Fall 2016 issue of Horizons

TRANSPORTATION & DEALERSHIPS

Fast Times for Transportation Companies by Kendrick Coleman, CPA & Lindsey Priebe, CPA

T here’s good news and bad news in the transportation sector. The transportation industry experienced record-breaking increases in shipments, higher demand and lower energy costs in 2015, which enabled companies to have a much stronger bottom line. In fact, according to the American Trucking Association (ATA), trucking companies are accounting for 81.0% of the revenue in the shipping sector. On a more somber front, driver shortage continues to be a major concern within the industry thanks to a diminishing talent pool, and exacerbated by an increasing number of retiring drivers. Additionally, many individuals apply for positions with trucking companies are not qualified and do not meet the standards set forth by either the companies or the industry as a whole.

Research conducted by the ATA discovered that 88.0% of transporters polled found that most of their driver applicants were not qualified for the open positions. Therefore, trucking companies are competing with each other to hire and retain from a limited talent pool. Self-Driving Trucks: A New Reality? Another economic issue in the trucking industry is the emergence of self-driving trucks. While there are society perceptions and regulatory hurdles to overcome, industry experts feel self-driving trucks are going to be a reality in the years to come. Self-driving trucks will not be replacing drivers, but rather aiding in the driver shortage by helping make the profession appealing to younger generations in the workforce and reducing driver fatigue.

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