Labor Shortage & Driver Recruitment/Retention Crisis

Definition

Despite the freight recession, the American Trucking Associations reports an estimated 80,000-driver shortfall in the industry. SMBs face acute difficulty recruiting and retaining qualified drivers because they cannot match the compensation, benefits, or working conditions of large carriers. The shortage drives wages up, reducing margins. Additionally, SMBs compete against unscrupulous foreign-owned fleets that operate illegally and can undercut pay to $20-30/hour vs. legitimate market rates of $50-70/hour. Turnover is high, creating continuous recruitment costs, training time, and operational disruption. New drivers require training, certification, and on-boarding investment before generating revenue. For SMBs with 10-30 trucks, losing 2-3 drivers creates immediate capacity loss and scheduling chaos. The labor shortage is paradoxically accompanied by availability of untrained foreign workers, creating a bifurcated driver pool that SMBs cannot easily navigate.

Why This Matters

Driver recruitment agency, targeted pay/benefit optimization software, driver retention programs, training academy partnerships, industry job boards, driver lifecycle management platforms

Affected Stakeholders

Owner/Fleet Manager, Operations/Dispatch Manager

Related Business Risks