Author Topic: Inflation is coming...or so we hope.  (Read 7725 times)

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Offline Itchigo

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Inflation is coming...or so we hope.
« on: August 28, 2013, 12:38:39 PM »
Let me clarify that statement. Wages in trucking have flatlined, or even gone down in the last 10 years. The problem isn't the trucking companies either, they're caught up in this too. the problem is - customers. Customers basicly say "This is what I'm going to pay, or I'll get someone else". Unfortunately there is always someone else willing to "do it for less" thinking they can get the account now, and raise the price later to compensate. The problem is, that day never comes. The customer just gets the next lowest guy to do the same thing all over again.

One example of this is My old boss, about 10 or 12 years ago was charging about 40-45$ an hour for a truck and driver. A customer I know is paying roughly (not saying who) about 30-32$ an hour. Wait a minute, it's 2013?! How in the world can you charge 32$ and pay roughly 17/or 18 an hour, plus overtime at time and a half, pay for a truck, and all operating expenses, permits, fuel, maintenance, and the like? Keep in mind a new truck is STARTS at about 150,000$. That's why I don't fault companies/employers in this situation. There's only one "company" who can continually operate in the red, and we all know who that is (fed). Even that won't last much longer.

So what needs to happen? Eventually everyone will get to a point where they say "I can't do it for that". Prices will have to go up, because customers will not find anyone to do it cheaper. Once that happpens, there will be a "piling on" effect, because everyone will think "now's the time to raise prices". What does that mean? Well EVERYTHING moves by truck, that means you'll pay more for everything. Likely, substantially more as trucking is involved in not just the transportation of finished goods, but the creation of them as well.

Will this offset the new wages? Probably not. It never seems to be a net gain when this happens. In my own opinion, a CDL job should START around 22$ an hour, higher for higher risk (hazmat, etc). This is not what I expect to be paid, or what I am asking for from my company, it's merely what I feel the value of such a position such as this is worth. Driving a semi should still be considered a skilled profession, not in the same boat as a warehouse worker ("if he quits, we'll get the next guy"). I've seen many people who can't find a job, so they get their truck license instead. So long as that keeps happening this will not go away. They are not likely skilled at doing this either. Going through truck school doesn't teach much anymore. Well, unless you're going to be a DOT inspector.... :Banghead:

So we wait, for inflation to come.....
« Last Edit: August 28, 2013, 12:50:57 PM by Itchigo »
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Offline Pintrepid

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Re: Inflation is coming...or so we hope.
« Reply #1 on: August 28, 2013, 01:48:25 PM »
The same type of thing is occurring in (what's left of) the commercial printing industry. Pricing is becoming more frequently the reason for losing long term clients ... the other guy can do it for 10 cents less per unit price ... so 24% of our plant's revenue was lost to pricing wars

But the enemy in my field is modern technology. Most everything is going digital, so that is a serious setback to commercial printing. Long print runs of 100,00 sheets or more have dwindled in favor of far shorter 5.000 sheet runs which are done digitally and are personalized for the end user.

Speaking of work ... I have the SEVERELY RETARDED joy and pleasure  :Cussing: of having to go "over THERE" to "THAT" right now!

So long story short ....

Have to adapt with the times. For me, commercial printing is failing, so I have to learn what I need to learn, and transition into what is in demand, which, in my case. is internet services, such as web design, programming, graphics services and the like.

In the case of trucking, there will always be a need to get stuff from here to there, and more on time and on demand ... may be time to research the latest, most modern ways that's being done and learn whatever you need to do in order to adapt with the industry. This "vacuum tube" thing I'm seeing in the news may not be entirely practical ... but getting into computer systems that streamline the flow of product on time and accurately may be the way to go. Company sponsored education??

