CLUSTER FOUR: TRANSPORTATION

Quick Takeaways

Demand: Tennessee is a leading state in transportation, distribution, and logistics. The transportation cluster contains several occupations that are in-demand statewide and in every region of the state, including automotive service technicians and mechanics; bus and truck mechanics and diesel engine specialists; production, planning, and expediting clerks; heavy and tractor-trailer truck drivers; industrial truck and tractor operators; and mobile heavy equipment mechanics. Supply: Several TCAT programs train Tennesseans in this cluster who remain in Tennessee to work. The highest employment rates for certificate programs were logistics and supply chain management at 62 percent and diesel mechanics technology at 54 percent. First-year wages for the bachelor’s degree program in logistics was $53,062, and for the master’s degree, $90,607. High school CTE concentrators in autobody collision repair and diesel mechanics were employed in Tennessee at rates of more than 60 percent. This cluster had 121 apprenticeship completers. Unmet need: Completers of the two-year certificate for tool and die technician and the electromechanical engineering technician associate and bachelor's degrees had employment rates of 60% or more and earnings exceeding the state median in 2021 ($37,700). Other occupations in high demand with no aligned training programs include industrial truck and tractor operators and mobile heavy equipment mechanics. The less-than-one-year certificate program in logistics has a high employment rate (62 percent) and wages above the state median; the diesel mechanics 1-2 year-certificate and CTE programs produce graduates earning just below the state median wage.

Tennessee is a leading state in transportation, distribution, and logistics. Tennessee’s geographic location is central to a large consumer base in the Southeastern United States and offers immediate access to eight interstate highways reaching 60 percent of the U.S. population within an 11-hour drive. The state has six Class I railroads, six commercial airports, and more than 970 main channel miles of commercially navigable waterways. Tennessee also boasts the busiest cargo airport in the Western hemisphere—the FedEx World Hub in Memphis, which covers over 880 acres and is the largest sorting facility in the world. These are among the characteristics of Tennessee that attract companies which rely on transportation positions.

E-commerce as a share of retail sales is still hovering at a historically high 15-16 percent per month, despite a slight moderation due to consumers shifting back towards in-person services since the pandemic peak.46 Companies in the e-commerce, distribution, and logistics industries employ occupations in this cluster. This includes companies such as Amazon and FedEx, which have a large presence in the state, as well as distribution centers for retailers like Nike (Memphis), Academy Sports + Outdoors (Cookeville), the Gap (Gallatin), and Under Armour (Mount Juliet).

According to the Tennessee Department of Transportation (TDOT)47 Tennessee’s industries relying on freight have been growing due to increased production and consumption of commodities, however there is a decline in the number of truck drivers to move the increasing freight. TDOT’s statewide freight plan identifies “a need for workforce development to recruit and train new drivers.” Heavy and tractor-trailer truck drivers and industrial truck and tractor operators are in-demand in every region of the state and are both key to TNECD’s target industry sectors.

Tennessee is leading the way in mobility technology. The CIRCLES Consortium in coordination with Nissan North America and the Tennessee Department of Transportation48 concluded a first-of-its-kind five-day open-track experiment in November 2022, in which researchers tested an AI-powered cruise control system designed to increase fuel savings and ease traffic using 100 specially equipped Nissan Rogue Vehicles. 49

TDOT is also currently developing the Interstate 24 SMART Corridor Project50 in partnership with Vanderbilt 51 which will integrate freeway and arterial roadway elements, along with physical, technological and operational improvements, to provide drivers with accurate, real-time information to actively manage traffic. Mobility technological improvements in Tennessee will drive future job growth in transportation, distribution, and logistics.

The transportation cluster contains several occupations that are in-demand statewide and in every region of the state, including automotive service technicians, heavy and tractor-trailer truck drivers, and industrial truck and tractor operators. Several TCAT programs train individuals for these occupations, yielding a sizeable share of graduates who remain in Tennessee to work.

Tennessee’s colleges offer an array of degree programs designed to prepare Tennesseans for work in transportation. TCATs offer diplomas in automotive technology, collision repair, and diesel-powered equipment, among others. While many of these occupations do not necessarily require a formal credential, Tennessee’s colleges are poised to support the workforce through training. Over 2,000 <1YR and 1-2YR certificates were produced in 2020-21 to address in-demand transportation occupations, including certificates in Truck and Bus Driving, Automotive Mechanics, and Diesel Mechanics. Diesel mechanics programs, including the 1 - 2YR certificate and CTE programs, have employment rates just below 60%. Given high demand across the state and in many LWDAs, opportunities exist to expand training for industrial truck and tractor operators and mobile heavy equipment mechanics.

With funding from GIVE 1.0, TCAT Livingston developed a Diesel Maintenance pathway beginning with middle school students and culminating at the Diesel Technology program at TCAT Livingston. This pathway exposes students to the diesel maintenance industry through career awareness and work-based learning activities. The program offers dual enrollment opportunities to high school students and teacher externship opportunities for high school teachers to learn more about the program. The program was developed to alleviate the gap for diesel mechanics in the Upper Cumberland. The <1YR certificate program in logistics has a high employment rate (62 percent) and wages above the state median.