I struck out to find some former drivers and ask them how they felt about the change. My first target was a veteran trucker, a walrus-like fellow, dropping a trailer in the Puro yard in Rexdale. He explained he was working for a broker and had a steady Quebec run. He was succinct enough about the takeover by Contrans. “It doesn't matter to me. As long as I can keep working until I retire. I'm sixty-two and I've only got a few years left. The only difference is I've now got an on-board computers now and the yard is just up the road from the old one.” (I didn't have the heart to mention that the Harper government is looking at making us work until we're 67--it would destroy him).
I next pulled up beside a newly-minted Laidlaw broker at the dock waiting for a Montreal load. I didn't get his name but he was friendly enough, and told me he'd been with MacKinnon for 19 years. “We're all just waiting to see what's going to happen. So far it's been OK. Actually the pay is a little better by two cents a mile. And the fuel surcharge is a little better too.” Was he surprised by the NOI? “Completely, had no idea this was going to happen. But I'm happy as long as I can keep doing my run.”
But not everybody stuck around. Joe Tavares took his seven trucks and went over to Scott Lynn Transport out of Simcoe, Ont. I talked to him on cellphone while he was loading in Quebec. “The first couple of weeks were a little rough. But everybody's working now. I'm not interested in that short stuff, most of my guys want to run long. My guys are happy, they're busy now running California and Vancouver.”
Did he have any idea this was going to happen? “I'll tell you, two weeks before we had a safety meeting and there was no mention of anything. We got the message over the satellite. But this didn't happen overnight.”
What about the hold backs on the seven trucks, any hope of recuperating that money? “Evan (MacKinnon) told me that he might be able to give me something in March. I don't know what it will be, 10 maybe 12 cents on the dollar.” There's also money Joe put into a maintenance fund, about $9,000, he says. “That money is gone, too.”
But is he daunted by this set back? “No way. I'm a fighter,” he says. “I'm back in business.”
If you have an experienced team, the captain is only needed when you hit rough water. Steering the ship through a crisis is a learned skill set, sharpened by experience. Whether we have fallen into a leadership position, got forced into taking the helm or arrived at it by design, the short strokes are that every ship needs a captain and every project needs a champion. Why? Because there are always storms to navigate and only one person can make that decision. No two people are likely to approach the same set of circumstances in the same manner. As my older brother likes to say, “There are lots of right answers”.
When I started my business 24 years ago, my older brother’s advice was... don’t do it. He had been in business for a decade already and knew the perils I would face. I believe it was something I was meant to do and as I may have stated before, being overly optimistic and somewhat naive are fundamental qualities of being in business for yourself.
I’ve seen a lot of businesses fail. Solid companies with hard working owners – most spent too much money on the wrong things at the wrong time. Many fell behind with tax remittances. Some coasted when they should have forged ahead. Some forged ahead only to have a dramatic shift in technology or market conditions do them in. I feel very fortunate that my business is solid as we march into 2012.
For anyone thinking of starting their own business or are in business already and questioning their direction, here are 5 tips that people have shared with me and I know to be true:
1. Don’t bog yourself down with things you’re not good at. Hire the right people to fill the gaps.
2. Banks never give you money when you need it. Always increase your credit line when you don’t need it so that it’s there when you need it most.
3. Prepare yourself to work longer hours, take fewer vacations and have more stress than you will ever have working for someone else.
4. Prepare for the worst and expect the best is appropriate advice and trusting your instincts is critical to successful decision making.
5. Last but not least, the right decision is always the hardest until you make it... after you make it, you will wonder why you hadn’t done it sooner.
Lee’s quote for the day
“You’ll know when you’re going in the right direction by the number of hills you climb, obstacles you overcome and forks in the road that require decisions to be made.” 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.
]]>Not only is the amount of time a person can drive before fatigue sets in a very individualized thing that naturally defies hard rules but any science we can throw at the question is always, unfortunately, caught in the tug of war between the industry need to be more productive and labor’s demand for better working conditions. The two sides often read completely different things into the same research.
Industry media reports of late are full of the criticisms from all sides heaped on the US Federal Motor Carrier Safety Administration since it laid out its new rules, which it hopes will go into effect in 2013. While daily driving time was not changed from 11 hours, the maximum hours a driver can work per week was reduced by 12 to an average of 70. The new rules, laid out by the Federal Motor Carrier Safety Administration (FMCSA) also require drivers using the 34-hour reset provision to take at least two nights off between 1 a.m. and 5 a.m. According to the FMCSA, research shows that crash risk increases with longer daily and weekly work hours. So it made sense to reduce the number of hours a truck driver should be expected to work because consistently working long hours is associated with chronic fatigue, higher risk of crashes and chronic health problems. But it didn’t make sense, according to the FMCSA, to also reduce the number of hours a driver is allowed to drive in a day because the research did not show a “significant distinction” between the risk associated with working 11 hours versus 10 hours or nine hours.
