The driver shortage, and what to do about it, is once again rising to the forefront of fleet executive concerns. The American Transportation Research Institute’s latest release of its Critical Issues in the Trucking Industry report shows that fleet executives rank the driver shortage as their third most pressing concern. That’s up from the no. 5 slot the previous year.

The shortage is not necessarily tied to the resource challenges imposed on many industries during an economic upturn. Our current upturn is fairly slow compared to previous economic recoveries. Hiring challenges are being exacerbated by baby boomer requirements, lack of interest in the industry by the younger generations and possibly the impact of CSA implementation.

Can we do a better job of solving the driver shortage this time around? Listening over the past few months to carrier executives discuss how best to deal with the shortage, I’m not feeling confident the shortage is going to be solved.

In his book the 33 Strategies of War, best-selling author Robert Greene argues that what limits people and corporations in meeting new challenges is the inability to confront reality, to see things for what they really are. “As we grow older, we become more rooted in the past. Habit takes over…Repetition replaces productivity.”
I fear the industry is marching in the same direction. For example, at the recent Ontario Trucking Association annual conference I was surprised to hear Steve Russell, chairman and CEO of Celadon Trucking Services Inc., actually question if people preferred to collect Unemployment Insurance rather than return to work as drivers. Surely we can do better in addressing the driver shortage than blaming our woes on unemployment insurance.

Same goes for ongoing industry hopes to address the driver shortage by recruiting qualified drivers from overseas. As James Menzies, executive editor from our sister publication Truck News, reported last month many carriers insist they can’t find qualified Canadian drivers willing to accept the pay and lifestyle afforded by a career as a long-distance driver. Bringing experienced drivers from countries in Europe and the Middle East would fill that need, according to proponents. That can only be part of the solution. In North America it’s estimated we could need up to 400,000 drivers. How much of a dent can we expect immigration to play?

A better approach is to finally address the competitiveness of driver pay and benefits relative to other professions. But it can’t stop there. Assuming it’s just an issue of more money may simply leave us with higher-paid drivers who still hop from job to job during the good times and continue to exit the industry in utter frustration during the bad times.

First we must get a closer read on how many drivers will be needed over the next few years. Then we must directly address why the industry is failing to attract new drivers.

We need to do a much better job of both raising awareness about the industry among the potential driver pool and addressing the issues that reduce the industry’s attractiveness. I see a strong Canadian Trucking Human Resources Council playing a central role in both endeavours and hope the industry rallies around the CTHRC now that Ottawa is pulling back on its funding for the council.

I also like ATRI’s suggestion that the industry develop programs that advance work/life balance, healthy lifestyles and family relationships. As carrier respondents to the ATRI report pointed out, drivers, particularly those in over-the-road applications, could benefit from resources to maintain family connections, protect their health and reduce stress while on the road.

The industry must also adopt more sophisticated recruitment practices. The most common hiring mistake is finding drivers who have the right skills but the wrong personality for the job on the hope that attitude can be changed by coaching, incentives, rewards, etc., according to the folks at Caliper Research. The firm conducts personality assessments and has done more than 3.5 million of them. Caliper has researched the personalities of local, regional and long-haul drivers and found some significant differences. Caliper believes that people are actually hard to change; their personalities are already hard set before they come in for the interview. In their own words, job techniques can be taught: drive and motivation can’t.

It does make for new ways of thinking but as Greene argues, if you want to deal with new challenges you must cut yourself loose from the past and open your eyes to the present.

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I got into sales when my company started, decided it wasn’t my strength and got out until a few years ago. I read a book called “Truth and Lies in Advertising” and it mentioned the creative director (what I do at my company) needs to be the strongest sales person in the company.

So I made an attempt and had some success. I focus on the business and providing the right solution and that seems to work for the most part. If there’s small talk it tends to be business and industry related although I do have a growing number of clients that share my interest in music, oddly enough.

So when is a sale a sale? When and how often do you follow up when there are extended periods without communication? When is the horse dead and it’s time to get off? As far as I can tell, these are all gray areas that no one really has the answer to. Trust your instincts and the old sayings “Strike while the fire is hot” and “Patience is a virtue” come to mind as good advice in this regard.

