By Dr. Yossi Sheffi, LinkedIn Influencer
A shortage of truck drivers has bedeviled the logistics industry for so long, that it’s difficult to imagine a time when filling driver vacancies was not a problem. What is also difficult to fathom is why simply paying these workers more is not a solution.
Based on the economics of supply and demand – when the former falls below the latter, prices tend to rise – if drivers are a scarce commodity, the market should adjust by increasing the price companies pay for this resource, thereby attracting more workers until the imbalance is corrected. Yet the American Trucking Associations estimate that the industry is short of 35,000 to 40,000 drivers.