The Teamsters union and safety advocates, unlike the FMCSA, believe the research shows that additional hour does make a difference in driver safety and health. US carrier executives, although pleased to be keeping the 11 hours of driving time, are not happy about the significant reduction in maximum weekly driving time. Dan England, chair of the American Trucking Associations and chair of C.R. England, believes both the trucking industry and shippers will suffer the impact of reduced productivity and higher costs. England also believes these changes may actually increase truck-involved crashes by forcing trucks to have more interaction with passenger vehicles when the rules require drivers to rest from 1 a.m. to 5 a.m. twice per week. The largest percentage of truck-involved crashes occur between 6 a.m. and noon, so this change will put more trucks on the road during the statistically riskiest time of the day.
The reality is the new hours of service could end up bouncing around US courts for years before anything is resolved. That has been the case since 2003 when the FMCSA initially decided to increase daily driving time to 11 hours. The rule was immediately challenged in court by the Teamsters union and safety advocates. The 11-hour daily driving limit has actually been rejected twice by a federal appeals court yet remains in effect. Further legal challenges are almost a certainty. Gregory Beck, a lawyer representing safety advocates, has already served notice that renewed legal action is possible. And on the other side, Bill Graves, head of the American Trucking Associations has also warned that his members are not happy with the reduction in the driver work week and will be considering legal options.
Since the US government started considering back in 1936 how many hours a truck driver should be behind the wheel, the number of hours has changed from 15 to 12 to 10 and back up to 11 as of 2003. Were those decisions driven by science or by politics?
Aside from the uncertainty created by the constant legal challenges, what should be a concern is the drain on resources this creates both with the government and with motor carriers. Fighting over whether one extra hour of driving actually has a measurable impact on safety takes time and concentration away from other areas – for example, emerging technologies such as lane monitoring or collision avoidance systems – which could have a larger impact on improving truck safety and productivity.
I also hope you will continue the conversation on issues affecting all transportation modes by joining me in the Transportation Track at the upcoming Supply Chain Canada conference, May 8-9, International Centre, Toronto. Go to www.supplychaincanada.com to register.
My mind has been telling me alot of things. Like:
1) You can do it. You've worked in bilingual positions at Shell and managed just fine. It will be okay.
2) What are you doing! You can't do this. This is a professional speaking gig and they will expect PERFECT French. Yours my friend, is not.
Heart
My heart has been telling me alot of things as well:
1) Fear! Its been attacked by the occasional fear of failure. What happens if they do want Perfect French and I don't deliver?
2) Excitement! Here's an opportunity to connect with a people group you really like ( i have alot of French Canadian friends) and travel to a section of Quebec you haven't visited before. Awesome!
3) Excitement! At the end of this year you will be more fully bilingual in French because of your learnings in the 4 times you go there.
Feet
You likely never knew that feet talked but they do!
In my moments of fear, they've numbed and screamed stop!
In my moments of excitement they've tingled and hesitantly started to walk.
They are however bound in some boots that are moving forward. I've signed a contract to do it and I have a plane flight booked, both which are expensive to cancel. So fear or not, in February my feet will be in Mont Joli Quebec for 2 days of workshops on Behavioral Interviewing... and I know that is a good thing because the only way to learn is to do.
Mind, Heart or Feet? Which is most Important?
My experience is this: The only way to get your Mind to focus on the positive and your heart to be calmed, content and happy is to force your feet to walk and experience the learning and growth that comes from doing. Too much focus on mind and heart can block the steps required to succeed. It would be tragic to spend a life only thinking about what's possible while never having waded in or to let the fear of failure stop you from glorious and rewarding growth & achievement. Take care of people's feet and the rest will take care of itself. Its an important lesson for leaders to apply to not only their team but themselves.
So here is are a couple challenges to you:
I challenge each one of you to make 2012 the year when your feet walk into at least one thing that stretches your comfort zones and that will also be the foundation for your future growth, success & happiness.
I challenge each one of you to similarly challenge every employee who works for you to walk into something new that will be the foundation for their future growth, success & happiness.
What will that be? Only you can decide. Whatever it is, I am excited for you! I know you and they will be glad you did.
Have a great week!
David
David Benjatschek is "Your Man with the Plan for Better Teams and Better Results" . His leadership & communication workshops across North America and abroad have won wide acclaim for inspiring and equipping emerging leaders for success. about.me/yourmanwiththeplan
]]>However after spending some time in Woodstock recently, and going through an all out audit with an MTO auditor, I can honestly say, it was refreshing to meet someone, who knew what they were doing, were reasonable, wanted the job done, while at the same time realized, drivers, for the most part are honest and hard working. He also realized that they are human and make mistakes.
When all was said and one, NO CHARGES WERE laid the violation rate for the intervention was misleading, and the company had their ducks in a row. The company itself, went out of their way, to make us feel welcome, and basically let us take over their office for a while, in preperation and during the audit.
Those of you who have an audit coming up, be prepared, auditors like this one, are few and far between. Make sure you are ready and have everything ready for them. No excuses no mistakes and no problems, Keep things neat, tidy, and easily indentifiable, and easily organzied, and easy on the eyes. Remember in a CHRONOLOGICAL ORDER, is the key especially with receipts. Forget the days of throwing everything in an envelope, those days are long gone.
