Trucking Industry Analysis Paper

Daniel Heski
Analysis Paper
11/24/2015
ECO 222
The Trucking Industry’s Savior: Autonomous Trucks The commercial trucking industry is arguably one of the most important players in the U.S. economy. Each year, it moves over 70% of all goods transported within the nation (“Reports, Trends & Statistics”). If not for the truckers, the majority of the businesses throughout America would not be able to function. Today, the trucking industry is faced with some of the most challenging issues that the U.S. economy has ever encountered. If not solved with haste, the shortage of drivers and the rising volume of goods needed to be moved around the country is potentially disastrous for the U.S. economy. To begin, it is important to outline the potential
is one of the two main issues which the commercial trucking industry is currently faced with. Unfortunately, there is no solution to this part of the problem—the 9.2 billion tons of freight being moved by truck across the country, and the estimated 9 billion additional tons which will be added by 2040 cannot be reduced in any way (“GROW AMERICA...”;Costello). What can be fixed, however, is the second part of the trucking industry’s dilemma—the shortage of laborers. The shortage of truck drivers is considered by many as the dominant problem faced by the trucking industry. As of 2015, it is estimated that the current shortage of truckers is around 35,000 to 40,000 persons (Chao). In addition to the shortage, the 95% turnover rate for small truck companies is also very alarming. If the percentage of employees leaving the workforce remains this high, it is estimated that by 2024, the U.S. will have a shortage of around 175,000 drivers (see fig. 1)
This automation is a type of creative destruction, in which laborers are replaced with autonomous machines. Automation is a concept which is already being applied to the trucking industry. At present, there are already automated trucks being tested on our roads. Freightliner Trucks, a subsidiary of the German company Daimler, is currently testing a Level 3 self driving truck (Howard). Level 3, or Limited Self-Driving Automation, is a type of vehicle in which the driver cedes all control to the automobile but is still expected to occasionally control the car manually (Howard). While the current technology is still years away from a Level 4, Full Self-Driving Automated Vehicle, the automated trucking industry is heading on the path towards a Level 4 vehicle which requires no manual control by a