How the supply chain crisis is being solved:
Overall, the general freight trucking industry has about 940,600 drivers according to the Bureau of Labor Statistics’ preliminary data. That includes short and long-distance drivers, with the industry having added 40,000 more workers this year compared to the same period last year. However, Chris Spear, CEO of the American Trucking Industry, said that the industry needs another 80,000 drivers if it is going to meet consumer demand. “We are seeing unprecedented pay increases across the industry.
Walmart is creating a training program for prospective drivers and in some areas even paying for commercial driver’s licenses. There are already about 12,000 drivers in Walmart’s fleet, and Walmart is in a hiring mode for more drivers. Walmart said, “our transportation team will continue to grow with our business, and we will continue to invest in them along the way.”
Driver job concerns have changed in recent years. For instance, safety dropped as one of the driver’s main concerns, scheduling now ranks 11spot, and the #1 reason for leaving remains career growth. Workers are looking for positions that offer a path for promotions and opportunities for advancement in their careers.
High driver turnover and the overall shortage of drivers prompted Workstep to act. WorkStep raised $25 million in a Series B funding this past January to combat workforce shortage by transforming how enterprises hire and retain workers. Dan Johnston, co-founder and CEO of WorkStep, said to me: “Business cannot be successful without the right people on the frontlines – but for too long, workers were seen as dispensable. The pandemic changed things.
Johnston continued, “Without listening to employee feedback, many employers assumed it is all about pay. This is an expensive assumption to make. The number one reason for supply chain turnover is the lack of career growth. The most valuable part of my job is knowing that we don’t just help people find roles, we help them find a career where professional development is at the forefront.”We are living in uncertain times. Prices are rising as interest rates are being ratcheted up.
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