Talking as a major aspect of the examination association’s “Territory of Freight” arrangement of online classes, FTR Transportation Intelligence Vice President of Research Avery Vise laid out a progression of commercial center conditions that point to advertise strain to expand driver compensation.
The spot cargo showcase started to move in the direction of the positive regarding rate development about a year prior, Vise noted, and contract rates paid by shippers to transporters “then started to crawl higher also.” As rates have warmed further into the main seven day stretch of this current year with an assortment of records softened up exchange information followed by stack sheets, “general trucking conditions are enhancing,” he says.
Confirmation of some expanding sign-on rewards have been seen, and rising driver compensation Vise named maybe the most critical “cost weight” for engine transporters, given proceeded with desire of development in pay.
With the potential of mandated ELDs to push longtime drivers from the business into other sectors and compound the situation as a backdrop, this is the “strongest labor market in two decades, at least in terms of unemployment,” Vise said. “Trades that compete with trucking,” such as manufacturing and construction, “are doing well, at least compared to recent levels.” Both manufacturing and construction are in fact growing nationally but experiencing bigger surges in construction markets in hurricane-affected regions like Florida and Texas.
And while “estimates vary widely,” he added, “it’s clear the tax reform act will be stimulative of trucking activity to a degree.”
Tax reform, with its dramatic cuts in corporate tax rates, too, will drivers plenty of reason to expect some windfall themselves. “We are seeing pressure for wage increases,” Vise said, with “bonuses at unprecedented levels for teams and other drivers.”
While fleet executives don’t make decisions overnight, truckers may be in the pay-boost driver’s seat, considering all these dynamics. Buzz around tax reform has seen “some major players in retail announce increases” in their company minimum wages and other pay. “I’d expect drivers will say, ‘wait a minute, what about us? … OK, corporate America, this is what you asked for. Now it’s time to give back.’”
The corporate tax cut does, Vise added, deliver “real money, so it’s a real opportunity.”