INSIDE:
Lifeliner IOWA MOTOR TRUCK ASSOCIATION
The
Carrier Spotlight: Atlantic Carriers IMTA Committees Business Perspectives
ELEPHANT in the
ROOM
- The Size & Weight Issue Continues
In this Issue
12
IMTA Staff
Social Media
Brenda Neville, CAE President
Don Egli
Director of Safety and Security
DeAnn Moody Office Manager
Phillip Nicolino
8
Marketing Manager
Mike Spalla
Membership Manager
Janelle Stevens
Events/Education Manager
Articles
25
Higher Gas Prices
Business Perspective
20
The Elephant in the Room
Chairman’s Message..........................4-5 President’s Message............................... 7 Consumer Energy Alliance...................8-9 Biodiesel............................................. 10 Social Media...................................12-13 Boxing Night..................................14-15 Spotlight - Atlantic Carriers..............16-18 Cover Story: The Elephant in the Room .....................................................20-23 Business Perspective........................24-25 Iowa Truck Services Update.................. 27 Members in the News.....................28-29 Committees....................................30-33 Legal Perspective.............................34-35 Platinum Sponsor - Truck Country......... 37 Platinum Sponsor - Midwest Wheel Co.... 39 Platinum Sponsor - Hawkeye International... 41 Final Word.......................................... 42
Our Supporters Great West Casualty...................... 2 Boyer Petroleum..........................4-5 Central Trailer Services................... 6 Freightliner of Des Moines.............. 6 Quality Services Corp................... 11 Donaghy-Kempton Insurors.......... 11 TDC Announcement..................... 19
Iowa Truck Services...................... 26 Truck Country.............................. 36 Iowa Cornerstone Sponsors.......... 38 Ziegler........................................ 40 JJ Keller....................................... 40 Hawkeye International................. 43 Midwest Wheel Companies............. 44
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Chairman’s Message Jeff Wangsness, JMT Trucking As I write this column, the reality of legislation of a gas tax increase is up in the air. This is a disappointment to me personally and to the association, because we Jeff Wangsness need to make IMTA an investment in Chairman of the Board our roads and this potentially is another major setback. Furthermore, we have been asked the last two years to get involved in this issue. We have done exactly that, yet each year, something else comes up and this issue is pulled off the table at the last minute. Despite the tremendous efforts made by the various lobbyists representing groups that are in favor of the legislation, legislative leaders seem to be influenced more by polling than ever before.
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In 1989, some of the same circumstances existed that we are facing today, but the difference was that polling was not a driving force then. Instead, legislators were willing to make the tough decisions that were needed to keep the state competitive and didn’t worry about polling or re-election. In the mid 1980s the state was facing a major farm crisis among other things but Governor Branstad was committed to keeping the state competitive. He and other legislative leaders recognized the value of good roads and bridges and took the necessary steps to ensure that Iowa’s infrastructure would support a growing and prosperous state. I am sure if they would have done extensive polling in 1989, most people would have had strong objections to a tax increase of any kind as well. Sound leadership was demonstrated at that time and it is disappointing that we are struggling today to make an investment that will pay dividends far into the future. While IMTA would never embark on a campaign that would add tremendous pressure to your bottom line, the
organization has historically been supportive of a gas tax because we recognize the value of good roads and bridges. More importantly, we recognize that we as an industry must be willing to give back to the state in this manner. We have asked that any increases be phased in so that the industry has the opportunity to adjust to the changes. We recognize that trucks add wear and tear to the roads as do all vehicles, but again, we are more than willing to take care of the roads. In fact, a gas tax, which we prefer to call a “user fee”, allows everyone who uses the roads and bridges to help in the maintenance, repair and ongoing development of this important network. An increase in this user fee is the only way Iowa can get revenue from those people from out of state who use our roads. Iowa needs good roads and bridges. Iowa needs good jobs and believe me, building roads, repairing bridges and investing in our infrastructure is the fastest way to get people back to work. The statistics are compelling and the arguments are sound, increasing the gas tax is good public policy. Some will
Chairman’s Message argue that this was just not the right time, especially with the high gas prices and the still shaky economy. The reality is that for the average “car” driver, according to economists from the University of Iowa this amounts to about $75 more a year. Most people are more than willing to make that small investment to the roads. Some would further argue that the roads really aren’t that bad, I would suggest these folks have not talked to a trucker lately or have not been subjected to a 20 mile detour because of a deficient bridge. To those who say now is not the right time, I would ask when will the right time be? The price of fuel is not expected to go down significantly any time in the future. So, when will be the right time? In 2000 Governor Vilsack wanted to suspend the gas tax. Why? Because the price of fuel was too high. It was $1.76. In 2009 Governor Culver threatened a gas tax veto because the price of fuel was too high. It was $2.79. This is the longest period in the history of the state that we have gone this long without adjusting the gas tax. According to the
CATO Institute the price of fuel would have to be almost $5.50 per gallon to have the same impact on the pocketbook as it did in 1955 when the price of fuel was 29 cents per gallon. If not now, when? We have heard from those on the retail side that they are opposed to a gas tax because it will put them at a competitive disadvantage with neighboring states. Iowa taxes are already significantly lower than our neighboring states. They argue that if we raise the tax, sales will go across the border. If you follow that logic, there will never be a right time to invest in our roads. If Iowa taxes are lower than out neighbors they argue we can’t raise the tax and lose a competitive advantage. If Iowa taxes are higher than our neighbors, they would argue we can’t raise the tax because it will only increase the disadvantage. Regardless of what is good for Iowa, we will never be in a position to invest in our transportation system based on this line of argument. There are a number of arguments against this legislation and believe me, I have heard it all but there are many strong and sound
responses to all of these objections and what it really comes down to is having foresight and courage. It takes courage to support something that isn’t all that popular at face value but will have a far reaching impact that does more to ensure the future stability and viability of this state than anything else at this point in time. For the last two years, investing in our roads and bridges has been labeled a top priority, but we continue to just kick the can down the road and at some point in time, the road is going to run out. Then what are we going to do? Please take the time to contact your legislator, it really can make a difference and don’t hesitate to call me about this issue or any other issue that you have on your mind. Jeff Wangsness IMTA Chairman of the Board
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President’s Message - “Being Your Advocate” Brenda Neville, Iowa Motor Truck Association Challenging times continue for the trucking industry. On both the state and federal level, lawmakers are struggling to reach agreement on several Brenda Neville major pieces IMTA President of legislation. Regulators continue to meddle in our business and develop rules and regulations that make it virtually impossible to ever be in 100% compliance. States are strapped for money at every level and bitter battles are ensuing over everything from tax relief to education reform. The media would have you believe that the economy is flourishing but in talking to Iowa carriers, they continue to express cautious optimism that things are turning around and are less than complimentary when they describe the economy and manner in which the folks in Washington are dealing with these mounting issues and problems. The one positive aspect of these challenging times is that anyone that is running a business can no longer operate with their head in the sand. Business owners and people in general are more engaged, more involved and more willing to learn the facts in an effort to be more educated on a particular issue, proposed rule or legislation that may impact their bottom line. That isn’t to suggest that IMTA members have not been diligent in the past, but there has certainly been a noticeable change in the attitudes and expectations of the membership. The level of engagement, involvement and support is higher than it has been in the past. IMTA has always touted the importance of being your “valued business partner” but now more than ever; this slogan is a reality that the staff and your IMTA leaders take very seriously. It is incumbent upon us to take the lead in gathering the information, the data, the facts and the answers that the members need to
help them meet the growing number of challenges they face on a daily basis. Being an advocate is much more than being a warm body at a transportation committee meeting at the Capitol. Today it means that we must continually be offering information, facts, data and answers to the lawmakers and regulators BEFORE they get ideas in their heads about what needs to be done to fix these problems. Today’s advocate must always be looking towards the future and determining what our role can be in the future. We must anticipate the potential problems and landmines that exist on the horizon. We must embrace the technology that is moving faster than ever and determine how the trucking industry will operate within these new frontiers. Today’s advocate must be willing to facilitate discussions and debates on subjects that have long been taboo and simply too controversial to tackle. The reality
importantly, we have a group of volunteer leaders that aren’t where they are at with their own businesses because they backed away from a challenge. Through the combined efforts of our core committees and the strong volunteer leadership of this organization, IMTA will continue to be a great value to the members and the industry it proudly serves. I am certain as you page through this magazine, you will see the individuals that are truly stepping up and leading this organization in the right direction. Furthermore, I suspect you will notice the variety of issues that we address in this publication. These timely and thought provoking articles are hitting the mark on the issues that are impacting carriers and suppliers on a daily basis. While we may not have the immediate answer or solution to some of these challenge, we certainly have the fortitude and the stamina to work on developing strategies and defining our role in these critical issues.
IMTA has always touted the importance of being your “valued business partner” but now more than ever; this slogan is a reality that the staff and your IMTA leaders take very seriously. is that some of these commonly divisive issues are simply not going to go away and it truly is in our best interest to start a conversation and start identifying a strategy to that will be to our benefit. Today’s advocate must be willing to REALLY LISTEN to the needs of the members and constantly be taking the pulse of the membership in an effort to TRULY UNDERSTAND the challenges that are being faced on a daily basis. Like many of you, we go through periods of great adulation and other days we feel as though the uphill battle is almost too tremendous to conquer. But for the most part, we view the many challenges on the horizon as tremendous opportunities to serve and lead the membership. One of the greatest assets we have is a strong and thriving membership. Even more
IMTA is your valued business partner, we are your loudest advocate and we are your trusted ally in the many battles we are currently facing and will continue to face in the upcoming months. We take that job very seriously and look forward to serving you far in the future. Please don’t hesitate to call on me, IMTA staff or the volunteer leaders that are identified in this magazine, we recognize we are all in this together and if we continue to work together, anything is possible.
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Consumer Energy Alliance Andrew Browning is an executive vice president with Consumer Energy Alliance, a nonprofit, non-partisan organization that supports the thoughtful utilization of energy resources. Formerly a Clinton White House appointee to the United States Department of Energy, Browning is an adjunct professor in the Energy Management Program at Norway’s Bodø Graduate School of Business at University of Nordland. He uses his expertise and background to help the CEA improve consumer understanding of the United States’ energy security, including the need to reduce reliance on imported oil and natural gas and maintain reasonable energy prices for consumers.
High Gas Prices: What Every Trucker Should Know (and Do) About the Price at the Pump
Gas and diesel prices have climbed to their highest level in years, suggesting they will possibly reach an unprecedented $5 this summer. Andrew Browing CNN has IMTA reported that President gas prices are up 14 percent so far in 2012 to a nationwide average of $3.74 at the beginning of March. Diesel prices are even higher. According to AAA, truckers and commuters are paying an average of $4.06 a gallon for diesel. While this is not quite as expensive as the recordhigh $4.84 a gallon for diesel and $4.11 a gallon for gasoline witnessed in July 2008, experts fear we’ve only tasted part of what’s likely to be a very long and expense year for fuel consumers. A trifecta of forces has recently converged to raise fuel prices. Ongoing tensions with major oil-exporter Iran do not appear to abate anytime soon, forcing fuel costs to rise over concerns about future supplies. Moreover, the worldwide thirst for oil is rising in conjunction with the global economic recovery – which means less supply and higher prices. Finally, increases at the pump typically
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occur in March and April, due to refiners suspending operations to switch the type of fuel they make for summer – which also leads to less supply and higher prices. Before we examine how we can combat high gas and diesel prices, it’s helpful to better understand the impact of fuel costs on the American economy and the factors that influence the price at the pump.
