Trucking - A $51 Billion Industry

Trucking in Canada is a $51.1 billion industry that employs over 300,000 drivers and approximately 500,000 Canadians overall. It's a diverse industry made up of a few large companies but dominated by thousands of small and medium-sized businesses and independent owner-operators.

Trucks move 90 percent of all consumer products and foodstuffs within Canada and two thirds, by value, of our trade with the United States, our largest trading partner.  (Information obtained from Canadian Trucking Alliance website 2003, 2004)                            

The trucking industry has one goal only - to keep Canada on the move.
Everything but babies is delivered by truck! For the last few decades, the trucking industry has steadily gained an increasing share of the transportation market and become a vital part of the Canadian economy. The Canadian trucking industry is a multi-billion dollar business employing over 500,000 people.

Free trade has opened up new and exciting opportunities. Today, trucks carry over three-quarters of the trade that passes between Canada and the United States, and Canada and Mexico. There are also changes in technology, in regulations, and in traffic patterns. These changes, along with the boom in business, mean that the trucking industry needs a larger and better trained workforce.
(Information obtained from Canadian Trucking Human Resources Centre website Nov.4, 04)

Many Issues in Dealing with Massive Future Shortage of Truck Drivers

(Press Release - July 14, 2004 – Canadian Trucking Alliance - Ottawa): About 37,000 new truck drivers will be needed each year between now and 2008. So says a study recently conducted for the Canadian Trucking Humans Resources Council (CTHRC) in conjunction with Human Resources and Skills Development Canada which looked at the demand for truck drivers for the period 2003-08. In total, almost 224,000 new truck drivers (or about 90% of the current driving force) will be needed during the period in order to keep up with forecast economic growth and normal attrition. Already, more Canadian males list their occupation as truck driver according to the most recent Census of Canada.

With a shrinking overall labour force in Canada and mature industries such as trucking seen as a less attractive career choice for most young people than say the information technology sector, the trucking industry – which hauls 90% of the country’s consumer products and foodstuffs and two-thirds of Canada’s trade with the US – is looking for ways to try and fill the gap. The CEO of the Canadian Trucking Alliance, David Bradley says the industry cannot afford to leave any stone unturned. “This is a great industry with lots of opportunities but there are clearly issues and perceptions to deal with right now -- driver pay, lifestyle, cutting down on wait times, making sure new drivers are properly trained and are able to get the necessary experience, respect for the profession.” But, with numbers like those in the CTHRC study, Bradley said that he doubts the industry will be able to fully close the gap.

“To some extent a capacity squeeze is a good thing and will contribute over time to higher freight rates and better pay for the drivers, but even so over the longer term the industry is going to have to find more drivers in order to continue to provide the level of service that has been the hallmark of its growth,” he said. 

Oilpatch needs 10,000 drillers

Job seekers need to be prepared

By TODD NOGIER
Sun Media

CALGARY - Western Canada's oilpatch has thousands of job openings.
But officials warn applicants coming form the East should bring startup money so they won't get stuck sleeping in their vehicles.
The Petroleum Services Association of Canada forecasts 16,699 oil and gas wells will be punched into the ground in Canada during 2001, but that's only marginally higher than 1997's 16,485 wells drilled when oil and gas prices were much lower.
"Both producers as well as service companies are moderate in their exuberance in terms of their level of activity," said Roger Soucy, president of the association which represents 240 well service and petroleum manufacturing firms. "There is a real shortage of experienced, skilled people and that's a big problem right now."
West Texas Intermediate crude has been stubbornly high all year despite production increases by OPEC, the world's largest oil cartel.
Natural gas prices have also reached record levels of late as demand for the commodity south of the border continues to soar. Oil closed at $34.23 US a barrel yesterday and natural gas at $4.82 per mmBTU on the New York Mercantile Exchange.
The unprecedented one-two punch of high oil and natural gas prices has most in Canada's oilpatch flush with cash and scrambling to find ways to spend it. But a labour shortage means large-scale increases in drilling programs may not be an option.
Oilpatch companies are searching the country to find some 10,000 labourers. The drilling industry alone is looking for 4,000 rig workers.
The shortage is causing well-servicing costs to spiral and customers are being told if they want the work done, they'll have to wait, said Fred Moore, the association's incoming chairman.
"It's tough out there -- we're having to recruit from right across the country to find people," said Moore, who is also president of Nusco Manufacturing and Supply Ltd.
And despite recruitment drives, Soucy doesn't think the labour crunch will let up any time soon.
"In Alberta, there are a number of industries that are very strong right now and they're working very hard to find people," said Soucy.
The association also predicts nearly 60% of the wells drilled next year will be natural gas wells.
(With files from Canadian Press)

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