Lifeliner IOWA MOTOR TRUCK ASSOCIATION Spring 2009
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Who Likes
INSIDE: “How Government Can Affect Your Business” “The Feds Are Coming!” “Trucking in Turbulent Times” Carrier Spotlight: Van Wyk Freight Lines
Change?
Truck PAC Iowa Annual Spring Golf Outing Date: Thursday, May 28, 2009
Sponsorships Available
Time: 11:00am Shotgun Start Location: Beaver Creek Golf Course Highway 141 North of Grimes, Iowa Questions: (515) 244-5193
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Registration materials will be sent out soon!
In this Issue
IMTA Staff
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Brenda Neville, CAE President
Don Egli
Director of Safety and Security
Amanda Madison
Administrative Assistant
DeAnn Moody
Executive Assistant
Holly Mueggenberg
Communications & Education Manager
Mike Spalla
Membership Manager
Articles Truck PAC Golf Announcement............... 2 Chairman’s Message............................. 5 President’s Message............................... 7 DOT Perspective..................................... 8 Legislative Update.................................. 9 Legal Update....................................... 10 Safety Insight....................................... 12 Insurance............................................ 13 Carrier Spotlight.............................15-17 2009 Road Team............................18-19 Feature Article................................20-23 Labor Department................................ 24 The Economy....................................... 25 Renewable Fuels.................................. 27 Business Environment........................... 28 Education............................................ 29 Your Association.............................30-31 Your Association in Action................33-35 2009 IMTA Leadership Program........... 36
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Our Supporters
Northland Insurance.................... 11 Iowa Speedway........................... 11 Reynolds & Reynolds.................... 14 Beach Front Lawn Care................ 17 Trans Iowa.................................. 17 National Biodiesel Board............. 26
Heuss Printing............................. 31 Quality Services Corp.................. 31 JJ Keller & Associates................... 32 Ziegler........................................ 37 Advance Online.......................... 37. Midwest Wheel Companies.......... 40
The Final Word.................................... 38 2009 Management Conference............ 39 Spring 2009
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Chairman’s Message Mark Zieman, Cherry Valley Enterprise, Inc.
How Government Can Affect Your Business
I am going to make an assumption here, but I would imagine at this point, many IMTA members are as frustrated as I am when it comes to politics. Obviously as a former State Senator, I have a deep interest in what is going on at the Capitol and after working in the hallowed halls of our State Capitol, it is hard for me not be involved. But more importantly, my motivation to be involved stems from my status as a small business owner. Running a business is very demanding and challenging when the economy is good, so when our economy is faltering like it is now, it simply is not a lot of fun. So needless to say, the 2009 legislative session has been frustrating to follow because I often wonder if some of our elected leaders
many and “sharing the wealth” seems to be the recent craze among so many of our elected leaders. I certainly possess passion and sincerely want to help the less fortunate; however, my ability to do that is directly related to my ability to run a successful business. I know that differing philosophies are the foundation of America and for the last 200 years, some of the same battles have existed. But I do believe we are in a new era and I have come to understand that now more than ever, we must stand together as one and defend and promote the principles that enable business to thrive which ultimately enables individuals to thrive. I know that many of you share these same philosophies and I urge you to continue to stay informed, stay involved and be an active member of your association.
“We must be relentless in our campaign to educate and inform legislators on the pitfalls of anti-business legislation. truly understand the impact of their decisions when it comes to business. So much of the legislation we have seen introduced during this session is harmful to business and I believe that we must continually carry that message to our lawmakers. Over the last six weeks, I have spent a considerable amount of time at the Capitol on behalf of IMTA and also participated in a trip to Washington DC where we called on our Congressional delegation. This is time well spent because we must be relentless in our campaign to educate and inform legislators on the pitfalls of anti-business legislation. We seem to have reached a point where “entitlement” is the philosophy of so Spring 2009
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Pride in Service
Minneapolis, MN 800-222-6060
Davenport, IA 800-787-4602
Omaha, NE 800-348-1356
Fargo, ND 800-999-4903
Sioux Falls, SD 800-348-3042
Virginia, MN 800-292-0149
Billings, MT 800-823-4334
Lincoln, NE 888-275-7590
Grand Forks, ND 800-999-5207
Gillette, WY 800-677-7720
Des Moines, IA 800-348-3062
Missoula, MT 800-735-6336
Bismarck, ND 800-999-5812
Williston, ND 800-821-7298
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President’s Message Brenda Neville, Iowa Motor Truck Association
Dealing With Change
Years ago somebody asked me what I liked the most about my job and I quickly replied that I loved the constant “change”. Today I think about that comment a lot because it seems as though the only constant we can identify is “change”. Every day, things are changing in the trucking industry, in the economy, in the legislature and in our businesses. The pace in which change confronts us is almost exhausting and our ability to react and respond to change can ultimately determine our long term success or failure. Your association faces that same landscape and certainly the last six months have defined some major changes at IMTA. In association business however, changing for the good of the membership is not a choice but rather a requirement. Insuring that we are meeting the needs of our members is always a top priority and if we aren’t operating in a mode of continual change, we simply are not serving the membership in the manner that is expected and demanded. Because your business model has changed dramatically in response to the turbulent economic times, the association business model has changed as well. We respond differently, we are communicating differently, we are focusing on different priorities and we have changed many of our internal operations in an effort to better serve the membership. I hope you noticed the change in this magazine. Since 1942, the association has had some sort of a magazine or publication. We explored many different options and even contemplated dropping the magazine. But through some thoughtful and lively discussions with a strategic planning
committee comprised of IMTA members, the decision was made to continue with the magazine but CHANGE the content, the format, the feel and the scope of the magazine. With this inaugural issue, you will see some of those changes and in subsequent issues this publication will continue to evolve.
“Every day, things are changing in the trucking industry, in the economy, in the legislature and in our business.”
To compliment our theme of change, the feature/ cover story addresses the industry today and the ultimate changes that trucking companies are facing. We have also expanded our circulation and over 500 more people will be getting our magazine. We have hired professional writers and photographers to enhance the publication and we are committed to making more changes as we continue to create a magazine that we hope, you will look forward to receiving. As always, the one constant we always rely upon in this steady pace of change, is the many wonderful members we serve. You are important to us, so give us your feedback and let us know what you liked or what you didn’t like in this NEW MAGAZINE. As always, we appreciate your support and look forward to serving you far into the future.
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DOT Perspective Nancy Richardson is the Director of the Iowa DOT and has held this position since October of 2005. Nancy has been involved in the DOT through various positions since 1982. Prior to her work with the DOT Nancy began her work for the state as a social worker and a district specialist for Social Services.
The Perfect Storm for Iowa Roads
Investment Moves the Economy in the 21st Century (TIME-21) fund. DOT provided a follow-up TIME-21 Funding Analysis report (TIME-21 Analysis) to the Iowa Legislature December 2008. The TIME-21 Analysis shows that the annual cost of unmet critical needs is now $267 million over the 18 remaining years of the twentyyear period that was assessed in the original RUTF Study. How can the annual unmet need have risen $67 million in just two years?
“The 2008 flooding has dramatically accelerated roadway deterioration Nancy Richardson Iowa DOT
The past three years we talked about the “perfect storm” affecting Iowa’s roads and bridges. This is not a storm that is perfect in the “flawless, ideal” meaning of perfect, but perfect in its concurrence of factors—all bad—leading to a critical situation. We talked of the four primary factors— large, aging road system; increasing system use and demand; flattening road user revenues; and increasing highway construction costs. Any one of these would be problematic by itself, but combined they are bringing Iowa’s highway systems to a tipping point where shortfalls in system condition and capacity are much more noticeable and the costs to address system needs are growing dramatically. The Iowa Department of Transportation (DOT) provided a Study of Iowa’s Current Road Use Tax Funds (RUTF) and Future Road Maintenance and Construction Needs (RUTF Study) to the Iowa Legislature December 2006. Assessing the four critical factors of the perfect storm using 2005-2006 data, the RUTF Study projected a shortfall of $27.7 billion to meet the needs of Iowa’s state, county and municipal road systems over the next twenty years. The most critical of unmet needs were projected to be about $4 billion of that total twenty-year unmet need, resulting in a recommendation for an additional $200 million in annual statewide road funding in a new Transportation
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The answer is that the perfect storm has become even more perfect, to use a somewhat nonsensical phrase. Each of the four critical elements has worsened, with a couple of them worsening at a much greater pace than could have reasonably been predicted. First, Iowa’s large, aging road system has endured two years of some of the worst Iowa weather in decades. The extremely severe winters of 2007 and 2008, followed by the record 2008 flooding, have dramatically accelerated roadway deterioration far beyond what would normally be experienced in a two year period. Second, the cost of construction has continued to increase at a rate far above typical construction cost inflation, resulting in a continued dramatic decline in the buying power of Iowa’s road funds. Over 2007 and 2008, the construction cost index in Iowa rose nearly 26 percent while RUTF revenue increased only about 3.3 percent, resulting in another substantial drop in the fund’s buying power in just two years. While the changes from 2006 to 2008 were not as dramatic relating to the demands on the system and the flattening of revenue, both trended in the wrong way. While overall traffic decreased slightly due to various economic reasons, large truck travel grew about three percent during the twoyear period. And RUTF revenue averaged about 1.6 percent annual growth over the two years, compared to annual average growth of about 3.9 percent in the 90s.
