No matter the type of business, no matter the economy, there are high times and tough times for each major industry. And with the advent of smarter and more efficient technology many industries are seeing the speed of change pose new issues.
One major industry feeling the pressure of too much change, too fast, is the trucking industry. From driver shortages to more tech-based opponents, traditional trucking companies are having to change course. One step to protecting the overall future of the industry is to invest in truck insurance, and another is to invest in the actual future: drivers. Here are some ways in which the trucking industry is feeling some pain today.
1. Driver Shortage
Even with an average pay of around $80,000, many news outlets are reporting that the trucking industry is seeing a huge challenge meeting it employment needs. A driver shortage is causing trucking companies to find new ways to attract tomorrow’s drivers. This has been a concern for years in the industry and with companies like Tesla and Uber testing out self-driving trucks, traditional truck drivers are feeling like they’re being replaced.
According to ATRI research, nearly 57 percent of the trucking workforce is at least 45 years old. If this continues, the shortage will reach more than 175,000 drivers by 2026.
2. Hours of Service
Flexible hours or service rules are now more emphasized by companies for their drivers. Many of those who hold stake in the industry believe that drivers should split their hours of operation, while some stress eight hours of straight driving. Employees could get an opportunity to rest when tired and adjust their schedules to avoid everything from traffic congestion to health risks.
3. Cash Flow
Trucking fleets may see a wait time as long as 60 to 90 days to get paid by brokers and shippers. With an extended cycle, a fleet’s cash flow can be drained and growth could be limited. Accounts receivable financing turns fleets’ invoices into cash in under a day, which results in building their working capital.
4. Driver Health
Truck drivers face a number of health obstacles, especially the longer they’re behind the wheel. These drivers are twice as likely as other workers in any industry to be obese, have diabetes and not have any type of health insurance. The job is demanding, and with such stress put on it, drivers are seeing a rapid decline in health, another component of making the job less enticing to new crops of drivers. There are new initiatives in place, like Rolling Strong, which aim to invest in drivers’ health and wellness with better fitness.
Accidents and fatalities behind the wheel happen and have always posed a risk for drivers. But beyond these risks, drivers face overall safety at their truck stops or where ever they park their trucks. There is new sensing technology that has come out that helps trucks avoid collisions and helps reduce the number of accidents, with numbers expected to reduce in the coming years.
About Western Truck Insurance Services
Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and \ transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.