2021 WHAT LIES AHEAD FOR TRUCKING Predictions, Insights, and Educated Guesses Issue 1, 2021
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Issue 1, 2021
The Most Accurate Barometer of the Economy p18 The trucking industry provides reliable insight on what is really going on in America, and some of that insight is brought to life by IMTA’s very own volunteer leaders.
Emerging Stronger in the New Year
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What lessons have we learned after enduring a year unlike anything we have seen before? Taking the new knowledge we have acquired and putting it to work in 2021.
FEATURES p2
Listening In
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Chairman's Message
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President’s Message
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Up Close & Personal
p8
Members in the News
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Industry News
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IMTA Advocacy
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ATA Update
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Iowa Motor Carriers Foundation
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IMTA Divisions Update
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IMTA Update
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Final Thought
OUR STAFF BRENDA NEVILLE, CAE President & CEO
brenda@iowamotortruck.com
DON EGLI, CDS Director of Safety & Security don@iowamotortruck.com
JANELLE STEVENS Director of Communications, Education & Events
janelle@iowamotortruck.com
KENZIE IHLE Education & Events Coordinator kenzie@iowamotortruck.com GARY HANDLEY Special Projects Coordinator gary@iowamotortruck.com MP DESIGN Design & Cover Illustration MPDesign.biz
JORDAN BJERKE Membership & Finance Manager jordan@iowamotortruck.com IOWA MOTOR TRUCK ASSOCIATION 717 East Court Ave, Des Moines, IA 50309 515.244.5193 | iowamotortruck.com
SPONSORS IFC p4 p10 p11 p16
Great West Casualty MHC Kenworth Midwest Peterbilt Group Renewable Energy Group Thompson Truck & Trailer
p17
McGowen Hurst Clark Smith Thermo King Sales and Service
p25
Truck Center Companies
p28 p29
Truck Country
Washer Systems of Iowa
p30
Central Trailer Service O’Halloran International
Quality Services Corp.
p31 p36
GATR Truck Center
IBC
TrueNorth Companies
IMTA Cornerstone Sponsors
BC
Midwest Wheel Companies
ISSUE 1, 2021
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“There is always light, if only we’re brave enough to see it. If only we’re brave enough to be it.”
“I served in uniform to defend the right to peacefully protest. What is happening at the Capitol right now is not peaceful nor a protest. It’s anarchy, & a betrayal of the American ideals we all hold dear.”
AMANDA GORMAN in the reciting of her inaugural poem “The Hill We Climb”
SENATOR JONI ERNST regarding the riots that took place at the U.S. Capitol
“In 10 months, Iowans went through a pandemic, civil unrest, a significant drought and a derecho. A word I think that we use a lot to describe Iowa and Iowans is resilient.” GOVERNOR KIM REYNOLDS in her annual Condition of the State address
LISTENING IN “At the end of the day if a legislator, male or female, wants to walk in here in their bathing suit and take a vote on the House floor they will be given that opportunity to do so.” IOWA SPEAKER OF THE HOUSE PAT GRASSLEY in response to Rep. Beth Wessel-Kroeschell’s dress code violation of wearing jeans on the House floor in protest of the lack of a mask mandate
“I am no expert, but I am a global observer, of course, there is climate change taking place. It is happening worldwide. Australia is just one example.” AUSTRALIAN PROFESSIONAL GOLFER GREG NORMAN regarding the Australian brushfires
“When she takes the oath of office, little girls and boys across the world will know that anything and everything is possible.” “It’s not lost on me ironically that this is Groundhog Day and I’m back again.” AGRICULTURE SECRETARY NOMINEE TOM VILSACK in his opening remarks before the Senate Agriculture Committee
SENATOR AMY KLOBUCHAR OF MINNESOTA on Vice President-elect Kamala Harris while giving opening remarks at the inauguration ceremony
“Those poor hedge fund managers – now might be a good time to invest in whoever makes the world’s tiniest violins.” THE LATE SHOW HOST STEPHEN COLBERT regarding the ongoing GameStop stock controversy
CHAIRMAN'S MESSAGE Happy New Year! of it. ATA has been relentless over the last two years in As we move into a new year, many people are hopeful our efforts to promote a national user fee (gas/fuel tax that at some point soon we can get back to a semblance of increase) package and we remain confident that the new “normal” (whatever that means). There are many differ- administration will be making infrastructure investment ent predictions as to when that will happen but for many a top priority. We will have a “seat at the table” to ensure of us in trucking, we have been conducting “business that what is defined as infrastructure truly means sigas usual” throughout the pandemic. Trucking does not nificant upgrades to our transstop for anything! From the earliest days of the COVID portation roadways. Will it be a crisis our industry was the shining example of resiliency, slam dunk? Of course not, but determination, and fortitude. Our Nation came to truly the trucking industry will be an understand the critical role trucking has in the standard assertive, strong, and reliable voice in addressing this importof living we all enjoy. Throughout this past year, the trucking industry has ant issue. continued to demonstrate why it is an “essential” industry. At the state level, the Those of us in trucking have always known that but now an Republican majority was even larger audience shares that respect and appreciation. strengthened in the House and Telling our story is extremely important especially as we Senate, something that was not continue to take on important legislative and regulatory expected, but reminds us once again about the unpredictabilpriorities here in Iowa and in D.C. As we leverage this goodwill, we have a tremendous ity of every election cycle. On opportunity to demonstrate our leadership too. We have November 4, our work began in a responsibility to look at the current environment and earnest to continue to move forfind a way to advocate for things that are important to ward with major lawsuit abuse DAN VAN ALSTINE our industry. After enduring a very emotionally draining initiatives. Despite the pan2021 IMTA Chairman of the Board election process, it may seem like an overwhelming task demic, Iowa’s trucking industo simply move on, but we do not have the luxury to do try had two major legislative anything else. Just like the industry we serve, there is no victories in 2020. Our phantom damages legislation along with our indetime to rest, we have work to do! pendent contractor’s legislation made it On the national level, we are closely THROUGHOUT monitoring the appointment of key cabover the finish line during a time where inet positions and other important sigTHIS PAST YEAR, THE the Iowa legislature was adjourned more nals coming from the new administrathan they were in session due to COVIDTRUCKING INDUSTRY tion. Are we going to have challenges? 