Driver recruitment woes have ‘abated somewhat,’ top TL executives say
The decades-long and ever-perplexing truck driver shortage—estimated in excess of 80,000 by the American Trucking Associations—has eased somewhat, according to leading trucking executives.
In exclusive interviews with LM, top executives say years of pay increases have apparently paid off in better retention and recruitment of qualified drivers.
“The market remains tough and at Werner we continue to hold expectations high by only hiring quality drivers,” company chairman, president and CEO Derek Leathers said.
“While this expectation often comes at a premium cost, we have an unwavering commitment to upholding these driver standards,” Leathers added. “Albeit still a challenging market, the pressure to recruit and retain quality drivers has abated somewhat.”
Leathers disclosed how year-over-year increase in driver pay tracked from quarter-to-quarter throughout 2022 at Werner, the nation’s sixth-largest TL carrier with $2.4 billion revenue last year, up 18.4% from the previous year.
The year-over-year increase in driver costs at Werner has resulted in what Leathers said was truck drivers “continue to receive solid paychecks, make a very good living and have less disruption in their lives.”
Leathers said driver costs at Werner in the first quarter of 2022 were up 15%, second quarter up 15%, third quarter up 9%, fourth quarter, up 4%. Moving into 2023, Leathers said he expected those costs to remain in the low single digits.
Mark Rourke, president and CEO of Schneider, the nation’s fourth-largest truckload carrier, said “significant increases” in driver pay recently have eased the shortage somewhat. Schneider uses 12,000 company drivers and an additional 2,000 owner-operators.
“The significant wage action has introduced many more folks from outside to come into the industry,” Rourke told LM. “That is one of silver linings of the Covid era. The nature and stature of a driving position has been elevated. We are seeing a better supply of new entrants to our industry.”
Rourke estimated starting pay over last two years, depending on location, has risen between 15-to-20%.
The only sure way to expand one’s fleet is to buy a competitor, however.
Werner recently acquired Baylor Trucking and ReedTMS Logistics. Part of the rationale behind those acquisitions, Leathers said, was to add “another layer of elite professional drivers to our fleet.”
That opinion was echoed by several other top trucking executives: the only sure way to grow is by acquisition. “You can’t grow organically,” CFI President Greg Orr said. “It’s a different business model from 10-15 years ago.”
Other transport executives agreed. “If I were trying to grow, I would try to find niche markets with better margins with the available team of drivers that I have,” said Rock Magnan, a former top trucking executive and now president of Gatos, Calif.-based RK Logistics, a third-party logistics company.
