Moving Words – Insanity

Timothy Brady

“Doing the same thing over and over again and expecting different results when, in fact, the results never change, is one definition of insanity. That goes for economics, too.”  – Lawrence Kudlow

Let’s look back at an article I wrote 16 years ago in 2006. Granted, a lot (understatement) has happened in those years, within the trucking and moving industry – in the nation, and the world.

A plethora of new or revised rules has come from the FMCSA and other government agencies which have had significant impacts on the way we do business. Remember, in 2006 paper logs were still the rule for HOS. Then came the massive 2008 recession, the pandemic of the last three years and the current inflationary period we’re in, all the while wondering if we’re going to slide back into recession yet again. And the wild swings in the price of fuel which was plaguing us 16 years ago still impacts us today.

Too, there was a CDL holder shortage, or lack of those with CDLs willing to take on trucking as a career, depending on your perspective. This was true all those years ago and persists as a problem today. In fact, it’s even worse: Boomer van operators will all be in their 60s by 2024 and many of them have already quit trucking. Fact is, the Gen Xers, Millennials, and Generation Zers have very little interest in being OTR truckers.

Now, while as a whole the moving industry isn’t guilty of many of the driver recruitment and retainment practices of the large freight hauling carriers, what those companies do has a significant impact on the available CDL holder pool for the household moving segment of trucking. This is especially true when Gen Xers, Millennials, and Generation Zers are misled by these freight carriers as to what they’ll earn, time home, and all the other aspects these generations are looking for in a career. To combat this, it’s imperative moving companies understand what’s driving millions away from considering a career in household moving.

Let’s look at the perceived ‘insanity of the trucking industry’ so we in the moving industry can find real solutions to locating truckers willing to become van operators.

Roll back cameras, please. ‘Not too many years ago, the political phrase of the day was, “It’s the economy, stupid!” Then the phrase changed to “Show me the money!” As we close the year 2006, trucking has had one rollercoaster of a year. Tonnage-wise it was (to the beginning of the fourth quarter) a banner year, but we’ve also dealt with a wild ride in the price of fuel, the introduction of ULSD fuel, and threats the HOS will be changed yet again. However, the one area that seems to baffle trucking companies and their organizations most is the “Driver Shortage.” ‘

‘What’s curious about this CDL holder shortage are the conflicting stories that show up next to each other in both industry publications and general news outlets. On one hand, the ATA and several trucking companies report there are currently 20,000 drivers needed for available trucking positions across the country. They estimate that by 2014, this will increase to 110,000, and indicate there are approximately 3.4 million truck drivers in America with 1.7 million of these listed as over-the-road. Yet, on either the next page or a preceding page in the same publication, there will be a discussion from the DOT, the FMCSA, or Homeland Security about the fact there are over 11 million CDL holders in the USA today.’

‘Now with a little simple math, if you subtract 3.4 million from 11 million you come up with an excess of 7.6 million truck drivers. Let’s assume half of the 7.6 million are retired, or have other interests that keep them from trucking. That still leaves 3.8 million qualified truckers who would consider returning to the ranks if the conditions were right. The conclusion is there is not a driver shortage, because there are 20,000 open trucking positions with 3.8 million qualified CDL holders to fill them. The question the ATA should be looking at is, Why are 3.8 million Americans, who are qualified to drive commercial vehicles, not willing to fill these positions? Numbers don’t lie: the problem must be in how truckers are treated and how they are paid.’ 

‘To top this off, according to a Department of Labor report, truck driving is the most dangerous job in America. Yet when the work is truly the most dangerous, during inclement weather, navigating construction zones, or heavy traffic; this is when most truckers are paid the least, especially when they’re paid by the mile. With all these reports, information and statistics, what are trucking companies providing their drivers?

• plusher cabs
• automatic transmissions
• sending birthday and anniversary cards to the driver’s family.

‘This is nice, but are the companies resolving the core issues?  A study at the University of Arkansas concluded from a survey of trucking company HR departments, the number one concern truckers had for staying or not staying with a company was amount of pay. The second concern drivers had was consistency of pay. And the third was regular home time.’

In the next blog, we’ll compare truck driver earnings from 2006 to earnings in 2021/2022, as that will detail the challenge faced by the moving industry: finding and keeping van operators.

“There’s a fine line between genius and insanity, as we all know.” – Mackenzie Phillips