{"id":2509,"date":"2018-10-12T15:57:30","date_gmt":"2018-10-12T15:57:30","guid":{"rendered":"https:\/\/cantruck.ca\/cta-chief-driver-shortage-a-drag-on-economy\/"},"modified":"2025-01-10T16:47:41","modified_gmt":"2025-01-10T16:47:41","slug":"cta-chief-driver-shortage-a-drag-on-economy","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/cta-chief-driver-shortage-a-drag-on-economy\/","title":{"rendered":"CTA Chief: Driver Shortage a Drag on Economy"},"content":{"rendered":"<p class=\"wp-caption-text\"><span lang=\"EN-US\">The professional truck driver shortage continues to hold back the Canadian economy and solutions require <\/span><span lang=\"EN-US\">a new approach to immigration policies and rethinking how long-haul freight is moved throughout the supply chain, Canadian Trucking Alliance president Stephen Laskowski told attendees at Newcom\u2019s annual Surface Transportation Summit. <\/span><\/p>\n<p><span lang=\"EN-US\">As reported by Today\u2019s Trucking, Laskowski referred to lines of trucks parked against yard fences along nearby Dixie Rd in Toronto, pointing out they are not idled because of a lack of freight service demand, but lack of truck drivers. And, he added, the situation is expected to intensify as the trucking industry comes to terms with \u201cmassive\u201d retirement numbers over the next five to six years.<\/span><\/p>\n<p><span lang=\"EN-US\">Scott Smith, president JD Smith said the shortage is affecting growth. While the company is investing in replacement equipment, it\u2019s not expanding the fleet. The focus, he explained, is ensuring the fleet charges the right rates and continues to be seen as an employer of choice in a tight labor market.<\/span><\/p>\n<p><span lang=\"EN-US\">While 2018 was a \u201cgood year\u201d, JD Smith certainly felt the personnel-based constraints on growth, Smith said. Gone are the days when the business could simply reach out to find warehouse and fleet workers with ease. \u201cIt really has been a significant impact on discipline for the quality of the labor.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">The capacity crunch is expected to worsen in the coming years as the workforce grows older and freight demand increases, says David Ross, Stifel Financial\u2019s research managing director \u2013 global transportation and logistics. <\/span><\/p>\n<p><span lang=\"EN-US\">The average driver in the U.S. is somewhere between 52 and 57 years old, added \u201cThat\u2019s older than it used to be, and next year it\u2019s going to be older than it is today.\u201d Historically, the number of drivers has been evenly split between those under 35, those 35-50, and those over 50. In the last decade the demographics have shifted. Today just 20% of drivers are under 35, with the two older groups evenly splitting the rest, he said.<\/span><\/p>\n<p><span lang=\"EN-US\">Stifel\u2019s Ross expects truckload rates to rise 5-10% in 2019, excluding fuel. Even though he sees LTL rates moderating against the backdrop of a cooling manufacturing sector, they\u2019re still projected to rise just under 5% in 2019.<\/span><\/p>\n<p><span lang=\"EN-US\">Small fleets appear to be the most likely to realize the gains, with their revenue up 1.2% year over year in the U.S. truckload sector, Ross said. In contrast, large fleets with revenues above US $30 million have seen revenue drop 0.5%.<\/span><\/p>\n<p><span lang=\"EN-US\">But there is certainly business to be had for those who can combine the trucks and drivers.<\/span><\/p>\n<p><span lang=\"EN-US\">Shippers looking for other strategies to control costs will want to consider modal changes, longer contracts, guaranteed volumes, wider delivery windows, and even offering coffee and bathroom facilities for company drivers, Ross said. Collaborating with carriers and even other shippers can help, too.<\/span><\/p>\n<p><span lang=\"EN-US\">\u201cWe\u2019re looking for solutions on how to contain our costs,\u201d said Belmont Meats president and CEO Paul Roach. He stressed that his company recognizes the challenges of limited labor and tighter capacity, but is looking for ways to fill trucks more effectively.<\/span><\/p>\n<p><span lang=\"EN-US\">Laskowski emphasized the need to monitor the technologies that are changing the supply chain. <\/span><\/p>\n<p><span lang=\"EN-US\">\u201cIf you\u2019re not changing, you\u2019re not growing.\u201d<\/span><\/p>\n<p><span lang=\"EN-US\">Full <a href=\"https:\/\/www.todaystrucking.com\/driver-shortage-is-economic-drag\/\">Today\u2019s Trucking story here<\/a>. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The professional truck driver shortage continues to hold back the Canadian economy and solutions require a new approach to immigration policies and rethinking how long-haul freight is moved throughout 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