More carriers predict salary bumps for drivers: TCP

Inexperienced driversWINDSOR, CO – As the North American driver shortage worsens, more companies are willing to take a chance on younger, inexperienced drivers, according to the latest survey by Transport Capital Partners (TCP).

The consulting firm’s fourth-quarter survey also found that more carriers are considering wage increases as a means to attract and retain drivers.

Over 90% of carriers responding to the Business Expectations Survey expected driver wages to increase over the next 12 months. More than one-third said they expect wage increases to be in the range of 6-10% – double what was reported six months ago.

TCP points out that while capacity is tight, carriers are hesitant to buy more trucks because of a shortage of experienced drivers. Replacements far outpace additions on order boards for new tractors.

“Carriers are seeing potential applicants go to other sectors, like construction, where there is more predictable home time and where extra pay is not limited by Federal Hours of Service regulations,” said TCP Partner Steven Dutro. “The end result is that revenue from rate increases will go into purchasing new equipment, driver wages, rising maintenance costs, and regulatory costs – and not as much into the carrier’s pockets in 2015.” summarized.

There is growing support for a proposal to allow younger drivers (under 21 years old) to drive commercial vehicles, provided they have proper training. According to the TCP survey, the support level now stands at 84% of carriers.

Wage expectationsSupport is similar between large and small carriers, despite smaller carriers typically hiring fewer inexperienced drivers.

Although over 80% of the industry supports hiring younger drivers, the percentage of carriers actually hiring inexperienced drivers is still only at 33%. That number is growing, albeit slowly. Sixty-four percent of carriers surveyed indicated they would be interested in hiring less experienced drivers. Larger companies are twice as likely to hire inexperienced drivers as smaller companies

You can read the full report here.

The next Business Expectations Survey will launch in January 2015. Carriers interested in participating should contact Transport Capital Partners for more information.




Have your say

This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.