How Significantly Can Fuel Prices Impact the Economy?
According to a Cameron Hanover analyst, for every penny the price of gasoline increases, it costs consumers an additional $4 million per day – which equals $1.4 billion over an entire year. Among these consumers, fuel-intensive industries, such as farming, trucking, and airlines, are generally hit the hardest. For truckers, this one-cent increase in the cost of diesel can cost the industry an additional $350 million in fuel expenses a year. In 2011, higher prices forced truckers to spend approximately $37 billion more on fuel than in 2010. With this year projected to be even more expensive than the last, fuel prices will again likely exceed labor cost as the industry’s largest operating expense. In fact, the American Trucking Associations has estimated that the high cost of diesel coupled with a struggling economy led to over 1,700 trucking company failures in 2010. The trucking industry accounts for around 82% of our nation’s freight bill, and nearly every consumer good depends on trucks to deliver goods at some
point. When the cost of fuel increases for the truckers, the expense is passed on to families, small businesses, and manufacturers in the form of higher costs for materials and higher costs to transport goods and services. Simply put, the health of the trucking industry often correlates to the health of the economy.
A trifecta of forces has recently converged to raise fuel prices. Ongoing tensions with major oil-exporter Iran do not appear to abate anytime soon, forcing fuel costs to rise over concerns about future supplies.
Consumer Energy Alliance What’s in the Cost of a Gallon of Fuel?
As this chart from the U.S. Energy Information Administration illustrates, the cost to produce and deliver gasoline and diesel to consumers includes the following expenses: crude oil; refining and processing; distribution and marketing; retail station expenditures; taxes and other fees.
occurs in spring) do occur, but the cost of acquiring crude is generally to blame for fluctuating costs. As such, there is a direct correlation between the volatility in oil prices and the volatility in gasoline prices – meaning if we want to lower fuel prices, we need access to reliable sources of oil.
What We Pay for in a Gallon of Regular Gasoline
What Can the United States Do to Stabilize Fuel Costs?
Crude oil represents the biggest cost component and typically makes up between 65% and 70% of the total cost of one gallon of regular gasoline. Shifts in refining costs (such as those associated with the reformulating process that
Fortunately for the United States, by simply leveraging our nation’s abundant resources and promoting a reasonable approach to support the use of all sources of domestic energy, we can abate high oil prices – while creating jobs,
What We Pay for in a Gallon of Regular Gasoline
100% --15% TAXES
80 ---
11% DISTRIBUTION & MARKETING
7% REFINING
60 ---
40 --67% CRUDE OIL
20 ---
0 ---
strengthening our energy security and paying down our deficits with increased government revenues. A report from the Congressional Research Service detailed just how large our energy reserves are in the United States. Our combined recoverable oil, natural gas and coal resources total 1.3 trillion barrels of oil equivalent – the largest in the world. This figure does not even include the abundant unconventional resources such as shale gas and tight oil, which have become energy “game-changers” thanks to innovations in technology that allow us to tab these resources. Unfortunately, recent policies have prohibited Americans from accessing our abundant oil resources. Of note, access to offshore resources in the Gulf of Mexico, Atlantic, and off Alaska has been limited through a series of regulatory uncertainty, administrative red-tape and moratoria. The U.S. Department of the Interior estimates that there are currently 85.9 billion barrels of oil and 420 trillion cubic feet of natural gas available in federal offshore areas – enough oil to produce gasoline to run 192 million cars and heat 78 million homes for 15 years. However, without the proper regulatory climate, producers are inhibited from harnessing the vast energy resources beyond our coasts needed to meet consumer demand. Expanded onshore development of shale oil and gas can also bolster our nation’s energy security and help lower fuel costs. Yet, the technology utilized to tap these sources, namely hydraulic fracturing, is under threat in many areas. If this practice becomes over-regulated or even banned, these so-called “gamechanging” shale resources will remain inaccessible to energy consumers. Access to our nation’s oil and gas resources is a strong first step toward greater energy self-sufficiency and lower energy costs. We must support a balanced energy policy that emphasizes increased production of all our nation’s energy resources in order to bolster our energy security and keep prices stable for consumers.
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Biodiesel Randy Olson is the executive director of the Iowa Biodiesel Board, which was founded in 2007 to promote the commercial success of biodiesel in Iowa. An Iowa native with extensive background in both the chemical and financial industries, Olson has worked to promote the advantages and benefits of biodiesel since the launch of the Iowa Biodiesel Board.
Cut your use of foreign oil, while saving money on fuel? Biodiesel makes it possible!
In a free market, knowledge is power – and those who understand basic biodiesel pricing will come out ahead.
Truckers are a patriotic lot. Given the choice Randy Olson between two Executive Director Iowa Biodiesel Board equal fuels, most would probably choose the one that is made in the USA, supporting American jobs and domestic fuel, right? If you’ve thought of trying biodiesel, now is the perfect time. Biodiesel is a renewable fuel made from agricultural co-products and byproducts, such as soybean oil. It works in any diesel engine without modification, in blends of up to 20 percent (B20). Biodiesel is the only commercially available, domestically produced “advanced biofuel.” When it comes to purchasing fuels, truckers usually fall into two categories: Those who fill up at retail stations, and those who are part of large, centrally fueled fleets. For both groups, biodiesel prices have never been more competitive.
Buying Retail
If you are an independent trucker, or if your fleet has trucks all over the state or country at any given moment, you probably purchase fuel at retail stations. The good news is that low blends of biodiesel are already prevalent at many fuel retailers in Iowa. Many retailers carry 5 percent biodiesel (B5). Some pumps
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have promotional stickers, but others don’t label the pumps specific to biodiesel. Biodiesel that meets the ASTM standard can be blended with diesel by up to 5 percent and still be considered diesel fuel. B5 performs identically to diesel, all year round. But you will know that at least 5 percent of your tank is free from foreign oil, supporting the family farmer rather than the Middle East, and providing American jobs.
Buying Wholesale
If your company manages its own fuel purchasing, understanding how biodiesel is priced can help you make the most of the incentives available. Right now, biodiesel blends can be very competitive with diesel –and in some cases, even less expensive. In a free market system, knowledge is power – and those who understand basic biodiesel pricing will come out ahead by understanding national renewable energy credit economics and state biodiesel blending incentives. Randy Olson, executive director of the Iowa Biodiesel Board, says don’t be turned off by the wholesale price of biodiesel, because that’s not the ending price that you will pay. “For much of the past year, biodiesel has been more cost-competitive than petroleum diesel fuel, considering all of the pricing components,” he said. “Trucking firms using biodiesel have realized a sustained fuel price advantage.” There are two main drivers for economical biodiesel pricing right now. The first is the RIN, which is a renewable energy credit generated under the federal Renewable Fuels Standard. The RFS program means that obligated parties, usually large oil refiners, will blend about one billion gallons of biodiesel in 2012. Many purchase the RINs from
biodiesel producers, and competition in the marketplace leads them to pass on that value generated from the RINs to their customers.
So how can truckers benefit from the current market dynamics?
“You can negotiate with your petroleum distributor,” Olson said. “Find a distributor who will pass on more savings from those renewable energy credits. You can take the initiative to check the RINs trading price and ask your distributor outright how much of that will come to you. It’s a free market, but competition usually works in the consumer’s favor.” When you research RINs, look at the price per RIN, not price per gallon. Biodiesel earns 1.5 credits-per-gallon under the national program.
State Incentives
In Iowa, state incentives are the second component of economical biodiesel pricing. Whether you are buying retail or wholesale, Iowa has additional incentives that will benefit truckers. The Iowa biodiesel retailer credit gives retailers 2 cents per gallon for blends of 2 percent biodiesel (B2) in 2012, and 4.5 cents per gallon for 5 percent biodiesel (B5) in 2012 through 2017. Ultimately, this means increased availability and lower prices for consumers. Transport loads delivered directly to trucking facilities are also eligible for the state credit. Taking advantage of the Iowa incentive program, one of the strongest in the nation, puts you at a competitive advantage compared to other shippers across the country. For more information, visit www. iowabiodiesel.org. The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.
CORRECTION: In the last magazine two very important people were incorrectly identified, Missy Heineman and Heather Hueneman. They are correctly identified in this photo. We were thrilled to have Missy and Heather in the 2011 Leadership Class.
Front Row (L-R) Missy Heineman, Denver Construction, Inc.; Bill Walton, Ruan Transportation Management Systems; Heather Hueneman, Hueneman Farms LC; Bill Kahn, Eastern Iowa Tire. Back Row (L-R) Major Ned Lewis, Iowa DOT Motor Vehicle Enforcement; Kevin Hadenfeldt, Midwest Wheel Companies; Darrell Short, Hy-Vee Food Stores, Inc.; Eric Davis, Des Moines Truck Brokers; Keith Lamfers, Decker Truck Line, Inc.; Sergeant Rick Schaaf, Iowa Highway Patrol Not Present: Jason Galbraith, Consolidated Metco, Inc.; Chad Humphrey, Ruan Transportation Management Systems; Timothy Ryan, Quad City Peterbilt, Inc.; Kevin Smejkal, Farner-Bocken Company.
E s t. 197 5 • D e s M o i n e s , I o w a 515.288.8 5 4 5 • w w w. d k i - i n s . c om Joel Donaghy B us i ne s s • H o m e • A u t o
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S pe c i al i z i n g i n Tr a n s p o r t a t i o n
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New Services to IMTA Steve Grubbs is the founder and CEO of Victory Enterprises, a comprehensive political and corporate consulting and communications firm based in Davenport, Iowa. A former Iowa state representative and Chairman of the Republican Party of Iowa, Grubbs has built his company into one of the leading technology providers in Iowa – especially in the realm of new media. Grubbs and his team offer a full-line of services that range from media production (television and radio) to direct mail and web-based communications.
Today’s Kodak Moment: Being Left Behind
At one point, it was inconceivable Steve Grubbs Victory Enterprises that the giants would be in bankruptcy or teetering on the edge of it. But consider the magnitude of the situation that took down these American icons: Kodak, Blockbuster, Borders, the New York Times and R.H. Donnelly. Ever wonder how significant the impact of social media and the mobile revolution is? Well consider this:
• 1-in-5 marriages now begin online • By 2016, there will be eight billion mobile devices worldwide, including smartphones and tablets. • Facebook now tops Google for Internet traffic • Social media, like Facebook and Twitter, now tops pornography for the amount of time spent online • Amazon now sells more digital books than atombased books 12
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• Groupon.com reached $1 billion in sales faster than any company in the history of the world … online Even though sometimes it is difficult to figure out how all of this will impact our businesses or – more importantly – our bottom line, the reality is social media through mobile devices is THE way people are communicating. Now, you can call, e-mail, text, Facebook or Tweet. Have you upset a customer? Expect to see it on Facebook or Twitter. And – like the Ten Commandments – see it forever memorialized on the virtual tablets we know as the Internet. Word of mouth is now shared online. That’s why it’s so important that your company begin the process of considering what your strategy will be in social media and mobile. If you’re just getting caught up on your Web site, be ready to redo it with a Facebook, Twitter, Tumblr and perhaps, Pinterest, strategy in the process. In addition, it’s not enough to assign one person in the company the responsibility for social media. Every employee at every company needs to consider what they can do to promote the company among their social network. Some steps everyone can take are:
• Sharing a link on their personal Facebook page about the company • Tweeting an important company announcement to those who follow them
• Making a comment on a blog or news article anywhere on the Internet about the benefits of the company • Making a fun YouTube video that speaks highly of the company (maybe the best video gets a trip to a Chicago Cubs game and an overnight stay on Michigan Avenue!) The bottom line is this: No one knows exactly how this will all play out with job recruitment, employee retention, customer acquisition or human resources communication. But it’s clear that social media and mobile devices will affect all four of these important business functions. Today, your job is not to know your strategy, but begin exploring the possibilities, dip your toe in the water and embrace the future. Because, if your business isn’t currently considering social media communications, then it’s already behind the curve. Web site design; Facebook; iPhone and Android apps; optimizing Web sites for smartphone browsing; social media; and other technology solutions are available through Victory Enterprises, a new technology partner with the Iowa Motor Truck Association.
