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Truck driver shortage has economic implications

A new study concludes that a gap between the supply and demand of transport drivers could reach as high as 33,000 by 2020.
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A shortage of truck drivers could have a profound effect on the economy by the year 2020.

A new study concludes that a gap between the supply and demand of transport drivers could reach as high as 33,000 by 2020.

The Conference Board of Canada report – Understanding the Truck Driver Supply and Demand Gap and Its Implications for the Canadian Economy – states that the age of the average truck driver is now higher than the age of the average worker in Canada. The truck driver's average age has increased from 40 in 1996 to 44 years in 2006, mostly due to a decreasing participation of young people in the industry over the past decade.

“The food we eat, the goods that we enjoy and even the homes we live in are in large part delivered by trucks. The inability to meet a huge demand for drivers could be costly for the trucking industry, consumer goods and the Canadian economy," said Vijay Gill, principal research associate, in a press release.

The trucking industry moves 90 per cent of all consumer products and food within Canada and 60 per cent of trade with the United States, Canada's largest trading partner, according to the Ontario Trucking Association (OTA). It alone accounts for 33 per cent of real gross domestic product (GDP) in the transportation sector.

Most of the demand for truck transport services is tied to the manufacturing, retail and wholesale trade industries. Demand for goods and services from retail industries is expected to grow significantly by 2020. The trucking industry's real GDP is expected to increase from $17 billion in 2011 to $21.4 billion.

While truck drivers make up nearly 1.5 per cent of the Canadian labour force — approximately 300,000 truck drivers overall — it struggles to attract drivers to the for-hire industry. The for-hire industry is comprised of companies that provide truck transportation services to other companies. Drivers in the for-hire industry are often required to work long hours, over long distances, and with unpredictable schedules.

“We are already seeing a driver shortage,” said Marco Beghetto, VP of communications and new media with the OTA.

“Part of problem is that it is not recognized as a skilled trade. The OTA has been talking with government and with some stakeholders about having some sort of accreditation or certification for truck drivers, and be recognized as a skilled trade or have some apprentice-like program attached to it.”

The profession has a hard time attracting young people to the industry because it is labour intensive and can require time away from home.

“The younger generation values time at home immensely. They value their time and they don’t do things the way the older drivers did, like extra duties, which they want to be paid for,” said Beghetto. “It’s a different mentality and work ethic and the industry is slow to act on that and it has to by starting to put more emphasis on lifestyle. Pay is not so much an issue as lifestyle, such as getting people home on time.”

The Day Group’s transportation division, based in Sudbury, has been experiencing a driver shortage for the last few years.

“It’s a struggle to get qualified people. It’s not seen as a prestigious job anymore, but to be a truck driver now you need to know log books, computers, trucks and weights,” said Kevin Eady, operational controller.

He agrees that making truck driving a skilled trade would be beneficial, but the company competes with the mines in securing labour.

“We have a standing order for 15 to 20 drivers. We will take DZ drivers and help them get their AZ to become transport drivers,” he said.

The 5th Wheel Training Institute, based in Haileybury, has noticed over the past two years that the mining sector in the North has a demand for truck drivers. There have also been “rumblings” that the forest industry may have a need once more for long-haul drivers.

“Regular mainstream transportation companies are coming back to the school over the last year and a half to recruit for drivers. When they don’t call or come around, they don’t need you,” said Ed Popkie, president and executive director.

“Our grads are getting jobs. The ones who have a good driving record and are not afraid of being away from home have multiple job offers.”

John Beaudry, president of Transport Training Centre of Canada, said the first shortage of drivers was in the long-haul trucking business.

“That profession means you spend a lot of time away from home, but it is also lucrative. However, not everyone has a desire to do that because of other commitments,” he said.

The centre, which is based in Sudbury, offers training throughout the province and in Atlantic Canada. He said every year the institute’s truck driver graduates seem to be presented with more and more opportunities.

“The companies are getting more and more aggressive as they try to recruit,” Beaudry said. “The recruiters of the long-haul trucking companies play one of the most important roles for the carrier. There are lots of opportunities to haul freight and lots of equipment available, but the availability of drivers is an issue.”

www.ontruck.org

www.daygroup.ca

www.ttcc.ca

www.5thwheeltraining.ca