At the moment we are receiving two very different messages from members.
On one had we are experiencing a shortage of skilled drivers, yet on the other hand many transport and logistics businesses are experiencing very tough times including layoffs.
WA Economy is Tough
WA’s economy is not good at the moment, it has one of the highest unemployment rates in the country. Even the fall in April 19 figures have been put down to people actually leaving the workforce rather than new jobs being created. House prices are $100,000 lower than at the peak according to Corelogic report in April 19.
It is just tough conditions, with month to month uncertainty and on-going downward trends on transport rates in many segments.
People in the industry, especially corporate middle management are feeling the pressure of job insecurity. Smaller to mid-sized companies are feeling the pressure at management levels as they work longer hours as many lack business confidence to employ new staff. Yes, there are exceptions, however most businesses in the industry are feeling the pressure.
“From a finance point of view, we’re seeing more & more enquiries from businesses requiring assistance with their cashflow. Enquiries have been from as little as a $25K unsecured business loans to refinancing of unencumbered trucks/trailers/equipment right up to the larger confidential Debtor Finance requirements. This may assist them with their business Cashflow requirements but also may assist to clear out or reduce any ATO debt too.” Darren Riley DOSH Finance
But We have a Shortage
But against all of this we receive the constant message from our members and non-members that we lack suitably qualified drivers – from couriers to road trains and pretty much everything in between. Also, a lack of suitably qualified heavy vehicle mechanics is frequently reported.
Someone explained to me today, that in retail the further you are away from a cash register the more insecure your job. And that may be the case in transport, where the further away you are from the wheel the more insecure your job at the moment.
WA Will Turn Around
WA is a project driver economy and with $73 billion of projects in the pipeline or under consideration according to WA Business News then the future looks bright.
The problem is if we are short of suitably qualified drivers now where are we going to be at when the economy picks up pace again?
To avoid that we need to be investing in training a range of new drivers now. Both to meet current demand and to meet the upswing.
Firstly, lets clarify what is meant by a skilled driver shortage. Yes there are lots of people out there with different levels of truck licences but companies do not consider them suitably qualified. A licence to drive a truck does not make someone a qualified professional truck driver. That is that are not a skilled or suitably qualified driver. What we can say is that they are not job ready.
So what do they need to be a suitably qualified driver, well in addition to more time behind the wheel being coached or mentored, they also need to know load restraint, mass and dimension requirements and how to meet them and on an on and on and on. Because a truck driver is a person who actually needs to know a lot of things but also needs to have the skills to do them. Our members are currently working through the type of knowledge and skills they are think are needed.
Success Often Comes From Investment in the Darkest of Times
So whilst the industry is under pressure at the moment we also need to be looking to the future we need to be developing and training new qualified (skilled) drivers. We are well advanced on solutions for that, which will be announced in due course.
Our members are working through the development of the solutions both short and long term, if you want to get involved then contact us
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