Transport
Capital Partners, LLC (TCP) has recently wrapped up its 2010's 2nd
quarter Business Expectation Survey. The survey revealed that 88 %
of the carriers included in the survey expect volumes to increase
over the year to come. The survey also revealed that 84% of carriers
expect rate increases over the same period.
Richard
Mikes, TCP partner, said that there is a clear message from all the
respondents of the survey. That the outlook for the industry has
improved dramatically. He also said, "With volumes increasing and
expectations rising, the old challenge of driver recruiting has
resurfaced."
In fact,
according toTCP Business Expectation Survey, two-thirds of carriers
are starting to experience the dreaded driver shortage. It is also
indicated in the survey, of those experiencing a shortage, 8 in 10
are allocating their budget more on recruitment, and a handful have
increased driver pay.
TCP's
managing partner, Lana Batts said,"Carriers are ramping up
recruiting efforts, but smaller carriers are having less trouble
finding drivers." Transport Capital Partners' survey over the last
year also revealed that carriers relied less on brokers with 80% of
them saying that their use of the services of the brokers dropped
last quarter. According to Batts and Mikes, the supply demand
dynamics have rapidly shifted in favor of the truckers.
Eighty percent (80%) of carriers with
more than $25 million in revenues report that 15% or less of current
revenues are from spot market loads, while 55% of carriers under this
level had similar shares. It only shows that larger carriers are less
dependent on spot market revenues.
The B.C. Trucking Association on the
other hand is using this year (2010) as a time to strategically
prepare for an anticipated driver shortage in the trucking industry.
Research by BCTA and by a variety of government departments
envisioned labor shortages. The association also warns that
employers will experience challenges in hiring drivers as the economy
recovers.
BCTA President and CEO Paul Landry
says, "Our industry is struggling with a demographic problem, many
drivers are at or near the age of retirement, but we don't have
enough people lined up to replace them."
BCTA is working with funding partners
to help the industry counter this challenge. BCTA has prepared Human
Resources (HR) Essentials Workshops for small to medium-sized
trucking companies. The workshop is set to teach employers ways to
attract qualified candidates, how to screen applicants and the proper
assessment of their skills, and most importantly, knowing how to
motivate qualified employees - particularly drivers - to stay
with their current employer.
Landry emphasized that most small
businesses have a lot of HR responsibilities but lacks HR skills. The
interactive workshops they have developed will provide take-away
reference material and forms that companies can modify for their own
use. Landry also said, "Finding and keeping good employees is
critical when there is a high demand and low supply for qualified
workers."
Besides
the Human Resources Essentials Workshops project, BCTA has heavily
invested in another program called the BC Professional Truck
Driver Training Program. Unlike the majority of driver training
options, this program will train people to pursue a career rather
than simply to obtain a license.