The trucking industry has undergone a lot of changes in recent years.
Did you know that freight rail will likely sink to 14.6 percent this year? While this sounds grim, freight tonnage is expected to rise to 24 percent in 2022.
Between COVID-19 and supply chain issues, trucking companies are finding ways to adapt to this new market landscape.
Keep reading to learn more about these challenges and why they matter.
1. Merges and Bankruptcy
Unfortunately, many trucking companies have buckled under the weight of poor market conditions. Some of the best trucking companies both big and small have declared bankruptcy.
This has led to thousands of unemployed truck drivers. Luckily, there are still plenty of openings with local trucking companies. Click here to learn where to look.
Those who aren’t declaring bankruptcy are at least merging with one another. Trucking companies will either join a similar trucking company or join a company in a new sector.
The other culprit of this unemployment is retail’s lack of demand. Typically, retail stores can’t go more than a few days without needing more. Now, retailers aren’t requesting as many goods, and there’s less work for truckers.
2. Game-Changing Technology
Technology is improving for both truck center companies and the actual trucks. Software programmers are in high demand because they’re improving processes at a corporate level.
It’s becoming easier for even local trucking companies to deliver goods efficiently. The Trucker Tools app helps drivers locate rest stops and gas stations. It can also give them information on weight scales and diesel prices.
Technology is also improving the trucks themselves. They’re now safer and easier to drive. For example, vehicles are equipped with an alarm so drivers don’t grow too fatigued or swerve into another lane.
This is saving trucking center companies money on repairs. It’s also keeping insurance from going up.
3. Low Prices and Low Income
The low demand from retailers means that it’s been hard for local trucking companies to find work. To combat this, trucking companies are lowering their prices.
The lowering of prices means that trucking companies can’t pay their drivers as well. In fact, lots of truckers make about $51,000 per year. This is far less than the average annual income for Americans.
This poses a huge problem, considering there are thousands of job vacancies. Most of those who chose trucking end up quitting after one year. This is because many have safety concerns.
Retirement is the other reason for the shortage. Trucking is an older profession, with most drivers being middle-aged. Younger, inexperienced drivers aren’t as willing to take the helm after the older generation retires.
Trucking Companies in 2022
Even the best trucking companies have faced hardships in recent years.
That’s why the advancement of technology is a huge step forward in making trucking companies safer. In due time, it may even be considered one of the most sought-after professions.
If you have any questions about local trucking companies, click here to call or email us.