Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
The trucking industry is short 80,000 drivers, and if economic pressures and a host of other challenges persist, that number may rise to 160,000 by 2030, according to the American Trucking Associations (ATA), which released its 2021 Driver Shortage Update Monday.
Long-held trucking industry challenges such as lifestyle issues, driver pay, high turnover, and difficulty attracting younger workers and women have combined with pandemic-related challenges to drive up the number of needed drivers. This year’s figure is up from a high of 61,000 in 2018. Levels had fallen in 2019 and began to climb again in 2020, according to ATA Chief Economist Bob Costello.
“Since we last released an estimate of the shortage, there has been tremendous pressure on the driver pool,” Costello said in a statement. “Increased demand for freight, pandemic-related challenges from early retirements, closed driving schools and DMVs, and other pressures are really pushing up demand for drivers and, subsequently, the shortage.”
In a press conference Monday Costello said there is no single solution to the problem and that the trucking industry, shippers, and government all play a role in addressing the issue.
“Supply chain problems of today are a glimpse into our future if we do not fix this,” he said, pointing to delays, disruptions, and product shortages that have slowed supply lines over the past year.
ATA has been tracking what it terms an industry-wide driver shortage since 2005. The 80,000 figure is the difference between the number of drivers currently in the market and the optimal number of drivers based on freight demand. ATA says it uses demographic driver data, population growth by age data, tractor counts, and projected economic and industry growth information to model and forecast the truck driver shortage.
Attracting younger workers via the Drive Safe Act—an industry recruiting and training initiative that is included in the infrastructure bill being debated in Washington—as well as finding ways to attract more women to the industry and addressing lifestyle issues in the long-haul sector are key points, Costello said. Driver retirements are fueling the need for replacements, the report shows, and less than 7% of the industry’s workforce is made up of women.
Other issues include the need to address infrastructure problems—including a lack of truck parking spots which can cause drivers to stop driving earlier in the day than they need to so they can get a spot for the night, and congestion, which limits drivers’ ability to safely and efficiently make deliveries.
The Federal Motor Carrier Safety Administration’s (FMCSA) drug and alcohol clearinghouse is also having an effect, by removing drivers who fail the federally mandated drug testing. Costello said many of those drivers are “not even attempting the return-to-duty process” that is part of the clearinghouse, a program he said ATA supports but that is nevertheless tightening driver supply.
In addition to industry and government efforts to improve pay, working conditions, and infrastructure, Costello said shippers can help by working to improve turn times and keeping wait times to a minimum—steps that can help keep trucks moving so they can haul more freight.
“Because [there] are a number of factors driving the shortage, we have to take a number of different approaches,” Costello said. “The industry is raising pay at five times the historic average, but this isn’t just a pay issue. We have an aging workforce, a workforce that is overwhelmingly male, and finding ways to address those issues is key to narrowing the shortage.”
As part of the 2021 study, ATA estimates that over the next decade, the industry will have to recruit nearly 1 million new drivers into the industry to replace retiring drivers, drivers that leave voluntarily or involuntarily, as well as additional drivers needed for industry growth.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."