New Services to IMTA Web site Design and Redesign If your Web site needs to be updated, including the inclusion of Facebook and Twitter buttons or perhaps a customer blog, then it may be time to engage Victory Enterprises. Or perhaps, you simply want to make it more attractive. Either way, this new service can help. Web site Mobile Optimization Did you know that in the last quarter of 2011, more smartphones were sold than computers? And more Web browsing now occurs on the smartphone than the computer. With this in mind, how does your Web site look on a smartphone? Is it a useful tool for customers and potential employees? If not, consider optimizing your Web site for mobile smartphones. Social Media Marketing Facebook, Twitter and other social media tools can be an effective way to reach out to new customers, potential drivers and help build your company brand to the wider world. As you probably know, the way people search for new businesses is changing quickly and, even though it can take a while, it’s important to get started. Victory Enterprises does the work for you by creating your social media presence and assigning one of its staff members to write and manage a blog while updating Facebook and Twitter at the same time. They will even add LinkedIn.
Word of mouth is now shared online. That’s why it’s so important that your company begin the process of considering what your strategy will be in social media and mobile. Development of an iPhone and Android App Helping drivers find weigh stations, transfer stations or take a photo of a problem with the truck and automatically assign a latitude and longitude to the location are just a couple of the tools available in smart phone apps. Victory Enterprises has created a model for a smartphone app that will assist every trucking company that has drivers. Even more, it serves as a recruiting tool and provides a quick and easy way to update drivers with important human resources notices and company announcements. Victory Pulse Social Media Monitoring Within the millions of Tweets and Facebook posts, people are talking about your company; but without a monitoring tool, there’s no way to really know if it’s good, bad or indifferent. Victory Pulse is a tool that automatically monitors what people are saying about your company in the world of social media and provides regular reports that detail – in easy-to-read chart form – how comments about your company are trending.
Driver Satisfaction Surveys Driver retention is critical for all of trucking companies, and regular surveys may be helpful. Ten-question surveys conducted over the phone by live Iowa-based surveyors is a new product being offered. The IMTA is excited about this new partnership because it has so much potential to help members. Please e-mail Phillip Nicolino at phillip@ iowamotortruck.com for more information or contact Victory Enterprises directly by e-mailing Jamie Hopkins at Jamie@VictoryEnterprises.com. Since being founded by Steve Grubbs in 1993, Victory Enterprises has become one of the leading technology providers in Iowa – especially in the realm of new media. Because of this, the IMTA is introducing several services available to its members by way of this recent partnership. IMTA is pleased to announce its new partnership with Victory Enterprises to offer Social Media applications specific to Iowa’s trucking industry.
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Boxing Night Truck PAC Iowa Boxing Night – Another Success!
The third annual Truck PAC Boxing night was held on one of the few snowy nights we have had in Iowa and despite the questionable weather, it was still a great success. Over 200 people gathered at the Embassy Suites on the River in downtown Des Moines to watch boxing matches and raise money for Iowa’s Truck PAC. In addition to 7 amateur bouts, attendees were entertained with a sumo wrestling bout and an impromptu auction, with IMTA member and former state senator Mark Zieman serving as the auctioneer. IMTA Lobbyist Dave Scott was the Master of Ceremonies for the evening and was equally as entertaining with his skills. Over $13,000 was raised for PAC through the event and everyone in attendance seemed to enjoy the evening. Members of the PAC committee were dressed in tuxedos to bring back the feel of a “Ballroom Boxing” and were also easily recognized as the folks selling raffle tickets and chances for other additional prizes. “I am always very pleased to see the number of folks that support our efforts to raise funds for our political action committee. These events not only allow us to raise money but also come together as an industry and enjoy an evening of entertainment and networking,” said IMTA Chairman Jeff Wangsness. “We are very thankful for the sponsors that step up for this event as well, without
their support we couldn’t have this boxing event and year after year, they continue to be extremely supportive and we appreciate that tremendously,” said Ralph Arthur, Ruan Transportation and chairman of the PAC committee. The committee has already discussed the event for next year and in an effort to shake things up, the committee is pursuing an evening that may possible feature Mixed Martial Arts Boxing. This combines traditional boxing with mixed martial arts and its popularity has skyrocketed in the last several years.
(L-R) Matt Hubbs, TanTara Transportation Corp.; Mike Riggan, TanTara Transportation Corp.; Jeff Riggan, TanTara Transportation Corp.
“We are constantly looking for ways to make this a better event and the feedback that we get from the folks that attend is very valuable and always considered as we plan for the future,” said Jeff Wangsness.
(L-R) Carl Schwab, Freightliner of Des Moines, Inc.; Jim Wilson, Freightliner of Des Moines, Inc.; Rod McClevley, Freightliner of Des Moines, Inc.
(Back Row L-R) Mark Gooding, Truck Country; Greg Olinger, Manatt’s, Inc.; Ryan Bastian, Truck Country (Front Row L-R) Jeff Baedke, Truck Country; Bill Roth, Truck Country; Brian McCoy, Truck Country; Tom Schmidt, Gordon Sevig Truck Line Co.
(L-R) Terry Brasher, Par Electric; Mike McNichols, Par Electric; Jeff Vroom, JMT Trucking Company; Mark Allgood, Breilholz Construction; Larry Halbrook, Halbrook Construction; Mike Paglia, Terra Realty
(L-R) Charlie Williams, Boyer Petroleum Co.; Ralph Arthur, Ruan Transportation Management Systems; Brenda Neville, Iowa Motor Truck Association; Jeff Wangsness, JMT Trucking Company; Mike Riggan, TanTara Transportation Corp.; Dave Nelsen, Freightliner of Des Moines, Inc.; Delwin Van Wyk, Interstate PowerSystems; Mark Zieman, Cherry Valley Enterprises, Inc.
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Boxing Night 2012 Truck PAC Iowa Boxing Night Sponsors Beverage Sponsor
Cummins Central Power, LLC
Dinner Sponsors (L-R) Chad Prior, Manatt’s Inc.; Clay Prior, Manatt’s Inc.; Brody Bales, Manatt’s Inc.; Jim (Louie) Shutts, Manatt’s Inc.; Greg Manatt, Housby Mack
Warren Transport Wolin Mechanical – Electrical
Reilly Construction Co., Inc.
Gold Table Sponsors
Reppert Rigging/Merchants Distribution
Boyer Petroleum
Ruan Transportation Management Systems
Boxing Bout Sponsors Boyer Petroleum
Cedar Rapids Truck Center, Inc. / Quad City Peterbilt, Inc.
(L-R) Nick McDonald, NAPA AutoCare Collision Center - Hawkeye International Trucks; Travis White, NAPA AutoCare Collision Center - Hawkeye International Trucks; Jake Richmond, NAPA AutoCare Collision Center - Hawkeye International Trucks; Jeff Richmond, NAPA AutoCare Collision Center Hawkeye International Trucks; Jeremy Kasperbauer, NAPA AutoCare Collision Center - Hawkeye International Trucks; Tim Davidson, NAPA AutoCare Collision Center - Hawkeye International Trucks; Mark Pearce, NAPA AutoCare Collision Center - Hawkeye International Trucks
Truck Country
Association & Legislative Resources BTI Special Commodities, Inc. Cottingham & Butler Freightliner of Des Moines, Inc. Hawkeye International Trucks Housby Mack JMT Trucking Company
Crouse Transportation Services, LLC
Kenworth Mid-Iowa, Inc.
Federated Insurance
Manatt’s, Inc.
Hawkeye International Trucks
Midwest Wheel Companies
Interstate PowerSystems
TanTara Transportation Corporation
McKenna Truck Center
Truck Country
Midwest Wheel Companies
Brian McCoy, Truck Country poses with the ring girls
Mike Bagg, Central Trailer Service, Ltd. poses with the ring girls
Wrestlers for the Sumo bout challenge (L-R) Josh Neville; Brenda Neville, Iowa Motor Truck Association; Brett Shaffer
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Carrier Spotlight
Atlantic Carriers As you travel West on Interstate 80, you will notice the rolling hillside and the beautiful landscape that is common in the Iowa. The landscape is a combination of scenic rivers and trees that serve as the perfect backdrop to acres of corn and soybeans which remind us of the rich and deep agricultural foundation of our state. Another strong foundation to the state is the number of family businesses that continue to grow and prosper generation after generation. As you travel West on that same interstate highway, you will come across a sign pointing you 6 miles south to Atlantic, Iowa. Home of another successful, family oriented trucking operation that has quietly yet effectively made a dramatic impact on this community of over 7000. Atlantic Carriers was founded in 1971 by Al Ross with the help of Bob Thompson and Lee McDermontt. The company
their fleet. By 1988, they had a fleet of 50 trucks and had added flatbeds and pneumatic tanks to their operation.
Al & late Marie Ross
started with three tractors, three flatbed trailers and one grain trailer. Al, Bob and Lee all got behind the wheel of the trucks hauling freight from Atlantic to Chicago. Marie, wife of Al, did the bookwork, managed the office, and raised four children. In those early years, the company survived and thrived by the hard work and long hours offered by the founders. Like so many trucking companies just starting out, everyone pitched in and helped wherever they were needed and the company faced the challenges typical of trucking at that time; expensive authority and very little money. However, they weathered the storm and within a few years they had doubled
Today, Atlantic Carriers have 60 trucks with a goal of expanding their fleet to 75 by year end.
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“We were always passionate about people, from the drivers to the folks in the office, to the customer to the general motoring public. We always believed that people were our most precious commodity and that was something we always have kept in mind from the minute we opened our doors through today,� said Debbie Crawford. By 1989, the company had outgrown its original location and moved to a new headquarters office which is where they operate yet today, 501 Ash Street. The company continued to diversify its operation and started hauling feed ingredients using the hopper division and has seen the largest growth in that segment of their operation. Today they have 60 trucks with a goal of expanding their fleet to 75 by year end. They have 48 state authority and a fleet of hoppers, dry vans, pneumatic tanks, bottom drops, flatbeds and step decks. They also added a brokerage division in 2002 that has seen incredible success as well.