Better yet ... find something you really enjoy and make a business out of it. I've just turned the big 5-0 ... I HAVE to make that work for me now!!!  :Green:
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Offline Bob Albright

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Re: Inflation is coming...or so we hope.
« Reply #2 on: September 04, 2013, 08:49:53 AM »
I just stumbled upon this site and when I saw this topic, I just HAD to register so that I could comment. I understand your frustration. I worked in auto sales for 21 years and retired 3 years ago. Trust me, there is NO business that takes more abuse than the car business. To start with, a new car has a lousy 7% markup on it (some maybe a % more, some maybe a % less). When customers would come to my showroom, they want to buy the car at what the dealer pays (thank you internet). What kind of sense does that make?! If you paid the sticker price, you'd be paying far less profit than anything else we, as consumers, buy! And then, there's the abuse and disrespect that customers give the salesperson. I'm a college grad--no dummy. I taught school (Spanish) for several years. One of the hardest things I had to deal with was the disrespect and the treatment like I was some kind of loser who could not do anything else. I'm so glad to be out of that rat-race. Anyhow, that's my two cents. I believe the cut-throat thing is here to stay. It doesn't matter what business.

Offline Itchigo

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Re: Inflation is coming...or so we hope.
« Reply #3 on: September 04, 2013, 09:24:28 AM »
Hi Bob! Glad to see you over from vpf! Yeah, the cutthroat thing is here to stay until everyone eventually stands up and says enough is enough. Unfortunately, that's taking it's sweet time. Pintrepid told me about a McDonald's strike though. Something like that can always be a spark.

We're a little different here by the way, you can talk about whatever you like here, we play pinball, but pinball isn't we're all about here.
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Offline faralos

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Re: Inflation is coming...or so we hope.
« Reply #4 on: September 07, 2013, 09:56:19 AM »
what really sucks is I have over thirty years driving straight trucks
but no one here in Pa will hire me since I 'don't know the local roads'
and if they even say they will they start at $9 an hour!
 for an experience truck driver?
who makes these rates anyhow?
what happened to experience ranking over age?
Yeah I am over 50 but with thirty ticket free driving years under me
but they only are hiring younger kids who are willing to drive for minimum wage!
the trucking industry is dying at least the good drivers are all retiring
and that leaves a mess of younguns who don't care about their jobs so much as that next pay check
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Offline Bob Albright

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Re: Inflation is coming...or so we hope.
« Reply #5 on: September 07, 2013, 11:32:34 AM »
Noone can live on 9bucks an hour these days. And with GPS units, I really don't understand the issue with "not knowing the local roads". I really thought truckers were paid better than that!

Offline Itchigo

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Re: Inflation is coming...or so we hope.
« Reply #6 on: September 07, 2013, 06:28:00 PM »
what really sucks is I have over thirty years driving straight trucks
but no one here in Pa will hire me since I 'don't know the local roads'
and if they even say they will they start at $9 an hour!
 for an experience truck driver?
who makes these rates anyhow?
what happened to experience ranking over age?
Yeah I am over 50 but with thirty ticket free driving years under me
but they only are hiring younger kids who are willing to drive for minimum wage!
the trucking industry is dying at least the good drivers are all retiring
and that leaves a mess of younguns who don't care about their jobs so much as that next pay check

Experience means nothing anymore. It sucks, because I have 20 years driving semis, and it got me a .75 cent raise. The "good" drivers have retired or gotten smart and gotten out. You forgot young kids, and immigrants. Many barely speak english. However 9$ is exceptionally low. I'm guessing you're in a rural area.

Noone can live on 9bucks an hour these days. And with GPS units, I really don't understand the issue with "not knowing the local roads". I really thought truckers were paid better than that!

GPS doesn't work well with trucks, many times it sends drivers to the wrong side of town or the street. I've never had one, but I hear it from drivers all the time.

Around here it's more like 15-17$ an hour. I'm getting 18$, but in all honesty, I was making 19$ 6 years ago. Plus, in a truck you are exempt from being paid overtime. That's right- 80 hours, is all straight time. My company tells me "you can have all the extra shifts you want"- hell no! Not on straight time.
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Offline faralos

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Re: Inflation is coming...or so we hope.
« Reply #7 on: September 08, 2013, 01:36:33 PM »
not as rural as you may think
I live about half an hour from Philly in a pretty built up area off of a few major highways
like the PA turnpike is three miles from me
I am close to routes 309 and 202
it's the state that has poor pay scales not just near me though
 
I am never wrong Once I thought I was
 but I was merely mistaken