]]>Sandhu was originally acquitted because the trial judge found that the evidence had been gathered improperly without a search warrant contravening Sandhu's Charter Rights to be free from improper search and seizure.
But on Jan 5, in a decision written by Justice J. A. Simmons, the Ontario Appeals Court set aside the acquittal and allowed for a new trial under a different judge. Moreover, the decision had some interesting things to say about truck drivers and their expectations of privacy, which I'll get into shortly.
The entire incident started as a bit of a surreal theatre, after an altercation between Sandhu and a truck stop employee who noticed suspicious activity at Truck Town Terminals on Steeles Ave. Evidently he had seen Sandhu and another man loading something from a passenger car into the back of the trailer. After confronting the the men, they started up their vehicles and drove off in opposite directions. The truck stop employee followed the truck and managed to impede his progress a few times, finally cutting him off entirely on a ramp from James Snow Parkway onto the 401.
It was then that Ministry of Transport officer Jason Leeman happened on the scene and noticed the strange activity going between the two vehicles. He pulled in behind the stopped truck and turned on his lights, determining at that time that he was going to inspect the vehicle--until driver Sandhu approached and mentioned something about a “gun” Understandably, Leeman called his dispatcher and requested backup. Soon after, a couple of Halton police officers, Paul Kent and Geoff Clarke, arrived on the scene. At this time Sandhu made a more explicit reference to a gun telling the officers, “someone had put a gun to his head and told him he had to put things in the back of the tractor trailer truck.”
This naturally piqued the interest of the gendarmes. They cautiously opened the back doors and while examining the cargo MTO officer Leeman noticed the nine bales, about two and a half feet square. He believed those bales contained narcotics based on his prior experience and training, and stepped back to let the Halton cops take a look. Officer Kent sliced open one of the bales, at first thinking they contained CD ROMs or computer parts. The investigating officer were now pretty sure they had come across a mother lode of narcotics, but it's not until detective Brad Murray arrived on the scene that the call was made to request a search warrant.
Neither of the judges quibbled with the right of the MTO officer to examine the vehicle and its contents. But the trial court judge felt that once Leeman had heard Sandhu talking about a gun, and had called for backup, the incident turned from a regulatory matter into a criminal investigation, resulting in impugned evidence because of a warrantless search.
According to the original judgement, the judge found that the officers “engaged in an intrusive and invasive warrantless search of the trailer with full knowledge and consciousness that they would only have the legal authority to proceed in that way if they first obtained a search warrant” [but]...” chose instead to rely on the questionable authority that cloaked Officer Leeman...” Interestingly, the trial judge also found that the driver had a reasonable expectation of privacy in the trailer, albeit “at the lower end of the scale.”
In overturning the acquittal, the Appeals Court suggested that there was no reason that a regulatory investigation could not take place in parallel with a criminal investigation, and cited another famous truck/trafficking case in Saskatchewan. In Nolet vs. the Crown, a couple of guys were bobtailing around the prairies and were stopped by an RCMP officer who noticed an expired fuel tax sticker. During a “regulatory” search of the truck cab, the Mountie stepped on a duffel bag that “crinkled,” and opened it thinking that there would be documents like log book sheets inside (believe it or else). Anyway, inside the duffel bag is papers all right, $115,000 in cash, which is enough for them to get arrested on the spot according to the law (libertarians take note, if you're carrying a large amount of money police figure it's the proceeds of a cime).. A further search of the vehicle found 392 pounds of pot hidden in compartments. The boys were evidently booting around in tractor and wholesaling pot until this sharp-eyed Mountie pulled them over.
Regardless, the Appeal judges leaned heavily on the Nolet judgement, which they add, in fairness, wasn't available to the trial court judge: “Where police (or enforcement officers) have conducted a warrantless search, the onus is on the Crown, 'to establish on a balance of probabilities that the search was authorized by law, that the search itself it reasonable, and that the manner in which the search was carried out was reasonable.'”
The Nolet judgement apparently set the bar. “Commercial driving is a highly regulated industry and truckers can expect to be subject to random inspections from time to time.” And further, trailer privacy issues had little to do with the Sandhu case, according to the Appeals Court since the respondent (Sandhu) did not own the truck or trailer, had no authority to determine what was loaded in the trailer, did not load goods onto the trailer himself, etc.
The last part of this appeal intrigues me. I'm not sure how much Avtar Singh Sandhu had to do with his illicit load, most drivers don't have any say in what they're transporting, we just hope the shipper is honest and law-abiding. As my friend Rick Geller is always saying, you could ship an Exocet missile domestically by FedEx, call it a popcorn maker, and no one would know the difference.
This case could well end up in the Supreme Court as did the Nolet charges. Showcasing that peculiar balancing of a state's rights with those of an individual which haven't quite been worked out yet...to be continued at the Superior Court in Milton, Ont., September 2012.
