The “Trucking Generation” is still on the verge of retirement.
In 1994, 60% of the truck drivers were between the ages of 25 and 44. In 2018, 55% of drivers are over the age of 45. This group of truck drivers, known as the “trucking generation,” is aging and on the verge of retirement.
Breakdown of Truck Drivers By Age
Driver turnover is actually down (to 78% from a peak of 98% at the beginning of 2018)!
The driver turnover rate peaked at 98% in the first half of 2018 before decreasing to the current rate of 78%. Companies are paying their drivers more which is working to keep drivers in place. At the same time, the freight market is softening which, according to Bob Costello, chief economist for ATA, leads to lower driver turnover.
Everything about running a transportation company is a little more complicated now – from hiring great drivers, to improving safety performance, to preparing the next generation of leaders.
In our work with hundreds of different transportation companies, what we've found is that this increased complexity has led to two key things happening:
1) there are more hidden risks in your business than ever before, and
2) the companies that address these hidden risks are outperforming everyone else.
If there's one thing we know about our clients, it's that if there’s any way to improve their business, they want in. So, for the past 6 months, we’ve been working on a way for high-performing transportation companies to come together and face these challenges head on.
It’s called The DE-RISKING Network. And here’s what it’s all about:
1. Bumping elbows with other high-performers. It's amazing what happens when you get a group of high-performers in the same room to tackle really difficult challenges.
2. Focusing on what actually makes an impact. We believe that focusing on Leadership, Culture, and Operations has the greatest potential to increase the value of your company, so that’s where we’ll spend our time.
3. Hearing from the country’s best experts. We’re bringing in the country’s leading experts to deliver content both digitally and in-person at events like the annual DE-RISKATHON member retreat (i.e. US Navy SEALS).
4. Preparing the next generation of leaders. The future performance of your company rests in the hands of the next generation of leaders. This program will be a way for current and future leaders to share a common learning experience and refine their skills.
If you’re interested, you can learn more about The DE-RISKING Network here.
Now through May 1st, you can join for a reduced membership fee, which includes the annual DE-RISKATHON member retreat on June 11th and 12th in Milwaukee.
It’s a pretty simple set of questions. As professionals (and organizations), it seems like we ought to have thought about this before.
The first question (what do you do?) can be answered in a very straightforward way (a trucking company, a roofing company, a risk advisor).
The second question (why does it matter?) is where it gets a little trickier. Why do you matter to: 1) your clients, 2) your employees, 3) your community?
HEALTH CARE COSTS ARE RISING 4X FASTER THAN WAGES
Over the last 18 years, the cost of family premiums and worker contributions have risen by a total of 270% and 224%, respectively. That compares to worker earnings growth of 64% and inflation of 47%. The result: every year health care is consumes a larger percentage of Americans' paychecks.
Pharmaceutical pricing and fees have become the health care industry’s best kept secret. The cost of prescription drugs are increasing at an unsustainable rate, and to make matters worse the revenue sources aren’t transparent to the patient or employer.
Over the past few years, we've all witnessed the unchecked rise of health care costs in America.
Some employers have been sitting back hoping things will get better. Others have been desperately trying everything to regain control.
But one thing is clear: we aren't winning.
THE SYSTEM KEEPS WINNING
Every incentive in the health care system has been built to work against you: the employer.
Insurance companies make more when the cost of claims goes up.
Hospitals are buying primary care centers and referring patients to treatment options with higher profit margins.
Pharmacy Benefit Managers get paid more when drug costs increase.
Insurance Brokers have delivered ideas and tactics. But they often fail to deliver their clients a multi-year strategy that can move the needle.
2018 will prove to be one of the most challenging years for the trucking industry. Although the challenges faced are not new, the convergence of so many challenges at the same time is unprecedented. Among the top issues facing the trucking industry are:
One year ago, we began a project to get unbiased and anonymous feedback from our clients about their opportunities for growth and what holds them back.
250 CEOs, CFOs, HR Directors, and Safety Managers from 50 different companies responded to questions on the topics of Leadership, People, Brand, Risk & Employee Benefits. This is what they said.
Almost 80% of respondents stated that they were optimistic about the future of their company. There is a lot of opportunity out there for companies with the capabilities to act on it.