19. We need to continue to build on that HAS CONTINUED TO momentum during the 2021 session. Absolutely, but are there opportunities for the trucking industry? Absolutely. Yes, we have a big job in front of us but DEMONSTRATE WHY How we react and respond to the there is no doubt that the trucking indusIT IS AN “ESSENTIAL” try is up to the task. There are millions dynamics of politics at the state and federal level will continue to position of people getting a paycheck because of INDUSTRY. our industry in the very best way. Now trucking. Here at home, 1 in every 13 people more than ever, we need to rise as an are employed because of trucking. Those industry and demonstrate our resolve, commitment, and are powerful statistics as we raise our voices at the state our ability to provide the leadership that gets results both capital. Now it is up to us to take the time and effort to here in Iowa and in our Nation’s capital. remain informed, use our passion to stay engaged, and In Washington D.C., we believe that we are finally going leverage our collective influence to make sure our message to see some action relative to infrastructure funding. For is heard and understood! far too long this country has ignored our transportation Thank you for your support. Now as truckers, let’s roll infrastructure. Necessary roads, bridges, and technology up our sleeves and get to work. investment have been neglected. We all suffer because
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PRESIDENT’S MESSAGE As the new year was ushered in, I think I speak for a vast priority. While plaintiff attorneys continue to target majority when I say there was a collective sigh of relief. our industry, trucking companies of all sizes are closing Turning the calendar and seeing January 2021 provoked their doors. All of us are impacted by the rapid increase more emotions than I anticipated. And even though, we of nuclear verdicts and fairness must be restored to the are still dealing with COVID-19, moving into a new year process. Here in Iowa, we will continue to lead that charge. symbolized the end of a challenging chapter in our nation’s As a new administration takes over in D.C., uncertainty history and I could not help but feel a sense of optimism continues to be in the forefront. There is a lot of important busiand hope for the year ahead. The past 12 months almost seem surreal as we tried ness going on in D.C., new cabto move through life in the throes of a pandemic. A phe- inet members are named, and nomenon that we had only experienced in science fiction agendas being set. We must stay movies was now playing out in our lives every single day. on top of it all. More than likely, It was an exhausting and emotional roller coaster that has based on current speculation, changed us forever. the trucking industry will be The lessons that have been learned and the knowl- facing numerous challenges edge that has been acquired through this experience is under the Biden administration. immense. And how we continue to operate in a post-pan- We will be very focused in our demic world will continue to be an important priority efforts to monitor and react to for all of us. the inevitable changes that are IMTA had to make a lot of adjustments. Through the coming specifically in the areas chaos we felt it was important that we provided some of labor, environment, regula“calm” by protecting, promoting, and serving our mem- tory oversight, and the general bers. As the trucks continued to deliver the products that business climate. BRENDA NEVILLE were needed, IMTA continued to deliver valuable serAnd finally, we will be relentIMTA President & CEO vices to the membership to ensure our members were well less in our efforts to tell the story informed and connected to a reliable source of support of the trucking industry. We and information. will build on the momentum The trucking industry reaffirmed its importance in and goodwill that was created for trucking during the 2020. Big trucks on the road offered pandemic. In 2020, the trucking induscomfort and hope. The trucking industry took the spotlight as the true heroes THROUGH THE try was finally getting the positive during a time of great despair. We will recognition that was long overdue by continue to shine that light on our indusCHAOS WE FELT IT simply doing the job that we do every try and the millions of men and women WAS IMPORTANT single day – delivering the products and who are the heart and soul of this great THAT WE PROVIDED peace of mind that only the trucking industry. We have many resources that SOME “CALM” industry can deliver. have not been used in a year and we are BY PROTECTING, anxious to kick off several thoughtful As we move into a new year there is PROMOTING, AND still a lot of uncertainty, but we will not and innovative campaigns that will conSERVING OUR be deterred. We are steadfast in our mistinue to move the needle in educating the sion to serve the membership and focus public about trucking. MEMBERS. on important priorities. Some of our We have such a great story to tell. We priorities for 2021 will be a continued have a great message to convey. And we focus on workforce development. The driver shortage have a unified and engaged membership. These things and overall labor shortage is escalating. Every trucking combined with our unwavering pride, unstoppable energy, company needs drivers, and we will be unwavering in and tremendous passion will ensure that 2021 will be our focus to find ways to attract people to our industry. very memorable for different reasons. Please join us as Curbing lawsuit abuse in our industry is another big we move forward.