The OECD research shows that the average income of the top 10% of Canadians in 2008 was $103,500 – 10 times that of the bottom 10%, who had an average income of $10,260. Back in the early 1990s the top 10% made only 8 times more what the bottom 10% made. The richest 1% of Canadians meanwhile, saw their total share of income rise to 13.3% from 8.1% in 1980. At the same time, the top federal marginal income rates dropped from 43% in 1981 to 29% in 2010 so the richest Canadians got to keep considerably more of their earnings.
Of the 34 countries compared, the US has the fourth worst record and Canada the 12th worst but a September study by the Conference Board of Canada reported that income inequality has been rising faster in Canada than in the US since the mid 1990s.
If you are a professional driver, of course, these numbers are just proof of what your eyes and pocketbook have been showing you for years. It's a sad commentary on the plight of the US motor carrier industry, for example, that drivers make no more today in real terms (taking inflation into account) than they did in 1990. While I don’t have comparable figures for Canada to share with you, Statistics Canada records show that average weekly earnings (all employees, including overtime) in the Canadian for-hire trucking industry in 2001 was $687. By 2010, despite some of greatest growth years the Canadian economy has ever experienced, weekly earnings had climbed to $851.
The numbers I’ve mentioned are not the result of the recent recession; although weekly earnings in Canadian trucking did hit their peak in 2008 they averaged just $859. Wages in trucking have remained depressed through both good times and bad. It’s a mirror into what has been happening in our country overall as income inequality has increased during both recessionary and boom periods and despite employment growth during the boom periods.
Growing income disparity is a concern (among both protesters in the Occupy movement and prominent figures such as Warren Buffett) because a growing wage gap actually hurts everyone. Countries with greater income inequality tend to see shorter, less sustained periods of economic growth, according to a paper published by the International Monetary Fund last fall.
For trucking, the consequences are even more immediate. We need to ask ourselves why it is that despite high unemployment rates across North America, we still face a driver shortage? And then shippers, carriers and government must come together to figure out how to make the driving profession an attractive one once again because trucks don’t drive themselves and an advanced trading nation such as Canada can’t survive without trucking.
]]>I realize that I am much better off when I ignore this minutia, but in some circles these days you need to know some of what going on in this world or people seem to ignore you. Whatever! One thing that I can share on a brighter note for me is the fact that my new role as CEO of Transrep Inc. www.transrep.ca is going well and I am enjoying it more and more each day. One thing that has opened my eyes in this new role is all the new technologies and systems that I now have time to learn about. One of the significant challenges of this effort is how difficult it is to get trucking executives to spend time with some of these new things. They are so busy doing what they have always done that it is very difficult to get them to learn something new; even though you know that it will save them time and money. Of course they are also busy managing the 10,000 moving parts that go into running a trucking company; been there, done that and I get it, to some extent!
Through this whole experience I have gained a respect for those companies that are open to new ideas and systems, the ones that make innovation part of their culture, whether they are a big or small carrier. Typically, we in this industry will let everyone else test the waters before we entertain the possibility of the indoctrination of a new process or system. I thoroughly understand the old analogy of pioneers being the first ones with arrows in their backs, but by the same token none of us would be where we are today if we hadn’t taken a little risk in our lives and our business.
The secret to deciding on whether or not to try a new product or service, whether you’re an Owner Operator or a fleet owner is in the comparison of the risk/cost factor to the potential revenue/reward. In the difficult decisions I have had to make in my career I have typically followed the same procedure after all the facts are collected and an ROI (return on investment) has been estimated; I would draw a line horizontally down the middle of a lined piece of paper. On the top of the page I write what the new service, procedure or product it is that I am considering moving forward with. Under that I also articulate in one short sentence explaining what I see as the potential benefit of this change. Next step was that on one side of the page I write the pros and on the other side the cons concerning the implications of making this decision. When I was done I would put it aside for at least 24 hours and continue to think it through. Part of this exercise might just reveal additional information that you need to precede to your final decision.
The other method I used a lot when time was of the essence and I needed to move quickly is the smell test. It works like this. I look things over as completely as I can and then try and find where it stinks. Sounds simple and sometimes it is, other times though, not so easy. The root of all of this is that there are times when you just need to trust your gut, hard as this might be; trust it. For years I was intimidated by people with education and academic credentials. Here I was this young trucker who never made it out of grade 12 sitting around boardroom tables with Lawyers and Chartered Accountants and talking to bank managers. You kidding me man?
It took me a number of years to learn that all the education in the world will not begin to replace common sense and courage to follow your natural instinct and unwavering passion. Many of the decisions that I regret the most are the ones where I didn’t trust my instinct and followed the advice of someone who had the educational credentials but didn’t have my instincts. My bad not theirs, I blame no one for where I am in this world. I did everything perfectly for me to be where I am right now, no doubt about it and by the way so did you!
I vividly remember when Connie and I decided that we would start a company and apply for an operating authority and our own company. I went and spoke to two professionals; one was an experienced transportation Lawyer in London and another was a local Chartered Accountant. They both told us to play it safe and not take the risk. In retrospect, it might have been because we already had two mortgages on our house at the time. Of course we didn’t listen and went ahead anyway.
