There is no doubt a driver shortage exists. Whether you side with the analysts that point to an always-present shortage that rises and falls with capacity demand, or if you go with the experts who say that driver retention rates are low compared to the number of career truckers who are retiring, a gap exists. With the introduction of the DRIVE Safe Act, the driver shortage may be reduced to increase efficiency in the trucking industry.
What is the DRIVE Safe Act?
The Developing Responsible Individuals for a Vibrant Economy (DRIVE) Safe Act will help to facilitate the training of new commercial vehicle drivers under the age of 21. The legislation will enhance training and safety for young drivers, as well as help with job opportunities and placement. Licensed commercial truck drivers under the age of 21 will be able to join an apprenticeship so they can haul loads between states. As of now, regulations only allow drivers under 21 to haul shipments within state boundaries. While limited local driving radii can help greatly with last-mile deliveries and agriculture, the current driver gap requires a more robust workforce, and tapping the under-21 population segment could bolster ranks for years to come. It should be noted that the DRIVE Safe Act has bipartisan support in the Senate.
The DRIVE Safe Act would give trucking companies the ability to create jobs, and the stable careers and salaries are very attractive to anyone looking for a foot in the door of one of the most important industries in America. For the past year or so, young people have been unable to find decent jobs because of the pandemic, but the DRIVE Safe Act would open up a number of positions for people under the age of 21 who want good pay, predictable hours, and stable employment.
Stronger Domestic Supply Chains
With the passing of the American Rescue Plan to help citizens and small businesses, the focus is now on building back our domestic supply chains so we have a stronger economy than we did prior to the pandemic. The new legislation package for infrastructure, along with the DRIVE Safe Act, will allow the trucking industry to greatly reduce the driver gap and increase capacity. To put things in perspective, the trucking industry will need to hire over 100,000 new drivers annually to keep up with growing demand, and that does not take into account churn.
Capital to Hire New Drivers
Many carriers are eager to hire new drivers, but cash flow remains an obstacle in covering training, insurance, and payroll. Freight bill factoring enhances cash flow by turning unpaid receivables into cash, so trucking companies can get fast access to revenue and build up the capital needed to expand their workforce. At Single Point Capital, we make funds from factored invoices available in a single day, so trucking companies can make plans to take on new hires as our economy picks up speed. To start speeding up your cash flow, contact the team at Single Point Capital today.