Driver Shortage - Is History Repeating Itself?... Again?

Last year RV transporters were pulling out of yards with a units that had already been on the transport company's lot in the range of a month or more, especially if they were headed North across the border (see March 2010 RV Business article "RV Transporters Cope with Driver Shortage" where Classic Transport reported having a 6 week backlog).

All transporter companies were in about the same shape, plus or minus a couple of days, because the manufacturers were self regulating dispatches based on which transporter was the least number of days out in addition to which ones could get a hot unit delivered first.

If that sounds familiar, one only needs to look back to May of 2007 to an RV Business article outlining the same situation, but for different reasons according to the transport companies ("RV Transport Firms Encounter Driver Shortage").  In that article, the source stems from the tidal wave of new drivers to the industry in order to move the Katrina FEMA units (you all remember those don't you - money through the nose with DOT waivers for all applicable regulations... that may be a slight exaggeration, but you remember).

After the FEMA units dried up, there was the natural decline of the industry in the second half of the year which spread the units too thin across the over-abundance of drivers leaving many with only one option - get out of the RV transport business.

In 2007 the RV transport companies realized they were in the midst of an unexpected driver shortage, but not in time to affect change.  In addition to laying some blame on the inability to support a large enough base of drivers during the slow period, there was also the aspect of fuel costs.  The manufactures were slow to respond to the rising cost of fuel which resulted in the inability of drivers to operate profitably.

Quality Drive Away - Why They Restructured

As midnight, January 1^st brought cheers of “Happy New Year” from around the world, it also brought new life to a local icon in the world of RV Transport.

Quality Drive Away, Inc. announced a restructuring of the two companies, including Baker Transport out of Fitzgerald, GA, that would change leadership and segregate duties. As of January 1^st, 2011 Quality Drive Away will encompass the motorized freight while a new entity, Foremost Transport, Inc will encompass all other freight (see article in RV Business).

In most circumstances, there are three reasons for such a restructuring:

1. Legal (regulatory, shielding liability… etc)
2. Accounting (taxes, financing…etc)
3. Succession Planning
   

Driver Shortage - What Will it Mean for You?

The RV industry is showing signs of another year-over-year improvement with anticipated volume growth in 2011 (Wall Street Journal).  The final step in getting units to the dealers is just as important as any other when it comes right down to it.  If all else comes off without a hitch, RV transport companies do not want to be the bottleneck that breaks the system.

Looking at the transportation industry prognostications for 2011, I fear that is exactly what is going to happen.

Driver shortages are being predicted in the "truck driving" industry - generally referring to Heavy Duty

What is Fueling the Fire? – Diesel Prices on the Rise

Diesel fuel is almost $0.50 per gallon higher December this year over last. That is nationally as well as by region across the country (U.S. Energy Information Administration). The first question is always, “What does that mean for you?” while the second question inevitably comes… “Why the increase?”

The answer to the first question is simple – whoever bears the cost of the changing commodity comes out on the short end of the stick. As they say, $%@# flows downhill, so the majority (but not all) of the time it is the driver or carrier as they are at the end of the food chain. There is, however, a wide range of debate over the answer to the second question of “why”.

One consistent message being reported around the world is “distribution margin increases”. This is the easiest to understand. The price goes up so the distributors can put more money in their pockets. This is in addition to the price per barrel cost increases, so now we conclude that there are multiple components to the answer (no great surprise).

The message here in the US is that the ban on drilling in the Gulf of Mexico by President Obama has weakened our domestic supply resulting in the cost per barrel

Tis the Season! (to start the dreaded RV cycle again)

Here we are again, approaching the holiday season and the time of year that brings uncertainty to the RV world.  Lake effect snow, chain laws, road closings, bridge closings, wash fee changes (Dealer: "I know I told you to pay the wash fee instead of washing the unit, but the unit shouldn't be dirty either!").


It is the beginning of the winter season and all that comes with it.


What comes with it, you ask?  Well - that all depends on your perspective.


The manufacturers are preparing for the year-end push, if it isn't already underway.  This is that great time of year when everyone from sales coordinators through company Presidents are doing all they can to get the dealers to open