10 Tips to Overcoming the Driver Shortage

Posted by on April 10, 2013

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Brian Ashley 
Business Development Manager 

As the trucking industry continues to grow in numerous sectors, the amount of retiring and aging truck drivers is mounting. The industry shortage of qualified and, more importantly, quality drivers is increasing at an alarming rate. The American Trucking Association estimates that the current shortage is about 25,000 and demand will grow by roughly 100,000 new drivers each year for the next ten years.

Truckload carriers specifically will be impacted the most with a shortage projected at over 200,000 by 2022. A survey released in early 2013 of for-hire truckload carriers found that 90% said they couldn’t find enough drivers who are capable of meeting DOT requirements.

In addition to the number of drivers moving into retirement, many others have decided to exit the industry altogether due to undesirable working conditions. The sedentary lifestyle, constant attentiveness, and stressful environment lead to long days, nights and even weekends on the road and away from home.

Young drivers aren’t exactly flowing into the industry either. The majority of young people are finding work well before they can receive their CDL and become insurable by most carriers at age 23. Most individuals would prefer not to start over with a new company and industry after spending years establishing themselves. So as the number of professionals leaving trucking expands, the number entering shrinks; thus the shortage.

The lack of drivers has created substantial challenges for motor carriers.

Turnover rates are at record highs. Competition for the best drivers is fierce with many companies adding new benefits, higher wages, and other perks to lure in any driver that is performing well.

Inexperienced and often unsafe drivers are being hired because companies simply can’t fulfill current obligations or capitalize on new opportunities with their current employees. For many, if a driver meets the minimum qualifications, he or she is hired.

CSA Regulation is hitting many motor carriers hard. High turnover often leads to drivers being poorly or under-trained. More noncompliant trucks and drivers are out on the road. Fines and inspections are increasing resulting in safety scores decreasing.

To help motor carriers overcome these challenges, here are 10 tips to attract new and retain current drivers.

  1. Put time and effort into job listings and advertisements
  2. Encourage and incentivize word of mouth referrals from drivers
  3. Communicate compensation, benefits, and home time
  4. Screen candidates with untraditional measures
  5. Analyze your most successful drivers for the ideal profile
  6. Be selective and diligent in determining driver trainers
  7. Train fleet managers and dispatchers continuously
  8. Collect and evaluate driver complaints and suggestions
  9. Schedule drivers to meet company leadership
  10. Create accountability and reward programs

Committing to a driver recruiting and retention program is necessary to acquire and keep quality drivers in this environment. Every trucking company needs a proactive risk management plan to address the issues the driver shortage has created. A capable risk management partner will be a competitive advantage for motor carriers looking to capitalize as trucking expands and scrutiny intensifies.

The Doctor: Director of a Successful Return-to-Work Program

Posted by on April 1, 2013

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Pepper Grey 
Vice President 

As we continue our blog series focused on post-incident occupational injury management, it’s time to outline the role of the next component in the process: the doctor.

A physician and his staff can significantly decrease the amount of time an employee is absent from work. Their primary role is to properly treat injuries and accurately lay out any job limitations. Also, they can decrease future medical and potential litigation costs by following a regimented process from the start.

We are aware that physicians and staff are highly educated and capable individuals. Our goal is not to try and teach those that have already spent around 8 years in higher education classes. For good reason, they are the experts.

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New Hours of Service Compliance: Are You Ready?

Posted by on March 20, 2013

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Brian Ashley
Business Development Manager

The Federal Motor Carrier Safety Administration (FMCSA) continues to scrutinize and intensify Hours of Service regulations in attempt to reduce fatigue-related crashes and improve roadway safety. On July 1, 2013, FMCSA will start enforcing regulations for specific, mandatory hours of service limitations on truck drivers.

FMCSA Administrator Anne Ferro recently stated “With robust input from all areas of the trucking community, coupled with the latest in scientific research, we carefully crafted a rule acknowledging that when truckers are rested, alert and focused on safety, it makes our roadways safer.”

After overcoming our confusion and learning what is and isn’t changing with the new Hours of Service rules, we have summarized and hopefully clarified the provisions we found most impactful below:

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Oil Boom “Pumps” Trucking Industry

Posted by on March 12, 2013

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Brandt Beal
CEO

If you haven’t yet heard from every politician in our nation’s capital, energy production is a driving force to the economic recovery. Also, when you decide to emerge from the rock you’ve been living under, check for oil. We seem to be discovering quite a bit.

