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America's Trucker Shortage is about meeting consumers where it hurts



America's trucker shortage is about to hit consumers where it hurts: in the kitten.

McDonald's Corps Long-Term Percentage Martin-Brower Co. increases delivery fees and interferes with low menu prices and Procter & Gamble Co., Church & Dwight Co. and Hasbro Inc. preaches the alarm that higher shipping fees can be transferred to consumers of everything from Crest toothpaste to Arm & Hammer cat litter to My Little Pony characters. And that's all because transport companies can't find drivers.

"Millennials, they won't drive trucks," said Darren Tristano, CEO and founder of Consultant Foodservice Results. "They look at this and say," I'll be in something more glamorous, more tech-oriented. ""

America simply does not have enough truck drivers to deliver all its people buy. It's not new, but many dealers feel right now when annual freight contracts are renewed. It has trucking companies scrambling to find ways to keep costs down. And it has Michael Norwich counting every penny and quarter, when he is considering the $ 4.99 combo meal, whose award is dictated at Jack in the Box Inc. headquarters.

Long-term edition

"Distribution costs are great," said Norwich, who owns 1

4 of the fast-food restaurants in El Paso, Texas, and Las Cruces, New Mexico. "I scratch my head and try to figure out how $ 4.99 is going to work."

The driver's shortage is a long-term problem that is going to get worse and it will cost consumers money, said Lee Klaskow. Bloomberg Intelligence analyst. Payment holes for drivers have not moved the needle much. Autonomous trucks are still far away. And while lawmakers succeeded in lowering the minimum age for long-distance drivers to 18 from 21, as anyone suggests, it would not help much. Insurance for young drivers will be sky-high, making it a difficult job most people would avoid, he said.

More women

The truck industry is also trying to recruit more women, which today constitute a small fraction of the employee.

Drivers who own their own trucks and pay their own expenses can pay a gross salary of up to $ 250,000 a year and receive a $ 5000 recruitment bonus by joining JB Hunt Transport Services Inc., according to the company's website. Trucking giant also announces long-distance jobs that pay $ 65,000 a year plus a $ 2,500 recruitment bonus, requiring only three months of experience and promising little shipping lift.

"It's still hard to find good quality drivers," executive vice president Nicholas Hobbs said in January.

Trying Rail

Businesses are trying to push down costs by using software to optimize routes and move some cargo to rail. While cheaper, these prices have risen and not as flexible as having a driving trip point.

Nevertheless, it is difficult to keep prices down. Tariffs increase the price of truck parts coming from China and imported aluminum and steel. Fuel increases also have effect.

The retail chains are also trying to cut shipping costs wherever they can. TJX Cos. S HomeGoods furniture chain said Wednesday that "increased pressure from freight" weighs on margin. It opens multiple distribution sites in the United States to reduce assembly costs.

Then is Hasbro, who is planning to open a new hub in Joliet, Illinois, after the shipping costs increased in 2018.

Procter & Gamble, maker of Tide detergent and Pampers diapers, also feels the heat. The company recently owed a 25 percent jump in transportation costs to reduce margins. P & G raised prices last year on some products, saying it is still too early to reveal the pricing strategy for 2019.

Overcome & # 39; Headwinds & # 39;

Higher transport costs are "headwinds that we must overcome," Church & Dwight CEO Richard Dierker said on February 21. The company identified a bright side to the jump in truck transport costs. Competitors also increase prices.

Walmart Inc., which has its own 6,500 lorry fleet, offered $ 1500 referral bonuses last year and shortened the hiring process to attract more drivers.

For Amazon.com Inc., shipping costs consistently exceed net sales growth. The company is trying to find cheaper ways to deliver packages, or it may have to hike prices. It has already raised its annual premium membership fee by 20 percent to $ 120 last year, the first hike since 2014.

And then there is McDonald's menu. Martin-Brower sends to 12,372 restaurants in the US and 20,208 globally, so the increase in higher fees is widespread. Because much of McDonald's menu is priced at the company's headquarters and reinforced by a national advertising campaign, the franchises look for places they have room to set their own prices and $ 1 drinks are candidates.

"We must be able to pass these increases with our customers," said a group of McDonald's franchisees in a February 27 website entry. "The bottom line is that their costs are going up and that's ours."


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