The task of safely transporting most of America’s goods from one place to its ultimate destination has long relied on the professional truck driver. For decades, the state has relied on these diligent and reliable people to transport cargo from ports to warehouses and distribution centers to retail locations.
A new level of dependency
This dependence has reached a new level of importance during the epidemic and current supply chain problems. In addition, many trends have influenced and will influence the role of truck driver and the trucking industry. Towards 2022, truck drivers will see even more changes and new requirements as part of their missions. Many of these will be positive for truck drivers and will increase both demand and expected compensation. Others present opportunities and challenges that will, in many ways, reshape the industry and the role of the driver.
While there are no reliable crystal balls, here is a discussion of 5 trends that will help any driver predict how they will be affected in the coming months:
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The growing role of technology. Truck drivers have already seen the abolition of paper logs, the use of new tracking and routing capabilities, and the addition of many new safety features that come from rapidly evolving technology. However, these changes are likely to escalate and smarter “smarter” solutions will become routine in trucks and how they are operated. The role of related software and technologies, such as tracking data analysis and logistics chain management, will increase as companies respond to the desire for customers to have access to full “order tracking”. The ultimate impact of the technology is, of course, the autonomous vehicles that will become more visible by the end of the decade.
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Redesign of distribution and production facilities. The reorganization of the industry (see Mergers and Bankruptcies below) provides companies with an opportunity to reconsider how they locate their focal points. They respond to many logistical chain factors, including the construction of massive new storage and distribution facilities. Also, the different types of units (cans, flat surfaces, dry vans and others) see more centralized production and utilization and this is another part of that unprecedented change in logistics.
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Fuel prices. Operators have always faced the reality that fuel is a key component in their costs. While there have been constant ups and downs in market prices driven by supply and demand, other factors are now entering the picture. The urge for alternative fuels and even electric vehicles will pick up new momentum in 2022 and will be a problem for larger companies in the industry.
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Mergers and Bankruptcies. The bad news in 2021 regarding large and small moving companies is that a high number of them have failed, and some of the large established companies have merged with other players. This has resulted in the loss of about 4,000 to 5,000 established trucking jobs. The good news in this regard is that the shortage of drivers means that these jobs need to be easily replaced by other companies. In addition, these unions add new efficiencies and eliminate inefficiencies throughout the industry. It also accelerates the application of technology in many areas and enables more efficient routing, among others.
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Pricing adjustments. Few people who understand the bargain have enjoyed it with exceptionally low trucking rates and prices. This has suppressed the overall compensation for commercial truck drivers. The core issue for 2022 is whether growing demand will lead to rising prices or whether logistical chain failures or other factors are depressing the current market or preventing this growth. The continuing impact of e-commerce is one of the trends that is expected to encourage greater demand for leadership capability at the local and national levels.
A final factor for the market is the recently passed infrastructure bill and the new investment in roads and bridges that are expected to become a power by mid-2022. As drivers know, this may have a negative impact in the short term while producing a long-term benefit.