Glance at articles about news in the trucking industry, and there will be a few near the top about the driver shortage. Some analysts have stated that the trucking industry will need to add one million drivers over the next decade to keep supply chains running smoothly. However, the solution may not be to place pressure on existing trucking companies to hire more drivers.
Hiring More Drivers
The trucking industry is facing headwinds when it comes to hiring additional drivers. The demand exists for new drivers. Many older drivers are retiring, creating job vacancies. Some trucking companies are offering sign-on bonuses to fill the gap, but retention remains a challenge. At the same time, the trucking industry is reaching out to veterans, women, single mothers, and young people under 21 to bolster the driver pool. In the past, trucking companies could rely on owner-operators, but recent legislation in various states will remove the independent contractor status of owner-operators and force trucking companies to list them as either full or part-time employees.
Partnering with Owner-Operators and Small Fleets
In the past, when larger carriers needed to cover more ground, make deliveries outside of their radius of operation, or to simply fill in gaps in the driver pool, they partnered with owner-operators or smaller trucking companies. These partnerships proved mutually beneficial. However, with emeging legislation that would classify contracted drivers as full-time employees of the carriers that hire them, all parties are apprehensive, which is doing nothing to fix the driver gap. In fact, many owner-operators are trying to get ahead of ending and emerging legislation – similar to AB5 from 2019 – and are positioning themselves to launch their own trucking companies to generate more revenue and help solve the driver gap.
More Trucking Companies
Instead of relying on existing fleets to hire more drivers, supply chain strategists are calling for more trucking companies. Our economy is poised for growth, but things have also changed a bit since the pandemic. More customers are demanding last mile deliveries, and those customers are often located outside of major trucking routes. The addition of more trucking companies can fill in a number of supply chain gaps. First, new trucking companies can hire locally and cover specific areas. They can even work in conjunction with larger fleets to make those last mile deliveries. Second, new trucking companies are job creators, which will greatly help the post-pandemic economic recovery. Third, new trucking companies will be able to make technological conversions easier and for less money than carriers that are using older equipment as the industry moves toward more energy efficient, and non-petroleum-based vehicles. The cost of starting up a new trucking company is much lower than it was just a few years ago. Also, this is the right time for owner-operators who might be impacted by new legislation to transition to becoming fully-fledged fleet owners by starting up trucking companies of their own. Pivoting from the role of an owner-operator to that of a trucking company owner has a higher ceilling for starting revenue and longevity, especially as the economy picks up speed and a new wave of truck drivers enters the workforce.
Starting a New Trucking Company Has Never Been Easier
At Single Point Capital, we help people launch their own trucking companies. Our team will provide 100% free USDOT setups for owner-operators. We also help new trucking companies apply for MC numbers, and offer guidance and expertise as we help emerging trucking companies navigate every facet of business ownership. Additionally, we offer freight bill factoring to keep your cash flow healthy, as well as big discounts on fuel to keep your fleet moving.
To learn more about starting your own trucking company, contact the team at Single Point Capital today.