For the United Sates oil and gas industry, 2012 was a record year. Exploration and production companies are producing higher amounts of oil and gas than ever before and it doesn’t look like output will slow down in 2013. The US Energy Information Administration estimates total US oil production averaged 6.4 million barrels per day in 2012; it’s projected to increase to 7.3 million barrels per day in 2013.

The development of technology to access new sources, like oil shale reserves, has dramatically increased our energy potential and opportunity to become the global leader in energy production. Our energy supply is no longer limited, foreign, and finite. The United States is on pace to become a net exporter of natural gas by 2020, according to International Energy Agency. Also, we should be energy self-sufficient in net terms by 2035.

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The Employee: Soldier of the Return-to-Work System

Posted by on March 1, 2013

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Pepper Grey
Vice President

You are an employee that was just injured while working; do you know what to do first? Who to contact? Or what steps to take? Because in any return-to-work program, you will have specific processes to follow.

Injuries in the workplace happen, especially in high hazard industries. Even if you and your employer follow all the required safety measures, injuries still occur. According to the Bureau of Labor Statistics, nearly 3 million non-fatal workplace injuries were reported by industry employers in 2011.

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The Employer: Conductor of a Successful Return-to-Work Program

Posted by on February 11, 2013

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Pepper Grey
Vice President 

After analyzing Tim ‘The Tool Man’ Taylor, Tool Time, and their impressive return-to-work program in our last blog, we will now outline the role of the first component to a successful post-accident occupational injury management system; the employer.

An injury just occurred in the workplace. As a manager or supervisor, do you know what to do? Or how to do it? Or what to do first?

The employer has specific responsibilities to perform in order to ensure proper medical attention, limit costs, and return injured workers to their full duties. The United States Department of Labor and OSHA estimate that employers pay almost $1 billion per week for direct workers’ compensation costs alone.

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“Tool Time” An Occupational Injury Success Story

Posted by on February 4, 2013

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Pepper Grey
Vice President 

There are some great things that we will never forget about the 1990’s; items like the Walkman, yo-yo, super soakers, chain wallets and lunchables to name a few. Many of us also remember sitcoms dominating the 90’s entertainment slate; shows like Friends, Seinfeld and Frasier were some of the most popular and regularly viewed shows in households across America. Another popular show in most nightly lineups was Home Improvement.

As you might recall, this aptly named family sitcom centered around Tim “The Tool Man” Taylor trying to balance his fatherly duties at home with a rambunctious family along with his duties as host of a DIY home improvement show called Tool Time. Fortunately for the enjoyment of all viewers, he struggled with both of these responsibilities. His efforts resulted in multiple disasters on the average episode, where we then laughed at the resulting pain and consequence.

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Safer CSA Scores’ Big Impact on Trucking Costs

Posted by on November 8, 2012

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C.J. Baker
Senior Risk Advisor

“Hold the phone – I just found their SAFER (FMCSA’s Safety and Fitness Electronic Records) stats. Company safety data looks really good. Depending on some other information, I would probably cut their rate in half after seeing that.”

This is a recent and direct quote from an insurance underwriter at one of the five largest carriers in the United States.

The underwriter had already issued a quote on the account but was more than willing to revise it after finding the company’s excellent SAFER score.

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Stop Losing at the Pump, Start Managing Fuel Costs

Posted by on October 30, 2012

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C.J. Baker
Senior Risk Advisor

Cruising down the highway, you see the low fuel light flick on, looks like it’s time to fill up again. Naturally, you head to the nearest station and find that diesel is $4.50 per gallon. Not naturally, that price is a quarter higher than the $4.25 per gallon you paid like two days ago. For you, that one-quarter increase can prove very costly. With 250 trucks in your fleet that need fuel, the quarters stack up quickly.

Unfortunately, there is no way to control the price of fuel. Fluctuations happen yearly, monthly, even daily.

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Are You Prepared for a Hardening Insurance Market?

Posted by on October 23, 2012

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Michael Breler
Sr. Client Advocate

Most businesses with moderate claims activity have seen their premiums decrease annually for nearly a decade. Most business owners think that trend should continue if they don’t have any terrible claims. Unfortunately, the exact opposite is the case.  Unless you have exceptionally low claims activity, your premiums are likely to rise sharply in the near future.

We have been in what can be characterized as a soft market since late 2004. During this time, the insurance industry has been overcapitalized, causing price competition. Insurers have been looking to put excess capital to work, which has resulted in a glut of insurance capacity and very competitive market. The economic slowdown of 2007-2009 has undoubtedly contributed to this soft market:

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