Carrier Spotlight
Joe Bateman serves as the President of operations and Debbie Crawford, daughter of the company’s founder serves as the general manager. In addition, there are 22 office employees, 6 folks in the full service shop and 22 company owned trucks, 22 owner operators and 3 employees in the brokerage division. “We are a family owned trucking company with small town values. Hard work and continual growth has transformed us into a nationwide general commodities carrier. We are proud to be a multigenerational company and take great pride in offering the best customer service out there,” said Andy Bateman, grandson of Al Ross, founder of the company. “Customer service starts with the first phone call to an on-time delivery. We provide personal service 24 hours a day, someone can call into Atlantic Carriers and there will always be a person on the other end.” The management of Atlantic Carriers is very proud of their trucking roots, starting out behind the wheel of a truck and moving into the various roles that are required to run a successful trucking company. Because of that background, there is the needed passion and commitment that is the key to the company’s overall success. “I guess you could say that trucking is in our blood, so it was only natural that
we would have a trucking company,” said Nathan Ross, grandson of Al Ross, founder of the company.. Atlantic, Iowa was founded in 1868 and while historians cannot agree how Atlantic got its name, local legend tells that the founding fathers estimated that the town was about halfway
Dept Heads..Joe Bateman, Mark Ranney, Josh Park, Deb Crawford, and Sheri Fletcher
Nathan Ross, Deb Crawford, Andy Bateman, Sam Bateman. This is the second and third generations of the Al Ross family
between the Pacific and Atlantic Ocean, so it led them to flip a coin and “Atlantic” won. Company leaders think their location in Atlantic is perfect as well.
company owners viewed IMTA as a key asset to their future.
“Being 6 miles off the interstate is perfect, a great location for our home terminal because we are right in the middle which is a perfect hub for trucking,” said Mark Ranney, Traffic Manager
“We recognize that IMTA was a good and reliable source for the latest information coming into the industry and we also felt there was value to be able to rub shoulders with businesses going through the same things we were experiencing,” said Deb Crawford.
In 1982, Atlantic Carriers joined the Iowa Motor Truck Association which makes them a 30 year member! At the time, the
The company’s goals have always been continual improvement, continual growth and continual emphasis on
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Carrier Spotlight safety. Tremendous efforts are put forth to make safety a number one focus within the company and its expanded safety department helps fulfill those goals. “Safety has always been our focus and it will continue to be the focus. You can’t be in this business if you don’t make safety a priority. Having safety as part of your overall business culture is extremely important and we have always tried to maintain a safety focus,” said Joe Bateman. Because of that focus on safety, Atlantic Carriers have been valued members for decades because they rely upon IMTA to help them stay current on the rules and regulations. They are also appreciative of IMTA’s ability to provide practical help and assistance to enable them to be in compliance at all times. “It is always nice to feel as though you have someone in your corner and that is what we find with our relationship
with IMTA. We feel as though they are out there representing us and being a positive voice for the trucking industry. We appreciate that representation.” Like many seasoned trucking companies, Atlantic Carriers have weathered many storms over the years and because of their foundation of great people, they anticipate they will be able to weather all the future storms that are looming on the horizon. “We are no different than any other company, we believe that the rising fuel prices, rising cost of insurance and the shortage of good, qualified drivers will continue to be the major challenges we face. And like other companies, we have to take each challenge as it comes and deal with it accordingly. We try to take a positive approach, educate ourselves and continue to make the best decisions we can to ensure that our company will continue to survive and grow. That is the one aspect of this business that we know
we are going to always being dealing with. Constant change is always present in trucking,” said Deb Crawford. One thing that will never change however, is that Atlantic Carriers will continue to be a valued business in the community and one that takes great pride in being a valued trucking operation. The same philosophy that started this company decades ago continues to be a driving force yet today. “The people that we impact on a daily basis are the most rewarding aspect of this job. The people that depend upon a job with our company, the people that depend upon the products that are delivered by trucks, the people that we are proud to call our customers and the people that benefit from everything we do is the most rewarding aspect of this trucking company and we intend to always keep that a priority at Atlantic Carriers,” said Mark Ranney.
“Atlantic Carriers is successful, because of the people that work here everyday. It is honestly a pleasure to come to work everyday and work with people I get to. I don’t like to call anyone an employee, because I don’t feel they work for us, we work together as a team. Our company newsletter title is ‘Atlantic Carriers T.E.A.M.’ This stands for, “Together Everyone Achieves More’. I am looking forward to the future when I get to see the next generation carry on our success, “ Debbie Crawford.
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FE ATU R E
By: Brenda Neville IMTA President
The
ELEPHANT in the
ROOM
- The Size & Weight Issue Continues
The “BIG” Elephant in the Room – The Size & Weight Issue Continues The trucking industry has had a 30+ year conversation about truck productivity. As with any issue of this magnitude, there is invariably a number of differing opinions and this hot topic has once again come to the forefront as legislation emerged from Congress in late January allowing bigger trucks. The lawmakers in DC introduced legislation that gave the states the authority to the operation of 6-axle, 97,000 pound tractor trailer combinations on the Interstate Highway Systems. The proposed legislation also would allow states that currently have the authority to operate longer combination vehicles in their State to expand LCV operations to other routes and also increase the minimum single trailer length limit from 48 to 53 feet and the minimum length trailer length limit for doubles from 28 to 33 feet. There were a number of other items addressed in the legislation specific to truck productivity. However, within a matter of days, the language was stripped from the proposed legislation and the new legislation called for the funding of a study for a comprehensive evaluation of the impacts on safety, highway and pavement damage of these bigger trucks. The American Trucking Association issued a statement shortly after the proposed legislation for bigger trucks was stripped out of the bill. ATA expressed their disappointment in the removal of this language and the creation of another study, “It is disappointing that the House Transportation and Infrastructure Committee voted to prevent the operation of safer, more efficient trucks on our nation’s highways. There have already been dozens and dozens of studies that show increasing truck productivity reduces truck miles traveled, which not only reduces accident risk, congestion and emissions, but also will ultimately save money in reduced highway maintenance costs. We hope that Congress will see that further study is not necessary and as this legislation moves forward, enacts these long overdue reforms,” said ATA officials.
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The Elephant in the Room As a result of the proposed legislation in January, state lawmakers, regulators, IMTA members and even non-members have inquired about the issue. In many cases, they are simply trying to get more information on the issue and determine the various opinions that exist. They are equally interested in our position as well as my prediction as to what is going to happen in the future – both short and long term. I learned a long time ago, not to make predictions, so don’t hold me to these predictions. However, I believe in the short term, the federal legislation is quite clear, there will be a study implemented to determine the impact on safety as well as highway/pavement damage by bigger trucks. In the long term, I believe this issue will continue to be at the forefront and folks that are much smarter than me continue to predict that there will be bigger and heavier trucks on our nation’s interstate system within the next 10 years. From an association’s perspective, this is a tough issue – it is one of those issues that divides memberships and creates animosity that carries on for years. Is there a right answer? Is there a perfect solution? Is there a policy position that will make everyone happy? The answer to all of those questions is an unequivocal NO. Just two short years ago, state legislation was proposed that allowed 96,000 pounds on non-interstate roads. IMTA didn’t have a policy on non-interstate roads but after convening several special executive committee meetings and polling the membership, it was about as clear as mud as to what the position should be. However, at the end of the day, IMTA came out in opposition to the heavier trucks on the non-interstate roads, especially when several amendments were stripped from the proposed legislation that had called for extra safety measures on these big trucks that were going to be traveling throughout the state on roads that seemed the most vulnerable for accidents and safety issues.
The legislation passed despite IMTA’s efforts, which also included a written plea to Governor Culver asking for a veto on the proposed legislation. Now fast forward to today and there continues to be mounting issues with these heavier trucks that are traveling on the non-interstate roads but lawmakers and regulators alike don’t seem to have a problem with them. Because of this legislation, members and non-members who are supportive of bigger trucks are even more supportive of allowing bigger trucks on the interstate systems and continue to push for bigger trucks on the interstate system. One strong argument on the national level is that many states, like Iowa, allow for heavier trucks on non-interstate roads so why not allow them on interstate highways. As the drama was unfolding on the Federal level with the proposed legislation, I reached out to my colleagues within the Midwest region of state trucking associations and every single association, a total of 12, had a different approach and position on this issue. The reality is that all state trucking associations have been trying to address this issue over the years and developing a policy and position that will make the most members happy is an almost impossible task. Because of the divisive nature of this issue, many state associations have been pushing this down the priority list because the interstate system is regulated by Federal law. However, as this recently proposed legislation clearly stated, it was going to be up to the states and if each individual state is given the responsibility to determine the direction of that decision, there is a very real risk that we will have an inconsistent patchwork of state laws in regard to size and weight and we all can agree that is not a viable solution either.
Recently, I overheard a board member talk about this issue to another IMTA board member, he stated, “The issue of increased size and weights has become the apparent elephant in the room, everyone knows that it needs to be discussed but the discussion is never prompted. That is probably a good thing because I am not sure we can reach agreement, but we probably need to start talking about it.” And the reality is, this issue does warrant thoughtful discussion. We have a great group of leaders that serve on the IMTA Board of Directors. This group represents every type and kind of trucking operation and their historical knowledge and years in the industry is massive. In doing some research, I discovered that since 1943, IMTA has been involved with the size and weight issue. As I read through various newspaper articles and meeting minutes, the weight of this issue (no pun intended) became very apparent. I would suggest that it may be as controversial and divisive as deregulation was back in the 1980s. There are compelling arguments on both sides of the size and weight issue, there is compelling data on both sides of the issue and there are very real problems with congestion and a shortage of good qualified drivers that need to be addressed. However, it is incumbent upon us as an association, to carefully navigate through this issue and begin a discussion, not a debate on how we as an association will proceed on this issue. Some predict, it will be at least ten years before we see any changes…so if that is the case, we have a lot of time to learn and listen from one another.
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The Elephant in the Room Your Opinion Matters Trucking Leaders Weigh In...
Bob Kohlwes Co-Owner BTI Special Commodities, Inc.
I have been in this industry for a very long time, actually all of my adult life and most of that time there has been discussion on bigger trucks. Over the past several years, this topic seems to be coming up more and more so I have been thinking about it a great deal as well.
Recently as this has been discussed, my first question is this; why are we considering larger commercial vehicles? Are we doing this in anticipation of a driver shortage, a cure for highway congestion or is it to save fuel by becoming more efficient? I suspect that it may be for all the reasons I just cited but there are several things that I believe need to be considered as we look at this issue.
hauling bulk product like liquids or other medium such a gravel which allows you to put on enough product to bring it to maximum capacity with each load. Increasing trailer size is not without challenges either. Due to the various limitations that are common with the existing infrastructure, I believe that there is a number of underlying problems with increasing trailer size. Like many other truckers, the majority of our driving is done on interstate highways, however, we certainly do a fair amount of driving on 2 lane roads and they simply cannot accommodate longer trailers, especially in curve situations. IN fact, in California, we are now restricted to a 42’ limit from pin to the rearmost axle if we leave the interstate system. I think another very real argument to this proposal is the increased wear and tear on the highways and bridges that are already suffering tremendously. I just fear that the overall infrastructure in the US is simply not ready for heavier and longer trucks. And while the proponents of increasing size and weight believe that our safety record will improve because of fewer trucks on the road, I think that the general public will develop a perception that these bigger and heavier trucks are even more dangerous. Unfortunately, in this day and age, perception is reality and I believe this perception will be a tremendous obstacle in getting legislation passed to increase the size and weight of trucks.