Here are the top 10 sales truths that I rely on:

1.       Know and present your value proposition confidently. Be prepared to answer the inevitable question “What makes you better than the other companies providing your service.”
2.       Get the customer talking. The more you talk, the less likely you are to find out what the prospective customer really needs.
3.       Don’t just take the order. Why? It’s the information age. If you can simply take the order, so can anyone else. By understanding their challenges in greater detail, maybe you can come up with a bigger and better solution.
4.       A pro sales coach may teach you to mimic body language and adopt customer speech patterns (talk fast, talk slow etc). I believe today that “Real” wins over this kind of “Slick” every time.
5.       The more questions you ask, the smarter you get. If you don’t understand, inquire and find out more. You’ll get the insight needed to be able to accomplish number 2 and 3 above.
6.       Follow up when you say you’re going to and after any meeting of significance. Do it while everything is fresh as it is twice as easy to accomplish.
7.       Don’t make excuses. Explaining things in detail always weakens your position. Acknowledge and be accountable for any errors and move on.
8.       The best way to communicate is still face to face, followed by a phone call and lastly an e-mail or text. It’s harder and harder to get the opportunity for the first two, so be careful with e-mails. Put them through spell
check and make sure what you meant to say can’t be misinterpreted.
9.       Never try and resolve an issue of any significance by e-mail. I made this mistake just the other day...I don’t think I’ll ever do it again.
10.   Referrals are always your best way to increase sales. It’s okay to ask for them from the customers you know best, on occasion.

Lee’s Quote for the Day

If you’re having a hard time selling something, it’s either priced wrong, not a very good product or you’re trying to sell it to the wrong person. Oh yeah, it could be the wrong season, or just a bad day, or lousy timing, or budget cuts, or the price of fuel, or the high Canadian dollar or... J.

Lee Palmer is the President and Creative Director at Palmer Marketing, a company that specializes in creative marketing and advertising solutions for the transportation industry.

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This year has had its share of change. 2011 started off with a significant shuffle in leadership, across many major carriers and was followed by some significant acquisitions by small and large carriers alike.

Our long time accounts Hi-Way 9 Express, Concord and more recently Quik X, all changed ownership. Fortunately our relationship with those carriers didn’t end and we actually made further inroads with sister divisions. Some senior people who left those companies turned to us when they joined new firms or created their own companies. The wheels keep turning...

So what’s the point? Although the industry is shy when it comes to engaging in social media trends, most professionals in the industry use LinkedIn. It’s a great resource to help keep you up to date with the changes that will likely continue to be a common occurrence in the industry. We are about to experiment with some advertising opportunities using this social network. It’s amazing how targeted a campaign you can launch in this and other social media venues.

We are currently managing the social media for a few clients. It’s an opportunity that didn’t exist a few years ago and will probably be one of the things that help us through this now tighter economic climate. On the transportation side, offering a brokerage service to capitalize on the convenience sell with existing customers is probably the most common opportunity that carriers are looking to for increasing their revenues quickly and profitably.

We can count on further consolidation but we should all keep our antennas up for new opportunities. They do exist. We just have to look to the future and ask the question “I’d like to see this happen. What did I have to do to get there?” Then keep going backwards until you come up with your first step and you will have all the steps in between. It’s a simple process that adds clarity when you can’t seem to get there from here.

Lee’s Quote for the Day

“If you think you finally have everything figured out, you’re more likely a fool than a genius.” J

Lee Palmer is the President and Creative Director at Palmer Marketing, a company that specializes in creative marketing and advertising solutions for the transportation industry.

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Everyone has heard how important location is in creating a successful enterprise, especially in the restaurant business. We now have a chance to see if a well established product, great reputation and professional execution can offset a location with a long history of failure.

For folks like me (that have worked in proximity to the Toronto airport for most of my career), a once popular location has been revitalized. Pepi’s was a fast food joint on Derry Road just east of Torbram. It was right on the flight path and in its day was a very popular spot. Then the large McDonnell Douglas plant closed down, the major banks moved out of the area and the once well know eatery died a slow and painful death. It was vacant for many years and several entrepreneurs tried to bring it back without success.

A few months ago Zet’s, a 24 hour greasy spoon on the strip, took it over and breathed new life into the old location. A major facelift began including a freshly paved yard, new signage, new paint, a fresh interior...every detail was covered. They manned it with staff from the other restaurant and had 3 times as many people serving you, compared to previous renditions.

We went the other day for lunch. It was busy and although it had a limited menu and hours, compared to the airport road location, it was very professionally run, the food was well prepared and the menu fairly priced. The service was quick and friendly and everyone sported matching shirts with their updated brand prominently featured.

I think they did it right and will be a success. It’s well marketed and manned and I believe their attention to detail will make the difference in keeping their doors open and their business prospering. Time will tell.

Lee’s Quote for the Day

“Sometimes, the details that matter most, are paying attention to the details most will never even notice.” J

Lee Palmer is the President and Creative Director at Palmer Marketing, a company that specializes in creative marketing and advertising solutions for the transportation industry.