In between then and now there has been a lot of water under the bridge, some of it sweet smelling and some of it foul. That being said I am not one of those folks who suggest that if they had it all to do over again they wouldn’t change a thing, because I definitely would change many decisions that I have made. But in retrospect and despite some of the advice from my educated advisors and my own bad decisions, I believe that I have made more good decisions than bad.
Safe Trucking
Ray J. Haight
The timing was right. They all have confidence in their abilities and so do I. It is a necessary step in the sustainability of my company to have it run without me. What are the gaps they need to fill? What lessons can I learn from the exercise?
1- No two people will ever approach solving a problem or answering a question the same way. As an owner or manager, we have to accept that things will not get done the way we would do it and that’s okay.
2- Necessity is the mother of invention. People respond to pressure and deadlines. If we’re not there to deal with a situation, the need to resolve it will create a champion with a solution. The more it happens the better your team will be at the daily problem solving that arises.
3- For the most part, I have a young team. Most are the age I was when I started my business. And they are all more capable in their respective duties than I was at their age. That is the fact I focused on to let go of the reins to this extent and feel comfortable doing so. Kind of a sink or swim, what’s the worst that could happen scenario.
4- As managers, how can we effectively accomplish that task when we are caught up fully in the day to day? We may be the best problem solvers due to our experience level but what could we accomplish if we applied those same talents to investigating new products, processes and opportunities?
5- I had my grandson here the first week of our holiday. He’s just shy of two and his key mission in life is to demand your undivided attention. If there is trouble he will find it. Babysitting is a key element of business too. Bringing on a new account or starting a new project can be all consuming. Find the equivalent of daycare for these types of business situations. Babysitting is okay on occasion, but don’t make a career of it, as you will accomplish nothing else.
When I’m back, one of the first things I’ll do is assess what the gaps were, if any, in my absence. That will be the first blog of 2012.
Have a great holiday season everyone!
Lee’s Quote for the Day
“Say it can’t be done and that’s what will happen. Saying it can be done requires constant focus, self-belief, and tenacity. In other words, it’s much easier to talk ourselves out of it, than talk ourselves into it.” 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.
]]>Remember, if you eat it, wear it, live in it, or use it, It arrived by Truck.
WHATEVER YOU CELEBRATE THIS TIME OF YEAR, AND WHATEVER RELIGION YOU MAY BE, All the best for the HOLIDAY SEASON, I wish each and everyone of you continued (yes ALL OF YOU) Health, and Happiness, for the coming year, and THANKS FOR READING MY LITTLE CONTRIBUTION TO our INDUSTRY.
]]>On a pedantic note, few people know that the word “teamster” literally means someone who can handle a team of animals, whether bullocks or horses. That's what we are, drivers of metal and composite plastic horses. It's an eons-old trade, probably going back to ancient Iraq and Sumeria where animals were first domesticated and used as beasts of burden.
But the modern Teamsters Union is a North American phenomenon older than trucks themselves. Drivers started organizing in British Columbia back in the 1890s. With 1.3 million members in the US, Canada's 100,000 Teamsters are small potatoes, but it remains the biggest trucking union in this country (only rivalled by the CAW and Steelworkers). Teamsters Canada is an autonomous organization but it doesn't have as much of a presence on the labour scene here as does the American parent-entity south of the border.
The Hoffa name has become synonymous with the IBT, largely because of the charismatic nature of the disappeared-and-presumed-murdered original Hoffa, James Riddle, the father of the present-day general president James Phillip Hoffa.
Jimmy Hoffa disappeared in 1975 but he's not forgotten, despite the mediocre movie with Jack Nicholson and Danny DeVito. Strange that Hollywood twisted a compelling story into fictional nonsense by addding the DeVito character and several other plot devices that don't jive with what actually happened, notwithstanding that the real story is far more engaging than anything a hackneyed screen writer could fabricate.
With his upcoming third term as president, James Phillip, will surpass his father's record at the helm of the two-horse union. It's curious that the adopted son is looking more and more like his father as years go by. “He's still got a long way to go to fill his father's shoes,” one old timer told me in Hamilton one day. And maybe that's true. But there are important differences between him and his benefactor.
James is a labour lawyer from Michigan, unlike his dad who came up through the ranks, at one time working in a grocery warehouse. Although never working as a truck driver, Jimmy's home base was Teamsters local 299 of Detroit. The senior Hoffa was a Republican and hated the Kennedys (Robert Kennedy indeed put his ass in stir), while James is Democrat and an Obama supporter. James recently raised the ire of the neo-cons when he suggested “we ought to take out some of the (Tea Party) bitches” during a Labour Day picnic in Detroit where he was introducing Obama.
Hoffa's victory in 2011 was never in doubt. He garnered 60% of the vote, out-distancing his two opponents, former ally Fred Gegare with 23% of the vote, and TDU-backed Sandy Pope who got 17% of the pie.
The extremely low voter turnout is a little shocking. Less than 20% of the eligible voters mailed in their ballots, and in Canada the electoral exercise was even more apathetic, with only one in ten Teamsters bothering to vote.
