Truck Driving Schools in the US Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) February 04, 2015 -- In the United States, truck transportation is the most common method for shipping freight. Despite the ubiquity of big rigs on the nation's highways and byways, a well-publicized and widely discussed shortage of drivers looms over the industry, with a deficit of more than 35,000 drivers anticipated in 2015. According to IBISWorld Industry Analyst Sarah Kahn, “This impending forecast is unlikely to reverse the Truck Driving School's ongoing decline, however, due to the changing nature of the US economy and perceptions about truck driving as a profession.”
As the US economy continues to shift from relying on manufacturing to relying on data, high schools are placing greater emphasis on college preparation. In turn, young people are opting for more white-collar jobs, and the result has been detrimental for truck driving schools over the past decade. Also, industry insiders cite the unconventional nature of truck driving (namely long periods away from home and family combined with extended periods of sitting in a confined space) as responsible for creating a negative perception about the profession among many young, health-conscious high school graduates. Further, many trucking companies prefer their drivers to own their work trucks, a significant investment that prohibits some from pursuing the career. Last, a new law that places tougher standards on driving records has increased barriers to entering the truck driving field, and new safety rules have reduced the hours truckers can drive and are requiring more breaks, cutting into the pay of long-haul drivers paid by the mile. While the driver shortfall is good for existing truckers, it hurts schools that seek to train new ones.
This industry exhibits a low degree of market share concentration. IBISWorld estimates only Roadmaster is capable of garnering a noteworthy market share, due largely to their 13 locations across the country. Beyond Roadmaster, the industry is comprised of many small driving schools operating on a local or regional basis. Driving schools with fewer than 10 employees are estimated to account for over half of all establishments. “This figure helps illustrate the difficulty individual companies have in expanding their operations to increase market share,” says Kahn. With only a few employees, the ability of staff to handle high volumes of students (and increase market share through increased tuition collection) is limited. Further, this type of instruction is usually handled on a one-on-one basis. With the ongoing decline in truck driving as a profession, establishments keep their costs low by hiring only necessary staff.
IBISWorld expects the industry's revenue to fall substantially during the five years to 2015. Demand for drivers and, in turn, schools to train them, hinges largely on overall demand for the freight trucking sector. While this sector is projected to increase during the five years through 2020, demand for truck driving schools will likely remain subdued. Therefore, IBISWorld forecasts industry revenue to continue declining slowly through 2020. In the coming decade, the driving schools will need to adjust to innovation in intermodal transportation as well as driverless vehicles.
For more information, visit IBISWorld’s Truck Driving Schools in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily offer truck driving instruction. The industry excludes businesses that primarily provide automobile driving instruction, and community colleges that offer truck driving instruction are also excluded.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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