Fixing the Hauling Industry’s Truck Shortage
According to the American Trucking Association, there is a nationwide shortage of drivers – 78,000, in fact. And they estimate that this deficit could double by 2030. Adding trucks is not enough to fix the issue. Instead, we need to maximize the usage and efficiency of the finite resources we have. And can do it, with technology.
Today, we have access to technology and data that improve visibility within the construction industry. These efficiency improvements can reduce the bottlenecks in the supply chain, ease the burdens associated with project planning, and greatly reduce the waste associated with missed timelines. By implementing these technologies across the industry, we are now able to haul more efficiently with the trucks we have, cutting the reported driver shortage numbers in half.
Success hinges on the ability to organize independent owner-operators and ensure a stabilized workforce within the industry. But currently, single-owner operators are generally content with the status quo. There is enough work to go around, and they are making a living. But innovative companies within the industry are seeking new ways (beyond the typical brokerage model) to organize these independent owner-operators.
Here at NewMile, our partners are creating pipelines for owner-operators by showing the benefit of being a dedicated contractor under a unified lease agreement. Perks include premium levels of insurance at affordable costs, reduced fuel costs with discounts at the pump, discounted tire programs, and incentive/production-based pay. Most importantly, our partners provide the ability to continuously and consistently book great work thanks to their reputation for on-time project delivery, phenomenal customer service, and unmatched transparency. This is a fundamental element of the NewMile model. The key here is providing a way to organize and assist independent contractors.
Organizing these independents serves to increase revenue with the current cost structure of the market, and in turn, affects the bottom line with limited added operating costs (increased metrics like revenue/mile, revenue/day, etc.) while the cost/mile ratio stays linear.
This example only scratches the surface of how our NewMile partners can leverage our 60+ years of industry expertise to develop solutions to the industry issues everyone is facing.
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