What does it mean? Incumbency is a factor, and most members are happy enough with the leadership that they don't care to vote. Hoffa's had a few missed steps, but no major scandals. There's some criticism that his negotiating team gave away too much at YRC, and the car haulers seem to be an unhappy lot, but his overall performance seems solid enough.
He does have some opposition forming on the horizon, if the reformers can get organized and run one alternative candidate instead of two. This time the Teamsters for a Democratic Union threw its support behind Sandy Pope from New York, but it didn't seem to have much impact. I also remember one senior Teamster, also in Hamilton explaining to me what TDU stands for: “Too Dumb to Understand!” he pretty well shouted at me.
Pope may have stumbled by not running with a slate, as did her opponents Gegare and Hoffa. Slates seem to be the way to go at the IBT. I don't believe anyone's ever won an executive position in my local 938, without running on a slate.
With about 9,000 members, Local 938 primarily has Purolator, UPS and some car haulers in its hegemony. Its the second largest bargaining unit in Canada, second only to Local 1999 in Montreal which has over 10,000 members, and is the nest from which Teamsters Canada president Bob Bouvier fledged.
The Teamsters may not be as influential on the labour front as their American counterparts, but they have had a few victories. Trucking is no longer their main focus and today's Teamsters include railroad engineers and school board staff. So signing up drivers from Young's System and Wilson's must give some padding to an eroding membership base.
But I was curious when I read that local 938 had elected their executive by acclamation on Aug. 27. These are good jobs with a lot of perqs. With almost 9,000 members you'd think a few people would throw their hat in the ring. But this didn't happen this time nor did it happen last election. The incumbent slate (with a few changes) ran unopposed, and five years ago altered the bylaws so it would be tougher to run for election to the executive. Members now have to attend 50% of general meetings for the preceding 24 months before the election, not always an easy thing to do considering card-holders are scattered throughout the province.
It's no secret that president Craig McInnes pulls in 106 K plus change, with the other executives in 938 making slightly less. And I'm sure this includes a generous expense account, car allowance and pension. The pot is sweetened in that some of the executives pull in salaries to sit on Joint Councils, and Canada is allowed three vice presidents (of which McInnes is one, also running unopposed), who also rake in pretty good cabbage. I'm guessing Bob Bouvier, as head of Teamsters Canada makes at least $300,000.
So is this unreasonable, considering what CEOs get paid in North America? I think not. Union executives should be as equally well compensated as the private sector. Teamsters also have a reputation of getting contracts that set the bar within the industry. But I'd still like to see some more representation from the rank and file, rather than watching the same bunch acclaiming itself in perpetuity.
Local 938 has a long interesting history, some of it a little sketchy. Not so long ago it was put in trusteeship for three years by the above mentioned James Hoffa because of some hanky-panky with the books. It's never been clear what exactly went on. So that's another reason the executive should not run uncontested. That's the way a functional democracy works. It has to have competition and an opposition in order to thrive, in order to be accountable to the people it serves.
Like most things, experience is the best teacher, followed closely or in tandem with trusting your instincts. Most people have a hard time accepting a thought or idea that is fresh, as there is no physical reference for them to gauge whether it is good or bad. Most people are reference thinkers. If it hasn’t been done before, they are sceptical and most revert to the safer, less daring approach. The opposite is usually what is required, so you do need to be a bit stubborn to be in a business where you are creating customized solutions.
No matter what profession you’re in, you need the confidence in your abilities to do the right thing for your client, especially when they are struggling with a direction. It’s our job to guide them. When you spend a lot of your energy developing a solution, its human nature to get a bit defensive when someone challenges you and wants to send you in a totally new direction you can’t get behind. What I’ve learned over the years follows:
· If you are hired as a professional for guidance, you have an obligation to provide that guidance especially when it is challenged.
· If your client is challenging your solution, there is a legitimate reason they are not comfortable moving ahead. Don’t start over; just listen more carefully as often a tweak to the original plan will bring it all together.
· Don’t ever think you have all the answers but be confident in communicating the facts you know to be true and be open to and encourage collaboration with your client.
· Communicate in person whenever possible to get the plan back on track. You and your client will benefit from the extra effort made to resolve the hurdles you need to, face-to-face.
Lee’s Quote for the Day
“Gaining your customer’s trust is the most valuable aspect of any business relationship. It may seem a bit like climbing Mount Everest, but when you finally get there, it’s worth every step of the journey” 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.
]]>However, the real power of social media and its implications for the trucking industry didn’t hit me hit until this past Spring. I was blown away as I watched ordinary people armed with only the weapons of social media change the world. They accomplished in months what billions of dollars in military might failed to do in years—wipe out three Middle East tyrannies and protest regimes in a dozen more.
I don’t think Facebook and Twitter are fundamentally changing our business—we still move freight on trucks, and shippers still want good service and better prices. But it is revolutionizing how people talk—and hear—about our companies.
How to manage this change is a multi-million-dollar question at a lot of businesses. Not many have a good answer.
