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Trucking Jobs

Future of Trucking Looks Bright Following 2021’s Wins, Industry Leaders Say

December 31, 2021 by Levinson and Stefani Leave a Comment

“We’re now seeing the government wake up and understand the implications not just on an industry that hauls 72% of the domestic freight tonnage in this county, but on the larger-scale economy and supply chain itself,” said president of American Trucking Associations, Chris Spear in a look back on the accomplishments of the trucking industry throughout 2021.

Truckers have stepped up to the front lines during this coronavirus era to keep the nation’s economy steady while also helping consumers receive the goods they need in such an unprecedented time of high demand. Workforce development and infrastructure boosts also saw major positive changes, according to ATA leaders,

“In five years in this role, we have never witnessed a better year for advocacy than 2021,” noted Spear. “You take two tier-one victories–infrastructure and the DRIVE Safe Act–and you begin to understand the impact that five years of work has finally delivered for our members and industry.”

Spear noted that along with a group of other industry leaders, he has testified over two dozen times before Congress regarding new infrastructure legislation, which came into effect this year through President Joe Biden’s $1 trillion Infrastructure Investment and Jobs Act. This new law will offer highway and road improvement funding as well as bridge rebuilding funding over the next five years through the $100 billion dedicated specifically to efforts meant to update bridges and roads throughout the nation. The bipartisan bill will also bring about overall improved transportation options and congestion reduction for all drivers.

“It’s a very exciting announcement by the administration, and a recognition that this problem exists and that we’re actually going to take tangible steps to address this,” Spear explained, noting that this bill shows that both trucking and passenger vehicles will be able to lower carbon emissions, and that the industry is working toward improved business development and job opportunities.

“If you’re pro-job growth, this is a tremendous step forward,” Spear said. “If you’re pro-highway safety, if you’re pro-environment, this bill delivers on every single interest there is.”

Particularly, the legislation’s DRIVE Safe Act will bring significant industry-wide job growth, as it will offer opportunities for commercial driving candidates under the age of 21 to enroll in a training and apprenticeship program, allowing them to become able to operate CMVs within interstate commerce.

This initiative comes as the industry continues to face the largest truck driver shortage to date, which has been further exacerbated by the e-commerce demands brought about by the pandemic.

“You can make good wages–especially for all those that live in, say, the South or the Midwest–with excellent benefits,” saide Bob Costello, Chief Economist of ATA. “These folks are getting 401(k) [plans], paid time off, [and] health insurance. We’ve got good benefits. We have good blue-collar jobs”

Regarding further upcoming changes, independent contractors are also likely to become more commonly reclassified as employees through California’s Assembly Bill 5–which ATA claims would diminish driver freedom, disallowing drivers to create their own schedules and operate business as they’d like through the current owner-operator business layout as it stands.

“This is our tier-one effort to stand up our legal capabilities to not just fight in the halls of Congress or a regulatory agency, but in every state and every courthouse in the country,” said Spear. “And I think that is exactly what our members expect of this association–to leverage every opportunity to represent their needs and interests.”

An additional collaborative effort between the transportation industry and the White House will work to boost trucking recruiting efforts through initiatives that will focus on bringing in former military members and on guiding candidates through apprenticeship programs. Further recruitment incentives include driver pay and benefit boosts, which will likely continue far into 2022 as demand is expected to stay high, and the need for qualified drivers remains severe.

“Households continue to spend money,” said Costello. “They’re spending it more on goods than they traditionally have, versus services. We have a growing economy.”

What Issue Best Encapsulates Industry Problems of 2021? The Trucker Shortage, Experts Say

December 22, 2021 by Levinson and Stefani Leave a Comment

“This year definitely feels different than driver shortages in the past,” said CPC Logistics vice president of operations and safety, Daniel Most. “It seems that no matter what you’re throwing at different markets, you’re just not getting responses.”

Most’s comments come as the trucking industry has come to an agreement that the overarching challenge of 2021, which will likely continue in 2022, is that of the professional driver shortage prevailing across North America.

As older drivers leave the industry–some retiring early due to the pandemic and some due to other factors–and as consumer demands grow exponentially, the current shortage of at least 80,000 drivers–according to American Trucking Associations–will only get much worse over the next few years if major industry-wide improvements are not made.

“I think that you can’t really talk about driver turnover, looking at the last two years, and not talk about COVID,” said Professional Driver Agency‘s director of operations, Scott Dismuke.

Of course, he’s right–the long-lasting shortage has been worsened by the pandemic era, as the shortage prior to 2020 had reached about 61,500. With longer work hours requiring drivers to be away from home for days at a time, on top of mask and vaccine mandates, driver turnover has reached new heights and companies throughout the industry are scrambling to incentivize qualified drivers to join their fleets–turning to pay boosts, new benefits, and sign-on bonuses.

Still, the pool of adequate commercial drivers is limited, and trucking companies are competing heavily to bring those truckers on board quickly in order to meet demands.

“I think what was interesting is…the shift from 2020 to 2021,” Dismuke continued. “I think in 2020, COVID actually kept drivers from jumping [ship] a whole lot. With the economy shutting down, everything froze.”

Because of the confusion regarding where the industry would go at the time, many drivers stayed put, hoping things would restart as usual. Because of this, trucking companies were not looking for many new drivers until the boom of e-commerce brought higher-than-ever freight demand.

