To say the recession has affected trucking would be an understatement. But, after a few years of declining employment numbers and decreased available freight, it seems as though we are finally rebounding. Looking back over 2010 -- and looking forward to 2011 -- we see promising opportunities on the horizon, with new developments across the trucking industry.
New Jobs
On December 3, the U.S. Department of Labor released a report revealing that 1,400 new trucking jobs were added in November. The employment increase was the first reported since the industry's highs in 2007.
The rise in trucking employment rates is good news for truckers, considering the recession resulted in nearly 2,000 trucking companies closing shop and many others drastically reducing the size of their fleets.
New Trucks
Matching the rise of new trucking jobs is also demand for new trucks. ACT Research recently reported that order replacements for new trucks have risen each month since October, at a rate of 24 percent. Considering ACT also reports that commercial trucks on U.S. highways are the oldest they've been in 31 years, the increased demand for new trucks on the road reflects the industry's positive trends.
New Drivers
Added jobs and new trucks on the road aren't the only factors signaling an improvement in the economy -- a number of new truckers are entering the industry, too.
We've all heard predictions that as the economy rebounds freight demand will grow, resulting in a potentially crippling trucker shortage. According to a Bureau of Labor statistics report, about 290,000 new truck drivers will need to be hired by 2018 to handle the upward trend.
Fortunately, trucking schools nationwide are reporting enrollment spikes, with a continued increase of new students projected for the upcoming years. Considering most truckers on the road today are older (as reported by the American Truckers Association), increased school enrollment could be a sign that the much-needed younger generation of truckers will soon be on the road.
New Regulations
CSA 2010 has been on transportation professionals' minds throughout the past year. After months of changes and uncertainty over the program's impact, its Safety Measurement System, which replaced SafeStat, went live on December 12. Looking to 2011, CSA 2010 (soon to be renamed CSA) will continue to be a hot topic, especially as we begin to see its effects unfold. At Getloaded, we will be monitoring the program, from motor carrier data to driver shortages, and will keep you up-to-date as developments arise.
New Freight
The American Trucking Associations' (ATA) advance seasonally adjusted (SA) For-Hire Truck Tonnage Index -- which measures the amount of freight shipped in the market each month -- fluctuated through much of 2010. A drop in August concerned some analysts, but after two months of growth in September and October, ATA Chief Economist Bob Costello explained, "These gains fit with reports out of both the manufacturing and retail sectors and show there is a little bit of life in this economic recovery."
Against all the nationwide worries about the economy throughout the past couple of years, good news in the trucking industry is always a welcomed sight. Although growth is slow, indications show new freight is coming to the market, and the trucking industry is heading for greener pastures in 2011.
The U.S. Bureau of Economic Analysis estimates that each year, about 5 percent of our country's Gross Domestic Product is attributed to the trucking industry. This measurement determines the value of yearly products and services produced in America, and is strongly tied to the national standard of living.
In other words, our industry contributes largely to the country's financial health, so understanding our future should be important to everyone -- not just industry professionals. And while the economy continues to rebound, transportation will hopefully lead the way to our nation's sustained, long-term growth.
As we look forward to a new year, we once again thank you for your continued membership and wish you ongoing success in 2011.