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The following is a spin-off from my column in the December issues of Truck News and Truck West, which will be hitting your desks and cabs next week. I thought I'd repeat my thoughts via my blog, so that readers can weigh in with their own opinions and get some dialogue flowing...

In mid-October, B.C. carriers lauded a decision by the province to permanently include long-haul truck driving among the professions qualifying for inclusion in its provincial nominee program (PNP).

That essentially means B.C.-based long-haul trucking firms will be able to recruit qualified drivers from overseas and the province will expedite their immigration process, fast-tracking their transition to permanent resident status.

Reaction has been mixed. Many fleets insist they can’t find qualified Canadian drivers willing to accept the pay and lifestyle afforded by a career as a long-distance truck driver. Bringing experienced drivers from countries in Europe and the Middle East fills a vital need for the industry and will benefit the economy, proponents contend.

On the flip side, others are left wondering how conditions for professional drivers will ever improve if we’re simply willing to look further abroad for workers who will accept the way things currently are? Have we no appetite to improve conditions for our existing workforce to make professional driving an occupation in which one can earn a decent living, achieve some semblance of work/life balance and take pride in their profession?

In a recent e-mail exchange, Larry Hall, a former fleet owner and head of the North American Truckers Guild, told me he feels the PNP is “the single biggest thing to happen in this industry since deregulation.” He went on to say it “has the potential to undermine our entire labour force,” and he insisted the nation’s professional drivers are “willfully ignorant” of the program’s implications.

I certainly wouldn’t go that far. In my opinion, the PNP is a stopgap measure that will not have far-reaching implications on the industry, simply because it’s an ineffective, expensive and shortsighted solution to the driver shortage. It’s costly (some estimates peg the cost of recruiting a foreign driver through the program at $10,000), many drivers either return home or jump ship to another carrier when their initial contract expires and in many cases drivers who arrive here realize they were sold a bill of goods and the realities of long-haul trucking in Canada are not as glamorous as they imagined or were led to believe.

I feel the PNP programs will have limited long-term success and eventually will fade into oblivion as progressive carriers seek more effective, permanent solutions to attracting workers (and some are already doing this). While I’m skeptical of the PNP, I do believe immigration will play an important role in keeping the industry rolling.

We have an abundance of foreign-born and second generation employees working as truck drivers in this country; progressive fleets could be tapping into this pool more effectively and offering training and compensation that would elevate the quality of our overall driver force. They’re right here, folks, you don’t need to cross any oceans to find them.

As far as the PNP is concerned, I think when we look back on it five years from now, we’ll find it had no significant impact on the trucking industry, good or bad. Larry’s not so sure.

He sees the PNP as an elaborate ploy by big carriers to drive down wages. The answer may be somewhere in the middle. What do you think? Should provincial governments be enabling Canadian trucking firms to recruit from abroad when they’re having difficulty finding drivers here at home? Please discuss…

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With the latest issue of Fleet Executive we published our fifth annual supplement on sustainable transportation practices. When we first started publishing this annual supplement, sustainable transportation practices or “green transportation” as most would call it, was just beginning to become a topic of discussion in the boardrooms of most major shippers and carriers.

When large players such as Wal-Mart, IKEA, Mountain Equipment Co-op, Home Depot and Unilever made a concentrated effort to green their supply chains, carriers began to take notice. For our part, we believed that with the transportation sector being the second largest source of greenhouse gas emissions in Canada, it was prudent for the industry to become actively involved in devising the new way forward rather than to be left reacting to eventual shipper and government edicts. Our goal then, and now, is to inform fleet managers and executives about the latest technologies and strategies being used to reduce the carbon footprint and at the same time reduce costs, profile and objectively evaluate the efforts of industry leaders in the field, and share the most pertinent data on green transportation.

Yet the naysayers, including some of our media competitors, chose to ignore the trend towards green and the requirement for our industry to lead it. They believed the new focus on reducing the industry’s carbon footprint was a fad that would grow out of fashion with time or a recession that focused the attention of carriers and shippers on cost control.

Well, we have been through the worst recession since the 1920s and we are publishing our fifth annual Green to Gold supplement (in addition to a section on green transportation in every other issue of Fleet Executive plus several similarly focused episodes of Transportation Matters, our award winning weekly Web TV show) because the interest in green transportation practices has not faded. In fact, as you will read in the supplement, the interest in sustainable transportation practices is growing. We believe this is in large part due to something we have stressed since we started publishing our Green to Gold series: a greener future doesn’t have to mean a less profitable one. In many instances, the investments made in greener technologies and transportation practices can pay off in reduced costs. In other words, you can turn green into gold.