“Once the economy really started opening back up at the end of 2020–and really through the first three quarters of the year–I think COVID had a different effect on turnover, because you saw companies really raising pay…you saw a lot of active recruiting,” explained Dismuke.

These efforts came directly after a period where fleets weren’t expecting to have to incentivize drivers, because so many people were worried about losing their jobs.

“I think we saw the other side of the COVID effect with drivers starting to jump [ship],” added Dismuke.

Now, drivers may be looking for more than boosted pay–although many carriers have raised income levels more than once throughout the pandemic.

“Many carriers raised driver pay in 2021,” said Conversion Interactive Agency vice president of marketing and training, Priscilla Peters. “However, in most cases, that didn’t move the needle as expected for driver recruiting. Quality of life for the driver and home time have become the piece of the driver recruiting puzzle where carriers are making adjustments that have impact.”

The bipartisan DRIVE-Safe Act is working as a boosted effort to bring incentives, training, and job opportunities for younger truckers, and to allow drivers under the age of 21 to be trained thoroughly and become able to operate commercial vehicles in interstate hauls.

“I think the two options [for a solution] are creating a program where individuals can move into this field at a younger age, where we’re not forced to try and peel them away as a second career option after they’ve already been doing something [else], or [targeting] more of those other similar-type positions,” said Most. Additionally, recruitment should focus more upon bringing in more military, female, and minority drivers into the industry, he added.

“Everything that you see is talking about what drivers are looking for,” he said. “It’s the home time built in with good pay…built in with the schedules that they’re looking for. A lot of the jobs that we hire for require unloading freight–that makes it even more challenging, and so it just seems like you have to really adjust the type of work that you’re hiring for in order to get the candidates to start to pile in.”

Governor Pritzker Announces $15 Million to be Allocated to Illinois Manufacturing Training

June 13, 2021 by Levinson and Stefani Leave a Comment

$15 million will be invested in the construction of two downstate Illinois manufacturing training academies, as announced recently by Illinois Governor J.B. Pritzker.

This funding comes as a boost to the state’s manufacturing workforce, and will aim to help Illinois locals gain easier opportunities within advanced manufacturing careers and have boosted access in regards to developing the skills necessary for such employment.

“I’m proud to announce the winning projects of a $15 million Rebuild Illinois investment to establish two new downstate manufacturing training academies, [Southwestern Illinois College] in the Metro East and Heartland CC and Rivian here in Normal,” tweeted Pritzker.

The two academies–which will be located at Southwestern Illinois College in Belleville and Heartland Community College in Normal– will start enrolling new students as soon as this year, announced Pritzker, along with the Illinois Department of Commerce and Economic Opportunity.

Jumping into these career possibilities as soon as possible is key for these students, explained the Illinois Department of Commerce and Economic Opportunity’s acting director, Sylvia Garcia. 

“As the electric vehicle industry and other advanced manufacturing roles see increasing demand in Illinois, we are preparing to seize those jobs with investments made across our communities and to maintain our state as a top destination for companies to grow and invest,” she said.

$7.5 million of this funding will be allocated to Heartland Community College to aid the development of its Electric Vehicle/Energy Storage Manufacturing Training Academy. These efforts are in collaboration with Rivian, an electric vehicle manufacturer, and the college will match state funds up to $1.5 million for the development of an electric vehicle manufacturing training-based auto shop–an effort set to bring in around 1,600 jobs by 2023.

“HCC will be the home of the Electric Vehicle/Energy Storage Systems (EVES) Manufacturing Training Academy,” said Heartland Community College in a tweet. “HCC received a grant from the Illinois DCEO and a commitment in private funding from regional partners, including Rivian.”

The future of clean energy possibilities relies on programs like these, which offer students the opportunities and training they need to be ready for the industry upon graduation, explained Rivian’s vice president of public policy and chief regulatory counsel, James Chen. 

“This project will help prepare local workers for the well-paid technical jobs that the clean energy transition requires,” he said.

Chen also noted that these efforts align strongly with his company’s goals to help this industry reach its full potential, which starts at the hands of educated, forward-thinking individuals.

“This project also reflects Rivian’s core values of community empowerment, innovation, and a strong foundation for the continued growth and success of the electric vehicle industry,” he added.

The remaining funding will be funneled into a manufacturing-focused education hub to be implemented at Southwestern Illinois College, which will break ground as soon as this year and open to students by 2022. The Advanced Manufacturing Center will also include career training services for students, with opportunities within welding manufacturing and the industrial electricity industry. Additionally, the college’s program will bring about boosted efforts to recruit women and other minorities in order to adequately address industry equity concerns.

“One of Southwestern Illinois College’s primary goals is to train students for well-paying, highly-skilled, in-demand career fields, and the construction of a manufacturing training academy will bolster these efforts,” explained Nick Mance, President of Southwestern Illinois College. 

Mance added that these funds will bring direct positive impact to the state of Illinois’ economic development–including to the boost that it has needed following challenges brought about from the COVID-19 pandemic. 

“In light of the unemployment rate and economic distress in the area, it is more crucial than ever that students embark on a viable career pathway that leads directly to steady employment paying a living wage or better,” he said.

This funding comes from Pritzker’s Rebuild Illinois plan, which was approved in 2019 as an effort to improve overall state infrastructure and allocate funds to projects working to rebuild, repair, or boost state parks, historic sites, roads, bridges, education, clean water infrastructure, and transit. For the funding of Rebuild Illinois, Illinois saw doubled fuel tax rates in 2019, which continued to rise in 2020.

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