Finally, another factor has been added to the mix…the continued inadequacy of investment. The RUTF Study recommendation for $200 million per year to meet the most critical needs over the next twenty years was based on the new funding beginning at $100 million in 2008 and being fully funded at $200 million by 2009 and each year thereafter. That did not happen. During the 2008 session, the legislature passed in a bipartisan way, and Governor Culver signed into law, the TIME-21 funding bill. This was a huge step forward, taken in an election year, demonstrating our elected officials’ understanding of the needs and commitment to meeting them. But the changes in user fees, primarily in vehicle registration, generally grandfathered in current vehicles and, as such, the new revenue ramps up slowly over the next decade. For example, the 2009 revenue is projected to be $15.2 million, to reach $115.3 million by 2012, and approach $165 million when fully implemented in ten years. This is a far cry from the $200 million per year, for every year starting with 2009, that was the basis for the original amount. This, coupled with changes in the “perfect storm” factors, has resulted in the updated annual shortfall of $267 million (excluding the new TIME-21 revenue) to meet the most critical needs. As a result, the effort to secure adequate state funds to meet the most critical of Iowa’s road systems’ needs continues, including continued legislative dialogue. Iowans understand the benefits and value of good roads to their lives. Without an adequate investment in preserving and improving them, our children and grandchildren will not experience the same benefits from our transportation infrastructure as we have…one more way that we may not be leaving the legacy we want and that those who come after us deserve.
Legislative Update Get To Know Your IMTA Lobbyist Background Information:
I grew up in Davenport, Iowa. I have been in the association management business for the past 30 years and a lobbyist for 24 years. My company employs a staff of four people and we have been in business since 1989. I am proud that four years ago the Iowa Legislature inducted me into the “Pioneer Lawmakers’ Association of Iowa.” This organization was first founded in 1889. Today legislators who have served for 20 years or who have served and retired for a total of 20 years are automatically inducted into the organization. Occasionally, lobbyists are elected into the organization by current legislators. In 2004 I received that honor. Since induction into the organization must come based on the recommendation of legislative leaders I believe that speaks somewhat to the reputation I have with members of the Iowa General Assembly. I have a Bachelors of Journalism Degree from the University of Missouri, rated by many as the number one journalism school in the country. At the time I may have wished differently, but I worked my way through college paying every dime of my tuition and expenses. I believe it helped to develop a work ethic that continues to serve me well today.
Any secrets to success as a lobbyist?
One thing that is very different about being a lobbyist is you are only as good as where you live. What I mean is, I think I can do a very good job at the Iowa Capitol representing the interests of nearly any client. But drop me down in some other state and I probably wouldn’t be worth a dime to most clients. I imagine if you can run a successful trucking business in Iowa, you could move across one of our borders and be just as successful there. Not so in lobbying.
It has taken years not to just learn the Iowa process, but to establish relationships with legislators, leaders, department heads, staff and other lobbyists. I have often used the analogy that there is no other job outside of sports that is closer to a game (sometimes a very high stakes game) than lobbying. In the trucking business you might sit down a year in advance and try to predict your business and maybe at the end of the year your predictions are off by a just a few percentage points and you look at the spreadsheets thinking you were right on target. In lobbying, if I am “off” that means I lose. My season starts the second Monday in January and the clock runs out 110 days later when the gavel closes the session. That’s it. Game over. Did you win or did you lose? There’s no gray area. No margins. No “almost.” Game over. Did you win or did you lose? I might be able to blame things on a few “bad calls” by legislators or maybe even someone broke the rules of the process, but the fact is when the game’s over the question is still whether or not you won or lost – no one ever looks at the excuse column. If there’s any secret to lobbying it is simply you better hate losing!
Most frustrating part of your job?
Probably the most frustrating aspect is many times it seems like you’re fighting against an invisible force. So many decisions happen behind closed doors and the challenge is to make sure you have the resources or contacts to learn of those decisions as soon as possible – or even before they happen. It is very difficult to explain to someone from outside the lobbying circle why you might have 10 of the eleven votes on a committee to bring a bill out,
but the one vote you don’t have is the committee chair and he or she won’t let your bill come up for a vote. That is frustrating!
“I believe I have respect on both sides of the aisle.” Dave Scott
As I write this, IMTA is leading the fight against a biodiesel mandate. The bill has 31 sponsors. Only 26 votes are necessary to pass the bill. We have tied this bill up for weeks now and we are optimistic we may be able to kill the bill. From our opponents perspective having 31 sponsors on a bill and not being able to pass the bill has to be very frustrating.
Most gratifying part of your job?
Winning would be the easy answer. I do take gratification in knowing I am helping my clients succeed with their business issues. It is very rewarding knowing that you have made a difference in the lives and businesses of hundreds or even thousands of people. And sometime’s just plain scary.
Your impressions so far as the lobbyist for the trucking industry?
The legislative process deals with so much ambiguity. Not so with the leaders I have met in the trucking industry. IMTA leaders and staff are not afraid to tell me – or legislators –what they think and how an issue may impact their business. In the meetings I have been in the passion these entrepreneurs have to make their businesses succeed is so impressive. I know they are working hard to make sure the good guys win. Spring 2009
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Legal Update Rick Howe serves as managing partner of Howe, Cunningham, Lowe & Kelso law firm in Des Moines. He has been involved in transportation for 30 years. He began his career as Executive Director of the Iowa Reciprocity Board which was the commercial vehicle licensing agency in Iowa. He has written for numerous trucking publications and has served as an expert witness in litigation involving transportation issues.
The “Feds” are Coming
Approximately 10-15 times a year I receive a call from a trucking company that has had a Rick Howe Compliance Howe, Cunningham, Lowe Review & Kelso, PLC performed by the US DOT or has been notified that the “Feds” are coming. Compliance Review is a polite term for audit and carriers are generally given less than a week’s notice. It is important to both prepare and cooperate. The duration of the on-site audit can vary from 1-2 days for a small carrier to two weeks or more for a large carrier when documentation is being prepared for an enforcement action. At the conclusion of the Compliance Review the carrier is given a report identifying the violations and providing a proposed safety rating of satisfactory, conditional, or unsatisfactory. An unsatisfactory rating prohibits the carrier from operating in interstate commerce unless the necessary steps are taken to improve the rating to conditional or satisfactory within 60 days. The vast majority of Compliance Reviews result in satisfactory or conditional ratings. The remaining carriers face a challenging task in establishing that they have implemented programs, established controls and provided the necessary training to upgrade their safety ratings. Although our firm has been able to obtain an upgrade for each of our 10
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It is extremely important to take corrective action immediately and respond quickly to demonstrate that you have taken the matter seriously.
clients who were involved in this process, it is often difficult. On two occasions, companies were temporarily placed out of service as the US DOT requested additional “evidence” of compliance. The process is intended to be remedial but sometimes feels like a punitive process for those who are deemed problem carriers. The report prepared at the conclusion of the Compliance Review directs the carrier to submit a response to the Federal Motor Carrier Safety Administration in Ames within 15 days. It is extremely important to take corrective action immediately and respond quickly to demonstrate that you have taken the matter seriously and have acted on the auditor’s recommendations. This can have a positive influence on the process as the auditor prepares the report that is reviewed in the Ames Division Office and uploaded to the national system. If enforcement action is taken as a result of the Compliance Review the carrier will receive a Notice of Claim in approximately 60-90 days imposing a civil penalty or fine. The document will include a summary of violations and a notice of abatement advising the carrier that failure to comply could result in increased penalties in future enforcement actions. It will also include a number of alternatives for adjudication or binding arbitration. Administrative adjudication includes the alternatives of informal hearing, formal hearing and submitting evidence and argument without hearing. We experienced a period of time prior to 2000 when the agency would not negotiate the amount of the fine. This
has changed in recent years and a carrier who has taken remedial action may have an opportunity to negotiate a Settlement Agreement suspending a portion of the fine and extending the time frame for payment. The suspended portion of the fine is generally conditioned on the carrier not receiving critical or acute violations in the problem areas for a period of time, which is frequently one year. At the end of this period it is permanently forgiven. From a safety enforcement standpoint there are positives and negatives for being an Iowa based carrier. Our US DOT Division Office is more targeted and aggressive in their enforcement efforts than many other states. At the same time, they are willing to assist the Association and individual carriers in supporting and participating in educational programs and working with companies who want to improve their level of compliance.
