The trucking crisis really took it out of the industry in 2019. With a large number of small businesses shutting down, what does 2020 look like for the industry overall?
Large Businesses Take a Hit, But Will Survive
The large trucking businesses have a solid foundation to wait out the storm. They might have to make some cuts, but overall, things will look much better than small, family businesses. Businesses like J.B Hunt, YRC Worldwide, and XPO Logistics are all looking at downsizing at some point in the year, but don’t have to worry too hard that their business won’t see the end of the year. On the other hand, any local small business has to clench their jaw, bite their nails and try to ride this out.
The Trucking Crisis: Small Businesses don’t have a Positive Outlook.
The immediate start of 2020 has had every small trucking business on edge. While many businesses rely on owner-operators, those individuals are phasing into retirement. While many are doing that, there aren’t enough new drivers entering the fray. The big reason is that the trucking industry doesn’t appeal to younger generations. The truckers who are retiring lived in a different time. The job was respected by the country back during the ’40s well into the ’80s. The image of the standard truck driver has changed to be viewed more like a lackluster job. They are typically seen (especially by California State Government) as a troublesome polluting industry, where drivers are bottom-barrel workers. Unfortunately, they couldn’t be further from the truth.
Large Companies can Train and Employ
As was not the most popular form of entering the industry, larger companies can provide larger benefits and pay as well as establish CDL training for an individual looking to start their career on the road. There is a drawback to this type of establishing, unfortunately. Firstly, the company typically uses agents simply looking to fill the empty slot. While this may be good for someone looking to get their foot in the door, this might not be as reflective for drivers who have been in the industry for years. Second, the level of training that can be provided through these companies.
New Drivers Might Not Receive The Best Training
Fresh, young drivers can easily receive sponsorship. Unfortunately, depending on the credibility of many large scale companies, they might just be throwing them the basic needs in order to drive for them. If the driver decides to move into another company, they might have a hard time due to the credibility and reputation of their training.
Owner-Operators Take The Hit
Owner-Operators will surely take a hit this year. While many large businesses are moving into recruitment shipping methods, the tried and true independent contractors might have to take a hit. As for how big this hit will be in the new year, is up to speculation. Unfortunately, this is a huge percentage of what the core of the industry looks likes. We’ve already seen independent truckers under attack from the state of California, and they managed to squeeze out of that issue to be put into another one.