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UP CLOSE & PERSONAL
Rebecca Brewster, President & COO of American Transportation Research Institute (ATRI) As President and COO of ATRI, Rebecca has the overall responsibility for ensuring that ATRI delivers on its mission of research to improve the trucking industry’s safety and productivity. That includes oversight of ATRI’s research portfolio, ensuring that they have the resources – staff and financial – to deliver on their mission, and serving as the public voice of ATRI to disseminate their research far and wide.
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What motivates you to come to work every day?
The opportunity to make this great industry even better, whether it means improved safety training for drivers, benchmarking to improve a fleet’s bottom line, or quantifying the impact of regulations to better inform policy and regulatory actions, our work is critical for the industry.
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REBECCA BREWSTER ATRI President & COO
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hat are the three W biggest challenges that ATRI faces as an organization at the current time?
ATRI’s annual budget is fairly evenly split between charitable contributions from the industry and revenue generated from government contract research, so ensuring we have adequate resources from both is a perennial challenge. And, while we rely on a core group of trucking industry supporters who make annual contributions to ATRI, we really need to expand that number of contributors so that it is more in line with the value our research delivers to the industry.
ow do you believe the trucking H industry will fare under the Biden Administration?
Any change in administration brings with it new agency heads and priorities and the potential for regulatory impacts. ATRI’s research over the years has been used to quantify the impact of regulatory changes on the industry and we’re prepared to do that under the Biden administration as needed.
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hat does ATRI have in its toolbox that W makes it an effective organization?
ATRI’s research agenda is set by its Research Advisory Committee (RAC), an external group of trucking industry stakeholders representing motor carriers, professional drivers, industry suppliers, law enforcement, government and academia who are tasked with annually identifying the trucking industry’s top priorities. The varied experience and expertise of RAC members ensures that our research priorities are addressing the industry’s most pressing needs.
Additionally, ATRI’s staff size is relatively small compared to the volume of work we produce for the industry but combined, our staff has over 150 years of trucking industry experience. That depth and breadth of experience is unmatched in terms of what we bring to our work on behalf of the trucking industry.
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hat is the most rewarding and the W most frustrating aspect of your job?
I love telling the ATRI story – and I’m very passionate about the value of our research to the industry. So presenting at industry events, being interviewed on radio or TV, or these days, doing virtual presentations, is the most rewarding part of my job. As part of our mission to provide the research to improve the industry’s safety and productivity, we make all of our research available on our website free of charge. Unfortunately, there are times when individuals or groups who believe something counter to what our research findings are will publicly criticize our research. That frustrates me for our staff as I know the hard work they put into our studies and how much time and resources are spent to ensure that our research methodologies are transparent and our findings are accurate.
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hat are your guiding principles and W how do you rely on those principles daily to do your job?
I have always believed that hard work and honesty are what make you successful in business and I keep both as my personal barometer of success, always asking, “have I done my best work and have I been honest with everyone?”
The Brewster Family: TC, Rebecca, Kevin, and Eric
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ho were your mentors and how did W they prepare you for your current position?
My Dad was probably my most important mentor. From the time I was a little girl, he assured me that I could do anything I set my mind to and he really instilled the importance of hard work and honesty.
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Anything else you want to add?
I would not be where I am today without the support of my family. Given how much I travel for my career, we made the decision early on that my husband should stay at home with our two sons, so he retired at an early age and committed himself to taking care of our family while I worked. His willingness to do so meant so much to me and our sons.
Tell us one thing that most people do not know about you.
As the only daughter in a family with three much older brothers, my mother was determined that I would grow up to be the ultimate southern belle. As such, I was sent to charm school twice and for my 12th birthday, I was given a sewing machine and sewing lessons, leading to several blue ribbons from the county fair for clothing I had made. I’m pretty sure that head of the trucking industry’s research organization was not part of my mother’s grand vision for me but my father would have loved it!
