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2024 Outlook: State of the Industry  

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2024 Outlook: State of the Industry  

After two years of post-pandemic global supply chain disruptions, the ongoing driver shortage, and rising fuel prices, experts in the field forecasted a gradual recovery in freight and some growth as volume returns to pre-pandemic levels. An increase in consumer spending was expected to impact demand, however economic uncertainty continued to be a concern. 

 

Last year was a turbulent one in the world of transportation and logistics, amid fluctuating fuel prices, continued driver shortages, economic volatility, and a growing freight recession. Nearly two months into the new year, experts are still unsure if consumer demand will increase enough to offset the freight recession or if inflation and the overall global economy will continue to slow down and improve.  

 

Keep reading for Drive My Way’s outlook on the state of the industry in 2024, and find out what are the biggest trends, underlying issues, and expert predictions to keep an eye on this year.  

 

Ongoing Freight Recession and Economic Concerns 

The issue on the mind of most experts in the trucking industry going into the new year is how to address the ongoing freight recession that developed in 2023. Although the overall US economy was able to avoid a recession last year, the transportation industry wasn’t as lucky, due to a number of factors.  

 

After two years of a post-pandemic freight boom, consumer spending began to decrease in 2023, bringing overall freight volume down. Coupled with the influx of new carriers that arrived during the boom of the first two years of the pandemic, the trucking industry is now seeing an oversupply of trucks compared to a waning amount of available freight. A notable marker of the market’s volatility was long-standing trucking behemoth Yellow Corporation filing for Chapter 11 bankruptcy in August of 2023.  

 

Although a recent CNBC Supply Chain Survey confirmed that these difficult economic conditions will continue at least until the end of the first quarter of 2024, the survey did hint at a potential slow increase in demand throughout the second half of the year. Some experts also believe that an upswing will come faster than initially anticipated due to the gradual turnover of the excess carriers that entered during the post-pandemic swell.  

 

With a global economy as volatile and unpredictable as we have witnessed the past three years, carriers should continue to monitor consumer trends and hire accordingly. Consider rightsizing or implementing strategies such as a hiring waitlist while the market continues to stabilize over the course of the year.  

 

Yes, There Still is a Truck Driver Shortage  

Despite this unprecedented freight recession, a familiar issue has continued to plague the industry in 2024. The American Trucking Associations (ATA) projected a driver shortage of over 82,000 for 2024, a sharp increase from the 60,000 gap that was projected in 2023.  

 

This increase is due to the fact that carriers are still struggling to recruit and retain quality drivers from newer generations to supplement the drivers that will leave throughout the decade. With the average age of an American trucker being around 47, carriers must focus on new hiring strategies to meet candidates where they are at, while focusing on retention to decrease the industry-wide high turnover rates.  

 

In 2024, continue to keep in mind what drivers are looking for from employers, and how you can streamline your hiring and training processes to cut down on unnecessary spending and save your drivers time and effort.  

 

Keep an Eye on Changing Trends 

A key to success in the new year will be flexibility and the fast adaptation to dynamic trends. As consumer buying patterns change and legislation involving trucking continues to be unveiled, every carrier should be ready to pivot when necessary while remaining prepared for the unexpected.  

 

With the steadily increasing rise of e-commerce, it’s important to have the proper infrastructure to optimize last-mile delivery services and real-time tracking. Focus on route optimization and delivery consolidation to prepare for the quick moving and relatively short distance required of e-commerce deliveries.  

 

It’s also important to keep in mind that new environmental regulations for the trucking industry will continue to have a greater impact in 2024. State level policies, such as California’s 2023 Advanced Clean Fleets rule, which plans on transitioning all commercial trucks and vans to zero-emission vehicles by 2045, will likely be felt by an increasing number of carriers and drivers this year. Six states have already pledged to join California, including New York, New Jersey, Oregon, Massachusetts, Washington and Vermont.  

 

When drafting your budgets this year, analyze what changes could be made in the present to lessen the cost and time required down the line to adhere to new sustainability regulations. Although electric vehicles still cost 3% more on average than their diesel counterparts, there are other efforts fleets can make to cut down on emissions, such as improving truck aerodynamics and investing in detailed telematics tracking.  

 

 

 

Although it hasn’t been off to a steady start, many experts still believe that 2024 could be a turnaround year for the trucking industry with an uptick in the second half of the year. With breakthroughs in combating supply chain issues and moving the industry towards a more sustainable future, it’s possible that carriers could see positive growth and a larger return on investments by the end of 2024 and into 2025.  

