As more people get vaccinated across the United States, cities are relaxing restrictions and businesses are reopening. While the market is still favoring e-commerce and LTL at the consumer level, businesses are placing large orders ahead of sales, which has created a new surge in the demand for truck drivers. However, the trucking industry as a whole is tackling the demand on three fronts, and it could make tremendous progress in closing the driver gap for years to come.
Solution 1: Increase Driver Pay
Some carriers are bolstering their pay to not only hire but also retain new drivers. On average, drivers earn roughly $43K per year, and select fleets are making incentives to new drivers by providing paths to earn upwards of $60K after training. For smaller trucking companies that may not be able to directly offer higher pay, they are offering benefits, perks, and a greater sense of ownership to increase their driver roster and improve retention. In an economy poised for recovery, the stability, pay, and benefits of a career in trucking is extremely attractive to those individuals who found themselves furloughed or forced to take off gig jobs to make ends meet during the pandemic.
Solution 2: Reaching New Drivers
Back in 2018, there was a big push to get more women into trucking to stem driver demand. At the same time, legislation was passed to make it easier for veterans – who are familiar with Class-8 vehicles as part of their training – to bypass a lot of the red tape associated with new drivers and get back into the workforce. Now we are witnessing new laws that open doors to drivers under the age of 21 who want to start careers in trucking. Additionally, there are incentives to get single mothers behind the wheel and earn great salaries while providing for their households. The trucking industry to positioned to grow by leaps and bounds if driver vacancies can be filled.
Solution 3: More Trucking Companies
There is ample space for new trucking companies to thrive in markets that larger carriers do not reach. By offering last-mile delivery, taking on LTL shipments, and even partnering with bigger fleets to take jobs they can’t, small trucking companies are having great success at hiring and retaining people who want to drive locally, which has a great impact on reducing the surge in driver demand. Filling in local coverage and being able to provide last-mile delivery gives smaller trucking companies an advantage over their larger siblings. allowing big carriers and local fleets to work hand-in-hand to complete supply chains from shippers and docks to specific destinations.
At Single Point Capital, we help entrepreneurs and owner-operators who want to start their own trucking companies. We provide USDOT setups that are 100% free, as well as help with applications, registrations, and guidance at every step. To learn more about our services for emerging trucking companies, as well as our comprehensive factoring to keep cash flow going, reach out to the team at Single Point Capital today.