Mexico’s Truck Driver Shortage Threatens Logistics Growth
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Mexico’s Truck Driver Shortage Threatens Logistics Growth

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Adriana Alarcón By Adriana Alarcón | Journalist & Industry Analyst - Fri, 11/22/2024 - 18:00

Mexico’s logistics sector has experienced remarkable growth in recent years, driven by expanding industries such as automotive, electronics, and construction. However, the escalating shortage of truck drivers threatens the sector’s sustainability. 

The sector had a deficit of 56,000 positions in 2023, which is projected to nearly double to 106,000 by 2028, according to the National Chamber of Cargo Transportation (CANACAR). This shortage poses significant risks to Mexico’s road freight transport market, which is expected to grow from US$43.13 billion in 2024 to US$59.02 billion by 2030 at a CAGR of 5.37%.

The shortage of truck drivers directly impacts Mexico’s economy, as trucking accounts for 3.78% of the GDP and moves 81% of land cargo and 57% of domestic freight. Without adequate drivers, industries like construction, electronics, and automotive, which heavily rely on trucking, face potential supply chain disruptions.

Understanding the Driver Shortage

The truck driver shortage is a multifaceted issue that stems from low wages, security concerns, workforce demographics, and limited participation of women in the sector. Drivers in Mexico earn an average of MX$293.06 (US$14.38) per day, a wage many drivers consider to be insufficient for such a demanding and high-risk profession.

The sector also has extremely low female representation, Paola Moncada, President, and Co-founder, Association of Women Truckers (AMO), previously told MBN. Only 1.9% of truck drivers in Mexico are women; in the United States, for example, women account for 8% of drivers, said Martín Rojas, Senior Advisor of the Americas, IRU, to MBN

Additionally, the share of drivers under 25 is low globally, reflecting broader challenges in attracting younger generations to the profession. 

The security of truck drivers is a pressing concern. A transport vehicle is stolen every 38 minutes in Mexico, with 86% of these incidents involving violence, says Omar Camacho, General Manager, Motive Mexico, as previously reported by MBN. While the National Public Security System (SESNSP) reports a 16.56% decrease in thefts from August 2023 to August 2024, private firms point to a 35% increase during the same period. Such risks make trucking an unattractive career choice for potential recruits, further exacerbating the labor shortage.

Efforts to Bridge the Gap

CANACAR is spearheading initiatives to address the driver shortage. These include collaborating with authorities to establish driver training centers nationwide, implementing Early Warning Centers, and deploying an app to enhance driver safety. The app offers geolocation of rest areas, a panic button, and traffic updates. Another initiative focuses on promoting diversity by attracting more women to the workforce.

Private companies are also stepping in. Kimberly-Clark, for example, is developing plans to attract more drivers and optimize fleet utilization, aiming to meet operational demands in the coming year.

“We have expanded our fleet and are using it more efficiently. However, finding all the truck operators we need in the country has not been easy. This is a challenge faced by every logistics operator. Therefore, we are developing plans to attract more of these operators, and we hope to have the full workforce ready by next year,” says Pablo González, Director, Kimberly-Clark Mexico, to El Financiero.

Photo by:   photovs, Envato

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