2019 has been referred to as a “blood bath” for many in the trucking industry as payrolls were slashed, truck orders dropped, and trucking companies went out of business at startling rates. Here’s a recap of what you need to know:
Trucking Payroll
*In August of 2019, the for-hire trucking industry lost 5,100 jobs, according to the Bureau of Labor Statistics (BLS), and 4,200 the following month. (1)
*In Dec., BLS notes another 3,500 trucking industry payrolls cut. (2)
*Besides trucking, warehousing/storage experienced nearly 2,200 payroll cuts in Dec., with 12,000 in the manufacturing industry. (2)
*According to BLS, last year “6,600 truck drivers lost their jobs.” (2)
Truck Orders
*2019 had a recorded 64% fewer truck orders than 2018, the lowest in 9 years according to FTR. (2)
Trucking Companies
*Nearly 800 trucking companies shut down last year, taking close to 24,000 trucks off the road. These numbers come in at nearly double the rate of 2018 and include companies such as ltl carrier New England Motor Freight and truckload carrier Celadon Group. (3) According to FTR, “more carriers lost their authority in the fourth quarter than any other quarter (on record).”
2020 Outlook
*Advanced Training Systems’ President John Kearney forecasts that 2020 will remain difficult for the trucking industry but in particular, the small carriers who have to compete with rising costs. (3) As Mesilla Valley Transportation’s Royal Jones notes, their insurance costs increased “29% in 2019 and 28% for 2020,” acknowledging that it’s becoming harder to find insurance companies “that want to insure trucking companies.” (3)
*The driver shortage is expected to hit 100,000 by 2025 and 160,000 by 2028, according to the American Trucking Associations. (4)
Trucking Opportunities
Road Scholar Transport is a local trucking company that has been in business 31 years and continues to grow each day. We are consistently adding new equipment to keep our drivers safe on the road.
If you are a driver looking to start or advance your career, here are some of the things Road Scholar offers:
*Overtime
*A comprehensive healthcare and benefits package
*Family time
*Modern air-ride equipment
*A flexible dispatch team
*‘Access perks’ family discount program