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bove all else, what do you want people A to think/feel once you have met them for the first time.
I want people to feel at ease around me as I really strive to be approachable and easy to talk to. And, once we’ve had a chance to talk, I hope to convey how passionate I am about the trucking industry and how critical ATRI’s work is to the trucking industry’s success.
Rebecca Brewster (ATRI), Ben McLean (Ruan Transportation) who sits on the ATRI Board of Directors, Kevin Gass (PDI), Diane Gass
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MEMBERS IN THE NEWS Rhonda Hartman Awarded the Mike Russell Trucking Image Award Rhonda Hartman, who has amassed over 3-million accident-free miles during her 37-year career on the road, was one of the three recipients of the Mike Russell Trucking Image Award given by the American Trucking Associations during its annual Management Conference and Exhibition. She drives for Old Dominion Freight Line and is based out of the Ankeny, Iowa, terminal. Hartman, an America’s Road Team Captain and former IMTA Road Team member, has used her experience as a driver to educate the public about the role of trucking in their lives. This year, she participated in the convoy honoring the centennial of Louisa Swain being the first woman to cast a ballot in the United States. This was a highlight to Hartman due to her passion for recruiting women into the trucking profession. The Mike Russell Trucking Image Award recognizes people or groups that demonstrate excellence in illustrating the industry’s essentiality, professionalism, and commitment to safety on and off the highways. RHONDA HARTMAN
Iowa Senate Seat Filled by IMTA Member Adrian Dickey
GATR Truck Center Opens New Des Moines Location
With only an 18-day campaign to introduce himself to Senate District 41, IMTA Board Member Adrian Dickey was elected to fill a vacancy left by Mariannette Miller-Meeks, who was provisionally seated in Congress pending a challenge on her six-vote victory margin. Senate District 41 in southeast Iowa includes Ottumwa, Fairfield, Bloomfield and Keosauqua.
GATR Truck Center has recently moved from their previous Des Moines location to a brand-new location in Waukee, Iowa. This is one of GATR Truck Center’s five locations they currently own in Iowa and Minnesota.
ADRIAN DICKEY
Adrian is the President of Dickey Transport in Packwood, Iowa, a long-time member of the IMTA. He is the third IMTA Board Member to serve in the Iowa Senate – Mark Zieman and Matt McCoy were IMTA Board members that have shared the same distinction. “We are very proud of Adrian’s willingness to step up and provide this important leadership within the Iowa Senate. We look forward to working with our new favorite Senator and always welcome the opportunity to have trucking represented in this manner,” said IMTA President and CEO Brenda Neville.
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“This is a great opportunity for both our staff and company,” says Bob Neitzke, owner of GATR Truck Center. “We will be able to take care of and service our customers better, all at this one location. We have 21 service stalls, 16 body shop stalls and 13 offices with 20 acres for future expansion!” Established in 1962 in Sauk Rapids, Minnesota, GATR began as GRILE Auto & Truck Repair. Over the years, the company has evolved and expanded adding Cedar Rapids, Iowa; Des Moines, Iowa; Elk River, Minnesota; and Waterloo, Iowa. GATR carries Volvo trucks, Mack trucks, Hino, Kalmar, ARI Big Bunk and Hyundai Translead brands.
MEMBERS IN THE NEWS Allison Meiners, Randy Kopecky Named Truck Driving Championships Chair and Co-Chair While the annual Truck Driving Championships had to ultimately be canceled in 2020 due to COVID, the IMTA remains determined to hold the 2021 TDC with dates and location information being announced to the membership in the coming weeks.
ALLISON MEINERS
This annual tradition is an important event that allows us to show our gratitude and appreciation to the professional truck drivers that are truly the foundation of Iowa’s trucking industry. And after witnessing just how crucial trucking is to the economy in 2020, we are anxious to celebrate a job well done. Leading the planning efforts will be event Chairman Allison Meiners, Ruan Transportation, and event Co-Chairman Randy Kopecky, Don Hummer Trucking.
IMTA Welcomes New Board Members to Serve in Volunteer Role Darla Arends, President of Van Wyk, Inc. (Sheldon, Iowa), and Justin Philipp, General Manager of Simon’s Trucking (Farley, Iowa), were elected to the Iowa Motor Truck Associations’ Board of Directors with their term commencing October 1, 2020. Darla has been involved with the trucking industry for over 26 years DARLA ARENDS thanks to the family-owned corporation that specializes in the time sensitive transportation of fresh and frozen foods and other specialized products in truckload quantities. Darla has been involved with the IMTA over the years through involvement of her father, Arlan Van Wyk and brother, Dave Van Wyk, who both served on the IMTA Board.
