The Trucking Industry of 2012
2/19/2012 by Tanya Bons
The Carriers Hiring
THE CARRIERS HIRING US
Industry Effect: Increase in Hiring, Increase in Wages, Increase in Bonuses, Increase in Pricing on Consumer Goods, Decrease in smaller carriers, Variation in Qualifications, Variation on Hiring Processes
Carriers are entering a position where they are forced to make decisions and changes. Currently companies that could not hire students are meeting with their insurance companies and asking for the ability to hire properly trained students. Companies that previously put ads out to get drivers are now calling schools and asking how they can attract graduates. Carriers that never employed recruiters are calling schools and asking what recruiters "do" when they come in and speak with students.
Carriers are increasing wages and introducing bonuses to entice new drivers. They're placing ads and opening their own schools just to keep up with current demand.
Carriers are keeping the "Hiring" signs up longer because they have to look at about 20 applications before they find the right driver.
Carriers, even in the midst of CSA regulations, are lightning up on some of their qualifications. They are looking at the "complete picture" of a student rather than denying everyone with a speeding ticket. Being unemployed for over a year isn't preferred but if the student has no tickets, no alcohol related incidents, no accidents, no misdemeanors, no felonies and they have a good previous job history they shouldn't have any problem finding placement with many companies.
Carriers will also find that as they revise their qualifications they are under more scrutiny from students then ever before. The new students are no longer desperate for employment with the first company that comes along. These students are educated, informed and planning their futures. They expect to stay with trucking companies, for the long run or until they can purchase their own trucks. Students have many options, especially with the influx of new carries hiring graduates, and students can choose the company that best fits them.
Students will find carriers they like and attend schools because those carriers recruit from those schools. Carriers that don't "offer more" may not even have the opportunity to speak with students as many of the schools will be forced to reconsider their placement offerings to students.
Carriers that offer contract "free" training will be at an advantage due to the fact that they will not have to improve their offerings or impress their students. They will continue on their path of getting contracts signed, offering accelerated training and putting students behind their steering wheels. Their turnover rate will remain excessively high but they will offset that by increasing their contract default costs.
Many of the small carriers are entering a "make-it" or "break-it" stage. They can't offer the benefits or the services larger carriers offer. Their business is increasing daily and they need to have cash available since the banks are still tight with funding.
In addition, the Transportation Intermediary Association, TIA, is putting the smaller carriers to the fire with a proposed mandatory bond in the H.R.7, American Energy and Infrastructure Jobs Act of 2012. The act includes a compulsorily $100,000 bond for freight brokers, regardless of company size. The husband and wife team running a business in their Kenworth will be subjected to the same bond as the largest and most successful freight brokers in the country. All brokers should have bonds but they should be relative to the amount of business a broker consumes.
More Related Articles and Information
June 2012, carriers and schools are in a new courtship. Some truck drivings schools have seen a loss in recruiters while other schools have seen an up-tick. The more reputable schools are now deciding which recruiters to drop from their offerings since there are so many companies demanding students' time. Truck driving schools with accelerated or weak training are finding themselves matched with trucking companies that offer less to their drivers.
Trucking Industry 2012: Introduction
Trucking Industry 2012: Training Our Truck Drivers
Trucking Industry 2012: Compliance, Safety, Accountability and CSA
Trucking Industry 2012: Electronic OnBoard Recorders (EOR)
Trucking Industry 2012: The Trucks We Drive
Trucking Industry 2012: Roads and Borders
Trucking Industry 2012: Industry Results