Industry weighs in on Biden’s trucking action plan
Trade groups say recruiting, apprenticeship promises are a step in the right direction, but efforts fall short on addressing driver turnover and retention issues.
The logistics and transportation industry is weighing in with support for the Biden administration’s recently announced efforts to boost the truck driver workforce, but they say more solutions are needed to tackle the longstanding challenges that plague the industry.
The administration unveiled a plan last week to strengthen the country’s truck driver workforce as part of its broader effort to address supply chain challenges via the Supply Chain Disruptions Task Force, launched in June. The Trucking Action Plan includes four key elements: helping states reduce barriers to obtaining a commercial driver’s license (CDL); a 90-day challenge to increase the number of registered driver apprenticeships nationwide; military veteran-focused outreach and recruitment; and a “Driving Good Jobs” partnership between the Department of Transportation (DOT) and the Department of Labor (DOL) that will investigate industry challenges and identify longer term actions for addressing them.
Logistics industry trade groups praised the recruitment and apprenticeship efforts, but said more work is needed to address concerns such as driver retention issues and relief from some regulatory requirements.
Tom Madrecki, vice president of supply chain and logistics for the Consumer Brands Association, said in a December 16 statement that the group has “... long argued that supply chain bottlenecks do not end at the ports, and we are pleased to see that the administration is acting on common-sense solutions, like increasing truck driver recruitment efforts in a labor market that is 80,000 drivers short. We urge the administration to continue to work toward solutions, like establishing an 'air traffic control' system for ground transport and bringing more flexibility to truck weight requirements, to expand trucking capacity and allow the [consumer packaged goods] industry to reliably deliver the essentials consumers rely on every day.
“Solving the supply chain crisis will require dedicated attention from the federal government— attention that cannot wane after the holidays are over. We thank the Biden-Harris administration for its leadership and urge continued focus on the issues that will have the greatest impact on the availability of essential goods.”
Bill Sullivan, executive vice president of advocacy for the American Trucking Associations (ATA), emphasized the need for more apprenticeships throughout the industry.
“We are encouraged that the Biden Administration has not only recognized the importance of adding new and well-trained Americans to the trucking workforce, but has announced a path forward with what we believe will become a robust training opportunity for future commercial truck drivers,” he said in a press statement. “Using apprenticeships will help any American pursue a career in this great industry for good wages and benefits in a safe manner without the significant debt many jobseekers can sometimes incur.
“We applaud the Biden Administration for taking these important steps and we look forward to working with them to ensure a smooth and rapid implementation of the commitments made today.”
The Owner-Operator Independent Driver’s Association (OOIDA), which represents small businesses and professional truck drivers, homed in on the need for longer-term action and driver retention.
“There are some elements in the plan we support, including further analysis of driver compensation and unpaid detention time,” OOIDA President Tom Spencer said in a statement following the administration’s announcement. “However, the plan fails to address excessively high driver turnover rates. Attracting and training new drivers won’t solve the larger problem of retention. We need to create an environment where truckers can have long, safe and productive careers.”
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.