Aerotropolis Article: Self-Driving Fleets Will Transform Our Regional Economy

Most people are familiar with advanced driver assistance systems, or ADAS, which is a catchall of sorts for much of the self-driving technology being tested and deployed on the roads across the globe. ADAS features include everything from front/rear cameras and sensors to adaptive cruise control and lane departure warnings, and many come standard on cars and light trucks sold in the United States. But you may not realize that ADAS technology extends beyond passenger vehicles.

Many experts in the trucking industry predict that cargo trucks with advanced driver assistance features will hit the market within the next few years. The emergence of self-driving technology for fleet vehicles could have a significant impact on Michigan’s economy as transportation and warehousing is one of the fastest growing industries in our state, increasing by 7% in the last decade, from 128,400 employees in 2006 to 137,400 employees in 2016.

“The warehousing and transportation industry is huge in our region,” explains Rob Luce, Executive Director of the Detroit Region Aerotropolis Development Corporation. “Whenever a new technology emerges, it has the potential to impact business models and, ultimately, investment decisions.”

 

What is the potential economic impact of self-driving fleets?

According to Wall Street analysts, the trucking industry could save up to $300 billion in labor costs annually if self-driving fleets are fully implemented. Of course, some of that savings would be offset by the increase in costs of operating self-driving vehicles. But the net savings is likely to be in the range of $100 billion to $125 billion annually. This would represent a significant shift for the industry, which currently spends 43% of its total costs on labor. Fuel is the second largest cost to the industry, at 21%.

This new technology would impact companies like Amazon and Penske Logistics, both of which made significant investment announcements in new distribution and storage centers in the Aerotropolis Region in 2017. It would also benefit other carriers like UPS and Fed-Ex, who rely largely on their fleets of trucks to deliver products to customers.

Delphi is another organization seeking to profit from self-driving commercial fleets. They recently announced their intention to purchase self-driving car company nuTonomy for $450 million. One of the key reasons for purchasing the Boston-based company was to provide immediate access to the commercial trucking market. Delphi sees their self-driving technology accelerating into commercial vehicles first, then bleeding over into consumer vehicles over time.

 

What is truck platooning?

Platooning involves the connection of two or more trucks through electronic means, allowing them to travel in unison at coordinated speeds. A driver would be present in each vehicle to monitor the equipment. However, the driver would not be controlling the speed or movement of the vehicle. The main objective in platooning is to maximize fuel economy by improving aerodynamic drag and coordinating the braking speed of the connected trucks.

Automated platooning of vehicles involves a combination of technologies, including adaptive cruise control and reliable Vehicle-to-Vehicle (V2V) communications systems. In addition, a driver interface is needed to inform the driver about what is going on with the other vehicles that are connected in the platoon. The distance at which platooned vehicles travel to each other is much closer than would normally be considered safe, but the automated braking technology also responds much faster than a human driver, typically in about 0.2 to 0.3 seconds.

 

Is platooning legal in Michigan?

In late 2016, Governor Rick Snyder signed a bill that allows for the platooning of autonomous commercial vehicles. The law requires that a driver holding a valid commercial driver’s license must be behind the wheel of every truck in a platoon. This law paves the way for further advancement and testing of truck platooning in Michigan.

 

Who is testing platooning today?

The new Michigan law sets up the potential for testing of truck platooning on Michigan roads and at the American Center for Mobility in Washtenaw County, and creates a hub for testing in Michigan. Consider the testing that took place in 2016 between the U.S. Army Tank Automotive Research, Development and Engineering Center (TARDEC) and the Michigan Department of Transportation (MDOT). The two organizations collaborated to test dedicated short-range communication (DSRC) systems between roadside radios and TARDEC convoy vehicles on I-69 in St. Clair County.

Recently, Peloton Technology gave a live demonstration of truck platooning on I-96 in the Novi area. The demonstration featured a pair of Peloton-equipped Volvo VNL670 class 8 trucks platooning at approximately 65 feet, and allowed participants to see how semi-automated and connected vehicle technology, including V2V communications, assists drivers in a real-world setting.

These tests are an important step in promoting the development and expansion of platooning and other automated technologies in Michigan. Major automotive manufacturers have also tested platooning in other states. FCA/Chrysler has conducted tests with tightly spaced pairs of trucks along the highways in Oregon and Nevada. And General Motors has performed some initial testing in California. Tesla also recently announced its intention to develop a long-haul electric semi-truck.

 

What are the long-term projections for self-driving fleets?

Most experts agree that the deployment of fully autonomous commercial fleets may be decades away, but there is potential for smaller scale exploration of this technology in the short term.

The emergence of self-driving fleets will significantly change the role of the truck driver, which may be a benefit to an industry that is experiencing shortage of workers. In the future, the job will require much more than a commercial driver’s license. Truck drivers will need to evolve and take on a more logistics-oriented focus by monitoring the vehicle’s performance and communicating with other trucks in the fleet to ensure that everything is moving according to schedule. All of these skills will require re-training and may present an opportunity for increased compensation for workers.

According to the U.S. Bureau of Labor Statistics, there are 53,040 heavy and tractor-trailer truck drivers in Michigan, with an average salary of $43,010 per year. The average age of a truck driver in the United States is 49 years old, which means that many will be retiring in the coming decade. Although there are concerns among truck drivers that automation may lead to job losses, there are still some functions that cannot be replaced by self-driving technology, such as loading and unloading of vehicles and interacting with customers at each pick-up and delivery site.

 

Sources:

https://www.americanshipper.com/main/asd/rd-program-manager-automated-freight-trucks-should-hit-the-market-in-next-few-years-69411.aspx#.Wej5cpqro9I.linkedin

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