Sat
May 16
Pride of Iowa ASA Midwest Tour Super Late Model Series/USST Super Truck Series Concert – Jake Owen
Sun
May 17
NASCAR Camping World Series East/ West Challenge Concert – Jason Brown
Fri
June 19
Firestone Indy Lights Practice/USAC Midget Series
Sat
June 20
Firestone Indy Lights Series/IndyCar Qualifying Concert - Hairball
Sun
June 21
Iowa Corn Indy 250 Presented By Pioneer Concert – Shannon Brown ARCA Qualifying/Pizza Ranch 100 Star Mazda Championship Series Concert – Douglas Acres
Fri
July 10
July 11
Prairie Meadows 200 ARCA RE/MAX Series/IMTA 50 ARCA Truck Series Concert – Eric Church
Fri
July 31
NASCAR Nationwide Practice/Casey’s General Stores USAC Sprint Car and Silver Crown Series Concert – Kellie Pickler
Sat
Aug 1
U.S. Cellular® 250 NASCAR Nationwide Series Concert – James Otto
Fri
Sept 4
NASCAR Camping World Truck Qualifying/NASCAR Camping World West Series
Sat
Sept 5
NASCAR Camping World Truck Series
Fri
Sept 18
Fan Fest
Sat
Sept 19
USAR Pro Cup Series/ASA Late Model Series Concert – Billy Currington
Sun
Oct 18
Drag Race Show ‘n’ Shine
Sat
Schedule subject to change
2009 RACE SCHEDULE
START YOUR ENGINES
JUST 20 MINUTES EAST OF DES MOINES
On the Road_4_Iowa
8/3/07
1.866.RUSTY.GO 3:36 PM Page 1 IOWASPEEDWAY.COM
Efficiency and reliability are what keep your wheels turning and your business rolling. At Northland Insurance our focus is keeping you on the road — where you belong! One of our trucks hit a deer, causing extensive front end damage. The Northland examiner met with us on the very day we filed the claim to inspect the truck, complete the damage estimate and arrange for repairs. Thanks to Scott, the loss was settled in a couple days with minimal impact to our daily business, and we’re back on the road! — Denny Rosenberger Katana, Inc. Indianola, Iowa
We value our long-term relationship with Katana and we focus on providing good, personalized service – that’s what we do at Northland. We allow our customers the freedom to make the decisions they need to get back on the road again. We help them get back to where they were prior to a loss – conveniently and quickly. It’s all about being there when they need us most. — Scott Harms Northland Senior Claims Examiner Des Moines, Iowa
again… On the road again. St. Paul, MN • Hartford, CT www.truckinsurance.com
Spring 2009
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Safety Insight Gary Handley has been in the trucking industry for 35 years, he first started as a driver and then moved into safety. He has been a safety director for BTI Special Commodities since 1988 and is a two time award winner as the IMTA Safety Director of the Year.
The Real Purpose of a Good Safety Department TAKING CARE OF THE DRIVER!
I would think if you took a survey of 20 safety directors and asked them the main purpose of the safety department, you more than likely would get 20 different answers. These answers would vary from compliance to risk management to insurance Gary Handley negotiations BTI, Special Commodities to recruiting to keeping the boss happy. And while these things are all a very important part of the overall safety operation, I think the real purpose of a good safety department is to take care of the drivers, take care of the “human factor” of the company. Throughout history, society has become more sophisticated with numbers and statistics all in the name of providing better information to make decisions. This evolution is very prevalent in a safety department. As a safety director, we live by the numbers. We constantly check our SafeStat Scores, NCCI mode rates, loss ratios, and ISS-D scores just to name a few. These are all very important and if you aren’t checking these numbers on a regular basis, you need to find another job. These numbers tell us where we stand in our industry and more importantly, help us see the areas in which we need to improve. But, in this process of constantly looking at NUMBERS we seem to lose sight of the role of the good ole human factor involved in safety, taking care of the driver. 12
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You can have a million dollar safety program, stacked with incentives and bonuses and still not have ONE safe driver. Safe drivers are created by a consistent training program and a positive attitude that can only be created by the safety director and management philosophy that truly appreciate the driver. A driver has to feel good about what they are doing and who they are doing it for before they are really going to try and do a good job. Nurturing a positive attitude and creating a respectful and appreciative environment is a valuable investment in your driver pool. I can’t ride in the truck every day with the driver and determine what his weaknesses are, but I can provide positive feedback and a good working environment. This creates a good attitude with the driver and that impacts every thing he does behind the wheel.
But this is where the human element comes into play. Distractions are a part of the job but a distracted individual behind a desk is not near as dangerous as a distracted individual behind the wheel of a loaded truck. Investing in a program that makes the driver the top priority is a way to create a successful safety program. Putting the “human
You can have a million dollar safety program, stacked with incentives and bonuses and still not have ONE safe driver.
When I begin to get frustrated with a driver, I try to remind myself of the lifestyle he is living. Every day a driver can be affected by a multitude of outside forces, a sick child, unending loneliness from being away from home for a long period of time, worrying about why the little league baseball coach is not playing his son, a grumpy dispatcher, unstable weather and of course, sharing the road with BAD drivers. Not to mention the other obstacles that drivers face on a regular basis, obstacles such as trying to find an address on a building at midnight without street lights in the middle of a snow storm with cars parked on both sides of the street while pulling 53’ trailer!
element” at the top of list doesn’t require a lot of technology or number crunching just some thoughtful ideas that always remind the driver that he is the number one priority and trust me, the rest of it will fall into place. So back away from the computer for a moment and take the next ten minutes to write, yes I said WRITE down ways in which you improve the environment for your drivers without the aid of numbers, statistics, computers or any other technology. You may be surprised with your results.
Insurance Steve Gooding is the President of the Benefits Division for Reynolds & Reynolds, Inc., an IMTA member located in Des Moines. Steve has been in the insurance industry for 20 years and has worked closely with trucking companies and leaders to develop programs that are beneficial. Reynolds & Reynolds is a preferred partner of the IMTA.
Voluntary Benefits Provide Value in Tough Economy
When considering voluntary benefits, it’s important to offer those products that are most likely to be well-received by Tough economic times can take a toll on your employee group. Therefore, have a strategic plan for implementation, all aspects of a company’s operations, just as you do with your core benefits including the employee benefits department. As companies look for ways program. Consider first what coverage gaps employees may have. For to keep a cap on employee benefits example, if your core program lacks costs—while still offering an attractive, dental or vision options, these are ideal competitive benefits package—consider voluntary benefits offerings. If you limit the value of voluntary benefits. life insurance coverage to a set multiple of salary, supplemental life or life insurance options Voluntary with a cash accumulation benefits can help feature could be offered. If your workforce includes meet individual part-time employees who employee needs are not eligible for the core and fill gaps in the plan, voluntary benefits could include regular employee offerings limited medical, along benefits program, with dental and vision. Steve Gooding And if your benefit plan is Reynolds & Reynolds, Inc. at little or no cost comprehensive, and has few gaps, bring in options that to the employer. give employees alternatives to purchasing insurance products in Voluntary benefits can help meet the individual market—long-term care, individual employee needs and fill group home and auto, cancer and/or gaps in the regular employee benefits critical illness insurance, legal services program, at little or no cost to the plans, even pet insurance. employer. Employees pay for voluntary benefits with their own money, but at a sometimes substantial savings of both time and money: group discounts generally are available; marketing is brought into the workplace, instead of employees having to shop for these products on their own; and payment can be conveniently made through payroll deduction. Furthermore, employees may have access to products that would not be available to them on an individual basis, as underwriting may be relaxed when the product is offered to a group.
In addition to coverage gaps, examine employee demographics to determine which voluntary benefits offerings would be appropriate. Employee focus groups and surveys also can be useful information-gathering tools in selecting voluntary benefits products that are likely to be well-received by your workers. In addition to expanding your employee benefits options, voluntary benefits can enhance your communications
opportunities with employees. Choose a vendor that is armed with communications vehicles that ensure program success: a combination of paper, online and in-person outreach designed to promote the opportunities of the voluntary benefits offerings, but without the kind of hard sell that can turn employees off. Today’s technologies make the administration of voluntary benefits programs easier than ever. Online enrollment and claims inquiries/ processing direct to the vendor can, in many cases, limit the burden on the employer’s human resources and benefits staff to the set-up of payroll deduction. This is a small investment when the return is a more comprehensive benefits program at little or no additional cost, and employees who are more satisfied with their employee benefits package.
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In facing the challenges of today we need partners Reynolds & Reynolds we can rely on. Reynolds & Reynolds Inc. has for many years. been that kind of partWe depend upon them ner in dealing with our to keep us updated on risk management issues. all of the changes and While Mack Harbour challenges that we face has done a great job as daily in our industry. We our primary contact, we consider Reynolds & have really valued the Reynolds a partner in expertise of their team our business.” members who meet the — D J Franzen, President insurance needs of our D J Franzen Trucking company. D J Franzen has been a client of
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— Jeff Simpson, President Mid-Seven Transportation Company
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We have appreciated
Reynolds & Reynolds’ knowledge of our industry. They have helped us improve our coverage, settle timely and reasonable claims, and always stepped up to support us and our industry. Reynolds & Reynolds provides the personal contact you expect from a small agency but have the resources of a large agency. It is nice to have an agent that knows both our industry and theirs. —
We at Reynolds & Reynolds, Inc. understand there are many good insurance agencies specializing in transportation. We strive to be exceptional. We work hard to understand your business so we can calculate your total cost of risk, not simply just a quote. Since 1976, Reynolds & Reynolds, Inc. has been working to customize insurance coverages and policies to meet our clients specific needs. It is because of our experience and commitment to excellence that many of our valued clients have been a part of our company for over 30 years. Please give us a call today. reynolds.lifeliner ad2.indd 1 2009 14 Spring Lifeliner
Your Insurance Experts
“
Reynolds & Reynolds, Inc.
