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ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION MARCH 3, 2021 Page 20 Report Provides Benchmarks for Portable Sanitation…continued from page 19 During the same period, median wages actually went down for all those groups. You may wonder how that is possible, but it can happen when market forces push wages higher in some areas faster than in others. Mean wages represent the mathematical average of all wages, while median numbers represent the middle— meaning that half the people are paid less, and half more. A mixed picture like this tells us that market competition for personnel and/or prevailing wages in those areas are likely putting significant pressure on portable sanitation companies to raise their own compensation packages. Meanwhile, the dramatic increases in some areas distort the picture and have employees in less competitive areas actually losing ground. This is likely due mostly to attrition, when companies replace more seasoned workers with less experienced ones, so individuals are not likely to be getting less year-over-year, but it still has an impact on the industry. ATRI reports that driver's compensation packages typically include medical, dental, vision coverage, and in some cases, 401(k) matching. This suggests that companies competing for personnel see the necessity of including benefits similar to other industries to attract new drivers. Bonuses for drivers are becoming more common according to ATRI. The most common bonuses were related to safety, starting a job, and retention of a position. Things to Watch • ATRI predicts that COVID-19 will drive wages and benefits up for drivers in the coming year. As fleets adjust to the post-COVID world, there will be a surge in need for drivers to deliver consumer goods, vaccines, and other products. Portable sanitation companies will be competing with many of these employers since they also offer at-home-nightly positions. • Repair and maintenance costs are expected to increase, even though they went down between 2018 and 2019. Although new vehicle acquisitions will lower some maintenance costs, complex technology in vehicles presents more things that can go wrong. ATRI reports the cost of maintaining a new truck in 2018 was more expensive than maintaining a new truck in 2008. Increasing diesel technician wages also contributed to rising R&M costs, particularly with advanced technology requiring specialized technicians for maintenance. • Insurance premiums can be a volatile cost center for companies, regardless of fleet size. There are a number of factors that affect insurance rates, not all of which are related to a fleet's safety or claims history. The principle reasons for increased premiums include growing litigation and increasing vehicle prices. Truck-involved crashes are generating dramatic increases in both the number of civil litigation case filings as well as increases in jury awards and out-of-court settlements. This drives up the cost of insurance for everyone. That said, insurance industry sources suggest that insuring truck fleets will continue to get more expensive, but the rate of increase should slow down as compared to the last one to two years. ATRI states, "… smaller fleets will continue to bear the largest impact of insurance cost increases, and with fewer risk management strategies at their disposal, financial viability may become a serious issue for small fleets." How does this data stack up with your company's experience? Share your thoughts with the PSAI via email or call +1-952-854-8300. v