
Maverick recruiting manager Brad Vaughn says his 13 recruiters also try to make their efforts more personal, sending birthday, graduation and get-well cards to prospective drivers and their families. "I'll ask, 'Did little Susie win her T-ball game?' "
But while trucking firms have gotten more creative in their approach, drivers such as Gary Word, 56, of Scottsboro, Ala., predict it will always be difficult to find people who can adjust to the lifestyle.
"I just enjoy the freedom of the road," says Word, whose truck, "Style N Grace," shines from a lot of care. "I wouldn't be interested in anything else."
