Trucking Industry Trends to Watch (Part IV): Labor Shortages

The trucking industry continues to struggle with a shortage of commercial drivers, despite employing an estimated 3.05 million drivers in the U.S. in 2023. The American Trucking Associations (ATA) projected a shortfall of 82,000 drivers by the end of 2024, with the gap potentially widening to 160,000 by 2030 due to rising freight demand and an aging workforce. To attract and retain drivers, many trucking companies have increased salaries, but this has significantly raised operating costs. Additionally, some businesses have lowered hiring standards to fill vacancies, leading to an influx of less-experienced drivers. This, in turn, has heightened accident risks and driven up commercial auto insurance claims.

To address safety concerns related to inexperienced drivers, the federal government introduced the DRIVE Safe Integrity Act in 2023. This bipartisan legislation seeks to improve safety and training standards while establishing a long-term apprenticeship program for young commercial drivers entering the industry.

While regulatory measures are in motion, trucking companies must take their own steps to recruit and retain skilled drivers. Enhancing working conditions, offering career development opportunities, and expanding hiring efforts to underrepresented groups (such as women) can help grow the talent pool. Additionally, investing in driver education and reinforcing safe driving practices will be essential to reducing accidents and mitigating financial losses in the years ahead.

‍