Survey says: carriers turning up driver recruitment efforts

Smaller carriers are having less trouble finding drivers, with about half saying they are not experiencing a driver shortage, while about three-quarters of larger carriers are experiencing a shortage, according to the TCP survey. (Transport Capital Partners LLC graphic)

The Trucker Staff

6/23/2010

NASHVILLE, Tenn. — Two-thirds of carriers are experiencing a return of the driver shortage — and most are taking action now, according to the latest Business Expectation Survey by Transport Capital Partners LLC.

“With volumes increasing and expectations rising, the old challenge of driver recruiting has resurfaced,” stated Richard Mikes, TCP partner. 

Of those experiencing a shortage, 8 in 10 are spending more on recruiting, and a number have increased driver pay, the survey says.

The demand for drivers reflects the increase in truck freight according to various industry sources as truck utility rises, TCP notes.

“Carriers are ramping up recruiting efforts, but smaller carriers are having less trouble finding drivers,” noted Lana Batts, managing partner for TCP. 

TCP’s surveys over the last year show that carriers have become less reliant on brokers with almost 80 percent saying they have used brokers less in the last quarter. 

“The trend away from broker use is very evident over the last year when in May 2009 about two-thirds were using more brokers and today three quarters are using fewer brokers,” observed Mikes. “In particular the supply demand dynamics have rapidly shifted to the truckers' favor after the depressed years with current rates rising and expectations for better months ahead," Batts and Mikes concurred.

Larger carriers are less dependent on spot market revenues, with 80 percent of carriers with over $25 million in revenues reporting that 15 percent or less of current revenues are from spot market loads while 55 percent of smaller carriers had similar shares, the survey says.

TCP, a transportation mergers and acquisitions, capital sourcing and advisory services firm, uses the quarterly survey to collect the insights and opinions of executives nationwide in order to report on the current state of the industry and future expectations.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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