Dave Dickey, President Dickey Transport
“
We have been with Reynolds & Reynolds for close to five years now, and have always experienced top notch service in all areas of our trucking insurance coverage. From claims to day-to-day servicing,
Reynolds & Reynolds knowledge and professionalism is to be commended. We have been with a number of agencies over the years and none of them are on par with Reynolds &
Reynolds. —
Leo E. Nikolas, President TB Express
300 Walnut Street, Suite 200 Des Moines, Iowa 50309 800.767.1724 515.243.6664 www.reynolds-reynolds.com
3/5/2009 10:57:45 AM
Carrier Spotlight
Van Wyk Freight Lines
Vernon Van Wyk, Loretta Van Wyk & Marcy Van Wyk-Moore
“We’re still small enough to maintain a family style atmosphere,” says Marcy Van Wyk-Moore, Director of Administration & Safety at Van Wyk Freight Lines, Inc., headquarted in Grinnell, Iowa. As a second generation Van Wyk Freight employee, she would know what a family atmosphere feels like.
If Van Wyk Freight Lines, Inc. is one big happy family today, nearly 50 years after opening its doors, then it started as one small happy family. Vernon (Pinky) Van Wyk first started hauling in 1962. The Sully, Iowa, native started the company and then served as the sole employee through its formative years. In 1970, he married Loretta who quickly became part owner of the company. It didn’t take long for them to acquire some additional help, Marcy – their daughter, started working in the office in the 6th grade. Longstanding employees seem to be a staple at Van Wyk Freight Lines, Inc. Approximately 30 percent of their drivers have been with the company for more than eight years. Additionally, the first driver Pinky hired, Darrell Zegers (DZ), is still with the company.
“We’re still small enough to maintain a family style atmosphere,” says Marcy Van Wyk-Moore, Director of Administration & Safety at Van Wyk Freight Lines, Inc.
Marcy points to the familial atmosphere and quality work as the key factors for the high retention rate. “It’s a combination of good drivers who can be home every night and weekend, coupled with good benefits and modern, wellmaintained equipment.”
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Carrier Spotlight Vernon elaborates on the company’s success. “We built this company on excellent service. We’re competitive when it comes to price and service is our strong suit.” Today, Van Wyk Freight Lines employs more than 80 people. It maintains a fleet of 36 tractors and 100 trailers, headquartered at a 39-door service center in Grinnell.
beginning and has received several safety awards. Vernon points to the IMTA as a source for their accolades, “We started with the IMTA in the 70’s and since then they have kept us up to date on a number safety and compliance issues.”
The company’s focus is on service in the mid-western region, with overnight service to a number of major Midwestern cities and as far southwest as Dallas. Additionally, the firm hosts an expedited service to California, with international outlets in Mexico and Canada. The organization places a high emphasis on safety. It has maintained a superior safety record since its
A company that started with one 18-foot straight trailer has now branched into an organization that employs more than 80 people. 16
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“We built this company on excellent service.”
Carrier Spotlight Marcy also mentions the association as a resource paramount to their dayto-day business. “Having a safety contact who we can call up directly is a wonderful asset to our business, and the legislative presence on the hill, so we have a voice, is invaluable.” Marcy seems to be invaluable to the organization. She is currently the Director of Administration and Safety where she handles, employee benefits, property management, DOT and OSHA requirements, payroll, general administration and clerical duties, and just for good measure…a little IT work. But it looks like some help might come Marcy’s way. The third generation of Van Wyk’s is already a strong presence at the company’s office. Marcy’s four children have been in the office since they were
infants. Thus, her four children have literally grown up in the industry. Her oldest daughter, Samantha, 13, plans to start coming in part-time this summer – much like her mother had. So a company that started with one 18foot straight trailer has now branched into an organization Van Wyk Freight Lines is now operated by two generations, soon third generation will enter the operation. that employs more than 80 people, serves the Midwest and international clients, and is now looking at its third generation of Van Wyk’s generation of employees. Both progress and hope seem exponential at Van Wyk Freight Lines, Inc.
The third generation of Van Wyk’s is already a strong presence at the company’s office.
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Introducing Your 2009 Iowa Road Team The Road Team will be promoting Iowa’s trucking industry at various events for the next year. If you are interested in inviting them to one of your company or community events contact Mike Spalla at IMTA (515) 244-5193.
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Lynn Palmer Con-Way Freight, Inc. Driving 13 yrs – 200,000 Accident Free Miles From: Winthrop, IA 1st Place State TDC – 3 Axle Van
Duane Dornath Smithway Motor Xpress, Inc. Driving 30 yrs – 3.4 Million Accident Free Miles From: Fort Dodge, IA 1st Place State TDC – 5 Axle Flatbed
Kevin Garlick Con-Way Freight, Inc. Driving 30 yrs – 2 Million Accident Free Miles From: Boundurant, IA 1st Place State TDC – Twin Trailers
David Towne Wal-Mart Transportation, LLC Driving 35 yrs – 3.3 Million Accident Free Miles From: Mt. Pleasant, IA 1st Place State TDC – 5 Axle Van
Ryan Kelley Fed Ex Freight Driving 12 yrs – 500,000 Accident Free Miles From: Mason City, IA 1st Place State TDC – 4 Axle Van
Denny Bell Wal-Mart Transportation, LLC Driving 38 yrs – 4 Million Accident Free Miles From: West Liberty, IA 1st Place State TDC – Straight Truck
Glen Frick PDI, Inc. Driving 30 yrs – 2.3 Million Accident Free Miles From: Ankeny, IA 1st Place State TDC - Tank
Jack Wyatt Wal-Mart Transportation, LLC Driving 30 yrs – 3 Million Accident Free Miles From: Iowa City Wal-Mart 2 million safe mile award
Spring 2009
Road Team
T v t M
IMTA Road Team Debuts
The 2009 IMTA Road Team made their first public appearances recently and spent two days meeting with a number of different groups sharing valuable information and insight on the trucking industry. The IMTA Road Team is an important part of IMTA’s overall “outreach efforts” and this group in particular is always highly effective because they are professional truck drivers. “The Road Team always gets great notice and attention because they represent the men and the women who are actually out in the trenches each day. Their message resonates with people of all walks of life and of all ages. We are able to really make a positive impact on a lot of different people through our Road Team activities,” said IMTA President Brenda Neville. On this two day campaign, the road team members met with regulators, legislators and students. For each meeting their message was much different but just as effective.
“We are able to really make a positive impact on a lot of different people through our Road Team activities”. IMTA President Brenda Neville.
“I always appreciate the perspective offered by IMTA’s road team because they are out on the road each day and provide some tremendous insight on the industry,” said Shirley McGuire with FMCSA. The 2009 Road Team will have four to six different events throughout the remainder of the year. Again this year, their primary emphasis will be on educating young drivers on sharing the road with trucks. If you are interested in having a road team member at one of your company events or functions, please contact Mike Spalla at the IMTA office (515)244-5193.
Ames high school students in the Multi-Occupations Cooperative Program learn about the careers in trucking as well as sharing the road with trucks. Students were able to sit behind the wheel and observe the blind spots truck drivers struggle with.
Back Row (from the left) Glen Frick, PDI, Inc., Jack Wyatt, Wal-Mart Transportation, LLC, Kevin Garlick, Con-Way Freight, Inc., Duane Dornath, Smithway Motor Xpress, Inc., David Towne, Wal-Mart Transportation, LLC Front Row (from left) Denny Bell, Wal-Mart Transportation, LLC, Lynn Palmer, Con-Way Freight, Inc., Shirley McGuire, FMCSA, Ryan Kelly, FedEx Freight, Mike Spalla, IMTA
Back Row (from left) Duane Dornath, Smithway Motor Xpress, Inc., Glen Frick, PDI, Inc., Jack Wyatt, Wal-Mart Transportation, LLC., Denny Bell, Wal-Mart Transportation, LLC. Front Row (from left) David Towne, Wal-Mart Transportation, LLC., David Scott - IMTA Lobbyist, Representative Erik Helland, Ryan Kelley, Fed-Ex Freight
Back Row (from left) Sgt. Enfield, Iowa Department of Transportation, Captain Christensen, Iowa Department of Transportation, Denny Bell, Wal-Mart Transportation, LLC., Glen Frick, PDI, Inc., Duane Dornath, Smithway Motor Xpress, Inc., Jack Wyatt, Wal-Mart Transportation, LLC, Front Row (from left) Kevin Garlick, Con-Way Freight, Inc, Lynn Palmer, Con-Way Freight, Inc., Ryan Kelly, Fed-Ex Freight, David Towne, Wal-Mart Transportation, LLC
Spring 2009
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FE ATU R E
Who Likes
Change?
By: Travis Scott Contributing Writer
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Who Likes Change?
Change is inevitable. In the end its how a person, an organization, an industry, or even a country deals with change that matters. Indeed there has been a lot of talk about change in the last year, but as to what that exactly means is more difficult to put a finger on. What is certain is that things are changing in our industry – for better or for worse.
“With a solid economy the demand is simply on product. Today we are seeing more emphasis by shippers in meeting service
The American Transportation Research Institute (ATRI) seems to back Decker’s point of view. In their 2008 Critical Issues in the Trucking Industry Survey, the economy weighed in as the second most pressing issue facing the industry. The survey noted that as high fuel prices, a deepening credit crisis and rising inflationary pressures take a greater toll on the U.S. economy, the industry is pressed by increasing regulations, slumping demand, excess capacity and increases in both fixed and marginal key cost centers. These factors result in a fiercely competitive environment where revenues decline or remain flat while regulatory compliance and operating costs continue to rise.
