Trucks at Work Blog

”It is apparent the economy has still not committed to either continued growth or a real decline. There have been some positive signs from the latest set of leading economic indicators … but there have also been renewed signs of distress. Not surprisingly, there is a sense that much has stalled in the economy as uncertainty has been the rule of the day.” –Chris Kuehl, managing director for Armada Corporate Intelligence and economic advisor to the National Association of Credit Management (NACM)

The U.S. economy seems stuck in a sort of “unhealthy neutral” of late, gears grinding together as some sectors fare well (such as manufacturing) while others do poorly – creating a more volatile freight environment for truckers.

The “big picture” view of things didn’t get any better with the advanced estimate of U.S. gross domestic product (GDP) release by the Bureau of Economic Analysis (BEA). According to its projections, GDP growth officially edged up only 1.3% in the second quarter this year, following a meager 1.9% in the first quarter.

Though GDP remains in positive territory (always a good thing, considering the alternatives) economists say 3% GDP is what’s required just to keep the unemployment steady and keep up with population growth, whereas a GDP growth rate of 5% is required for a year to knock down the unemployment rate by a measly one percentage point.

Looking at where we are today, though, it seems entirely unlikely we’ll such robust GDP growth figures anytime soon. more

“The 24% fuel reduction that fleets can achieve through eco-driving has a real impact on the bottom line.” –Jason Palmer, president, SmartDrive Systems

Despite the “big picture” worry concerning the slumping U.S. economy alongside the nation’s political inability to hammer out some sort of debt ceiling agreement – thus imperiling the tepid recovery even further – fleets must still continue to battle on against daily operating concerns of their own, namely against the largest line item on their spreadsheets: fuel.

Fuel economy never disappears as a primary fleet concern, no matter what roils the larger economic waters. For saving fuel means saving dollars, giving fleets that all-important flexibility when it comes to pricing their services, even generating excess cash to buy new equipment or raise driver wages.

[Just for fun, check out European truck journalist Brian Weatherley and his efforts to save on fuel via with tips provided by Andy Colett, a driver trainer with the Volvo Group. And yes much of what Andy shares can be applied in many cases to fleets operating on U.S. roads, too.]

Yet the question always dogging efforts to reduce fuel consumption is how to measure it – and that’s regardless of whether the fleet in question is a big over-the-road behemoth running diesel-powered Class 8 tractors or a small municipal operator relying on gasoline-fired pickups to get the job done.

This is where a new report compiled by SmartDrive Systems comes into play. The company used its technology to record all sorts of vehicle-derived metrics and found that commercial fleets can reduce fuel consumption by as much as 24% by getting their drivers to use more fuel-efficient driving techniques, specifically eliminating unnecessary engine idling and reducing excessive speeds. more

“The chaos and complexity of this new world era is posing supply and demand challenges that threaten economic growth.” –Jeffrey Joerres, chairman and CEO, the ManpowerGroup

I’m sure almost everyone in trucking is exceedingly tired of the word “change” right about now, since it’s become so ubiquitous across this industry over the last decade.

I mean, just dealing with the fallout from tighter emission regulations alone has proved tremendously difficult for carriers large and small. Then throw in a host of contentious regulatory efforts such as hours of service (HOS) reform, the Federal Motor Carrier Safety Administration’s new Compliance Safety Accountability (CSA) program, new drug-testing rules, even potential mandates for electronic log books, to name just a few.

And if that weren’t enough, we’re now watching population demographics beginning to under seismic shifts that may leave trucking left empty handed in its quest to find qualified drivers now and in the future.

Yet all of those challenges also offer opportunities for carriers as well – especially those willing to explore new ways to solve the industry’s many timeless problems, such as improving freight efficiency and boosting fuel economy, to name just two. more

“It’s a mistake not to look at the opportunities that a strategic sustainability program can bring to private equity and businesses of all shapes and sizes. Beyond compliance, ‘environmental sustainability’ affects the entire business spectrum, offering benefits through a strategic, operational, reputational and financial lens.” –Tim Hartnett, PricewaterhouseCoopers

Businesses today – especially those involved in transportation – can no longer afford to roll their eyes when talk turns to “sustainability” initiatives.