According to an Accenture study, only 8% of US companies “extensively” use social media even though 65% of marketing executives say social media is important to their companies’ future success. The survey, of 200 respondents from large ($1 billion-plus) companies, found that only 5% formally integrate social media with other customer and marketing initiatives. About 25% said they were only “slightly engaged” or “not engaged at all” with social media.
Age of Transparency
The days of companies controlling and even hoarding information are over. Now anyone can be Andy Rooney. If you mistreat a customer, he’ll take his complaint online where it will live forever.
What will you do when it happens to you? In a MarketTools study of 330 marketing executives, 95% of respondents said satisfied customers are very important or extremely important to their company, yet only 8% regularly respond to customer complaints online.
Maybe they don’t want to show their weaknesses or vulnerabilities. On the other hand, sharing a problem and how it was solved can build trust. And trust is still the key to a successful relationship, one of the few things Facebook hasn’t changed. If your five-day service was six days last month, you’d better tell people before they tell the world, and explain what you’re doing to get back on track.
Social Media and Sales
It isn't enough for trucking companies to just be on social media. You need to figure out why you’re on it and how it can help you sell freight.
A study by Gary Breininger & Associates found that supply chain professionals spend an average of 17 hours a week on the net. Not a huge surprise to me. What caught my attention is that 58% of respondents said the most important reason they use it is to source suppliers.
They’re visiting your web site, checking public records, and reading whatever else comes up with your name on it, including blog posts, Twitter feeds, and Facebook pages. Social media may not translate into a direct sale, but what customers read will influence their decision to call you up or skip on down to the next search result.
What Your Employees Say
The best way to attract and retain good employees these days is to embrace these changes and make them an integral part of your corporate culture. You can’t fight it or ban it any more. In fact, you need to use the available tools to empower your employees as a source of ideas to garner innovative ideas and improve your bottom line. I would wager that your top sales producers are using LinkedIn to build your business. It also means they have a permanent online resume for all your competitors to see.
As you plan for the year ahead, talk about how to monitor social media and which outlets are most important. Start with Facebook and Twitter and move on to Yelp, Yammer, Jive, or whatever platform is new as you’re reading this. Then go Google yourself and see what shows up. I bet your prospects and competitors already have, and in growing numbers.
Mike McCarron is the managing partner at MSM Transportation (www.shipmsm.com) in Bolton, Ont., which specializes in moving products from Canada to and from the rest of the world.
]]>FTR Associates estimated that there was a shortage of 200,000 drivers in the United States in the first quarter of 2011. How does one explain the fact that out of a pool of 13.3 million unemployed people (plus millions more if you include those who are underemployed), we cannot find 100,000 to 200,000 individuals to fill these jobs?
Here are some thoughts on this apparent anomaly. There were 3.2 million commercial drivers in the United States in 2008, including 1.8 million heavy haul or tractor-trailer drivers, according to the U.S. Labor Department. By May 2010, the number of big rig drivers had dropped 18.4 percent to about 1.5 million. In other words, there are 300,000 drivers that left the labour force that should be available to fill the available jobs. Why is it so hard to convince them to come back to work?
One of the most frequently mentioned reasons is compensation. In the United States, experienced truck drivers can make $50,000 a year at some truckload carriers. According to a BLS survey, the average wage was $39,450 in 2010 while the median wage was $37,770. The survey indicated that 75% earn less than $47,000 per annum.
The trucking industry has a long term practice of paying its drivers by the mile. While there is certain fairness to this approach since it correlates directly with the amount of miles driven and hours worked, it also injects a level of uncertainty into the driver’s weekly pay package. Inconsistent load availability translates into inconsistent pay.
Pay raises are difficult to implement since they cannot be easily correlated with increases in freight rates. In fact, there has been tremendous downward pressure on freight rates as the recession took hold and shippers sought a means of reducing supply chain costs. According to the American Transportation Research Institute, U.S. driver pay fell by 7.4 % in 2009.
Then there is the lifestyle issue. For long haul drivers, being away from home for days or weeks at a time is another deterrent. While there can be a certain glamour in being on the open road and visiting different regions of North America, spending so much time away from home can lead to a range of potential lifestyle issues (e.g. marital difficulties, unhealthy living etc.).
There are a host of other issues that contribute to the problem. At the heart of it is the fact that being a truck driver is not a recognized profession. The current driver compensation packages make drivers a commodity who can sell their services to the highest bidder.
Hours of Service regulations may or may not improve driver safety but restrict work hours. The new CSA provisions improve the quality of those drivers who meet the standards but make it tough on those who work for trucking companies that do not support them with a high quality fleet management program.
The driver shortage problem is coming to a head. Fleet costs are rising as more demanding emissions standards are imposed by governments. The CSA program will push poor quality drivers out of the business. An increasing number of shippers are challenging carrier rate increases (that are intended to cover these rising costs). A driver shortage problem that will exacerbate the capacity shortage is not a sustainable situation, particularly as we try to pull ourselves out of recession.
So what has to change? It will take a combined effort from shippers, carriers and governments to help avert a capacity shortage situation that will disrupt the Canadian and U.S. economies.
