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New U.S. Regulations Add to Trucking Expenses


The trucking industry has hit an all-time high this year with revenue increasing by 6.5% each year since 2009. According to the America Trucking Associations, the industry reached $700 billion last year with more fleets on the road today.

Thanks to retail and factory sales recovering the U.S. economy, the demand for truck drivers is also at an all-time high. Though, the industry is struggling to attract new drivers since new U.S. regulations are requiring companies to put rules on capping emissions and limit drivers’ hours on the road.

The regulations have increased company costs, forcing them to raise the pay for truck drivers and invest in more equipped trucks and vehicles. Managing director of Transport Capital Partners, Steven Dutro says, “it simply takes more manpower, technology and capital to operate a truck line than it did even a few years ago.”

New trucks and other freight vehicles cost 60% more than they did in 2008 causing many truck fleet business owners to question the success of their business in the future.

The Federal Motor Carrier Safety Administration is even expecting to require all truck drivers to log and track their hours, which has turned off many drivers to continue working. The e-log rule is causing many companies to go out of business because they are losing drivers.

E-logs are causing controversy for many drivers since it poses restrictions on many driver’s routines, however the limitations are meant to keep roads safer. While many larger companies can afford to keep their drivers with higher pay rates and bonuses, smaller operators are having a harder time retaining their employees.

Taking the necessary steps to attract new talent and retain employees in the supply chain industry will foster a more attractive career in manufacturing. It should be known that supply chain management is a growing industry that offers exciting opportunities for those who want to advance in their careers.

For more information about workforce solutions, contact your local MEP center.

WSJ Logistics Report Article: Trucking Makes a Comeback, but Small Operators Miss Out

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