Becoming A Truck Driver Part 4: Trucking In A Bad Economy (maybe even a recession)

When the economy slows and companies cut back, many people are either laid-off, lose their jobs, or are forced into pay cuts. Changing careers is a common consideration when times get tough. What about becoming a truck driver during a bad economy? Is it a good idea? Will it be tough finding a job? What about everything you hear on TV about trucker’s strikes and trucking companies going bankrupt from the high fuel prices? Wouldn’t this be a terrible time to get into trucking? Absolutely not! Now is as good a time as any.

Most trucking companies are hiring all the time. It’s a year-round endeavor, especially for the larger companies. And even in a slow economy there are still mountains of freight to be moved.  Getting a job in a slow economy isn’t any more difficult for a student coming out of trucking school than when the economy is rolling strong. In fact, some would argue it may be even easier.

There are several tactics that the larger trucking companies can take when the freight slows that could help new drivers getting into the industry.  For one, the larger companies have more pull. They buy larger quantities of fuel and haul larger quantities of freight so when it comes to negotiating fuel prices with their fuel suppliers and freight prices with their customers, the larger companies have better success passing on the higher fuel costs. So their operations remain rather strong.

Another tactic they use is to increase their customer base. How do you do that with a slow economy? Well, the larger companies have better finances behind them. They can afford to operate at a loss if need be for much longer than a smaller company. So to gain new customers they can offer lower shipping rates for a period of time in exchange for a new long-term contract with the shipper.  It may hurt them a bit in the short run, but in the long run they make out well.

A third tactic they use it to try to reduce their costs – especially fuel, tires, and payroll. How does that help a new driver to the industry? Because drivers coming out of school make less money than experienced drivers. So when hiring new drivers, many companies will try to bring in a larger percentage of students from trucking schools than they would during better times.

Now what if you’re interested in working for a smaller company? Well, during slower times the smaller companies are often hurting pretty bad and may or may not be hiring. But to be honest, if you’re new to the industry I wouldn’t shy away from the larger companies. They have larger staffs, better finances behind them, and more freight opportunities than the smaller companies. Besides, you’re looking to start a new career so don’t get too many ideas in your head about which companies you’d like to work for or not.  Until you’ve been out there you don’t really know whats going on. Get your schooling done, take a job with a well-established company, give em your best for one year, and then decide if you belong somewhere else. After a year in the industry you’ll know a lot more about what you’re looking for than you do now, and you’ll pretty much be able to work for any company you’d like to work for. Pay your dues and then reap the rewards.

What about the possible strikes you’re always hearing about on TV? You can totally ignore that. Those are the owner-operators that are always talking strike, not the companies. The trucking companies love when owner-operators talk about striking and shutting down. For one, it brings attention to the high fuel prices in the industry which makes it easier for the companies to negotiate new shipping rates with their customers without cutting back on their services in the process. Secondly, if the owner-operators stop hauling the freight it gives the companies even more opportunities to get new contracts by keeping the freight moving for shippers that are affected by striking owner-operators.  So when it comes to trucker’s strikes, completely ignore it – it won’t affect a company driver at all.

And in case you’re new to my blog or havent read my book, let me be very, very clear about something – do not even consider buying your own truck after getting out of trucking school. In my opinion you’ve got to be out of your mind to ever consider becoming an owner-operator, but if you’ve got it in your mind to do so, be a company driver for a minimum of one year before doing so. That will give you time to learn a lot about the industry and most importantly a chance to talk with dozens of owner-operators in the truck stops and on the docks. Many won’t be honest with you about their finances – they are either ashamed or trying to make themselves look like they’re doing great, but some will. Listen closely to what they’re telling you – it’s no picnic, and many never break even. It’s generally a losing battle from day one. If you think I’m wrong, ask yourself this: Would I open up a tiny department store next to a Wal-Mart? Well, that’s what you’re considering doing if you’re going to buy your own truck. You’re going to compete against huge companies with piles of new trucks, mountains of salespeople, and tons of negotiating leverage. You’re going to pay full price for fuel, tires, and repairs – and they wont. Sure, some owner-operator companies can get you slight discounts, but believe me it’s an uphill battle all the way. Since you’re new to the industry, get the owner-operator idea out of your head for the time being. Stay focused on learning to handle those rigs and establishing yourself in the industry.

So if you’re considering a career change, now is as good a time as any to get into the trucking industry. Don’t hesitate. Stop watching the news channels – it’s their job to scare people into watching. Instead, listen to someone who has been in the industry for over 15 years – call your local trucking school and get out there. Now’s a great time to do it!

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~ by Brett Aquila on May 9, 2008.