Additional TDC committee members:
RANDY KOPECKY
» John Holt, Ruan Transportation » Brad Kohlwes, Argee Transport » Marvin McGinnis, Solar Transport » Bridget Nixon, Solar Transport » Terry Pump, CRST » Brian Pyle, Pyle Transportation » Krystin Sitzmann, Schuster Co.
JUSTIN PHILIPP
Justin also comes from a familyowned and operated company with over 15 years dedicated to the trucking industry. Simon’s hauls many types of products that fall in line with the agricultural world. Justin is also an active member of the Farley City Council, a seat he has served since 2013. He looks forward to being the voice of the association and representing the needs, challenges, and interests of the industry.
The IMTA Board of Directors is comprised of CEOs or company officers representing a variety of trucking operations from across the State of Iowa. In addition, IMTA’s Allied Division has three seats on the Board. The IMTA Board meets in-person two times a year (May & November), virtually two times a year, and holds its annual meeting in conjunction with the annual Management Conference in September.
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INDUSTRY NEWS Truck Tonnage Ends the Year on a High Note The American Trucking Associations’ advanced seasonally adjusted (SA) ForHire Truck Tonnage Index increased 7.4% in December after rising 3.2% in November. In BOB COSTELLO December, the index equaled 120 (2015 = 100) compared with 111.7 in November. “Tonnage ended last year on a high note,” said ATA Chief Economist Bob Costello. “The index not only registered the largest monthly gain since June, but it also had the first year-overyear increase since March.
“Because of the pandemic, 2020 was obviously a very challenging year for the economy overall, and that is reflecting in the tonnage index’s dip from the previous year,” Costello said. “Despite that, truck tonnage clearly outperformed the broader economy as freight continued to move in the face of a myriad of COVID-related challenges faced by the country.” The not seasonally adjusted index, which represents the change in tonnage hauled by the fleets before any seasonal adjustment, equaled 115.9 in December, 5.4% above the November level (109.9). In calculating the index, 100 represents 2015. ATA’s For-Hire Truck Tonnage Index is dominated by contract freight as opposed to spot market freight.
Trucking serves as a barometer of the U.S. economy, representing 72.5% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 11.84 billion tons of freight in 2019. Motor carriers collected $791.7 billion, or 80.4% of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the fifth day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.
“Freight continues to be helped by strong consumption, a retail inventory restocking, and robust single-family home construction. With the stimulus checks recently issued and with a strong possibility of more in the near future, I would expect truck freight to continue rising,” said Costello. Compared with December 2019, the SA index rose 2.3%. For all of 2020, compared with the same 12-month period in 2019, tonnage was down 3.3%. 2019 had an annual increase of 3.3%.
FMCSA Extends COVID-19 Relief Exemptions Through May 31 The Federal Motor Carrier Safety Administration (FMCSA) has extended its pandemic-related emergency exemption through the rest of the year. This is the eighth extension of the order, which will now last through May 31. The FMCSA extension was previously set to expire on February 28, but continues to cover the extended emergency relief for the following categories only: » Livestock and livestock feed » Medical supplies and equipment related to testing, diagnosis, and treatment of COVID-19
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» Vaccines, constituent products, and medical supplies and equipment including ancillary supplies/kits for the administration of vaccines, related to the prevention of COVID-19 » Supplies and equipment necessary for community safety, sanitation, and prevention of community transmission of COVID-19 such as masks, gloves, hand sanitizer, soap, and disinfectants » Food, paper products and other groceries for emergency restocking of distribution centers or stores According to the FMCSA, “Direct assistance
does not include routine commercial deliveries, including mixed loads with a nominal quantity of qualifying emergency relief added to obtain the benefits of this emergency declaration.” FMCSA’s Acting Administrator Meera Joshi added the following note at the end of the relief exemption extension, “In the interest of ensuring continued commercial motor vehicle safety, it is FMCSA’s intention to wind down the exemptions granted under this emergency declaration and related COVID-19 regulatory relief measures to the extent possible.”
INDUSTRY NEWS Big Victory for Trucking – Ninth Circuit Uphold Federal Preemption of California’s Meal & Rest Break Rules The trucking industry breathed a collective sigh of relief from a decision by the United States Court of Appeals for the Ninth Circuit upholding the federal preemption of the state of California’s meal and rest break rules as they apply to truck drivers subject to federal hours-of-service regulations. “The Court’s ruling is a victory for common sense over bureaucracy and the plaintiffs’ bar,” said ATA President and CEO Chris Spear. “When the Department of Transportation preempted California’s rules, it was a victory for highway safety, ensuring that there is one uniform standard for trucking regulations. By upholding DOT’s authority to be the sole regulator of interstate trucking, the Ninth Circuit is preventing individual states and trial lawyers from creating a costly and inefficient patchwork of competing rules.” In 2018, after bipartisan efforts to enact a legislative fix failed, ATA petitioned the U.S. Department of Transportation to preempt California’s meal and rest break rule, preventing them from being enforced against interstate truck drivers, noting the
rules would force those drivers to comply with two competing sets of hours-of-service rules. The unanimous ruling by the Ninth Circuit found that not only does the federal government have the authority to review and preempt state safety rules, but the three-judge panel agreed with the DOT’s conclusion that “federal regulations adequately and more appropriately balanced the competing interests between safety and economic burden,” than allowing states to impose a patchwork of competing regulations. “This ruling was extremely important to the trucking industry as a whole, but also to many Iowa carriers that had been impacted by this nonsense in California. This ruling also sends a strong message
to the states that they cannot impose additional regulatory burdens on interstate commerce. We are grateful to ATA, the US DOT and the Ninth Circuit Court for their work in upholding the principle set of federal regulations critical to consistently maintaining safe and efficient movement of goods,” said Brenda Neville, President & CEO of the Iowa Motor Truck Association.