 

For more information on evolving trends in the trucking industry and how to stay ahead of the curve when recruiting and retaining quality drivers, be sure to follow us on social media and stay up to date on our Employer Blog posts.  

4 Tips for Recruiting Truck Drivers

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If the ongoing  shortage of truck drivers  has made one thing clear, it’s that recruiting and retaining drivers is more important than ever. Hiring, training, and retaining dedicated drivers is crucial to finding success in today’s economy, and it all starts with the recruitment of the right candidates for the job.  

Struggling to attract talent or recruit them into your organization? Wondering how to meet the demands of the market and stay competitive in an ever-changing industry? These 4 tips are sure to help you set your organization up for success when recruiting truck drivers.  

  1. Make Your Marketing Driver-Centric

In today’s world, drivers look to the regular marketing channels to find information about prospective companies and fleets. This means that good recruitment strategies begin with strong marketing and carefully curated content.  

What kinds of content currently exist on the company website and social media pages? Information about how successful a company is won’t be of much interest to a potential employee. It’s important to highlight driver-centric content, or the kinds of benefits a driver can receive from your company.  

Ultimately, a driver wants to know that the company will treat their drivers with care and provide the benefits they are looking for.  

Highlight any wellness programs or culture initiatives that differentiate your company from the competition. Providing information on schedules, work-life balance, and fleet amenities can help drivers see how much you care. Including testimonials from current, satisfied employees builds trust and offers the real insight drivers are looking for.  

Remember, drivers are always wondering “what can they do for me?” Driver-centric marketing will leave no doubt in their mind that you’re the right company for them.  

  1. Target the Right Audience 

Before you start moving prospective drivers through the recruitment pipeline, you have to be sure you’re selecting from the best pool of candidates for the job.  

Many driving fleets have very specific needs and requirements that not all candidates are ideal for. Knowing how to target the right segment of candidates will make the process more efficient and effective.  

Databases allow you to select drivers based on driver type, years of experience, haul experience, geographical location, and other factors. Focusing on any of these segments early in the recruiting process can save you time and energy. It will also increase the overall effectiveness of the company. By not optimizing this stage of recruitment, you could potentially lose hours chasing leads which were never well suited for that particular fleet or job.  

If you don’t have an easy or effective way to browse data on prospective drivers, Drive My Way can help you target the specific segment of drivers needed for your particular situation.  

  1. Use the Latest Digital Recruiting Methods

Driver recruitment methods are constantly changing, so it’s important to stay up to date with the latest and most effective strategies. Social media continues to evolve as a tool, and drivers use these platforms to research companies, read comments, and evaluate employers. Since drivers are often on the road, they’ll use their mobile devices to search for job leads.  

When viewers like, follow, share, or comment on your content, it can increase the audience exponentially. But advertising job postings on social media channels isn’t enough to attract the talent you’re looking for.  

Post engaging content on your platforms which drivers will want to view. In addition, search engine optimization of your content will ensure that your website is receiving as much traffic as possible. Use software like Google Analytics and Google Keyword Planner to optimize your post by including trending phrases and words.  

Applications should be short and mobile-friendly to avoid any bottlenecking in the recruiting process. Drivers often don’t have enough time to fill out a long application, so a shorter version with only basic information required is best initially, with the option to complete the remaining components later.  

It’s helpful to stay on top of the latest digital tools for recruiting and analyze which strategies could be useful for your company.   

  1. Re-engage Old Leads

In the trucking industry, the unusually high turnover rate of drivers poses a unique challenge for recruiters.  

One of the best ways a recruiter can continually bring people into the pipeline is by re-engaging old leads or cold leads.  

Many drivers who could be a perfect fit but were previously unavailable or chose to drive for a different fleet might be available and looking for opportunities again. Leads and prospects that have gone cold or did not convert into driver status should not be forgotten. Instead, keep them in mind for the future and maintain a connection.  

Drip marketing, engaging content on blogs, social media, and newsletters are all great strategies to stay connected to old leads and assure that your fleet remains fresh on their minds when they’re considering a new employer.  

 

 

While driver recruiting in the trucking industry can be daunting, many of the unique challenges you face can be combated by these solutions. Master these four tips to experience recruiting as it should be: easy, effective, and rewarding.