The Effect of the Trucking Shortage

 



As the economy reopens post-pandemic and e-commerce grows at a record pace, there is an unexpected concern voiced by nearly everyone in the building and materials industry - the nationwide truck driver storage. 

 

According to the American Trucking Association, there is a shortage of nearly 50,000 truckers in the United States. What does this mean for the industry and consumers? For manufacturers, suppliers, and installers, it means that material costs will rise, and delays will become the exception rather than the norm. For the consumer, it means installation and labor costs will likely increase, and you may have to wait longer to get your new windows. 

 

Why is the truck driver shortage happening?

Three main factors are causing this crisis are:

  • The average age of truck drivers is increasing. This means many drivers are retiring or soon-to-be retiring. There aren’t enough younger people interested in truck driving as a career, thus there aren't enough drivers to replace those aging out of the industry. Additionally, only two percent of applicants for long-haul driving positions are qualified for the job. 

  • The United States is emerging from the Great Recession. The Great Recession of 2020 was the worst recession since the Great Depression in 1929. However, in the first quarter of 2021, the demand for products and materials is increasing rapidly in many sectors. This increase in demand leads to two issues:

  • Job seekers have more options to choose from - many of which pay the same (or more) as trucking while offering a more comfortable work-life balance. 

  • Existing truck drivers have more product to transport than ever before, with the added consumer expectation to get materials to be delivered quickly. 

  • Increase in online shopping. Online sales have increased by 500 percent since 1995, and that trend is expected to continue. As a result, there is a need for more truckers to not only deliver from the warehouse to big-box stores such as Target and Home Depot but also to accommodate deliveries from distribution centers (i.e. Amazon) directly to the consumer. With drivers hauling more products for online shopping retailers, it means fewer drivers available to haul goods and materials for the building industry. 

 

How does the shortage affect the building materials industry?

The main way the truck driver shortage has impacted the industry is the increased cost of operation. According to American Trucker, truck driving income per mile increased by 15 percent in 2017. Freight charges are another cost that cannot be avoided or decreased. To stay in business, materials suppliers need to pass some of the costs on to the consumer. However, increased costs are not limited to the building materials industry; online services including Amazon Prime have increased fees to cover their costs. 

 

Nationally, builders and materials suppliers are already experiencing delayed deliveries. Since there aren’t enough drivers to haul materials, it translates to higher costs since slowdowns and work stoppages cost builders and suppliers time and money. Unfortunately, shipping delays are expected to continue in the future. Recent reports state the trucker shortage is expected to increase by 174,000 by 2026. This means shipping costs will remain high, and suppliers could be fighting over trucks to transport product and materials. Building materials manufacturers could struggle to get materials - including windows, doors, and siding - delivered to the consumer. 

 

At The Window Depot, we are the home improvement experts in the Tampa Bay area. We provide homeowners with remodeling products sourced from top manufacturers in the industry, including Florida-based PGT Windows. Call us at (813) 901-5555 or fill out our contact form to schedule an appointment or learn more about our products and services. You can also visit our showroom in Palm Harbor to view our windows firsthand.


Sources 

https://www.joc.com/trucking-logistics/labor/us-truck-driver-shortfall-steeper-expected_20201125.html 

https://www.smart-trucking.com/truck-driver-shortage/ 

https://www.npr.org/sections/money/2021/05/25/999784202/is-there-really-a-truck-driver-shortage 

https://www.foxbusiness.com/economy/trucking-industry-facing-driver-shortage
Location: 4154 Corporate Ct, Palm Harbor, FL 34683, USA

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