While this is a model that has been prevalent in the trucking industry for years, the recent situation is still a major departure of “business as Don Decker usual” in the minds of most trucking Decker Truck Line, Inc. owners. Jackie Johnsrud, president of Johnsrud Transport, a tank truck operation based in Des Moines expresses concern that echoes other Donald Decker, president of Decker trucking leaders. “The major driver of the Truck Line, Inc., headquarted in Fort trucking industry is the economy, so until Dodge, is leaning toward the latter. the major economic indicators are moving “If the past is anything to judge by – I consistently forward, we will see continued think this is going to last a lot longer weakness. You will also have to take out than anything we’ve seen – this runs what will never return to the same level, deeper and wider.” a lot of loads were lost to the shipper’s redesigned supply chains and packaging and this was driven because they were trying to cut costs because of the unstable fuel markets.” November 2008 was considered by some to be a possible positive turning point. Bob Kohlwes, president of BTI Special Commodities, Inc., in Des Moines, for one thought it might loosen up the industry. “We were hoping once the election happened it might get things moving in the right direction. Instead it seems the economy is in even more serious trouble and the business community continues to be unstable and even more unhappy than they were in October.”
In fact there are a number of reports that seem to illustrate this downward spiral is continuing:
The American Trucking Associations (ATA) said its seasonally-adjusted For Hire Truck Tonnage Index sank 11.1 percent in December, representing the largest month-to-month reduction since April 1994, when the unionized less-than-truckload industry was in a labor strike. The ATA added that December’s tally marks the third largest single monthly drop since the ATA began collecting tonnage data in 1973.
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At the end of February, the Dow Jones Transportation Average had slipped to the worst level since September 2003.
In January 2009 the Commerce Department found consumer spending (which totals twothirds of U.S. GDP) by individuals fell 1 percent – this after capping off 2008 the lowest spending year in more than 40 years.
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Consumer Index released in late February showed that consumer confidence dropped to a record low 25 – any reading below 80 signals a worrisome dip in confidence. This marks the largest single-month decline in overall sentiment since the Index began in 2002.
Government reports point to slowing exports by U.S manufacturers. Not only does that hurt GDP figures, but it potentially lessens freight demand.
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Who Likes Change? Trucking leader’s perspective on the current condition of trucking in Iowa
Murry Fitzer Florilli Transportation
“It’s a classic situation of survival of the fittest, it’s only those who’ve done things long before the occurrence of this who will out last the less prepared.”
The Strongest Survive
With consumer demand falling and reduced shipping volumes, it seems the companies that will weather the storm are those who saw troubles coming and are taking the measures to counter act them. “It’s a classic situation of survival of the fittest, it’s only those who’ve done things long before the occurrence of this who will out last the less prepared,” said Murry Fitzer, CEO at Florilli Transportation, LLC, in West Liberty. For Decker this has meant, among other things, shifting more from flatbed to refrigerated trucks. “We saw durable goods going soft early and made the shift. They continue to be soft and I’m not sure it’s gotten to the bottom yet.” On the other hand, Florilli Transportation, LLC, which has a 100 percent refrigerated
fleet, noticed the market was contracting tonnage for their organization in 2007, then through 2008, with largest decrease in last November.
“When I look at the numbers, I’m hard pressed to find signs for improvement anytime soon,” said Fitzer. “The fact of the matter is, whatever is attacking the margins, if you want to resolve the primary cause, then your only alternative is to micromanage all aspects of your organization and look for savings where you can.” These tough times seem to breed both creativity and safe practice. The consensus seems to be that it is as important to be frugal as it is to focus on the strengths one can control. And unfortunately, there is no quick fix or easy solution to be found. At Cherry Valley Enterprises, Inc, in Postville, Owner, IMTA Board Chairman and former State Senator (R), Mark Zieman points to efficiency as key to their day-to-day business. “We make sure we operate as efficient as possible, making the best miles we can – with limited new purchases.”
Is that a light at the end of the Tunnel?
Bob Costello, chief economist and vicepresident of the American Trucking Associations, says we’re not in the clear, but rather in the thick of it. He notes that we will continue to fall, but the fall will gradually slow down. He predicts a bottoming out in the third quarter of 2009. Lifeliner
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The current problem is we are getting it from all sides, said Costello. The manufacturing industry, the housing industry, import, export, etc, are all taking a hit. He points to the housing market as the biggest indicator as to when the economy will begin to mend. Although it may not be the most popular action by the new president, Costello does support the stimulus package, but he prefers the term spending package. “I know it’s hard to believe, but doing nothing was a far, far worse option that what was done.” The package is projected to save 2 million jobs, an asset that cannot be underestimated in these trying times.
Decker says they have focused on their service methods. “With a solid economy the demand is simply on product. Today we are seeing more emphasis by shippers in meeting service demands.” Johnsrud is maintaining the conservative track that has been a cornerstone of their business, “We operate very conservatively in all times and we will continue to do so and adjust as conditions warrant. We continue to look for opportunities for cost savings and ways to maximize productivity.”
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Costello quickly noted however, “The bottom is not a trampoline. Once we do hit we are not going to slingshot back to prosperity, rather it will be a slow climb back up.” He elaborated that this uptick will most likely be seen in the first quarter of 2010.
Jackie Johnsrud Johnsrud Transport, Inc.
“I think the industry as a whole tends to throw too much capacity into the mix when things are good and that usually ends up coming back to haunt us. Ultimately, capacity discipline when times are good would be the healthiest lesson learned.”
Who Likes Change? Trucking leader’s perspective on the current condition of trucking in Iowa
Nothing Lasts Forever
Henry David Thoreau wrote, “Things do not change, we do.” It is evident that these trying times have brought out ingenuity and new perspectives in how we do business and how we think about the business. Now it seems the most important question facing us is how will we change and learn from our situation?
In the end, anything that benefits the “It seems as though consumer benefits the economy, and the economy is in even in turn supports the trucking sector. A more serious trouble potential but harsh upside to these times is that not all companies will survive, and the business once the economy starts to right itself. community continues During the recent boom years, newer to be unstable and even and expanding trucking companies have added trucks resulting in excess capacity more unhappy than with lower rates, which can result in they were in October.” companies operating on thin margins. An equation that is simply a recipe for disaster and bad for everyone in the trucking “I think those that survive industry. these times will emerge stronger and well seasoned. Experience in tough times is a “I am not certain we’ll ever get back to the great teacher,” said Johnsrud. “The key is level we were before this. Mainly because drawing on that knowledge for balance values and ideologies have changed; when times are good. Neither the good things will be different,” said Decker. times, nor the bad, last forever. I think the Meanwhile Zieman is working to maintain industry as a whole tends to throw too his company’s composure for the market’s much capacity into the mix when things are good and that usually ends up coming upswing, whenever it may occur. “We are staying solvent so when things turn around back to haunt us. Ultimately, capacity discipline when times are good would be we can capitalize on it.” the healthiest lesson learned.” Fitzer too remains hopeful, but paints a grim picture. The only economic downturn he can relate current times to is the early eighties, when tight money and high interest rates burst the agriculture’s speculative bubble. Fitzer was a farmer at the time; that is, until things got so bad he sold and started his career in the trucking industry.
“We make sure we operate as efficient as possible, making the best miles we can - with limited new purchases.”
Mark Zieman Cherry Valley Enterprises, Inc.
Bob Kohlwes BTI Special Commodities, Inc.
Things do not change, we do. ~ Henry David Thoreau
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Labor Department Stephan Hampton has been with the Division of Labor for 20 years and has been involved with the enforcement of 91A the entire time. Previously Stephan was with the Fifth Judicial District Department of Court Services and also the Iowa Civil Rights Commission. An additional ten years was spent in the private sector. Iowa’s Wage Payment Collection Law, Chapter 91A of the Iowa Code, was signed into law in 1975 by Governor Robert D. Ray. This statute designated the manner and means by which an employer must pay wages and established a formal process for an employee to initiate the investigation of allegations that wages have gone unpaid. The Labor Commissioner of Iowa was assigned the responsibility of enforcing this chapter. One of the more common violations of this law falls within the area of deductions from employee’s wages; this is particularly true in the trucking industry. By far the largest reason for this seems to be a lack of knowledge or a misunderstanding of the statute, specifically section 91A.5 “Deductions from Wages.” Trucking is somewhat unique in the fact that a great deal more trust is required of both the employee and the employer than in other industries. Employees accept positions trusting that the employer will keep them under load without lengthy delays, to pay wages regularly when the employee may be a thousand or more miles away on payday and to schedule their trips in such a way as to guarantee regular visits with their family and loved ones. The employer, meanwhile, hands over a $100,000.00 piece of equipment and trusts that it will be returned in the same condition, trusts that the drivers will deliver the load in a timely manner, keep accurate records both for government regulations and billing purposes and to conduct themselves as professionals representing the name on the door of the tractor.
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Many employers spend a great deal of time and energy attempting to protect themselves from misplaced trust through a “Policy and Procedure” agreement or manual. Most employers understand that before making deductions from an employee’s paycheck a written authorization from the employee is required. What many fail to recognize is that in addition to this written authorization, the deduction must be for a “…lawful purpose accruing to the benefit of the employee.” 91A.5(1)(b) Examples of these types of deductions include health insurance, 401k contributions, and cafeteria plans to name just a few.
