Management Accounting

Will a Driver Shortage Cost Companies?

Too few drivers and high fuel prices threaten the trucking industry--and could jack-up supply chain costs for corporates.
Sarah JohnsonOctober 24, 2006

The transportation industry is struggling to keep their driver’s seats filled. High turnover, new regulations for drivers who work at ports, and the stigma of what some consider an undesirable occupation have truck operators spending more time and resources on retention. In turn, the extra costs could be passed on to corporate customers.

In a recent survey of trucking business leaders, the majority of respondents said driver shortage is a major threat to their industry, and 22 percent believe it could hurt their ability to deliver goods on time, according to survey authors at GE Capital Solutions, which provides financing for the commercial trucking industry.

According to the American Trucking Association, there will be a shortfall of 100,000 drivers in five years

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