If interstate highway restrictions were increased from 80,000 lbs. to 96,000 lbs. we would be able to haul approximately 33% more weight per shipment. In my calculating I am using the current average payload weight of 48,000 lbs. and if we increase the 48,000 lb. payload by the difference of 96,000 lbs. to the I think history provides a tremendous guide to the nature of current 80,000 lbs., we are increasing our legal capacity the trucking and if we rely on some historical perspective, I by 16,000 lbs. which is 33% more than the average payload of 48,000 lbs. This increase would make it legal believe most in the trucking industry will agree that when to haul 64,000 lbs. of freight.
we went from 48’ trailers to 53’ trailers we did not get more
If trucks are allowed to haul 96,000 lbs., it means that money for the increase in fact, just the opposite happened. we would have the capacity with 3 trucks what 4 trucks can currently do at the 80,000 lb. limit. At face value, this seems I think history provides a tremendous guide to the nature of the like a pretty valuable solution. This would obviously mean that less trucking and if we rely on some historical perspective, I believe drivers are needed and several other efficiencies may be created most in the trucking industry will agree that when we went from in this scenario. Proponents of increases will also argue that less 48’ trailers to 53’ trailers we did not get more money for the fuel would be used, but I don’t believe that we would see a 33% increase in fact, just the opposite happened. We incurred a great decrease in fuel costs to move the same amount of product. deal more expense in moving to these bigger trailers and were not Common sense would also point to fewer overall accidents because very successful in covering the increased expense with increased there would be obviously fewer miles travelled because there will revenue. Even if you aren’t a math genius, you know that this be fewer trucks on the road. But remember this is all in a “perfect formula isn’t going to work for long. world” scenario. I recognize that this issue is going to be discussed and considered However, here are some points to counter this perfect solution which in the foreseeable future. Too many national organizations like ATA seems to be bigger and heavier trucks. I think the fact remains that and TCA are supporting these increases and keeping this issue alive we are not always hauling freight that can be completely “grossed in Congress. But I think there needs to be much more discussion out” in weight to maximize the ability to haul more. A lot of van and before we proceed any further. reefer freight “cubes out” before it “grosses out”. My personal opinion is that we should not change anything. I If weight limits go up, aren’t we going to have to change the believe the real key to ongoing success is to offer drivers higher configuration of axles on each trailer? I believe that will be a huge salaries to attract them to enter the industry and the treat them expense and I believe that smaller carriers in particular will suffer like the real professionals so they stay in the industry and make it the most. Furthermore, it will make our current equipment worth a career. I honestly believe that a good, professional truck driver much less money on the used equipment market. We went through deserves six figures and once the industry starts paying the drivers this when we went from 40’ to 45’ to 48’ to 53’ trailers since 1980. and treating the drivers they way they should be treated; we won’t If we don’t increase the trailer size and just change the weight, I need to be looking at other alternatives to improve our productivity. am afraid the problem will not be solved because a vast majority We need to invest in the human element which is really what drives of carriers don’t gross out on weight on every load unless they are this industry more than anything else.
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The Elephant in the Room Your Opinion Matters Trucking Leaders Weigh In...
Steve Maverick Chairman & CEO Maverick, USA Chair American Transportation Research Institute
Over the last decade of conversation and debate about whether to change Truck Size and Weight Regulations, I have grown to understand that it really wasn’t about the specific question… but more about the “philosophy” that individuals embrace in their business lives. Do you believe in protectionism or subscribe to open markets? Obviously, there are many paths to success in the short term…but what path is truly sustainable in the long run?
The thirty-plus years of Deregulation have been of tremendous economic value to our Nation. But the business model that has evolved simply is not sustainable for a plethora of reasons. Our Nation’s failure to invest in infrastructure, changing workforce demographics and the escalating cost of operations are having a profound impact on the economic viability of the industry. All of the regulatory changes required to build a sustainable trucking industry (lower speeds, EPA mandates, compliance to HOS, drug and alcohol free drivers) will reduce productivity and add cost. The burden to “catch up” our immediate needs in infrastructure will more than double our fuel tax burden…further escalating cost. The only economically positive thing we can do for our Nation’s global competitiveness is to increase vehicle productivity and lower shipping cost per ton mile. This will only mitigate the amount of the increases that the supply chain will be required to absorb…but we don’t want to kill the goose.
I will turn 60 next year. I have watched this industry with a A strategy that we embraced early combination of pride and embarrassment. I have watched my Dad at Maverick was to “manage with and Grandpa haul steel across Missouri with KB-6 Internationals facts” and for those facts to drive our decisions, both tactical and pulling 20 foot trailers. I watched them tweak everything on those strategic. That is one of the reasons that I have been so involved trucks in order to get an “advantage” on the competition. One with supporting the research efforts of ATRI and chose to serve on thing for certain, no one was going to out work either of them. the Transportation Research Board of the National Academies. I That was understood. But the solution to the challenge that we don’t always like the conclusions that are drawn but it’s sure helpful will face in the years ahead will not be met by “outworking” the to understand the facts. Truck size and weight “facts” are pretty next guy or driving faster…or getting in more miles. We must straightforward…you just may not like them. Federal DOT Truck continually improve the model and unleash the creative energy Size and Weight Study of 2000, Transportation Research Board’s that has made this industry great. Regulations must evolve and Special Report (TRB) 267, ATRI and UMTRI’s research all conclude change to meet the challenges that we face…they are…and we are and recommend the use of More Productive Vehicles of various shaping them. varieties. The research definitively concludes that changes would have dramatic safety, environmental The burden to “catch up” our immediate needs in infrastructure and economic benefits.
will more than double our fuel tax burden…further escalating
Today, the United States finds itself slipping from cost. The only economically positive thing we can do for the lead in virtually every important measurement… our Nation’s global competitiveness is to increase vehicle from investments in infrastructure and education to employee productivity and knowledge. We have the productivity and lower shipping cost per ton mile. least productive size and weight regulations of any industrialized country. We have failed to invest in infrastructure The economist Joseph Schumpeter popularized the term “creative and education both of which are required for us to be competitive destruction” in 1942, a “process of industrial mutation that within the US but more importantly, globally. Surely we can see that incessantly revolutionizes the economic structure from within, sticking our head in the sand and protecting the status quo has incessantly destroying the old one, incessantly creating a new one.” not served us well as a Nation. Productivity has been frozen for a I was always taught to believe that what didn’t kill me would make generation, 30 years since 1982. There have been no increased me stronger. I believe this to be true. That is the spirit and power investments in highways since 1994. Our generation has done of the American economy. nothing but use up what was given to us. Time waits for no one, no company or Nation. We had better start figuring out what we In 2004 I stood before the leaders of the trucking industry as need to do as a country to compete and change our business Chairman of ATA and stated that we were entering a period model if we want to be a part of the future. of dramatic change that would be full of challenges…and to remember that challenges always create opportunities. It is up Understandably, most people have looked at the question of to us as “individuals” to capitalize on those opportunities. The size and weight reform with their immediate interests in mind. I dynamic of change is what has always kept trucking so vibrant, have attempted to answer policy questions related to the trucking flexible and efficient. We must make the “step change” in industry from the perspective of the Nation, the industry and regulations to allow the continued evolution of the industry. Our my company and in that order. I feel that a rising tide floats all Nation’s global competitiveness and survival depends on it. boats…and we need to get the business model right and we need the political will do to what needs to be done.
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Business Perspective Dan Schwarz is a licensed Certified Public Accountant who has worked for McGowen, Hurst, Clark & Smith, P.C. since 1990. His areas of expertise include trucking, manufacturing, small business tax and business planning. Schwarz has conducted presentations on a variety of accounting and tax issues specifically for trucking businesses. He is also accredited in Business Valuation (ABV), a designation available to CPAs who have demonstrated through examination the necessary knowledge and experience to work with businesses regarding their business valuation needs.
Map Out Your Company Success with Proper Planning
Many trucking company owners started their careers on the operations side. They understand it and are comfortable with it. Often Daniel Schwarz, CPA/ABV times the McGowen, Hurst, Clark & financial and Smith, P.C. accounting side of running a business is their least favorite part, viewed as something they should do or have to do. Not knowing, caring or understanding the finances of your company will limit its potential and ultimately your investment in it. The economic environment of the last five years has presented many challenges, some of which haven’t been seen for a generation, others completely unprecedented. We have seen record high fuel prices, a credit crisis, a major downturn in demand, major downsizing in the industry and an extremely high level of trucking companies closing. All these items have caused surviving trucking companies to rethink the way they approach business and reexamine their financial condition. The world has changed and the companies that are successful in the future will take the lessons learned to heart and manage their businesses accordingly. Business owners want to be in control of their company. The last few years have made many feel like others are
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calling the shots. Whether it is lender oversight, demand for services, increased government regulation or other factors, many owners have become frustrated and uncertain with how to operate their business. Putting together a financial plan is one step towards gaining control again. A financial plan should point out areas that need changing, areas that are working well, and lay a road map for the future. But where do you start? What is important? Our firm, McGowen, Hurst, Clark & Smith, P.C., has assisted many clients in developing such a plan. Whether in the trucking industry or some other, there are a few common items that lay the groundwork for each.
Plan, plan, plan
Often a business owner relies on historical results and assumes “it happened before, it will happen again”. The economic environment we work in is constantly evolving, some will say faster than ever. While history can be a good indicator and should not be ignored, management should always be looking forward. A good business plan takes history into account while anticipating future results. The plan should have both a short term and a long term focus. I am a strong believer that every business should have financial projections. Not just one, but several, covering a range of items. Short and long term cash flow analysis; a running twelve months of operations; and multi-year operating results are some of the more common ones. After the projections are complete, they should be periodically reviewed and updated for them to be effective.
Good planning takes time and resources. If you haven’t done much of it in the past, the first few efforts can be frustrating. However, sticking to it and seeing the process through will make you a better business owner and your business a more efficient company. I have yet to see a company not learn something new about their organization after going through the planning process. Another benefit to the planning process is that it projects a proactive image to internal management and outside lenders. Banks and finance companies requesting 12 month projections is very common place these days. Having them ready when asked shows you are a forward thinker. Prepare the projections in a timely manner. Next year’s projection should begin in the last quarter of the previous year. A current year projection that isn’t finished until late in the first quarter loses considerable effectiveness.
Don’t forget the balance sheet
It is easy during planning to become focused on the income statement. Every business owner looks for a good “bottom line”. What can go wrong if we are making money, right? The economic conditions of the last few years have forced companies to increase their focus on the balance sheet. A company may be making a decent profit, but it may be over leveraged to the point that its future is in doubt. It may be relying too much on long term borrowing to fund current operations. Any slowdown in business or decrease in profitability will expose these weaknesses. Assuming a lender will work with you to cure any problems is dangerous. Often it is up to you to work through the situation.
Business Perspective “Business owners want to be in control of their company. The last few years have made many feel like others are calling the shots.� Other financial ratios and measurements allow you to assess the performance and health of your company. Some of the more common ones for trucking companies are – return on assets, debt to equity, fixed coverage charge, and operating ratio. If any of them show deterioration over the projection period, now is the time to address these benchmarks.
Focus on what is important
If short term cash flow is an issue, focus on how to improve it. Maybe short term cash is ok but profitability is not high enough. Whatever the keys issues, determine why and develop new strategies to correct it. The owners and the management team need to have a common vision of what is important and how to approach the areas that need improvement. This is best done with a common starting point, the business plan. Projecting not only the income statement but also the balance sheet will help identify areas of strength and weakness. Am I generating enough cash to cover debt service? Is my debt level too high? Will my debt level allow me to trade equipment when needed? All these can be determined with proper planning of the balance sheet.