Brenda Neville Appointed to ATRI Board of Directors Iowa Motor Truck Association President and Chief Executive Officer Brenda Neville has been appointed to the Board of Directors of the American Transportation Research Institute (ATRI). As IMTA President and CEO, Brenda represents over 600 trucking companies and suppliers as well as oversees and directs BRENDA NEVILLE several divisions affiliated with trucking, towing and transportation in general. Brenda also serves as CEO of the Iowa Motor Carriers Foundation, which focuses on research and education specific to the trucking industry. Brenda has been with the association for 33 years and works closely with a board comprised of CEOs representing all sizes and types of trucking operations. As the President of the association Brenda works tirelessly to develop public policy both in Iowa and Washington
D.C. that promotes a pro-trucking, pro-business environment and is dedicated to the longstanding mission of the association in providing support, counsel, and guidance to Iowa’s trucking industry. Brenda was appointed to the ATRI Board of Directors by ATRI Board Chair Judy McReynolds, chairman, president and CEO of ArcBest Corporation. At the Board meeting held October 23, 2020, ATRI Chairman Judy McReynolds recognized David Huneryager, Tennessee Trucking Association President and CEO, whose term on the ATRI Board is concluding this October. Dave served on the ATRI Board from 2014 – 2020. “I have always had great respect and appreciation for the outstanding research work that ATRI does for the trucking industry, so I am honored to have been selected to serve in this role. I look forward to not only representing the state trucking associations in this seat but also Iowa’s trucking industry,” said Neville.
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IMTA ADVOCACY 2021 LEGISLATIVE PRIORITY Biofuel Legislation Shortly after the 2021 Legislative session began, a legislative initiative prompted by the Iowa Renewable Fuels Association and the Farm Bureau surfaced. This comprehensive biofuel bill was created to set a renewable fuels standard in Iowa with Governor Reynolds leading the fight. Reynolds’ proposal grew out of an advisory committee she appointed to address renewable fuels. The advisory committee included heavy representation by farm and agricultural interests and no representation by the fuel retailers or the trucking industry. The committee was chaired by Agriculture Secretary Mike Naig and Diane Young with the Foundation Analytical Laboratory which serves the ethanol industry. The advisory board’s final report released in January called on the state to immediately find a way to increase biofuel blends in Iowa. While they are not calling it a mandate, the proposed legislation is calling for biodiesel blends of B11 in the winter months and up to B20 in the summer months with unblended fuel being available at one pump per fueling site. Polling of the IMTA members supported a long-standing policy opposing mandates
along with tremendous concern for the proposed legislation. IMTA members believe that a free-market incentive approach will always produce better results. Over 50% of the members completing the survey reported that they do not allow their trucks to fuel in states which mandate higher blended fuels because of equipment issues. Carriers are also very cognizant of the fuel efficiency issue that is associated with higher blended fuels. “We recognize that we need to be developing ways to support renewable fuels, especially in a state that leads the nation in corn and soybean production. But forcing trucking companies to be involved in an effort that imposes tremendous restrictions on availability of unblended fuels is not the way to move the needle in biodiesel production,” said IMTA President Brenda Neville in numerous interviews across the state. At the printing of this magazine, legislation was just moving through sub-committees and the IMTA Board of Directors had distributed a letter to the Governor’s office and all the legislators highlighting concerns specific to the biodiesel proposal.