In this latest supplement we focus on trailers, an area that has lagged behind in green technology innovation, but which is catching up fast with some interesting new designs. We also follow the rise of green logistics in the boardrooms of major shippers and profile the endeavours of carriers considered to be leaders in practices that make sense for both the environment and the bottom line.

We hope you enjoy our supplement. Also be sure to check out our series of webinars on green transportation practices, coming this fall on www.trucknews.com

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Recently I had the pleasure off sitting down with Lina of LMD Financial, and discussing Living Benefits. Now normally I do not endorse anyone particular company over another here. Not my style. However, this is one sharp lady, knows her stuff, and will and can help anyone in our business, especailly with the changes coming with BILL119. You know the Bill that now means SH___ now rolls UPHILL not just down!

Lina has spent the better part of over 2 decades helping people in the transportation industry. Take a look at her webpage, take a look at her upcoming video on LINKEDIN and YOUTUBE if you get a chance. I have been requested to sit on her carrier roundtable and discuss living benefits for and with her. I have a pretty good background in these matters. Having left this business quite a while back and sold Life Insurance, made a lot of money but hated every minute of it. LMD on the other hand not only protect the Owners and Management, but protect the O/O and drivers while they are hard at work.

Rest assured people such as Lina and others in the same business can and will help. Take the time to listen and learn what you can. Protect YOUR INVESTMENTS, be it people or resources.

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It is that time of year when many companies are in the process of finalizing their business plans and budgets for 2012. We end 2011 with political upheaval in the Middle East, a major unresolved debt crisis in Europe, political gridlock in the United States and a slowing economy in China. The United States still has the world’s largest economy that has been an engine of growth for so many years. The U.S. is still Canada’s largest trading partner. However, as we saw this year, GDP growth of 3.5 percent cannot last forever.

As one reflects on where we have been and where we are today, there are large question marks about the potential economic growth we will see in the United States and in those countries that trade with it. Interest rates there are down to zero. Two big stimulus initiatives have not pulled the U.S. out of recession. The U.S. has its own debt crisis and cannot continue to spend money, at least not the way it has done in the past.

U.S. consumers that got caught up in euphoria of ever rising home prices have seen their personal debt rise from 50% to 135% of annual income. But high unemployment, high under-employment, the drop in property values, and job retention fears, have created jittery consumers. Since consumers represent 70% of total purchases, we have a big problem. This problem cannot be overcome quickly, no matter what leader and political party is elected next year.

The bottom line on all of this is that there is no quick fix. There is no political party or economic policy that can turn the ship around quickly. The U.S. cannot spend its way to prosperity or cut interest rates to give Americans the “big bang” we would all like to see. Two prominent economic minds (Jim Allworth, Vice Chairman of the RBC Investment Strategy Committee and Noel Perry, a senior economist with FTR Associates), speaking totally independently of each other, forecast the same future - - - slow GDP growth in the 2% range for the foreseeable future. While this may not sound too bad, when compared to what we have become accustomed to, this will likely make people feel that are stuck in quicksand.

What does this all mean to truckers and shippers? The pressure to maintain lean inventories will allow manufacturing to continue to grow at a modest pace, slightly in excess of 1.5% per annum for the next decade. This slow growth will put the brakes on any rapid expansion in freight volumes. Capacity will remain tight as carriers exhibit caution in adding to their fleets and as more regulation in the United States, (e.g. hours of service, CSA) reduces the labor pool. Mr. Perry forecasts a gap as large as 500,000 drivers by the year 2014. While fuel costs have moderated, rising equipment costs and driver pay will likely put upward pressure on costs. Rates will continue to increase albeit at a moderate level.

The tug of war on freight rates between shippers and carriers will continue in 2012. With slow business growth and economic uncertainty in 2012, shippers will continue to try to restrain increases in freight costs. But tight capacity, rising equipment costs and competition for qualified drivers will put upward pressure on freight rates. The New Year is shaping up to be another interesting one for transportation professionals.

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Getting to know the customer starts with finding a “magic button” you can push to make a personal connection. That button is the one thing that ignites the guy’s interest. Maybe it’s kids. Or travel. Or sports. Something you both feel passionately about (it’s probably not freight) that can jump-start a conversation instead of a sales pitch.

I recently called on a prospect I’d never met before. Through Facebook and LinkedIn I found out he coaches a youth hockey team that won a regional tournament last season. When I met him I was able to say, “I read about your hockey team. Way to go. I know coaching takes a lot of time and dedication, but I tell you, it’s been one of the most rewarding experiences of my life.”

Magic button.