Financial scorecard
The projections should also include certain financial ratios and statistics so the future health of the business can be measured. Bank loan covenants should also be considered. Most banks require certain financial loan covenants be met annually or more frequently. The projection should include lender covenants to measure compliance on an ongoing basis. It is important to always be aware of how outside stakeholders view your numbers.
Where do we go from here?
As I mentioned before, plans and projections should have ongoing updates. Circumstances change and your expectations should change with them. Actual results should be compared to the projections for major differences as a part of routine monthly financial reporting. Laying out prior year(s), current year and projected results provide a snapshot of how on target the business is to meet its goals. These differences should be understood by management. Perhaps the projection needs altered or actual operations have changed.
Association. Listen to what is going on in the marketplace and see if your company is experiencing the same issues. Seek outside assistance, talk to others who have gone through the process. They can assist you if the task seems to be too much or difficult to start. Have discussions with the key financial advisors you rely upon. They can offer their advice and experience.
Taking back control
A good business plan and set of projections are not going to solve everything. Obviously, there are still factors beyond your control that can create unexpected challenges and opportunities. However, by putting together a plan and projections based on what you know today, you can best position your business to minimize the effect of those challenges and take advantage of those opportunities. McGowen, Hurst, Clark & Smith, P.C., a certified public accounting and business advisory firm, has been serving trucking businesses for over 65 years and are proud to be a member of the Iowa Motor Truck Association. If we can assist you in anyway, please contact us 515-288-3279 or dschwarz@mhcscpa.com. We are here to help steer you in the right direction, keeping your business on track and headed down the road to success.
Compare yourself to your peers. There is a great deal of public information on trucking companies available to all of us. Use what is available to see how you stack up with others. You also have a great opportunity to discuss industry conditions with peers through your participation in the Iowa Motor Truck
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Iowa Truck Services Consider Filing HVUT Form 2290 Returns Online Through IMTA2290.com IMTA members and their owneroperators can benefit from the IRS authorized e-file site
Come July, tens of thousands of trucking companies and owner-operators across the country will file the Internal Revenue Service’s Heavy Vehicle Use Tax Form 2290 Return. It’s an annual tax return mandated by the federal government to be paid by companies or individuals operating one or more commercial motor vehicles weighing over 55,000 pounds. Members of the Iowa Motor Truck Association have a resource available that is a quick, simple and affordable option for filing the return with the IRS. Through the association’s very own HVUT Form 2290 e-file Web site – IMTA2290. com – companies and individuals subject to this tax can save time, money and headaches. Any company operating trucks can register and file through IMTA2290.com. Even owner-operators who are personally responsible for filing their own returns can utilize the site to better serve their needs.
Why Choose IMTA2290.com
As trucking companies have looked to improve their efficiencies over the years, the HVUT Form 2290 has started to become somewhat archaic to manage. The typical methods for filing the return include completing and mailing a paper form, going directly to an IRS office with your paper return or submitting the information online. Unfortunately, all of these options have drawbacks that can prove to be troubling for even the most knowledgeable and productive individuals: • Mailing Paper Returns: These take time to fill out and most companies can no longer afford
to have an employee manually enter data when everything is computerized. You also will not receive your Schedule 1 (proof of payment) instantly, and the IRS has actually taken several steps in the last few years to push companies away from the paper return. This has included requiring operations with 25 or more trucks weighing over 55,000 pounds to file electronically and no longer mailing the form to companies with less than 25 trucks. • Visiting the IRS: If the unknown is something that appeals to you, this option may not be as inconvenient. However, in addition to having to fill out the paper form and then travel to a local IRS office, you are risking long waits during the renewal period that are not uncommon to exceed one hour. • Filing Electronically: This option is not all that troublesome as long as an IRS authorized e-file provider is being utilized for returns. But there are still a few factors to take into consideration when filing online – probably none more important than having trust and confidence in the site being filed through. Any aversion or hesitation to the obstacles noted above should point you directly to the Iowa Motor Truck Association and IMTA2290.com. Our top priority is helping trucking companies improve their businesses. Using the association’s dedicated HVUT Form 2290 e-file site that is supported by an IRS e-file provider will address any frustrations or concerns felt through this process.
Affordability and Discounts
IMTA2290.com offers any company operating trucks over 55,000 pounds an ideal method for filing the HVUT Form 2290 with the IRS at low, affordable rates. In addition to having the most competitive prices available through any e-file provider (single vehicle returns start at
$9.90), pricing is tiered to accommodate carriers of all sizes. This includes even the largest of fleets since there are a handful of yearly, unlimited filing packages available to companies that have thousands of vehicles and never-ending changes each month. Making the decision to file through IMTA2290.com can be even more financially rewarding since members of the Iowa Motor Truck Association receive a 10 percent discount off their filing fee. To obtain this benefit, the code IMTA10 must be used at check-out. If you have any questions or would like more information about IMTA2290.com or the HVUT Form 2290, please contact the IMTA office at (515) 244-5193.
Benefits to Using IMTA2290.com
• Filing through a trusted industry partner – the IMTA • Returns transmitted through an IRS authorized e-file provider • Single vehicle returns featuring the lowest price in the industry • Tiered pricing to accommodate carriers of all sizes • Yearly packages providing unlimited filings for larger fleets • 10 percent discount off the filing fee to IMTA members (Use code IMTA10)
• Schedule 1 (proof of payment) received in minutes • Vehicle information securely stored for future use • Free VIN corrections • Dedicated technical support team to answer questions Winter 2012
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Members in the News Industry Loses Another Leader – Dale Decker
On February 18th, Iowa lost another trucking icon, Mr. Dale Decker. Dale was the father of Don Decker and had been an integral part of Decker Truck Line for many years. Dale was born on April 10, 1923 in Fort Dodge, Iowa. He graduated from Fort Dodge Senior High and married Donnabelle Simonson on May 24, 1941. Dave served as a Private First Class in the US Marine Corps from June 1943 until December of 1945. In 1945, after earning two Purple Hearts in the Marine Corp , he rejoined his brother Loren in the Decker Truck Line. He participated in all phases of the company’s many activities and in 1993, Dale retired as the owner of Decker Truck Line, Inc. when his son, Don acquired sole ownership of the company. Dale continued to spend time at the truck line enjoying many different hobbies and assembling his many collections of stamps, coins, phonographs and glassware to name a few. He was a regular at auction sales around the area and very well known. He would have celebrated his 71st anniversary in May of this year! Dale was very active with the VFW, American Legion, Marine Corps League and the First Presbyterian Church. He was also an ardent supporter of Iowa Central Community College, providing scholarships to students as well as supporting the Triton Club and Fort Dodge Amateur Sports. He and his family, were instrumental in starting the Iowa Central College truck driving school. Survivors included his wife Donna and son Don Decker and wife Dianne of Fort Dodge. Five grandchildren; Dale Decker of West Des Moines, Ashley Decker of Los Angeles, California, Mark Decker and wife Jill and children Has, Stefan, Maren and Kersten Decker of Burnsville, Minnesota; Craig Decker and wife Nancy and their children Hannah,
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Morgan and Jacob Decker of Des Moines, Julie Gibson and husband Nate and their children Emma, Calvin and Eva Gibson of Fort Dodge. He was preceded in death by his parent John and Lillian Decker, brothers Loren and Clayton Decker, sister Ruth Peterson and son
Duane Decker. The Decker Family would like to extend a special thank you to all the folks that remembered them during this difficult time.
Members in the News Convention Chairs Named
Delwin Van Wyk, Interstate PowerSystems, & Matt DeSchepper, Great West Casualty Company, Head up 2012 IMTA Convention Delwin Van Wyk with Interstate Power Systems will be serving as the 2012 Management Conference Chairman and Matt DeSchepper with Great West Casualty Delwin Van Wyk Company will Interstate PowerSystems serve as the Co-Chairman of the event. The 2012 Conference will be held September 18 & 19th at the Embassy Suites on the River. This newly renovated and updated hotel has served as the headquarters in the past and will once again be a great venue for the conference.
Cedar Rapids Truck Center Plays Role in Revolutionary Military Flight Training
Everything needs a brand, and Cedar Rapids Truck Center helped the University of Iowa Operator Performance Laboratory with a portion of its. Back in the fall of 2010, the Peterbilt truck dealership painted a 1971 Romanian fighter jet – a Czech L-29 Delf’n to be specific – for the university. The colors were naturally black and gold.
Delwin served as the 2011 Conference Chairman and has many years experience as a volunteer with IMTA. He has been active on numerous committees and Matt DeSchepper is especially Great West Casualty Co. fond of the convention. “I think this is an event that really brings the industry together and has something to offer for everyone. I was especially pleased with the conference in 2011 that we held in Cedar Rapids and I think the Central Iowa members will now have the opportunity to be a great host in September. I promise you that the conference will once again be a first-class event,” said Delwin.
committee now for two years and is excited to be in a leadership position. Matt is representing the Western side of the state and is excited to start planning another conference. “I know how much work goes into putting on a good convention and we are committed to providing excellent educational and networking opportunities,” said Matt. This annual event offers a variety of educational opportunities, networking opportunities and also showcases many IMTA members through its various award programs. It truly is a great event and IMTA members are encouraged to reserve the dates, September 18 & 19th for the conference.
Matt DeSchepper with Great West Casualty company has served on the Fred Grask, sales manager of Cedar Rapids Truck Center, knew at the time that the Operator Performance Laboratory was going to use it to test various military communication and instrumentation proto-types. Recently, it came to light that the fighter plane is doing more than that. The University of Iowa is working with researchers from Rockwell Collins, an aviation company headquartered in Cedar Rapids, on a project that may revolutionize military training and spending. The plane that was custom painted by Cedar Rapids Truck Center has been paired with another
The Czech L-29 Delf’n plane before Cedar Rapids Truck Center starting working on its new look for the University of Iowa Operator Performance Laboratory.
of its model and transformed into flying flight simulators that record brain activity during the missions. Monitors on the planes allow pilots to fight virtual enemies while flying the aircrafts in Iowa. The research is funded by various sources, including the Department of Defense, and shows how humans and machines interact in real world situations. It collects data that is used to determine how hard the pilot is working mentally while controlling the aircraft.
The fighter jet after it was overhauled by Cedar Rapids Truck Center.
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Committees “The executive committee represents the past, present and future of IMTA. This group is involved in a number of different areas but their primary focus and area of oversight is our legislative efforts on both the state and national level. This committee represents all sizes and types of operation and the perspective and insight they provide to IMTA is extremely valuable.” Jeff Wangsness JMT Trucking IMTA Chairman of the Board
Executi ve C ommi ttee The main responsibility of this committee is to oversee, assist and direct the operations of the association. Individuals on this committee are potential candidates for moving into an officer position and eventually serving as Chairman of the Board. A special thanks to the following individuals that are serving on IMTA’s core committees. These individuals commit a great deal of time, energy and expertise to their respective committee assignments and truly make the difference between a good organization and a GREAT organization.
Ralph Arthur
George Crouse
Don Decker
Dave Dickey
Kevin Gass
Mike Gerdin
Murry Fitzer
Jackie Johnsrud
Bob Kohlwes
Mark Olson
Michael Riggan
Steve Schuster
John Smith
Ruan Transportation Management Systems
Harold Dickey Transport, Inc.
BTI Special Commodities, Inc.
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Crouse Transportation Services
Perishable Distributors of Iowa Ltd.
