It is the first day of Fall 2012. The economic outlook has improved as of last week due to reports of an increase in housing starts and in sales of existing homes, but the desired downward trend in unemployment has not been dramatic; that is, unless we take into consideration that the Trucking Industry is already booming. If that were not so, the turnover rate would not be back up to 106%. The competition is getting fierce; and it's just starting!

As a leading indicator of change in the economy, trucking will always be the first to experience those changes due to its position between manufacturers and consumers. You know, what someone means when he or she says, "everything we wear, drink, eat, drive or even throw away as garbage; arrives at its destination by truck probably 95% of the time". Even when it is shipped by rail, more often than not, it will be transported to its final destination by truck.

So if we take all that into account and wax optimistic, because there is no percentage in waxing pessimistic, the figures should tell us that even at a slow, and somewhat fractured pace; the economy may suddenly come to be suprisingly robust for another round. Of course, those who are genuine pessimists will "hold down the fort" until they can find something other than the economy to be pessimistic about. All I can say is "Keep on Trucking!"

What does this mean for trucking? More loads, a need for more equipment, a need for more drivers, and unless all companies have now discovered the legendary "fountain of retention", the headache of having to deal with a new wave of turnover that threatens to take the industry to much greater averages than in the past. If at present, while the country is still complaining of high unemployment, the turnover rate in trucking is so high; what will it be like when all those who are coming on board just to keep food on the table get an opportunity to return to their field of choice?

Oh, maybe you thought each one of the new people coming into the industry is a die-hard, responsible, dedicated, and truck-loving professional driver who will accept the rigors of trucking; especially in OTR (what I like to call the big leagues, because it isn't the same running out to the oil patch or hauling sand and gravel to construction sites as it is running from CA to NY or Seattle to Miami). 

For some companies, as I wrote here over two years ago, this will be a greater challenge than the one they faced just trying to remain solvent during the height of the recession as others were folding up their tents. Some of these are now returning to the old habit of "throwing spaghetti at the wall and waiting to see what sticks", while others are still sitting and waiting for the economy to get better before even turning their attention to a greater recruiting effort. I feel for those few employees that were left in recruiting as the rest were layed off during the recession. They now have to bear the brunt of the work as the field heats up. They groan under the heavy load while their CEOs read the tea leaves searching for some assurance that the economy will get better before investing in human resources (of the professional driver genre) acquisition.

Now, figure social media, and the power it wields, into all that; and every company's past reputation has the potential to either place it in the running to reap bountifully or die slowly and painfully. One thing is for sure: This is not the Trucking Industry we came of age with. It is an industry being reshaped through pressure from all sides by government, the economy, human nature, technology and instant information, and even the instability of  world conditions.

So what is the key to success in the emerging Trucking Industry environment? Success will mean different things to different components of this industry. To the CEO, it will mean greater profitability and growth. To the middle manager, it will mean more resources of all kinds. To the professional driver, it will mean job satisfaction that creates a desire to stay even when offered more money someplace else.

If this were just about finding drivers and convincing them to join the company, it would be hard enough considering the effects of attrition combined with all other factors already mentioned. This is about finding the right drivers and the perfect paradigm to decrease turnover and hiring costs while increasing profitability. There is a way to do it, but it does not involve throwing spaghetti at the wall! Tudaloo and Happy Trails!

Francisco Gomez
Carrier/Driver Liaison
Commercial Driver Liaison Services
www.procdldriver.com