<p>
	Companies today are in various states of survival from reorganization to growth.&nbsp; The trucking industry is not different in this respect, however the pending issues regarding regulatory changes, truck driver shortages and tightening capacity has been adding to the list of items that may have an extreme impact on how we purchase transportation in the future.</p>
<p>
	Here are some facts from a recent conference call I attended hosted by the prestigious <strong>Stifel Nicolaus Transportation &amp; Logistics&nbsp;Research Group</strong>&nbsp;that clearly shows where things are going regarding this key ingredient in the supply chain&hellip;the Driver!</p>
<ul>
	<li>
		Driver supply diminished during the past several years.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		Roughly 25% of the driver workforce has been eliminated from the industry during the past 10 years as a result of demographic and health issues.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		The Federal Motor Carrier Safety Administration&rsquo;s (FMCSA) Compliance, Safety, Accountability (CSA) program will likely reduce the size of the existing driver pool by about 2%.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		The revamped Hours-of-Service rules are now expected to be issued in late October 2011 and could cut the productivity of the CSA compliant drivers by up to 15%.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		Replacing the urinalysis method of drug testing with hair follicle testing could eliminate another 10% to 15% of drivers from the driver pool.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		Carriers will need to take action in order to keep their trucks filled with CSA compliant, drug free drivers.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		The driver shortage currently seems worse in the Northeast and Midwest.</li>
</ul>
<p>
	&nbsp;</p>
<ul>
	<li>
		Driver pay generally plateaued in 2006 and 2007 before dropping in 2008 and 2009.</li>
</ul>
<p>
	&nbsp;</p>
<p>
	The question isn&rsquo;t if but rather when?&nbsp;&nbsp; As shippers and transportation professionals we need to continually look for ways to support and encourage our transportation provider partners to recapitalize while at the same time negotiate fair agreements that will support our individual businesses during these times of change.</p>
<p>
	As always, we appreciate your thoughts and feedback! &nbsp;</p>