From a shipper perspective, there is a need to have “carrier friendly” freight. This can be achieved by removing inefficient and non-productive processes. This includes making improvements in freight packaging, loading, paperwork, vendor and customer network management. Many shippers need to get their “house in order” to keep their freight costs in line. As unpleasant as this may sound, freight rates have to go up (although the level of increase can be muted by Best in Class transportation practices).
From a carrier perspective, there is a need to run a sound operation, to properly recruit and train drivers and to offer them a job and a career within the organization. It is time to look at other pay options including guaranteed pay and incentive based pay for drivers who achieve certain metrics and CSA scores. There is a need to manage and communicate with drivers effectively including dispatcher training so drivers are treated with respect and dignity. We need to create a class of professional drivers who meet specific metrics on an ongoing basis and are properly recognized and compensated for their excellence.
For governments, they need to think through every law and policy they pass that has an impact on driver safety, performance and lifestyle. In North America we need a team of professional drivers that are intelligent, hard-working, thoughtful and motivated employees that serve as a differentiator as we compete with the other leading world economies.
]]>Have an accident with inadequate insurance? Doesn’t matter, make the payments - pay the loan. Got sick? Had a Heart Attack? Doesn’t matter, make the payments - pay the loan. You can see where I’m going with this. I know these scenarios are not pleasant topics, but I felt the need to get them on paper - because I have seen it happen (too many times). One of my favourite Owner Operators when I was running a carrier had a minor heart attack but was still going to be out of commission for at least 6 months, this guy was a great operator, clean equipment, worked hard, everyone liked him and then bang he had a heart attack. I remember going up to the hospital and seeing him, which is where I learned that he had no insurance for such an event and no nest egg at all. He and his wife had a house with a mortgage and a small amount of money in RRSP’s, that's it!
Of course you can find a driver and put them in your truck while you’re convalescing but I gotta tell you that this is a risky path to take, you better be sure the person knows their stuff and doesn’t cause more problems than they solve. The other thing to consider is that you might be able to make your truck payment, but of course any income that you might have used to satisfy your needs at home will now go directly to the driver, so what now? The correct thing to do, as usual, is to do your homework and make sure that you have all (or most) of these scenarios covered with insurance. I have been working with the good folks over at NAL Insurance Inc. for the past number of years, and have seen how things should work when the proper insurance is purchased and problems happen.
One of NAL’s primary products is WSIB/WCB Alternative Insurance; this product is a no-brainer for Carriers that contract with Owner Operators. This type of coverage provides long-term protection for on and Off the Job Injuries (unlike WSIB, which only covers On the Job situations), and is usually packaged with comprehensive Out of Province Medical Insurance (to cover Emergency Medical Expenses when travelling across the border). This Insurance should be a mandatory requirement at Carriers. Further, NAL makes sure each Owner Operator is aware of the scenarios listed above, as well as other possibilities, for instance, the negative effect on cashflow in the event of an accident (Deductible Buydown Coverage), the impact of a Cancer Diagnosis (Critical Illness and Sickness Coverage), or the getting stuck on some lonely highway in the middle of the night (Truckside Emergency Road Service). I hate to sound like a commercial, but I wouldn’t write it if I didn’t believe in it. Proper insurance protection is a necessary component of any sound business; unfortunately too many Owner Operators lack proper coverage and only find that out after it’s too late.
To reinforce my point, here are a couple real world scenarios that NAL has passed on to me, one with a good outcome, and one with a not-so-good outcome. The first one deals with a 47-year-old driver from the Windsor area. During a driver meeting, this gentleman was vehement that he didn’t need WSIB Alternative Coverage or Critical Illness Protection. His comment was “all insurance companies are jokes, they will gladly take your money, but when it comes time to claim they throw up as many road blocks as possible”. Luckily, the fleet he drove for made the coverage mandatory. Further, after the NAL rep got a chance to meet him one on one, he decided to increase his Critical Illness protection to $50,000. It decision turned out to be very timely, because 13 months later he was diagnosed with colon cancer. Luckily, they caught the cancer in time; he has since recovered fully, but did admit that if it wasn’t for the $50,000 Critical Illness settlement he may have lost everything.
This brings me to the not-so-good story. After a two-hour sit down with a NAL rep, an Owner Operator from rural Ontario made the unfortunate decision to “pass” on valuable Disability coverage. His premise was “I own my truck out right, no loan. If something happens, I’ll just sell my truck and live on the proceeds until I recover”. Unfortunately, too many drivers have similar opinions. The reality is that equity in a depreciable asset is certainly not the foundation of a solid financial plan, especially in a distressed situation. Unfortunately, within 12 months, this driver was tarping down his load fell from the deck and broke his arm and collarbone. The results, Due to the nature of the injury, he required two surgeries and was off for an entire year. The truck was long gone (sold for less than half what he thought it was worth), and a house in foreclosure proceedings. This could have all been avoided with a little per-planning, food for thought (and motivation to get you financial house in order).
Safe Trucking
Rjh
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.
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.
]]>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.
]]>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.
]]>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…
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
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.
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.
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.
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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