Though the word still carries with it the overtones of religious fervor, corporations large and small are coming to realize – if they haven’t done so already – that embarking on “sustainability” initiatives not only can help make their operations “greener” in the environmental-friendly sense, it can help them save a lot of money too; both for them and for customers, too.

[Transportation is in many cases a key piece of corporate sustainability efforts, with Wal-Mart providing a good example of the potential savings to be gained.]

Think on this statistic for a minute: in a survey conducted by global consulting firm KPMG LLP back in April, nearly 55% of U.S. executives said their organization has a formal sustainability strategy in place, with another 12% noting they were currently working on developing a “sustainability” strategy while an additional 19% expecting to eventually develop a formal plan. more

“Clearly, the renewed slowdown in hiring underscores the uncertainty surrounding the economic outlook. The lack of sustained, robust job growth continues to push out into the future the time for the housing market to heal, which is crucial to a meaningful economic expansion.” –Fannie Mae Chief Economist Doug Duncan.

It ain’t pretty, and it sure ain’t welcome, but as the old saying goes … when the going gets tough, the tough must just get going. And that – in all likelihood – is going to be one of trucking’s mantras over the next few months, if not years, as slowing economic growth continues to breed uncertain portents for the future.

“The economy is struggling to regain the momentum lost since the beginning of 2011 as higher gasoline prices and supply-chain disruptions due to the Japan tragedy during the first half of the year combined to restrain growth,” noted Fannie Mae’s Chief Economist Doug Duncan (at right) in the firm’s July 2011 Economic Outlook.

He said economic growth in the second quarter is estimated to have moved “at the same anemic 1.9% pace seen during the first quarter,” though motor vehicle production is on track for a rebound and we’ve seen a decline in oil prices, which should encourage gross domestic product (GDP) growth of about 3% in the third quarter this year before slowing modestly in the fourth quarter.

Full-year growth is projected to slow to 2.4% this year, down from 2.8% in 2010, according to Fannie Mae.

Even manufacturing – the shining economic sector since this sluggish “recovery” supposedly began in mid 2009 – is now struggling. more

“If almost half of drivers don’t know that left lane ‘camping’ is illegal that might explain why it seems so common on our freeways.” –Jon Osterberg, spokesman, PEMCO Insurance

I feel pretty safe stating that most truckers out there believe there’s widespread ignorance among four-wheelers (and among some of their big rig brethren, too) concerning the rules of the road.

Now we’ve got evidence to back it up.

PEMCO Insurance, based in the great state of Washington in the Pacific Northwest (about as far from that “other Washington,” as in our nation’s capital, as you can get) recently conducted a survey with the help of polling firms FBK Research in Seattle.

Their goal was to try and explain what the company described as “a phenomenon that vexes many drivers: why it seems that highways are clogged with ‘left-lane campers,’ the people who drive continuously in the passing lane of multilane roadways, obstructing traffic.”

“We didn’t have a premise or expectation going into this poll,” Jon Osterberg, PEMCO’s spokesman, told me by email. “We simply wanted to gauge drivers’ behavior.” more

“I’m convinced that ‘Best Practices’ are often used by people who are afraid, lazy, or simply lack original thought.” –Jim Walton, president & CEO, Brand Acceleration Inc.

I always enjoy reading Jim Walton’s (below, at right) commentary on a wide assortment of U.S. business issues in his blog, which is aptly entitled Rants from the Brand Coach.

One recently caught my eye that has (in my humble opinion, at least) a lot of relevance for the trucking industry, and that’s the issue of “Best Practices.”

Walton noted that, according to Wikipedia, “’Best Practices’ are generally-accepted, informally-standardized techniques, methods or processes that have proven themselves over time to accomplish given tasks.”

That certainly sounds good, Walton said, but here’s the kicker: it almost, by definition, eliminates any effort to try something new and different. Furthermore, if everyone is adhering to “Best Practices,” basically everyone is trying to do the very same thing.

