According to new research from Newmark, "Transit(ion): Trucking Sector Trends May Impact Warehouse Location Decisions," the latest trends in the domestic trucking industry are impacting how industrial occupiers choose regions and sites for distribution and logistics facilities.
The domestic trucking industry transports nearly 75% of U.S. freight by tonnage, and now it is grappling with challenges contributing to ongoing supply chain instability, according to Antenna's news release.
The trucking industry is facing labor and retention complications due to various factors, including:
- Truck drivers spend approximately an hour a day trying to locate parking,
- The median age of labor in the sector is 5 years above average at 46.6 years old, and
- Women make up only 6.9% of the labor force in the sector, significantly lower than the 47.5% average across all industries
Another takeaway from the report is that, in order to meet ESG goals, the industry is shifting to electric vehicle (EV) trucking. This could subsequently help bolster the labor force, according to Newmark. In coming years, EV trucks will likely have an average range near 250 miles. The charging and mileage limitations could appeal to younger workers, who have a preference for shorter hauls.
The other trend impacting supply chain and industrial development is spending. Two years of elevated consumer spending has led to higher demand for truckers, which exacerbated industry churn. The turnover dramatically increased as drivers took advantage of increased pay, signing bonuses, or established their own businesses, according to Newmark's report.