Olson Explosives
Winter 2012
Decker Truck Line, Inc.
Heartland Express
TanTara Transportation Corp.
Florilli Transportation, LLC
Schuster Company
Johnsrud Transport, Inc.
CRST International, Inc.
Dave Van Wyk Van Wyk, Inc.
Committees
George Crouse Crouse Transportation Finance Committee -Chairman
Murry Fitzer
Florilli Transportation, LLC
“The finance committee does an outstanding job of providing oversight, assistance and direction when it comes to IMTA’s overall financial stability. This committee meets quarterly and we work very closely with Brenda to ensure that the association has the resources it needs to fulfill our mission and serve the membership. The transparency coupled with the ongoing oversight should give all IMTA members the confidence to know that their membership dollars are being spent wisely.”
Bob Kohlwes
BTI Special Commodities, Inc.
Steve Schuster
Schuster Company
“The Foundation was established to compliment the ongoing efforts of IMTA and also provide a tool for our industry to invest in the future through our scholarship program. We continue to look for ways in which to expand the efforts of the Foundation and we are continually working on ways to strengthen the Foundation and its efforts.” Dave Dickey Harold Dickey Transportation Foundation Committee -Chairman
John Minor
Midwest Wheel Companies
Jack Sawyer
Des Moines Transportation Company
Jeff Simpson
Mid Seven Transportation
Fi nanci a l C ommi ttee The main responsibility of this committee is to provide assistance and oversight to the association’s financial operation. This committee also provides oversight and guidance to IMTA’s investments and ensures that the association has a strong financial foundation.
Robert Sturgeon Barr-Nunn Transportation
Jeff Wangsness JMT Trucking Company
Founda ti on C ommi ttee This committee is responsible to provide the oversight and leadership specific to the Iowa Motor Carriers Foundation. This committee assists with the development of both long and short term goals to strengthen and guide the Foundation. Originally founded by former IMTA member Vern Simpson, the Foundation has continued to offer scholarships to students throughout the State of Iowa.
Pat Storey
Motor-Ways, Inc.
Jeff Wangsness JMT Trucking Company
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Committees “The committee plays a vitally important role, especially as rules and regulations for non-profits continue to change. IMTA has a very effective and thorough process in place that ensures that we are providing the oversight for this important evaluation process. “
C omp ensati on C ommi ttee The compensation committee is charged with the oversight and annual review responsibilities for the IMTA President. The committee provides the expectations, objectives and goals for the IMTA President and CEO.
Bob Kohlwes BTI Special Commodities Compensation Committee -Chairman
George Crouse
Crouse Transportation Services
Don Decker
Decker Truck Line, Inc.
Steve Schuster
Schuster Company
“For the past several years, the IMTA headquarters has been a top priority for this committee. This is IMTA’s biggest asset and we must continue to invest in this valuable asset to ensure it will be a visible symbol of Iowa’s trucking industry’s presence and importance to the state of Iowa.”
Steve Schuster Schuster Company Building Committee -Chairman
George Crouse
Crouse Transportation Services
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Kevin Gass
Perishable Distributors of Iowa Ltd.
Winter 2012
Bob Kohlwes
BTI Special Commodities, Inc.
John Smith
CRST International, Inc.
Jeff Wangsness JMT Trucking Company
Bui l di ng C ommi ttee The IMTA headquarters proudly sits at the foot of Iowa’s capital and is a very powerful statement for Iowa’s trucking industry. This building is one of the association’s biggest assets and in an effort to protect and preserve this important asset. A committee of volunteers is dedicated to ensuring that the IMTA headquarters will remain the jewel it is not only in the short term but in the long term as well.
Mark Olson
Olson Explosives
Michael Riggan
TanTara Transportation Corp.
Jeff Wangsness JMT Trucking Company
Committees St rat egic P l anni ng C ommi ttee
Mike Riggan TanTara Transportation Strategic Planning Committee -Chairman
Kevin Gass
Perishable Distributors of Iowa Ltd.
Ralph Arthur Ruan Transportation Management Systems IMTA PAC Committee -Chairman
Fred Grask
Cedar Rapids Truck Center
“This committee has done some great work over the last three years and we all take this committee assignment very seriously. The ability of the association to continually serve its diverse membership will be critical to both its short and long term success. Membership dues will always be our primary source of revenue but we recognize the just like the members it serves, IMTA must also have a diversified approach to its revenue generating activities.
Jackie Johnsrud
Johnsrud Transport, Inc.
The strategic planning committee is responsible for developing and monitoring the various programs that provide non-dues revenue to the association. This committee is also charged with developing and monitoring a plan that will sustain and guide the association for years to come.
Pat Kuehl
Great West Casualty Company
“Our legislative efforts on both the state and national level are paramount and the efforts of our political activities through the PAC are of equal importance. You simply cannot have one without the other. We have continued to grow our PAC over the years but it is a job that requires constant involvement and dedication. We must have a tool that allows us to support the pro-business agenda that is vitally important to each and every IMTA member. Our PAC allows us to do just that by supporting the pro-business legislators and candidates that share our views and philosophies.”
Mike Bagg
Jeff Dickinson
Murry Fitzer
John Minor
Dave Neuwohner
Jeff Wangsness
Central Trailer Service
Midwest Wheel Companies
Ten D, Inc.
All Seasons Trucking, Inc.
Freightliner of Des Moines, Inc.
Michael Riggan
TanTara Transportation Corp.
JMT Trucking Company
Truck PAC Iowa C ommi ttee This committee is responsible for providing assistance and guidance in developing fundraising strategies that will strengthen the trucking industry’s political action committee. David Boyer
Clayton Fisk
Jeff Wangsness
Mark Zieman
Boyer Petroleum Company
Dave Nelsen
Florilli Transportation, LLC
Delwin Van Wyk Interstate PowerSystems
JMT Trucking Company
Winter 2012
Warren Transport, Inc.
Cherry Valley Enterprises, Inc. Lifeliner
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Legal Perspectives 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 after beginning his career as executive director of the Iowa Reciprocity Board, which was the commercial vehicle licensing agency in Iowa. Howe has written for numerous trucking publications and has served as an expert witness in litigation involving transportation issues.
Restrictions and Embargos on Use of Highways
Truckers who operate on state and local highways in Iowa Rick Howe are impacted Howe, Cunningham, Lowe by various & Kelso, PLC governmental authorities who place restrictions or embargoes on the use of bridges and roadways. Iowa Code Section 321.471 provides:
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“Local authorities with respect to a highway under their jurisdiction may by ordinance or resolution prohibit the operation of vehicles upon the highway or impose restrictions as to the weight of vehicles to be operated upon the highway for a total period of not to exceed ninety days in anyone calendar year, whenever the highway by reason of deterioration, rain, snow or other climatic conditions will be seriously damaged or destroyed unless the use of vehicles on the highway is prohibited or the permissible weights reduced...”
The same authority is extended to the state through the Iowa Department of Transportation. Section 321.474 provides: “The department shall have authority, as granted to local authorities, to determine by resolution and to impose restrictions as to the weight of vehicles, ....” When cities impose restrictions on the use of streets or highways within their jurisdiction it is frequently done through zoning provisions. Section 414.3 (1) provides: “The regulations shall be made in accordance with a comprehensive plan and designed to preserve
Legal Perspectives the availability of agricultural land; to consider the protection of soil from wind and water erosion; to encourage efficient urban development patterns; to lessen congestion in the street; to secure safety from fire, flood, panic, and other dangers; to promote health and the general welfare; ....” (emphasis added) Likewise the counties have jurisdiction over roads and traffic within their jurisdiction through the Board of Supervisors. Section 331.362(9) provides: “A county may regulate traffic on and use of the secondary roads, in accordance with sections of 321.236 to 321.250, 321.254,321.255,321.285, subsection 4, sections 321.352, 321.471 to 321.473, and other applicable provisions of Chapter 321,...” The governing body of the Iowa Department is the Transportation Commission whose members are appointed by the Governor. The statutory duties of the Commission include Section 307 A.2(14) which states: “Identify, within the primary road system, a network of commercial and industrial highways in accordance with section 313.2A. The improvement of
this network shall be considered in the development of the longrange program and plan of improvements under this section.” If the transportation services proposed or provided by the trucker includes points on or in close proximity to the network, it will facilitate commercial vehicle movements with minimal disruptions (see Iowa Commercial and Industrial Network map). In the process of reviewing the role of the Iowa DOT I spoke with a number of individuals with the Highway Division. Scott Neubauer who previously served as the Bridge Rating Engineer advised me that the primary cause of embargos is bridge restrictions and construction work. To determine if there are any bridge restrictions existing or planned in the area the trucker plans to serve, contact Scott Neubauer at 515-239-1165. The best way to determine road construction or repair plans, if any, is to contact the District Engineer (see map and contact numbers). If you determine the proximity of your service points to the commercial and industry network and contract the Bridge Rating Engineer and the District Engineer for the service area, you should have a good idea of the potential for service disruptions.
Iowa DOT District Engineer Phone Numbers District 1 Scott Dockstader (515) 239-1635 District 2 Dicki Dumdei (641) 422-9465 District 3 Tony Lazarowicz (712) 276-1451 District 4 Troy Jerman (712) 243-7626 District 5 Jim Armstrong (641) 469-4005 District 6 James Schoenbelen (319) 364-0235
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Platinum Sponsor Truck Country Looks to Build on Solid Foundation as an IMTA Platinum Sponsor
Tracing its roots back to a one-truck milk hauling operation in Southwestern Wisconsin in the early 1950s, today Truck Country has blossomed into one of the leading Freightliner truck dealers in the United States. Robert McCoy founded the precursor to what is now Truck Country in the Shullsburg, Wis., area when, with the help of two business partners, he purchased a small livestock hauling operation in 1954. In 1958, the business grew when it became a GMC pickup and medium-sized trucks franchise. “I served as the parts manager, service manager and salesman for the dealership, performing those jobs while continuing to run the livestock hauling business,” remembered McCoy, in a column in the company newsletter marking Truck Country’s 50th anniversary in 1998. “Eventually several more technicians, a parts manager, secretary and business manager/salesman were added.” Truck Country has come a long way from its humble start. Currently, the company serves customers at 12 locations in Iowa and Wisconsin, selling new and used medium and heavy duty trucks, providing expert service, an extensive parts inventory and helpful financing options.
The company makes its corporate headquarters and houses a dealership in Dubuque, while other Iowa dealerships can be found in Cedar Rapids, Davenport and Decorah. Truck Country is proud to participate in the Iowa Motor Truck Association’s Cornerstone Sponsorship Program as a Platinum Sponsor as the company seeks to increase its visibility and express its commitment to the trucking industry in the state of Iowa.
Truck Country has been led by three generations of members of the McCoy family. Front from left, Jack McCoy, president of Truck Country of Wisconsin; Robert McCoy, company founder; Mike McCoy, president of Truck Country of Iowa; (back from left) Brian McCoy, vice president of operations for Truck Country of Iowa; Jon McCoy, corporate used truck manager; and Greg McCoy, president and CEO of Foodliner. Missing is Doug McCoy, vice president of operations for Truck Country of Wisconsin.
Today, the second and third generations of McCoys lead Truck Country. While Robert McCoy retired from his post in 1991, two of his sons, Mike and Jack, serve as the company’s presidents – Mike as president of Truck Country of Iowa and Jack heads up Truck Country of Wisconsin. Meanwhile, Robert’s grandsons, Greg, Doug, Brian and Jon, also hold leadership roles with Truck Country.