IMTA’s volunteer leaders continue to support an advocacy program that ultimately protects the bottom line of its membership. IMTA will pursue, develop, and support legislative initiatives that ensure a better business environment in Iowa which ultimately impacts every member. This guiding principle is at the forefront in IMTA’s government relations program at both the state and national level. IMTA’s Legislative Team
BRENDA NEVILLE IMTA PRESIDENT
DAVE SCOTT IMTA LOBBYIST
MARC BELTRAME IMTA LOBBYIST
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IOWA TRUCKING LIFELINER
IMTA ADVOCACY 2021 LEGISLATIVE PRIORITY Lawsuit Abuse – Restoring Fairness Crash litigation is big business for plaintiff attorneys around the country. The trucking industry has become the target in recent years with a proliferation of large “nuclear” civil jury verdicts against motor carriers. Abusive crash lawsuits threaten the supply chain which leads to empty grocery store shelves, more expensive goods and eliminating jobs. Additionally, this litigious environment is creating major disruptions in the excess insurance marketplace. This not only adds significant cost to the bottom line of trucking companies but is also forcing trucking companies of all sizes to close their doors. The goal of IMTA’s lawsuit abuse advocacy effort is to simply restore fairness. When a commercial vehicle acts wrongfully and causes a crash or injury, it should be held accountable and those injured should be fairly compensated. But unfair litigation tactics are not acceptable and are destabilizing the tort system and transforming commercial vehicle accident lawsuits into a lucrative profit center for plaintiff attorneys. In 2019, The Iowa Motor Truck Association (IMTA) identified lawsuit abuse (formerly called litigation reform) as a top legislative priority for its 600 member companies and led an effort during the 2020 legislative session to limit economic damages. IMTA was successful in passing legislation specific to medical costs (Phantom Damages). This model legislation is now being pursued in over 15 other states.
1. Court Permission Before Jury Can Award Punitive Damages » Would require court permission before jury can award punitive damages. » Bars plaintiffs from filing claims for punitive damages in their initial petition. » Plaintiffs may only file a written motion for punitive damages after discovery.
2. McHaffie Rule (Respondeat Superior) Under the McHaffie Rule, when an employer is willing to admit that their employee was acting within the scope of his or her employment, thus conceding respondeat superior, any direct negligence claims against the employer should be dismissed. » Under this proposed legislation, once a carrier admits the driver is acting within the scope of employment at the time of the accident, they are no longer liable for the direct-action claims.
3. Caps on Non-Economic Damages in Personal Injury Cases
IMTA is committed to working on lawsuit abuse reform initiatives that will address non-economic and punitive damages.
» Non-economic damages, sometimes described as “qualityof-life” damages, compensate injury victims and their families for injuries and losses that are not easily quantified by a dollar amount (disabilities, disfigurement, loss of limb, paralysis, trauma, pain and suffering)
Here are the three lawsuit abuse initiatives that are currently being pursued in the Iowa 2021 legislature.
» Establishing a ceiling for these kinds of cases provides certainty which in turn provides stabilization in many other key areas
ISSUE 1, 2021
15
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WHAT L ES AHEAD
FOR TRUCK NG
18
IOWA TRUCKING LIFELINER
2021 Predictions, Insights, and Educated Guesses from IMTA Leaders
Introduction by Brenda Neville, IMTA President & CEO
As we said goodbye to a year that we all hope to forget, the new year offers optimism, positive change, and hopefully a return to life as we knew it just a short year ago. It was certainly a year that will be highlighted in the record books for decades to come. It was a dark and painful blemish that started with a global pandemic and ended with the most divisive and chilling Presidential election recorded in our Nation’s history. The culmination of these crazy times is most often played out on Wall Street but even that seemed to weather this long and exhausting storm better than most had predicted. Despite the many unpredictable peaks and valleys that became our reality in 2020, the trucking industry quite honestly remained unscathed. It sputtered a bit in April and May but then it roared back to life with a vengeance. Carriers of all sizes from every corner of the state reported cautious optimism as they saw the results of some extraordinary opportunities play out on their balance sheets month after month.
The only barrier that seemed to plague this crazy momentum was the lack of qualified drivers. A common thread of concern that continues to be echoed not only in Iowa but across the Nation. The trucking industry has long been considered one of the most accurate barometers of the economy. It makes sense, right? Trucks move every imaginable commodity and the movement of all those goods provides valuable insight on buying habits, important trends, and the reality of what is happening in every corner of this country. And while we have tremendous respect and appreciation for several nationally recognized economists (we have their insight, too) we believe some of the most reliable information comes from the perspectives offered by our volunteer leaders. The same men and women that are in the trenches every single day, with a front and center seat to the action. Here is a compilation of their perspectives on the economy and what is in store for 2021.
The economy will stutter and start throughout most of the year. The supply side of the transportation/logistics industry will create pressures on the demandsupply equation building some leverage for providers. Qualified drivers will be increasing demand and will force pockets where demand/volume will be difficult to support. Dan Van Alstine, President & COO Ruan Transportation Des Moines
Justin Philipp, General Manager Simon’s Trucking Farley
I believe the economy will continue to have strength through the first part of the year as adjustments continue. But after that, I think things may begin to soften with the virus and vaccine distribution being a big unknown that will continue to impact the economy. New equipment will improve this year with the driver’s safety in mind. Used markets will be good in June as new trucks/trailers are delivered but then I think the equipment market will go south.
