Australia’s trucking industry is increasingly divided between large fleets enjoying growth and smaller operators battling to stay afloat, according to new survey data presented at the Australian Trucking Association’s annual conference on Hamilton Island today.
The findings shared by Ben Selwyn, Director of market research company Fifth Quadrant, painted a picture of an industry facing significant workforce, profitability and succession challenges, with owner-drivers and small fleets under particular pressure.
One of the clearest findings was the industry’s inability to recover rising operating costs. Just under half of respondents said they had been able to pass increased expenses on to customers through rate rises or fuel levies, while the remainder had been unable to do so.
The survey found this was having a direct impact on profitability, particularly among smaller operators who often lacked the commercial leverage to negotiate higher rates.
The divide was also reflected in business growth. While around half of all trucking businesses reported growth over the past 12 months, growth was heavily concentrated among larger operators. Three-quarters of large fleets reported growth, compared with only one-third of owner-drivers.
Survey results showed that owner-drivers and small operators were most concerned about financial pressures and securing rate increases, while larger fleets were more focused on issues such as road infrastructure, compliance obligations and driver availability.
Contract arrangements were another area where smaller operators appeared disadvantaged.
While seven out of 10 fleets overall operated under customer contracts, only half of owner-drivers reported having formal contracts in place. By comparison, almost nine out of 10 large fleets had contractual arrangements with customers.
Even among operators with contracts, only around half included rate review clauses, limiting their ability to respond to escalating operating costs.
Workforce issues also featured prominently throughout the survey.
When asked about internal safety risks, respondents identified driver fatigue, inexperienced or undertrained drivers, driver behaviour and driver distraction as the industry’s most significant concerns.
The findings suggest operators remain concerned about the pressures placed on drivers and the challenges of attracting and retaining experienced personnel.
Recruitment practices were also found to be largely informal across much of the industry. Most fleets continue to rely on word-of-mouth referrals and job boards to fill vacancies, while only larger businesses typically use recruitment agencies, labour hire firms or structured pathways through apprenticeships and registered training organisations.
The industry’s long-term workforce outlook emerged as a major concern.
More than one-third of workers aged under 35 said they did not expect to still be working in trucking within five years. At the other end of the age spectrum, 58 per cent of workers aged 55 and over indicated they expected to leave the industry within the same timeframe.
With one-quarter of survey respondents already aged over 55, the findings point to a looming workforce replacement challenge at a time when many trade-based occupations are already experiencing skills shortages.
Despite the pressures facing the sector, the survey also delivered some positive signs around wellbeing.
Two-thirds of respondents said they were aware of mental health support services available to industry participants, while one in five reported either using those services themselves or recommending them to someone else.
Operators also expressed optimism about the future, citing better roads, improved safety measures and technological advancements like electrification and automation.
The survey, sponsored by BP, NTI, and Volvo, captured data from 503 trucking businesses across Australia in April 2023, offering a comprehensive view of the industry’s challenges and opportunities across owner drivers, small fleets, medium fleets, and large fleets.