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Recruit and Retain Truck Drivers with Freight Factoring

Accutrac Capital 13-Mar-2017 0 Comments Permalink

Now is a great time for a younger generation to start their careers as professional truck drivers. The North American economies continue to grow and freight volumes are on the increase. The era of volatility that followed the Great Recession of 2009 is now transitioning into a projected period of sustained growth for the industry following a false start in 2016. Last year began with surprisingly weak demand on capacity, but by mid 2016 a steady climb began in the load-to-truck ratios for vans, flatbeds and reefers. Industry analysts agree that 2017 is the beginning of a long stretch of growing demand on capacity that will stretch well beyond 2022.

This is good news for an industry that has battled with historically low freight volumes, diminishing rates, slim margins and increasing government regulations over the past eight years. Most trucking companies have had a huge challenge to remain profitable during this difficult era. With market trends now turning in favor of trucking companies, they are in a stronger position to sustain profitability and support stable employment conditions. To combat the ever present driver shortage, freight carriers need financial stability to recruit and retain professional drivers. Freight Factoring provides the financial stability of uninterrupted cash flow.

Put more Operators in the Driver's Seat

Freight transportation employs one of the largest workforce on the continent, yet the trucking industry is suffering a massive driver shortage that continues to grow. Analysts are predicting that the shortage will only grow as the years progress. At present, the average age of a truck driver is about 49 years old. As an aging workforce reaches retirement, the driver shortage is expected to grow dramatically. This places tremendous pressure on trucking companies to put more licensed operators in the driver seat.

To recruit and retain qualified professional drivers, trucking companies are starting to implement various strategies:

  • Improved home time
  • Safe driver/performance related incentives
  • Attractive driver benefits
  • More 1st year advancement opportunities

Industry wide implementation of these improvements in benefits and incentives will certainly result in a higher quality of life for professional drivers. In order to sustain a work environment that supports these employment conditions, a trucking company needs reliable access to working capital.

Ensure Steady and Reliable Wages

A qualified truck driver is in the envious position of being a sought after professional. Many trucking companies will compete for their employment by offering varied incentive packages. Qualified drivers have the envious ability to choose from a number of trucking companies to work for. These drivers choose carefully, selecting an employer that provides the best working conditions to meet their personal needs and the financial stability to ensure steady and reliable wages.

Let’s face it, drivers work for a living. If a freight carrier provides excellent driver benefits and a great working environment, but struggles to meet payroll, it’s probably not the best trucking company to attract and retain a viable driver pool. Trucking is a capital intense industry. To keep freight moving, a trucking company needs daily access to working capital. Without a financial strategy to manage cash flow, many carriers will inevitably run short of available funds, forcing a disruption of fleet operations. This not only limits revenue generation, it also negatively impacts the earned income of your drivers. 

Cash Flow Management Strategy Options

A paycheck is a promise, make sure that your drivers are paid accurately and on time. Cash flow management can be a tough balancing act for smaller trucking companies who struggle simply to make payroll, let alone compete with the wages and benefits offered by larger companies. To make sure that you always make good on your payroll promise, have a financial strategy in place. Typical cash flow management strategy options include a commercial operating line-of-credit, private investor backing or a factoring agreement with a freight factoring company.

Other than the driver’s health and personal happiness, there is little more disruptive to their wellbeing than an employer who fails to meet salary obligations. Be a good employer by having the financial stability to promise and deliver a supportive work environment with fair and dependable wages.

For more information about invoice factoring, please visit www.accutraccapital.com

 

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