Types of additional deductions in the trucking industry include: 1. Vehicle recovery 2. Out-of-route and “deadhead” miles 3. Late delivery 4. Unreturned property 5. Vehicle & property damage 6. Truck cleaning fees 7. Cost of transportation and training 8. Costs of physicals 9. Costs of drug screens 10. Excess insurance premiums 11. Telephone charges (in some but not all cases) 12. Safety deposits
Most, if not all, of the deductions listed are outlined in many of the Policy and Procedures manuals submitted
in response to filed claims. Similarly, most if not all have been found to be in violation of the law. While many of the financial agreements within these documents may or may not be legally binding on the employee, the method of collection rarely is; in almost no case do deductions from the employee’s wages to meet the obligation accrue to the benefit of the employee. The Iowa Division of Labor Services is currently in the process of developing a separate link to our website, www. iowaworkforce.org/labor/wage.htm that will be devoted to the trucking industry and that will attempt to answer questions specific to the issues listed previously. Anyone with questions regarding the appropriateness of anticipated wage deductions or having questions regarding any portion of Chapter 91A is encouraged to call 515-281-5337 or to e-mail stephan.hampton@iwd. iowa.gov.
The Economy Richard Mikes is managing partner of Transport Capital Partners, and previously served as vice chairman of Ruan Transportation Management Systems. He holds a PhD in economics.
Trucking in Turbulent Times: The Economic Landscape The economic forces impacting the world, our country and our industry in Iowa are beginning to show the following trends, which will guide owners through the difficult times still to come: The depth and duration of the current recession is predicted by economists to last through 2009, with a GDP
Employeeto-driver ratios are dropping as belts are tightened.
continued to fall through February at a faster rate than flat bed or refrigerated traffic. Estimates varied from a 1020% year-over-year for the last two or three months, depending on the metrics reported. Automotive and retail are the major weak sectors; food and lower-priced retail proved more stable. Intermodal volumes are also dropping. Long haul freight continues to be undesirable with spot rates dropping. Diversification of sectors, with shifts away from auto, retail and construction, was reported for ‘08 and will continue in ‘09. With bid requests at very high levels, there appears to be a variety of responses: from dropping marginal loads/ shippers to “aggressive pricing” in order to retain contracts.
Carriers are improving both administrative and operational Richard Mikes Transport Capital Partners systems. Employee-to-driver ratios are dropping as belts are tightened. Renewed purchasing scrutiny is being drop of around 2%. According to practiced for everything from office FTR Associates, freight volumes are supplies to fuel, and cash conservation projected to drop 7.3%, rising only and maintaining bank relationships are 0.8% in 2010. FTR is projecting key objectives this year. utilization of only 69% in ‘09. With less freight, public carriers have been reducing tractor counts during the last six quarters, with one carrier reporting a 55% cut of its tractor van fleet in 23 months. Bankruptcies of 3,065 fleets in ‘08 sent 137,650 tractors to other owners, and this number is expected to double. Also, it is estimated that up to 300,000 tractors exited for various reasons. The recent 20-30% drop in used values may slow fleet reductions, with the prospect of cash losses versus loan payoffs mounting. In terms of freight volumes, van traffic
Truckers are seeing twice as many driver applicants, compared to only three to six months ago when the hiring rate was 1-2%. Some are lowering pay, and some are reducing speeds from the mid- to lower 60s in order to save fuel. Carriers with strong balance sheets and cash are seeking merging opportunities specific to their strategic plans. On the other hand, it is expected that sellers will be more plentiful over the next couple of years as cash and credit continue to tighten for many carriers, with pricing reflective
of hard assets values predominately.
Carrier Survey Results
Transport Capital Partners (TCP) just completed a survey of the truckload industry. Results indicate that carriers are experiencing lower volumes and shippers are acting accordingly – seeking lower rates and modifications in fuel surcharge formulas and stretching out payment schedules. Carriers are responding by decreasing the size of their fleets, dropping rates, and cutting staff. Even as shippers try to restructure fuel surcharges, carriers are exploring the option of adding toll road surcharges in light of announced toll rate increases and threats to toll existing highways. The most surprising numbers from the survey showed that almost a quarter of surveyed carriers are giving serious consideration to liquidating their companies if tonnage does not improve in the next six months. Almost 30% would be interested in selling within the next 18 months. This period of intensified economic pressures will present opportunities for carriers to become stronger as the resiliency of our industry continues to be tested. If you would like to discuss these observations further, please call me at 515-988-2477 or my colleagues at Transport Capital Partners at 1-866748-4292. You can also visit our Web site at www.transportcap.com/. Spring 2009
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Had your fill of foreign oil from the Mideast? Switch to renewable energy from the Midwest.
As one of the largest producers of soy biodiesel in the country, Iowa’s soybean farmers are helping drive our nation toward energy independence. Soy biodiesel has been road and field-tested over millions of miles and is a top performer in all seasons. Because soy biodiesel burns cleaner, it’s better for the environment and helps reduce engine wear. Soy biodiesel production has also added hundreds of jobs and millions of dollars to rural communities. www.soybiodiesel.com
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Energy Independence
Starts withYou.
Choose Soy Biodiesel
IOWA
Funded by the soybean checkoff
Spring 2009 IOWA BIODIESEL B O A R D
Renewable Fuels Iowa Biodiesel Board’s focus includes the trucking Industry
The Iowa Biodiesel Board (IBB) is committed to being the respected voice of all aspects of the state’s biodiesel industry.
“The main reason I’m involved in the Iowa Biodiesel Board is because of the new emission standards for diesel engines. Taking the sulfur out leaves a void in lubricity of petroleum diesel fuel. Biodiesel adds lubricity and gives a diesel engine longer life. Having been a trucker for 50 years, I’ve seen a 300 to 500 percent increase in the cost of engine maintenance. Achieving longer engine life is important and biodiesel does that.”
Formed in 2007, IBB is a voluntary, nonprofit membership organization led by
Crouse also likes the idea of reducing dependence on foreign oil. “As an American, I don’t like giving so much of our money to foreign companies. Because biodiesel is made mainly from soybeans, I also like that it is good for Iowa’s economy.
In all of its efforts, IBB is conscious of serving not only the producers of biodiesel, but also its largest user, the trucking industry.
“We need to get on a faster track in getting the benefits of biodiesel recognized.”
George Crouse, Crouse Transportation Services, LLC
a nine-member board. The Iowa Biodiesel Board’s directors have rallied around three areas of focus; those are (1) maintaining Iowa’s leading position in the biodiesel industry; (2) providing education and promoting biodiesel to the public, the government and the marketplace; and (3) shaping and driving the biodiesel legislative agenda in Iowa. George Crouse, owner of Crouse Transportation Services, LLC at Carroll, is treasurer of the Iowa Motor Truck Association and also serves as a director of IBB. His firm is one of several with which IBB has conducted performance studies, and biodiesel performed well.
“I serve as a director of the Iowa Biodiesel Board to offer input from the user’s standpoint,” Crouse adds. “I believe there should be a cost benefit as an incentive for the user, whether that user is a trucker or a farmer. One way that can happen is through proposed legislation that IBB supports which would exempt biodiesel from any fuel tax increases.” In spite of its benefits, Crouse feels the biodiesel industry faces some challenges it must address. One is getting engine companies to confirm that their warranties cover biodiesel use. Another is the issue of distribution. “We can find biodiesel in the Midwest, but cross-country motor carriers need to be able to find it wherever they go; currently that is not possible.” As the biodiesel industry evolves, Crouse looks forward to seeing IBB continue its partnership with Iowa truckers. “We need to get on a faster track in getting the benefits of biodiesel recognized.” More information about Iowa Biodiesel Board is available at www.iowabiodiesel.org.
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Business Environment Andy Warren is Iowa state director for the National Federation of Independent Business. Iowa ranks second in the nation for the least amount of uninsured Andy Warren, National Federation of Independent Business
Shooting the wounded: Small business under attack As one Iowa small business owner aptly put it after looking at the bills moving through the Iowa Legislature, it appears lawmakers want to shoot the wounded.
Each week marks another sad milestone in the economy: • • • •
Consumer spending is down Home sales are down Home foreclosures are soaring 12,400 Iowans saw their jobs disappear in just the final quarter of 2008 • The most amount of people since 1967 have filed for unemployment compensation. Even before this economic hurricane hit with full force, the Tax Foundation had ranked Iowa the fifth worst state for business in its 2007 State Business Tax Climate Index, and the Small Business and Entrepreneurship Council graded us ninth worst in its Small Business Survival Index for 2007. Gov. Chet Culver commented, “We’re dealing with a severe recession, the likes of which we haven’t seen since the Great Depression.” If the Governor’s analysis of the severity of the economy holds true, the last thing small business owners need are more laws making Iowa even more expensive state to do business in. Unfortunately, legislators haven’t stopped
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introducing harmful proposals that would only exacerbate the problem. Healthcare has been a particularly tempting target for legislative abuse. Small business owners across the nation would love to provide healthcare for their employees, but less than half of them can afford to do so, as opposed to 99 percent of large corporations that can. For more than 20 years, small business owners have listed the cost and availability of healthcare as their No. 1 concern in research conducted by the National Federation of Independent Business (NFIB), and with each new poll, it widens its lead over the No. 2 issue. While the bulk of rectifying this situation rests with Congress, states also contribute to healthcare’s ills, and the Iowa Legislature is no different.
