ATRI: Critical Issues in the Trucking Industry

ATRI Releases 2021 Report: Critical Issues in the Trucking Industry

Throughout 2021, the trucking industry has faced a series of challenges that amplified problems it faced prior to the pandemic. A surge in demand for goods sparked by the pandemic remained steady this year. Factory shutdowns abroad led to a shortage of computer chips, slowing the production of trucks. Inflation has caused increased equipment and fuel costs. All of these factors have compounded to exacerbate global supply chain disruptions, and now, consumers are recognizing how essential trucking is to our everyday lives. Issues that the industry has been calling attention to for years – including the truck driver shortage and the need for improved infrastructure – are being brought to the forefront of public conversation.

In October 2021, the American Transportation Research Institute (ATRI) released its 17th annual Top Industry Issues report, identifying a number of the industry’s key concerns during this year. To produce the report, ATRI distributed a survey to more than 23,000 industry stakeholders across the U.S. Survey respondents were asked to select their top three choices from the list of 30 critical issues, and subsequently rank their top three preferred strategies that corresponded to each selected issue.

More than 2,500 industry stakeholders participated in the survey. The respondents represented motor carrier personnel (52.4%), commercial drivers (24.1%), and other industry stakeholders (23.5%), including industry suppliers, driver trainers, and law enforcement.

For the fifth year in a row, the Driver Shortage topped the list of industry concerns, with more than four times as many first-place votes as the number two issue, Driver Retention. According to the American Trucking Associations (ATA), the current driver shortage has risen to 80,000 – an all-time high for the industry. Trucking will need recruit 1 million new drivers over the next 10 years to close the gap caused by demand for freight, projected retirements, and other issues.

“A thing to note about the shortage is that before the pandemic, we were adding drivers to the industry – even though we had a shortage, more people were entering the industry,” said Bob Costello, ATA’s Chief Economist, in an October 2021 press release. “The issue is that new entrants into the industry didn’t keep up with demand for goods.”

At the time of the survey in September and October, respondents’ top-ranked proposed strategy to address the driver shortage was to advocate for the expedited launch the DRIVE Safe Act pilot program to expand interstate CDL eligibility for 18-20-year-olds. The $1 trillion infrastructure package passed by the federal government in November includes the program, which will lead to an infusion of younger talent into the trucking workforce.

Developing new outreach initiatives targeted to high school students and young adults was the second-highest-ranked strategy in dealing with the driver shortage. According to ATA, the average age of over-the-road drivers is 46 and for new driver entrants, the average age is 35. Driver Retention was selected as the second-most critical issue overall this year. The top-ranked proposed strategy selected by respondents was to research and prioritize retention, based on driver feedback and driver tenure data. Data from ATA showed that driver turnover at large truckload fleets was 92% at the end of 2020. Further reflecting the industry’s workforce challenges, Driver Compensation was ranked third overall. Rounding out the top five industry concerns were Lawsuit Abuse Reform and the lack of available Truck Parking. Among the survey’s professional truck driver respondents, Driver Compensation and Truck Parking tied for the number one industry concern. Detention / Delay at Customer Facilities – another challenge experienced daily by commercial drivers – ranked second. “It really is no surprise that truck driver-related issues – notably the driver shortage and driver retention – ranked so high on the survey. Coming out of the pandemic, with the increased demand for goods and other pressures on the supply chain, getting and keeping drivers has been a real challenge industrywide,” said ATRI President and COO Rebecca Brewster in a press release announcing ATRI’s report. “We also see the impacts of the current supply chain crunch in how highly issues like driver compensation, truck parking, infrastructure and driver detention ranked on the list.” ATRI’s report highlights the industry’s most pressing concerns – but more importantly, it provides a roadmap for tackling these challenges as we move forward.