– including Foodliner and Quest Liner, which are both carrier members of the IMTA. With a total of 1,500 employees spread across 33 states, the McCoy Group’s other affiliated businesses are Tow Truck Country, McCoy NationaLease and Quest Logistics. For more information about Truck Country, visit www.truckcountry.com.
The family also operates several other industry-related businesses under the corporate name – McCoy Group, Inc.
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2012 IMTA
Cornerstone Sponsors as of March 23, 2012
PLATINU M SPONSORS Boyer Petroleum Hawkeye International Trucks Midwest Wheel Companies Truck Country
ASSOCIATE SPONSORS Des Moines Truck Brokers Freightliner of Des Moines McKenna Truck Center Mid-States Utility Trailer Sales
COLLEAGUE SPONSORS Bridgestone Commercial Solutions Donaghy-Kempton Insurors GE Capital Solutions Transportation Finance Housby/Vocon Howe, Cunningham, Lowe & Kelso Law Firm Majestic Truck Center McGowen, Hurst, Clark & Smith, P.C. O’Halloran International, Inc. Thermo King Christensen
If you want to have your company listed as a Cornerstone Sponsor of the IMTA, please contact Phillip Nicolino at 515-244-5193 or phillip@iowamotortruck.com
Platinum Sponsor Support Never Ceases – Midwest Wheel Companies Signs On as IMTA Platinum Sponsor
For more than 50 years, Midwest Wheel Companies has been one of the Iowa Motor Truck Association’s greatest supporters. The company’s generosity has been so vast, the proverbial statement “Like a fine wine, it only gets better with age,” might actually be an understatement. That’s because the company that celebrated its 100-year anniversary in 2011 does not just sustain its commitment to the IMTA, but it actually finds ways to surpass it. The most recent example is when Midwest Wheel committed to being a Platinum Sponsor of the association in 2012, one year after making a $20,000 endowment contribution to the Iowa Motor Carriers Foundation. “We could not be more pleased with our involvement in the Iowa Motor Truck Association,” said John Minor, executive vice president and COO of Midwest Wheel Companies. “Our commitment has never been stronger, and we fully believe our participation as a Platinum Sponsor in the IMTA Cornerstone Sponsorship Program is complete evidence of our relationship and
confidence in the association and Iowa’s trucking industry.”
company to continue moving forward in a positive direction.”
Building that type of rapport with the IMTA has helped contribute to Midwest Wheel Companies success as a company, which started as a single shop rubber vulcanizing business in 1911.
Originally founded Iowa Vulcanizing Company in 1911 by George Koons and Fred Prior, the business was the first rubber vulcanizer west of the Mississippi River. Koons and Prior brought their experience to Des Moines after working as tire builders for Diamond Rubber Company in Akron, Ohio.
Over the years, the company has evolved and grown into one of the largest trucks parts distributors in the Midwest. With seven branches and more than 180 employees, Midwest Wheel Companies services customers in eight total states – Iowa, Illinois, Kansas, Minnesota, Missouri, Nebraska, South Dakota and Wisconsin – providing a full-line of replacement heavyduty fleet products, school bus parts, light trailer products and light truck accessories. Still family-owned by company president Mike Callison, the great-grandson of company co-founder George Koons, Midwest Wheel remains steadfast in its pursuit of excellence within an industry that is considered second to none by Callison. “Trucking is such an exceptional business, and we have been fortunate to find our place in it,” he said. “And, to be based right here in Iowa with some of the best trucking companies in the nation and possibly the strongest state trucking association representing us, what more could we need. As long as we do our part, it’s the perfect combination for our
As tires and the transportation industry changed, so did the company and its name. Through the years, Midwest Wheel Companies added service and parts to its product offerings, helping elevate the company into being recognized as a single source expert for all truck part needs. Currently, Midwest Wheel has five locations in Iowa (Cedar Rapids, Clear Lake, Davenport, Des Moines and Sioux City) and two in Missouri (Grandview and Kansas City). “We’ve come a long way in past 100 years, but we’re hopefully not done improving our company,” Callison said. “That’s one of the reasons why we keep a close connection to the IMTA and invest in the organization. Through the Iowa Motor Truck Association, Midwest Wheel and our employees are gaining valuable opportunities to succeed now and into the future.”
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Platinum Sponsor Hawkeye International Trucks Finds Synergy with IMTA Platinum Sponsorship Opportunity
Dennis Thompson made a decision in 1998 to purchase Hawkeye International Trucks. Since acquiring the International affiliated truck dealership, he has taken pride on building its brand as “The Clear Choice” for customers looking for the products and services his company can provide. In the last 14 years, Hawkeye International’s growth has been steady and vast throughout eastern Iowa and the western edges of Illinois and Wisconsin. But, to continue on its path of success, Thompson heeded his own company motto and made a choice that was very clear to him. It was to partner with the Iowa Motor Truck Association as a Platinum Sponsor. “We made a decision to become a Platinum Sponsor to the IMTA because we are partners with our customers,” Thompson said. “We understand that we need to pay attention to the regulations that impact the transportation industry and, ultimately, what impacts our customers’ businesses. We believe in supporting our state association for the needs of our customers, suppliers and business relationships.”
Hawkeye International Trucks expand over the years. When Thompson first acquired the company, there were three locations in Cedar Rapids, Davenport and Waterloo. Every couple of years, though, a location is either added or upgraded to be of better service to customers:
2000 – Moved Davenport
operation from West River Drive to its current location at exit 292 off Interstate 80
2003 – Purchased Riverside Tractor Trailer in Dubuque, Iowa, adding the Utility trailer franchise
2003 – Incorporated a Goodyear tire Utility trailer franchise
2005 – Bought an associate dealer in Decorah, giving Hawkeye its fifth full service truck dealership
2007 – Opened a brand new, state of the art building in Sterling, Ill.
2011 – Purchased four NAPA stores in Iowa, operating under Premier Parts in Clinton, DeWitt, Chariton and Indianola
2012 – Utility Trailer Sales moves to
The company’s growth and focus on customer service has helped Hawkeye International Trucks position itself as a leader in the market place. And Hawkeye’s stature within the industry and International was duly noted in early 2012 when Thompson and the dealership were recognized with the Circle of Excellence Award. It’s given to the dealerships that achieve the highest level of performance with respect to operations and financial standards, market representation and customer satisfaction. It’s the highest honor a dealer principal can achieve from International headquarters. “The award received from International is a testament to what our company strives to accomplish every day – provide quality service that can offer solutions to our customers’ transportation equipment needs,” Thompson said.
Background of Hawkeye International
Hawkeye International Trucks consists of six International truck dealerships that sell International, Isuzu, Workhorse, Cummins, Caterpillar and Maxxforce model equipment. In addition to the company’s six dealerships, Hawkeye also owns two Goodyear tire dealerships with one Goodyear tire retread center; four NAPA Auto Parts stores; Premier Parts, Inc. in eastern Iowa and central Iowa; and two Utility trailer dealerships.
new, separate location at 15655 Key City Lane in Peosta, Iowa
Recognizing its customers’ needs and supporting their goals is what has helped
The Hawkeye Business Foundation Statement
All Hawkeye International Trucks companies are in business to handle the transportation needs of our customers. We are a full-line International dealer; Idealease leasing company; Goodyear tire dealer and retread operation; and a Utility trailer dealer. We offer a full-line of products and services to our customers in the eastern part of Iowa and western edges of Illinois and Wisconsin. We offer a comprehensive line of new and used truck and trailer products, parts, services, tires, body shop repairs, financing, skilled employees and a dedicated management staff. Hawkeye is noted as “The Clear Choice,” making it clear that our internal and external customers are treated with the utmost respect and we operate in a safe and professional manner.
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Final Word Our Responsibility to Our Association
Having had the privilege of serving in a leadership role in the IMTA in recent years I have come to have a much better understanding of the Murry Fitzer dynamics and President functions of Florilli Transportation our association as well as the challenges it encounters in providing its services. While many of the core functions of the association are quite different than those of our trucking businesses, they share one common and vital aspect. They all require revenue or income to offset the expenses incurred in their operational activity. Effectiveness in that pursuit is the essence of sustainability or survivability for any organization, be it a business, an association, or even a government (U.S. Congress take note). I am quite pleased that the IMTA is very sensitive to this fact and has developed the processes and disciplines to assure that our association operates with fiscal responsibility. To this end, the Finance Committee and IMTA staff annually develop and approve a budget. Each quarter throughout the year the Finance Committee meets to review the year to date status of the budget. Adjustments and recommendations are made as needed. The entire staff conducts their activities with an awareness of their budgetary constraints as well as an acute sensitivity to the revenue – expense relationship. While subtle, this cultural awareness is essential in maintaining the level of financial discipline our association requires. In spite of these best efforts, and consistent with many organizations today, the IMTA
42
Lifeliner
Winter 2012
is facing a daunting challenge. Either revenue must be increased or expenses (services) must be reduced. Analysis of the latter has determined that the current levels and offering of services are mission critical and can not be reduced any further. Therefore, our only alternative is to increase revenue. This can be achieved by either increasing existing revenue sources or developing new ones. While on-going efforts to develop new revenue streams have been under way for several years, they take time to develop and do not produce great amounts of revenue immediately. To address the urgency of our situation, a Dues Task Force (comprised of dues –paying members) was established and has met several times this year to wrestle with this issue. This activity has not been undertaken for several years and while never easy or popular, it is simply necessary at this time to develop a fair and equitable method to modify our dues structure and generate more dues revenue. I can assure all members that this process is being pursued in a careful, cautious, and judicious manner in an effort to produce a dues structure that is ultimately fair and reasonable for ALL of our membership. I also feel compelled to address one other new source of significant revenue. The Cornerstone program was introduced last year as a program that enabled members of the Allied Division to become yearlong sponsors of IMTA events at varied monetary levels. While motor carriers have always enjoyed a strong and valuable relationship with our vendors through the Allied Division, this program allows the participants to elevate their level of exposure while generating additional revenue to support the activities of the IMTA.
Boyer Petroleum was the first to step forward last year and serve as the beta test of the concept. This year they have been joined as Platinum Sponsors (highest level) by Hawkeye International, Truck Country of Iowa, and Midwest Wheel Companies. Several other allied members are also participating in this program at various lower levels. All of the participants in this new program are to be commended for their leadership, commitment, and monetary support of the IMTA. Members of all divisions benefit from the work of the IMTA and it is encouraging to see that value recognized and supported in this manner. Despite the challenges that the association is facing, I believe that these two efforts demonstrate the commitment by IMTA leaders and staff to embrace the same business model that we all wrestle with, in our businesses as well. Balancing revenue and expenses is critical to our success and the same holds true for our association. It is our responsibility to tackle these tough financial issues and as has been demonstrated throughout the history of IMTA, members have been willing to take on these issues despite their unpopularity. Today we are at that same crossroads and I urge you all to think about the value of this association to your operation and in doing so, I believe you will come to the same conclusion. IMTA is rock of support that we all need and benefit from in a number of different ways. And because of that support, it is incumbent upon us to continually invest in this valuable association with our time, our involvement and most importantly, with our dollars.
While many of the core functions of the association are quite different than those of our trucking businesses, they share one common and vital aspect. They all require revenue or income to offset the expenses incurred in their operational activity.
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