And if everyone is the same, what chance does your company have in terms of winning business from shippers? The only chance, it would then seem, would come from lowering rates, which only leads to ruin in the long run. more

“Civil rights groups felt the need to weigh in because the [proposed surface transportation reauthorization] bill, among many other things, would result in diminished transportation access to seniors, people with disabilities, communities of color, and low-income families in cities and rural counties across the country.” –from a letter written by the Leadership Conference on Civil and Human Rights sent to Rep. John Mica (R-FL), chairman of the House Transportation and Infrastructure Committee

OK, by now I’ve heard any number of derogatory comments about the House Transportation and Infrastructure Committee’s proposed six-year surface transportation funding reauthorization bill: “disappointing” is one, “devastating” another, and by Democrats, “The Republican Road to Ruin.”

But to claim this draft potentially tramples on the civil rights of senior citizens and minorities? Oh, please, give me a break.

Yet that is exactly what one noted civil rights organization is doing –claiming in a letter to Rep. John Mica (R-FL), chairman of the House Transportation and Infrastructure Committee, that he “is silent on ensuring meaningful civil rights protections in [transportation] project delivery.” more

“As the electric vehicle market continues to emerge, we need to be ready to help alleviate some ‘range anxiety’ with the ability to provide a charge to electric vehicles on the roadside that gets drivers back on the go quickly.” –Marshall Doney, vice president, AAA Automotive

It’s an inevitable “next step” in the growth curve of the electric vehicle (EV) market: first, production rates start climbing; second, more and more recharging locations pop up; and now, roadside support trucks that feature special equipment to handle the needs of EVs begin taking to the streets.

AAA is now deploying the first such “roadside assistance trucks” designed to support EVs as part of a pilot test starting this summer in six major U.S. cities: Portland, OR; Seattle, WA; San Francisco, CA; Los Angeles, CA; Knoxville, TN; and Tampa Bay, FL.

These light-duty trucks come equipped with recharging technology designed to provide 10 to 15 minutes worth of electric to AAA members stuck on the side of the road with depleted batteries. That quick “jolt” from the truck’s recharging system should give EV owners just enough juice (one hopes at least) to drive three to 15 miles or so to a recharging station where they can finish re-powering their onboard battery pack. more

“The priorities of the American Taxpayer have been and will be placed ahead of the unchecked desires of some in Washington [D.C.] to spend money that is borrowed … This new reality has proven to be frustrating for some in Washington who even fail to consider positive alternatives for supporting transportation projects and simply resort to deficit spending ‘come hell or high water.’” –Rep. John Mica (R-FL), chairman of the House Transportation and Infrastructure Committee, from a letter sent last week to Thomas Donohue, president of the U.S. Chamber of Commerce

It’s being referred to as “blistering,” “scathing,” “vitriolic,” and “scolding,” this letter sent last week by Rep. John Mica (R-FL), (at right), chairman of the House Transportation and Infrastructure Committee, to Thomas Donohue, president of the U.S. Chamber of Commerce; a letter than in very blunt terms pours a big bucket of cold water upon the aspirations of many within U.S. to somehow reinvent, revitalize and ultimately expand our nation’s transportation infrastructure.

Mincing few words, Mica laid out the unvarnished truth that everyone knows but tries very hard to ignore: as a nation, we’re broke. In fact, we’re actually worse off that that; we’re in serious debt, with one of our major creditors a nation that is in many ways an economic, military and political rival to us.

This is position from which Mica launched his written “tirade,” as many also called it, against the biggest business lobbying group in the U.S. – a group that has long understood the dangers posed by unchecked deficit spending by the U.S. federal government, which is one of many reasons behind Mica’s overheated prose.

“Our years of excessive deficit spending are at an end and responsible Congressional leaders must make difficult decisions about achieving real and tangible priorities,” Mica wrote. “My primary priority is to produce a long-term re-authorization bill to provide states with the certainty they require for large-scale infrastructure planning, and instituting reforms to existing programs. A continuation of deficit spending and General Fund transfers will destroy the dedicated user-fee based Highway Trust Fund. As stewards of that fund, it is our responsibility to stabilize the fund to protect its budgetary treatment and existence.” more