Trucking, Major Customer Groups Prosper

SAN DIEGO — Demand for trucking services is strong, hauling capacity is tight, and three of the industry’s major customer segments all said they’re doing well, according to a discussion here among business economists.

All four economists were far from dismal at the American Trucking Associations event, although ATA’s Bob Costello did report acceleration in driver turnover. He also urged carrier managers to watch their bottom lines and make sure that expenses don’t grow more rapidly than revenue.

Economists representing manufacturing and the oil and gas industries were more optimistic than the retail analyst. Retail sales, said Jack Kleinhenz of the National Retail Federation, should still grow — but by not as much as the other two groups.

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John Felmy of the American Petroleum Institute said his sector is booming because of American production of oil and gas due to hydraulic fracturing, or “fracking.” Chad Moutray of the National Association of Manufacturers said his members are benefitting from abundant energy and are doing more work in North America.

The economists spoke at ATA’s Management Conference & Exhibition here on Oct. 6.

Costello said both the truckload and less-than-truckload sectors are growing in terms of freight hauled and revenue. Driver turnover, though, is on the rise to nearly 100% a year.

Costello said the industry could use 35,000 more drivers now and that each year about 96,000 drivers leave the industry, largely through retirement.