Mental Health
The cost to insure employees has outpaced inflation by more than three to one, in spite of increasing co-payments and deductibles. This, however, has not stopped House File 234 from being introduced in the Iowa Legislature, which, if passed, would require coverage of mental disorders and substance abuse treatments in addition to general physical care. States are notorious for putting health insurance out of financial reach of small business owners by adding more and more mandates to basic insurance plans before insurers can legally sell them. HF 234 would increase premiums by as much as 6 percent. Iowa ranks second in the nation for the least amount of uninsured, but HF 234 would force small business owners to seriously consider scaling back on providing healthcare.
Physician Choice
Workers’ Compensation is one of every state’s oldest programs. Decades ago, employees had to sue their employers in court to get medical attention for injuries sustained on the job. Court dockets
became un-manageably clogged with such cases, so a deal was struck whereby all employers would be legally required to have workers’ compensation insurance – the money from which goes to pay for the healthcare, rehabilitation, and lost wages of employees injured on the job – in exchange for employees giving up their right to sue. Because of their age, however, workers’ compensation systems, can easily fall victim to bureaucratic ineptitude, attacks from lawyers looking to make a buck, and legislative tinkering that all conspire to drive up premium costs and force small businesses to cut hiring, expansion, and salaries. One such legislative attempt to tinker where it should not is Senate File 155. For more than 90 years, Iowa business owners have retained the right to select a physician for injured employees. Statehouse historians trace this privilege back to a grand deal giving employers the right to chose the physician in exchange for employees receiving a richer benefit package. Iowa has the third best benefit package in the country and ninth lowest workers’ compensation premiums – making the state a good model for a fair and balanced system. But unions want to undo this with SF 155. If passed, it would allow workers to shop for their physician, in state or out of state, which will end up costing employers considerably more. The National Council of Compensation Insurers claim SF 155 would increase premiums by more than 14 percent.
Help Needed
Legislators need to hear from small business owners. They much, much too often hear only from cause groups and not from the people who pay the bills. Even pro-small business owners need encouragement to remain strong. Call your state representatives and senator and tell them your side of the story. The Iowa House can be reached at (515) 281-3221 and the Senate at (515) 281-3371.
Education Take advantage of the great sessions offered by the IMTA. More sessions are being planned monthly.
MAKE A NOTE!
Upcoming IMTA Education Seminars April 21-22, 2009 WreckMaster Level 2/3 Crow Tow, Des Moines April 23-24, 2009 WreckMaster Level 4/5 Crow Tow, Des Moines
Holly Mueggenberg, Communications & Education Manager
May 21, 2009 Load Securement & Vehicle Inspection IMTA Training Center, Des Moines
“Educational Seminars with important updates and information are one of the most important benefits IMTA can offer its members and I am excited to be involved in such a positive program!�
June 11, 2009 1/2 Day Compliance Scott Community College - Urban Center, Davenport July 23, 2009 Accident Investigation IMTA Training Center, Des Moines August 13, 2009 New Entrance Audit Training for Carriers IMTA Training Center, Des Moines August 20, 2009 1/2 Day Compliance DMACC, Carroll September 24, 2009 Full Day Compliance IMTA Training Center, Des Moines
To register go online to www.iowamotortruck.com or contact Holly at the IMTA (515) 244-5193
Spring 2009
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Your Association Positive News about IMTA Members
Merchants Distribution Opens New Building
On hand to celebrate the ribbon cutting were, from left, Mary Simon of Bankers Trust, Jeff Dickinson, Greg Dickinson, Randy Worth, and Barney & Marlene Dickinson, all of Merchants Distribution Service.
Merchants Distribution Service and Reppert Rigging and Hauling opened their new building in Altoona where the Altoona Area Chamber of Commerce recently sponsored a ribbon cutting ceremony. The facility is located in Gateway East Industrial Park, near the intersection
of First Avenue and Interstate 80. Merchants and Reppert are owned by the D.R. Dickinson family and have 47 employees. This organization is a member of the Iowa Motor Truck Association and Jeff Dickinson has been an IMTA board member for the past several years.
Zips Opens New Facility
IMTA’s Newest Members Mike Spalla, Membership Manager
Welcome New Members!
Auto Tech, Dyersville, IA Chemtech, Inc., Adel, IA Doc’s Automotive, Brooklyn, IA Gregg Goodenow Ltd., Ida Grove, IA Grimes Tire Auto Center, Grimes, IA Pyle Truck Line Inc., Schaller, IA Rembrandt Enterprises, Inc., Rembrandt, IA River Valley Capital, Dubuque, IA Simons Petroleum, Oklahoma City, OK Sully Transport, Inc., Sully, IA The Next Step, Inc., Shawnee Mission, KS V&L Bauer LLC, Paton, IA Worldwide Logistics, Urbandale, IA “These new members have realized the benefits of joining IMTA. We look forward to their involvement to further increase the strength of the association!” -Mike Spalla, IMTA 30
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Spring 2009
“We are excited to show the capabilites of our new expanded facility.” -Paul Rottinghaus, President, Zip’s Truck Equipment
Zip’s has expanded its facility in New Hampton. This expansion stands to establish the northeast Iowa community of 3,500 as the towing equipment capital of the country as Zip’s has expanded its complex, including manufacturing and operational facilities, to 95,000 square feet. This facility features 20 production bays, a 60 foot blast booth, and 4 paint booths with baking capabilities and customer viewing windows. It also features a world-class showroom, a separate parts department lobby, and an advanced training center. “We are excited to show the capabilities of our new expanded facility and showcase equipment and services that we offer,” said Paul Rottinghaus, president of Zip’s Truck Equipment. This new facility allows us to provide top-of-the-line customer service with improved efficiency and organization. “The added space provides for even greater customization, including more complex painting techniques. Our unique, environmentally controlled customer delivery station enables us to train our customers and show them their vehicle in a comfortable, indoor setting.”
Your Association Positive News about IMTA Members
Dan Hannasch, Farner Bocken
Dan Hannasch and Bridget Nixon, Chairman and Co-Chairman of the 2009 Iowa Truck Driving Championships to be held in Newton, Iowa at the Iowa Speedway
Dan Hannasch, Farner-Bocken has been named Chairman of the Iowa Truck Driving Championships and Bridget Nixon, Solar Transport will serve as Co-Chairman of this exciting event.
Bridget Nixon, Solar Transport
of activities designed to promote the outstanding level of professionalism that exists in Iowa’s trucking industry. Over 100 professional drivers are expected to compete. The event also features an exhibit area, truck display, show and shine contest, antique truck display, educational sessions, the Iowa Tow Show, and Friday evening & Saturday afternoon races. For more information, contact the IMTA office (515)244-5193.
On July 9 & 10, the Iowa Council of Safety Management and the Iowa Motor Truck Association will host a spectacular weekend
Marc Hyland Serving as 2009 IMTA Management Conference Chairman Marc Hyland, Majestic Truck Services has been named the Chairman of the 2009 IMTA
Marc Hyland, Majestic Truck Services
Management Conference. Marc has been involved with the association for many years and it is exciting to have him as the leader of the 2009 Management Conference. The 2009 conference will be held at the Coralville Marriott in Coralville, Iowa on September 15th – 16th.
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Your Association in Action IMTA Leaders Call on State Legislators
IMTA leaders once again traveled to Des Moines and waved the flag for Iowa’s trucking industry. IMTA leaders met with legislators and discussed various issues of concern and interest. The 2009 session has been populated with many legislative proposals that were not very positive for business so IMTA leaders made numerous trips to Des Moines.
Brenda Neville, IMTA, Mike Riggan, TanTara Transportation Corp., Representative Kraig Paulsen, Dave Scott, IMTA Lobbyist, Jeff Wangsness, JMT Trucking Company
(front) Representative Brian Quirk, Mark Zieman, Cherry Valley Enterprises, Inc. (back) Senator Tom Riley, Sid Carroll, Great West Casualty Company, Todd Kelley, Panama Transfer
“IMTA members have always been very involved and engaged with our legislative efforts and the support at the grassroots level is extremely important. We always appreciate their willingness to assist with our lobbying efforts and member involvement makes all the difference in the world,” said IMTA President Brenda Neville.
(front) Jeff Wangsness, JMT Trucking Company (back) Murry Fitzer, Florilli Transportation, Dan Stevens, Farner-Bocken Co., Bob Kohlwes, BTI Special Commodities, Inc., Brenda Neville, IMTA, Dave Scott, IMTA Lobbyist, Mike Riggan, TanTara Transportation Corp., Kevin Gass, PDI, Ltd., Dave Dickey, Harold Dickey Transport, Inc.
Call on Washington – IMTA Members Visit Iowa’s Congressional Delegation Several IMTA members attended the American Trucking Association’s Winter Leadership meeting and while in DC spent a day calling on Iowa’s congressional delegation. There are several issues on the national level that are of concern to the trucking industry and IMTA members discussed these concerns with lawmakers.
Bob Costello, ATA, John Smith, CRST International, Inc., Ralph Arthur, Ruan, Brenda Neville, IMTA, Donna Weinrich-Lucht, Weinrich Trucking, Brenda Dittmer, Weinrich Trucking, Mark Zieman, Cherry Valley Enterprises, Inc.
