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5 Creative Ways to Save Your Small Trucking Business In A Challenging Industry

American trucking companies are responsible for 71% of all the freight moved in the US. Trucking.org reports there were upwards of 50,000 unfilled jobs in the Industry in 2017 alone. Small Business Trends spoke with Brian Fielkow, CEO of Jetco Delivery, about what he sees as the solutions to this critical persistent gap. “The trucking industry is marked by an average Driver turnover rate of 100% every year,” Fielkow says. “It’s very hard to build a service model and culture with those types of numbers.” Truck Driver Shortage Solutions Change Payment Structure for Drivers He goes on to say that drivers as a group are underpaid and their wages haven’t kept up with the usual benchmarks like cost of living. There are other inconsistencies like the fact some drivers are paid by the mile — great if you’re driving through Montana but not so much when you’re a driver delivering loads in NYC, Chicago or Houston where you cant wrack the miles up. Fielkow summed up the issues facing this all-important industry this way. “What we need to do is attack the old compensation models,” he says suggesting that implementing minimums and/or providing an hourly wage could stop the driver drain. Seek Ways to Deal With Fluctuating Demand “You can still pay drivers on variable factors like per mile or percentage of the load, but you need to have minimums in place so drivers know they’re going to take home at least a certain amount every week.” While Fielkow stresses employers need to implement these changes, he concedes it can be an uphill battle in an industry where demand fluctuates often. Have Candid Conversations with Customers “Everything involves candid conversations with your customers because you can’t change driver’s compensation without changing rates,” he says adding another part of the problem lies in the fact the industry is so fragmented. Everything leads down the same road to what Fielkow calls a driver capacity issue. If the industry doesn’t solve this, goods won’t get to market. Improve the Work Culture Jetco Delivery has put Fielkow’s words into action. They’ve raised wages and…



This post first appeared on GeorgMedia Internet Marketing News & Resources, please read the originial post: here

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5 Creative Ways to Save Your Small Trucking Business In A Challenging Industry

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