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  • The trucking industry has played a significant role in the industrial development of the U.S. over the past century, providing a link from manufacturers to consumers. Over that time, there have been major advancements in everything from our interstate highway system, to governmental safety regulations, to the tractors and trailers themselves.

    Today, the transportation industry faces several challenges, many of which are related to consistent changes in the regulatory environment. The American Transportation Research Institute released a report in October of 2015 that listed the top 10 issues facing the trucking industry. The top three (in order) were Hours of Service Regulations, the Compliance, Safety, Accountability (CSA) Program, and Driver Shortage.

    Image of a truck on the highway. Contact GMS about how a PEO can help transportation companies with HR functions.

    Hours of Service

    For the third year in a row, the ATRI report has listed HOS rules as the top issue facing the transportation industry. There have been several changes and adaptations of these regulations over that time. 

    The Federal Motor Carrier Safety Administration (FMCSA) states, “You must follow three maximum duty limits at all times. They are the 14-hour “driving window” limit, 11-hour driving limit, and 60-hour/7-day and 70-hour/8-day duty limits.”

    What this means is that a driver can only drive 11 hours in a 14-hour “driving window.” The driving window includes any stops or non-driving activities in that window and must include a 30-minute break after eight consecutive hours of driving. Once that window is up, it must immediately follow with 10 consecutive hours off. 

    The second part of that equation is the 60-hour/7-day and 70-hour/8-day duty limits. If the company does not operate vehicles every day of the week, the cutoff is 60 hours driven in 7 days, and 70 hours driven in 8 days if the company operates 7 days a week. All of this information is now tracked through government mandated electronic logging devices (ELDs) for all professional truck drivers and commercial motor carriers. 

    This has caused a perceived lack of flexibility and limits the production of this already under-manned workforce. 

    Compliance, Safety, and Accountability 

    According to the FMCSA, the CSA is an “initiative to improve large truck and bus safety and ultimately reduce crashes, injuries, and fatalities that are related to commercial motor vehicles.”

    The primary tracker for this initiative is the Safety Measurement System (SMS), which measures the performance of drivers and carriers based on seven Behavioral Analysis and Safety Improvement Categories (BASICs). The seven categories are Unsafe Driving, HOS Compliance, Driver Fitness, Controlled Substances/Alcohol, Vehicle Maintenance, Hazardous Materials Compliance and Crash Indicators.

    The ATRI report disputes the effectiveness of these measurements being good predictors of crash risk. The report goes on to indicate inconsistencies in how this information is gathered and tracked from state to state, indicating a system that may need to be re-evaluated. 

    Driver Shortage

    According to a 2015 report by the American Trucking Association, the estimated driver shortage is currently 48,000. There are believed to be several factors affecting the shortage in drivers, along with the regulations discussed above. Long hours, fair compensation, high turnover rates, and time away from loved ones are just some of the factors that have made it difficult for the industry to hire and retain drivers. 

    Conclusion

    The trucking industry is not going away any time soon, as the demand of these services far outweighs the supply of current operators. Owners are facing greater challenges than ever before. Working with a PEO like GMS can take a lot of these issues off their plate and allow them to focus on the business. Contact GMS today to learn more about our HR services and how we can make your business simpler, safer and stronger. 

  • It is no surprise, that many companies are currently hiring. With unemployment being at an all-time low, many employers are having a hard time finding quality employees.

    One industry that has faced scary headlines is the transportation industry. With the growth of self-driving technology, transportation companies, such as Atlanta-based UPS, one might think that the transportation industry would be hiring at a lower rate or possibly consider laying people off. This happens to be far from the truth. In fact, the transport sector is showing surprising growth.

    A line of trucks being driven by people hired into the transportation industry.

    The Numbers Behind Transportation’s Hiring Boom

    The U.S. Bureau of Labor Statistics reported that 16,000 workers were added in September to companies specializing in air freight, trucking, and warehouse operations. This makes transportation one of six top job magnets, alongside others such as tech and healthcare.

    The data doesn’t stop there either. According to a LinkedIn study, the transportation industry hasn’t just added driving jobs over the past five years, more than 50 percent of new jobs added are higher-paid specialized functions. This goes to show that the industry is showing no signs of slowing down anytime soon. With these added specialized jobs, this means more opportunities for salespeople.

    Another development worth mentioning is that jobs in the traditionally male-dominated field are now opening up to women as well. Women make up about 15 percent of the industry average, but at XPO Logistics, women now make up about a quarter of their global workforce. This year alone, 30 percent of new employees in transportation happen to be female.

    So which cities are benefiting the most from the surge? LinkedIn data shows that the majority of cities tend to be heartland U.S. metropolitan areas. The top five cities are Chicago, New York City, Dallas-Fort Worth, Atlanta, and Los Angeles.

    The Impact of the Hiring Trend on Transportation Businesses

    What does this mean for business owners? Growth. Employers are not only hiring new employees, but also hiring new employees for jobs that the company has not had in the past. An example of this can be seen in UPS where in the past they have only had one way to do returns. With “Returns-Plus” and other options they can offer to big customers, UPS now must hire for new positions. When the economy experiences rapid growth, it is imperative for businesses to keep up. Many employers will be hiring and looking for some of the best talent.

    For companies in this industry struggling to find quality talent, there are resources available to help you  with employee recruitment and hiring. When you partner with a PEO like GMS, we can help you navigate through the hiring process, along with the rest of your administrative burdens from payroll to human resources, and benefits. GMS stands with employers through their employees’ entire lifecycle. From helping companies search for talent to the interview process to setting up the employee’s benefits, GMS will be there. Business owners, your time is precious, so handing off these functions will allow you to focus on what really matters.

    Ready to make your business simpler, safer, and stronger? Contact our Atlanta office or one of our other locations today to talk with one of our experts about how we can help you with hiring and other key business functions.