3 top takeaways from ATA 2018
The American Trucking Associations talk industry priorities in Austin
From a new milestone in the driver shortage to uncertainty about whether long-promised infrastructure improvements will (finally) come to fruition, freight capacity challenges were top of mind at this week’s American Trucking Associations conference in Austin.
The good news-bad news dynamic was summed up in a keynote address by ATA President Chris Spear. On one hand, he praised economic growth and federal tax cuts that have helped increased for-hire truck tonnage by nearly 8 percent year-to-date, positioning the industry to add significantly to the more than $700 billion generated last year. At the same time, though, Spear said that obstacles like crumbling infrastructure and hiring difficulties could inhibit further gains.
“We must be allowed to compete for the same talent as other industries and teach them to safely and responsibly operate this equipment,” Spear said.
Our team at Vector was among the exhibitors on hand to showcase how our on-the-road digital document scanning and communication tools are making life easier for both drivers and back office associates. Here, our take on the three top takeaways from ATA 2018.
1. Surviving the Driver Shortage
We’ve covered the stakes of the trucking industry’s struggles to hire enough drivers. At ATA, however, it became clear just how daunting the issue has become for carriers.
For the second year in a row, an industry survey conducted by ATA research offshoot The American Transportation Research Institute (ATRI) found that the driver shortage is the single-biggest issue for industry respondents.
An event round up by industry publication Transport Topics Elizabeth Lotardo, vice president of project management for McLeod and More, said the shortage is expected to surpass 63,000 drivers in 2018. Through 2026, she said, that means the industry will needs to hire some 900,000 drivers to keep pace with freight demands.
When it comes to how carriers can accelerate hiring in an already competitive environment, Seth Becker, director of operations for marketing firm Randall-Reilly, was among those who said trucking companies must be increasingly mindful of both their online reputation and avoiding the appearance of dead-end jobs.
“Tribalism has never been bigger,” Becker said during a panel discussion on driver recruiting. “This younger generation wants to belong to something. They want to have purpose.”
2. Anteing Up on Infrastructure
While Spear said President Donald Trump’s tax breaks have delivered for the trucking industry, another priority still stuck in the starting blocks is long-discussed infrastructure funding reform.
An Oct. 28 ATA panel titled “The Cost of Doing Nothing, Why We Need Infrastructure Investment Now,” Transport Topics noted that several participants weighed in on how controversial public fuel taxes could be used to raise significant funds for new road improvement projects, rather than truck-only tolls.
“The fuel tax is not a tax. It is an investment,” said Tonn Ostergard, chairman and CEO of Crete Carrier Corp., a truckload carrier based in Lincoln, Neb. “It has worked relatively efficiently, but it needs to be changed.”
A proposed “Build America Fund” would bring in $340 billion in 10 years at an average annual cost of $100 for a passenger vehicle, $350 for a box truck and $2,100 for a Class 8 tractor, Ostergard added.
3. Redefining Hours of Service
Advocating for industry policy victories as a united front across different markets emerged as another key issue. In his state of the industry keynote, Spear urged “common-sense improvements” to allow carriers to “tighten the reins on detention time.”
More specifically, he described his organization’s quest to exempt carriers from California’s state-mandated paid breaks for driver rest and meals to a type of “trench warfare.”
With Electronic Logging Devices (ELDs) now hardwired to monitor driver hours, Spear urged the Federal Motor Carrier Safety Administration to take action where Congress so far has not.
“I am confident that justice will prevail soon,” he added.
Want to learn more about the latest in trucking tech? Test drive our free LoadDocs app.