We talked hockey, kids, and coaching for the next 15 minutes and then comfortably eased into the business side of the meeting. Before I left, he asked how I knew about his team. And I told him, “When there’s someone I want to meet, I make an effort to get to know as much about him as I can.”

A Series of Little Closes
Still, whatever shared interest you have won’t be enough to close the deal. It’s just the start.

One of the big mistakes you can make is trying to force a sale when it’s not there. It’s easy to resort to discounts in order to make the sale happen, a strategy you’ll pay for many times over. From that point on, everything else you have to sell—everything that makes your company great—won’t matter. To your customer, you’re the low-price carrier, the one he calls when he needs a cheap rate.

In my experience, no customer worth having will give you all of his business on the first call. The best relationships start with a series of little closes—smaller deals that are more like solid singles and doubles than home runs. This takes the focus off price, or the pressure on the customer to make a big commitment. Picking up a load here or a lane there, and doing a great job, keeps the rally alive and sets the table for a big inning when your competitor drops the ball.

Like a batter in baseball, you want to come to the plate with a plan. What are you trying to accomplish on the sales call? Sure, you want the prospect’s business—every load, every lane. A grand slam. But if you think that’s realistic, you’re going to have big trouble making this a profitable, sustainable account.

Narrow it down. On every call, your goal should be a commitment to the next step in the sales process. It doesn’t have to be about business. Your goal could be to get the prospect to your terminal for a tour.

What are some next-action options?
* More Information: Can you send more information about a particular service? Ask what format works best—email, regular mail, a paper copy sent FedEx? Close by agreeing on what you’re going to send, when you’re going to send it, where to send it, and what you’re going to do to follow up.

* Another Meeting: Your best “next step” may be to simply keep the conversation going. Agree on a follow-up meeting, a lunch, a round of golf—whatever works. Get the date and time on the calendar before you leave.

* Incremental Business: Your goal may be to pick up a small piece of your customer’s business so you can start to prove yourself as a dependable carrier. Does the customer have a plan in place if his primary carrier can’t do a job or goes out of business? Is there a lane you can take on? If you agree to send a quote, explain when you’ll send it and then book a time to follow up.

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Nothing like a polite and courteous truck chase to liven up a Monday morning. People are still talking about it in coffee shops days later. The five hour drama was followed across North America as a Toronto television station had its helicopter filming the pursuit in real time.

I turned on the television to find out the weather and instantly became riveted like everyone else—for a while. It wasn't really a chase since the driver generally obeyed the rules and even signalled turns, and couldn't get the rig over 105 kph thanks to David Bradley and speed limiter legislation. CP24 also offered commentary from its resident announcer, former OPP officer Cam Wooley.

By the time I tuned in, the cops had already been following the stolen truck for hours, from Burlington where it was spotted empty of its cargo of particle board, to Woodstock and back to Toronto, where it took the 427 south and subsequently the QEW towards Niagara. The TV announcer speculated that the driver might be heading for the border, and I pictured the National Guard setting up howitzers on the Queenston Bridge.

I went for a shower and by the time I got back the driver was in Niagara Falls and turning around at McLeod Road, heading back toward St. Kitts. By the time I'd finished changing and brushing my teeth, the driver had pulled over in Burlington and the event was over.

But what I really like is that it got the public talking and thinking about trucks and our trade. Trucking is the second biggest profession for men in North America, yet we're almost invisible. This incident, however, put the cross-hairs right on the industry. Cargo theft and speed limiters in one day got more coverage than thousands of press releases and seminars from the OTA.

Jonathan Kay wrote a story for the National Post explaining the high tech intricacies of contemporary trucking, telling us the days of Smokie and the Bandit are over. The Canadian Trucking Alliance, always quick with a press release, called for tougher penalties for cargo theft crime.

Indeed, although hijackings are fairly rare, trailer and tractor theft are not uncommon. One truck stop owner admitted that about one trailer per month goes missing from his lot. As far as thefts go, this one is small potatoes. What would he get for a load of particle board, a few thousand dollars?

Most people were asking, why does he keep on driving, why doesn't he stop? Well, he was going to jail and this was his 15 minutes of fame I suppose. And it was such an orderly pursuit-come-escort. A phalanx of OPP cars riding behind and in front with purple lights flashing, almost like watching the Snowbirds doing some precision flying.

At one time I watched a rig pull alongside and squeeze the flatbed over into the hammer lane. This was the fellow on the radio who wanted to take him out. “Let me do it, I can cut him off,” but as quickly another OPP got in front of this vigilante and backed him out of the scene. No shots fired, no one injured, no property damage. That's the way to run a truck chase. True to our credo: Peace, Order and Good Government, way to go you Canucks!

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