SAN DIEGO — Along with soaring fuel costs and the prospect of a slowing economy, executives of small trucking companies now have to contend with something that has plagued their larger competitors; namely, driver turnover.
A just-completed American Trucking Associations survey on driver compensation indicates that smaller carriers have largely lost their historical edge in retaining drivers.
“Larger carriers are paying more and increasing wages faster than smaller carriers,” said ATA Chief Economist Bob Costello in a presentation at a breakfast meeting of the Small Carrier Advisory Committee here Oct. 29.
As a result, driver turnover among smaller carriers — defined by Costello as companies with annual revenue of under $30 million — is now on par with larger fleets.
Traditionally, small carriers have been able to overcome wage differences by offering drivers more of a “family” atmosphere, but that is no longer the case and turnover is near 100% in both segments of the industry, Costello said.
TT Reporter Jennifer Botchie contributed to this article.
