Trucking is not an easy gig. In fact, it’s incredibly competitive. In 1980, average American truckers made an annual salary equal to over $110,000 by today’s standards—adjusted for inflation. Today’s truckers, meanwhile, make approximately $40,000 per year. Experienced industry operators are working harder. They’re also working longer hours. While innovations have made truck driver jobs less physically challenging to some degree, the trucking world’s most active drivers are still overworked and underpaid.
Competition Among Truckers
So, what’s the deal? Well, the trucking industry has undergone a number of significant changes. Truck driving, once a blue-collar job defined by its many benefits, is different today. The position once held higher wages, higher political clout and a higher rate of compensation. In the 1970s, however, the trucking industry was deregulated.
The Jimmy Carter administration is responsible for the deregulation which increased competition among truckers while lowering compensation. Meanwhile, truckers’ unions began disintegrating alongside a rapidly diminishing union political influence.
Independent Contracting Has Made Things Tough
The rise of independent contracting, too, has boosted trucker competition. Today’s trucking companies outsource a lot of risks, and costs, of industry operations to truckers themselves—resisting benefit pay standards while advertising positions of freedom, empowerment and flexibility.
Unfortunately, independent contractors regularly find themselves in positions which really aren’t empowering at all. Some lease purchase truck driving jobs—wherein truckers rent their vehicles from companies—may lock drivers into difficult financial situations. Until a lease is paid, the trucker may not be able to switch companies. If they do, they can be charged as much as $65,000. The end result may be little freedom or flexibility until your lease is paid in full.
Thus, it’s not surprising that a competitive atmosphere has thrived around the job. Trucking requires long hours, and a lot of truckers are compensated solely for driving time—rather than hours spent on fuel-filling, paperwork and other administrative tasks.
Competition Takes a Toll
While competition breeds healthy business approaches, it can be difficult to manage when trucking jobs are incredibly isolating. Due to the job’s solitary lifestyle, trucking may be overwhelming for those who’ve just entered this difficult industry. With little human contact, extended stays away from home and low-paying tasks, trucking may be a growing segment which is difficult to handle by the labor force.
A similar segment of independent contactors, Uber drivers, have boosted the competitive atmosphere in their industry. Recently, Uber drivers have been organizing and suing taxi companies over unfair labor practices. Meanwhile, the American Truckers Association has pushed for increasing driver pay, more time at home and overall driver image improvement. Time will tell how Uber activity may begin to blaze a path for positive, competitve changes in trucking.
Private Carriers Might Be the Answer
Fortunately, the trucking industry still has its perks. It has high-paying jobs, if one knows where to look. While the open waters of trucking are highly competitive, some private carriers may offer salaries twice as high as regular, independent, driving positions.
Understandably, drivers flock to such positions. Large trucking companies are making efforts to retain experienced workers and keep them from transitioning to other trucking jobs, as it costs them valuable labor. There’s a chance this backswing may reduce the popularity of independent contracting. There’s also a chance that the push to turn employees into contractors will remain a clever strategy. For the time being, some companies are still saving money with this clever strategy.
At the end of the day, independent drivers should be careful who they sign on with. If a private carrier position opens, they may be faced with a $65,000 penalty to switch. Armed with information, however, a private contractor can easily navigate the competitive world of trucking. Or, even better: They can continue setting their own prices, working with companies of their choosing and navigate the legal challenges of job-switching. A lot of factors impact the trucking industry, but there’s always a way to navigate them.
One thing is for certain, as freight transporation continues to evolve, the industry, and truck drivers in general, will have opportunities to find job security for the forseeable future regardless of competition.
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