“It had been a few years since we have been out to DC so we felt it was of value to make the trip with the new administration and with the number of issues that are now coming up on the Federal level that are of great concern. We will be monitoring some of the Federal issues more closely and appreciate the efforts of ATA at the national level,” said IMTA Chairman Mark Zieman. Spring 2009
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Your Association in Action IMTA Policy & Executive Committee Hold Joint Meeting IMTA’s Policy and Executive Committee held a joint meeting recently to review several legislative priorities; review IMTA operations update and discuss other items of importance. Over lunch, the group heard from Iowa Senate Minority Leader Paul McKinley. Paul is the owner of McKinley, Inc., an IMTA member that provides a large line of specialty items as well as printing and graphics design work, located in Chariton, Iowa.
Senator McKinley urged committee members and association leaders to be diligent and relentless in their efforts to defend a positive and pro-business environment in Iowa.
Senate Minority Leader Paul McKinley speaks to the IMTA Executive and Policy Committees
“Iowa’s trucking industry has always been a recognized leader in this state and that leadership is even more critical now as business is coming under attack on all fronts,” said Senator Paul McKinley.
Leaders of Mover’s Division Hold Strategic Planning Meeting
Members of the moving division met to set an agenda of activities and member outreach events for 2009. The moving division has 40 members and is always looking for ways to get more involvement from the membership. Leaders of the division met to review past activities and determine ways in which they could attract more participation and involvement from the membership.
Mark Zieman, Cherry Valley Enterprises, Inc., Denny Crimmins, White Transfer & Storage Co., Lori Jens, Glenwood Transit Line, Kevin Crimmins, White Transfer & Storage Co.
“We want to develop and create an event that will allow for some education, some networking and an opportunity for members specific to this division to get together,” said steering committee member Lori Jens, Glenwood Transit Line, Inc. The group will be hosting an educational session followed by a golf outing at Riverside in May of this year.
Members Tim Riley, Maher Bros. Transfer & Storage, Inc., Steve Pautvein, Ace Moving and Storage, Joe Riley, Feed Energy Company, Brooks Reynolds, Reynolds & Reynolds, Inc.
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Your Association in Action
IMTA Announces NEW EVENT – Iowa Truck Show
IMTA leaders are pleased to announce a new event debuting on July 10 & 11th at the Iowa Speedway. The Iowa Truck Show will held on July 10th & 11th and will be open for IMTA members and non – members. The show will feature exhibits, educational sessions, entertainment and a show and shine contest. In addition, the Iowa Tow Show will be held in conjunction with the truck show as well as an
antique truck exhibit. To make the event even more appealing, IMTA will be the official sponsor of the 1:30 PM Saturday Race, ARCA Truck Series. IMTA members will be able to come to the truck show in the morning and enjoy the race in the afternoon. IMTA’s popular maintenance day activities will also be included in the event. “We believe that a venue such as the Speedway and a format with outside exhibits and other attractions appeals to a large segment of our membership.
It is also a way for us to support one of Iowa’s newest venues and provide all of IMTA’s racing fans with a great day of events and activities,” said IMTA President Brenda Neville. A planning committee has been formed and registration materials will be distributed in April. Exhibit space and sponsorships will be available. Mark your calendar and plan on joining us on July 10th and 11th in Newton, Iowa!
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2009 IMTA Leadership Program Kicks Off Since the early 1990s, IMTA has sponsored and hosted a leadership program. The objective of the program is to provide a forum for the next generation of leaders to come together and participate in some valuable personal and professional development. Each year the program continues to evolve and offers a variety of sessions ranging from communications and economics to ethical decision making and dressing for success. In an effort to offer a quality experience the class size is limited to a small number. For the last several years, the participants have been able to take part in 5 days worth of sessions led by college professors and experts in a field of specific expertise. In addition, the attendees also participate in team building exercises and develop some tremendous networking ties with other participants. “The IMTA leadership program is the greatest investment we are making in the future of our association. Many of the folks that participate in this annual program continue to contribute and support the association and its efforts far into the future. We are very pleased with the continual support and enthusiasm there is for this program,” said IMTA President Brenda Neville.
The 2009 program kicked off in late March and will have a third session in April and the final two sessions in May. The 2009 participants will be recognized at IMTA’s Annual Meeting/ Conference in September.
DeAnn Moody, IMTA, Shirley McGuire, FMCSA, Don Egli, IMTA. Shirley was one of the luncheon speakers.
“The IMTA leadership program is the greatest investment we are making in the future of our association.” Brenda Neville
David Holdsworth, Farner Bocken Company, Brenda Neville, IMTA, Matt Whitaker, U.S. Attorney, Todd Kelley, Panama Transfer. Matt Whitaker was one of the luncheon speakers.
Lance Cheney, Ruan, Kim Hanlon, Des Moines Transportation Co., Alison Gregory Pope, Wixted Pope Nora Thompson & Associates, Scott Pope, Wixted Pope Nora Thompson & Associates, John O’Halloran, Quality Services Corp. Scott & Alison led a session on executive communications.
2009 Leadership Class (Front Row) Joel Mattox, Midwest Wheel Companies, Kim Hanlon, Des Moines Transportation Co., Lance Cheney, Ruan (Back Row) John O’Halloran, Quality Services Corp., David Holdsworth, Farner Bocken Company, Clark Bannister, Central Trailer Service, Todd Kelley, Panama Transfer, Inc.
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Jim Mulvenna with Ruan Transportation Management Systems makes the opening welcome comments to the leadership class.
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Online Education Now Available! Need Training? AdvanceOnline DOT certified training through IMTA website!!! Go to www.iowamotortruck.com Click “Training Information” under IMTA Online Training Questions? Contact Mike at the IMTA, (515) 244-5193 Spring 2009
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The Final Word Back in the Day Memory is a funny thing. People don’t age in our memories; they remain the same as when we last saw them thirty years previous, “back in the day.” More curious still, when we are reunited with them after an absence of so many years, no matter how grizzled or wizened they’ve become, no matter how much weight they’ve gained, we still tend to see them at that moment as they were in the days when we spent the most time with them. The same phenomenon applies to places and things, I suspect. When I returned to Des Moines in 1996 after 18 years out East, a drive around the city of Des Moines left me feeling as though I was in the midst of a segment of a Philadelphia public television show called “Things That Aren’t There Any More,” a show which chronicled the existence and disappearance of various buildings, businesses and locations that had once graced Philadelphia’s landscape, but had gone by the wayside – places like the old Philadelphia General Hospital, Connie Mack Stadium, and a number of famous jazz clubs on South Street among the featured things that were no longer there. I knew Des Moines well in the late 1970s because I worked for a time as bookkeeping aid and “gofer” for my step-dad’s business, Howell Auto Parts/Engine Parts Warehouse, which later morphed into Howell, Inc. We were the only machine shop in the state of Iowa that could do the level of deck milling, engine boring and crankshaft turning required for heavy duty equipment for the freight companies, the Iowa DOT, Caterpillar and various county governments. The trucking industry was booming in 1978, or at least it seemed so to me; we never wanted for work and it was an exciting time to be in the repair/maintenance aspect of the trucking industry when the legislative fight over double-bottom trailers was on full-blast. 38
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As I drove around Des Moines in 1996, in my mind’s eye was a picture of how it had been “back in the day” – when I was 40 pounds lighter and could actually pick up a Mack 673 cylinder head without reaching for the BenGay, back when the center of Des Moines was littered with small auto parts stores, like Rissman, Mattson, OEM, and the edges of the city dotted with trucking industry companies like Crouse Cartage, Housby Mack, Bandag, Hicklin Diesel. I was surprised to find the landscape of the industry so changed, not only in Des Moines but across the state – so many things “not there anymore” or, if there, so changed as to be unrecognizable in comparison. There is a dimension of sadness in that; I’ve reached the age when it is easier to remember the good old days, the age when a person can tell how old she is by how much things have changed since the last time she took note of those things. Can a cane and various annoying crotchets be far behind, with a casket to follow? But there is a kind of satisfaction in such reflection as well – satisfaction that what exists now has evolved, and continues to evolve from those things that aren’t there any more, those things that are merely remembered by blue-haired folks who can’t remember where they put their car keys. The Howells and the Hicklins, the Umthuns, Ruans and Rissmans, and many, so many more, have played their parts in the development not simply of the trucking industry and the movement of quantity goods across this country, which is commendable in itself, but also in the development of many people who contribute to the quality of life in our communities by virtue of what they have gained from their work in the trucking industry. No matter how the industry changes in years to come, the most significant
changes will be the ones the industry makes in the lives of the people who work within it, and the changes they bring along into their communities with them. I, for one, am grateful to have been one of them for a time, back in the day, when it was popular to sing, “Keep on truckin’, mamma.” Heidi Williams
Heidi Williams has been fascinated with tractor trailers since playing “Name That Semi” with family members during road trips to Nebraska in her childhood. She is currently pastor of Bethlehem Lutheran Church in Slater, Iowa. She has many fond memories of the places and faces in the Iowa trucking industry during the 1970s, when she worked for her stepfather, John Howell, at his business, Howell, Inc., located on Locust Street in downtown Des Moines. Heidi served as pastor of two congregations in Philadelphia 1984-1996 before returning to Iowa. She has served the Slater congregation since 2003.
2009 Iowa Motor Truck Association Annual Management Conference September 15– 16, 2009
Coralville Marriott Coralville , Iowa Conference Events/ Activities •
Verne Simpson Fall Golf Classic Awards Luncheon
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Roundtable Discussions
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General Session
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Annual Meeting •
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Chairman’s Banquet Networking Spring 2009
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