Transportation and Logistics: A Shortage of Drivers Continues to Cause Concern.

• Author: Polzin, Paul E.

The transportation industry is closely tied to economic conditions because it carries goods and materials to and from Montana and from one part of the nation to another. The latest data show declines in railroad traffic with relative statewide stability in other sectors. The outlook for the future in this industry has some of the same features as the overall economy; with the exception of railroads, relatively stable short-term performance, but major uncertainties about the future. Long-distance trucking and railroads are the two most important transportation industries in Montana.

As reported in Table 1, there were 2,576 workers in long-distance trucking during 2018. These data do not include the truckers employed by out-of-state companies and simply driving through Montana.

Missoula and Yellowstone counties are both located on the east-west corridor of Interstate 90 and are the two major centers of long-distance trucking in the state. Taken together, they accounted for slightly more than one-half of total statewide employment.

Overall, statewide employment in long-distance trucking has been relatively stable. Total jobs have remained in a relatively tight range of 2,400 to 2,700 throughout the 2008 to 2018 period. In Missoula, an all-time high of 634 jobs were reported during 2018.

A truck driver shortage is the major issue facing this industry. There are a number of reasons for the lack of drivers, but major factors include the high average age of current drivers and the working conditions--long hours and time away from family. This shortage has spurred recruiting efforts, such as highway signs and bumper stickers offering higher wages, and improved working conditions. These efforts appear to be working as wages and salary growth in long-distance trucking has outpaced the average for all workers. As shown in Table 2, average annual wages in long-distance trucking have been growing almost twice as fast as the economy-wide average in both the U.S. and Montana.

Two major rail systems cross Montana: the Hi-Line and the Low Line. BNSF and Montana Rail Link are the two major railroads in the state, with several smaller lines serving specific areas...