Darla Arends, President Van Wyk, Inc. Sheldon
We continue to be somewhat concerned about another round of shutdowns in some states or even nationally. We have some trepidation about what the impact of an all-Democrat Congress and a Democrat administration will have on the economy. We have continued to be very disappointed with the lack of reliability in our newer truck engines and fuel after-treatment systems. The frequent breakdowns and lengthy repairs are costly not only in parts, labor, and downtime but in customer and driver satisfaction. This has become a real issue and causing ongoing concerns.
TRUCKING
ENVIRONMENT
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IOWA TRUCKING LIFELINER
Hugh Ekberg, President & CEO CRST The Transportation Solution, Inc. Cedar Rapids
Excluding an unexpected, catastrophic surge in COVID or other unforeseen disastrous events, we expect the economy to continue to improve in line with the bulk of economic forecasters. If the vaccines are successful and quickly distributed, pent up demand for travel and leisure activities will impact consumer purchases and physical goods. Workforce will be the biggest constraint to business growth in 2021. Multiple factors in 2020 have exacerbated the driver shortage and there is no silver bullet to increasing that number of skilled, professional drivers. Increased wages will help attract new drivers and retain existing drivers, but the gap is too big to close quickly.
Brenda Dittmer, Vice President Weinrich Truck Line Hinton
I believe the overall economy will be somewhat stalled due to 1) people are still skittish about the COVID situation and 2) the unknowns of a new administration. I believe that new equipment will surge in the coming months as many companies held off purchasing and/ or expanding during the pandemic. I think the new market will show an uptick, but the used market could potentially take a small hit. I think if there are no big changes in the rules and regulations for trucking, the economy will start rolling again. I think the potential is very strong for a fairly positive environment for trucking.
OVERALL
ECONOMY
Trent Tillman, Executive Vice President TrueNorth Companies Cedar Rapids
There will continue to be significant shortage of blue collared workers, particularly as stimulus checks continue to flow. Short of any surprises to the COVID outbreak (new strains, hiccups in vaccinations, massive shutdowns) the economy should be poised to boom by Q3.
The trucking economy will be robust, driven more by supply issues (drivers). The demand side will be moderate, but the nagging driver shortage will become more acute.
Adrian Dickey, President Dickey Transport Packwood
I think we are going to continue to see continued shortages of qualified workers. We have 3 -5% of our workforce that have become very complacent and okay with not working. The government has made it far too easy for people to not seek employment. I predict that equipment sales will be very strong in 2021.
There is always going to be high demand for qualified truck drivers, and this is not going away anytime soon. This will continue to impact the industry but with the stricter hiring guidelines, the one positive is that it will also continue to impact the safety environment for the industry in a positive manner.
Ben Couch, Team Lead JT Logistics Urbandale
Dean Kloewer, President Panama Transfer, Inc. Panama
Unemployment is at an all time low and I just do not see how it could possibly get any lower realistically.
The used trucks inventory seems to be good at this time and I think the new equipment market will also continue to be good.
I think driver capacity will continue to be a big issue until there is continuity on the rules and regulations. I am concerned about the potential impact with the Independent Contractor model. I think changes in that model could have a negative consequence on the industry overall.
I am optimistic about the overall trucking economy, but the challenges of the insurance industry continue to be a very big deal to motor carriers. I also think that the “unknowns” with a new administration will also create some additional challenges.
Finding drivers is an ongoing problem and will continue to be a big issue for the industry. We are sucking wind for employees just like everyone else and it is perplexing.
Dan Van Alstine, President & COO Ruan Transportation Des Moines Rory Triplett, Senior Vice President Relion Insurance Solutions Iowa City
EQUIPMENT
Jack Sawyer, President DMTC Urbandale
WORKFORCE
Lexi Weber, Sales Executive Cottingham & Butler Dubuque
I think the trucking environment will continue to be good, trucks deliver everything that we all need, and people are finally recognizing the value of our industry.
Tracy Petrak, Account TPA Manager CJ Cooper & Associates Hiawatha
ISSUE 1, 2021
21
FIRST HALF 2021:
FASTEN YOUR
SEATB
AN ECONOMIST PERSPECTIVE
STORY: John Larkin, Clarendon Capital, LLC
A maelst rom of macro-forces almost ensures that economic anxiety will continue across the U.S. during the first half of 2021. Uncertainty related to (1) the efficacy of John Larkin the Covid-19 vacOperating Partner cines and the effiClarendon Capital, LLC ciency of their distribution, (2) uncertainty related to the new Administration’s and the new Congress’ plans, policies, executive orders, and legislation regarding further economic stimulus, an infrastructure bill, regulations, and taxes, and (3) the uncertainty surrounding the economic preferences of U.S. consumers will likely prevent us from reaching
anything approaching a “new normal” until the second half of 2021. The freight economy will be largely driven by truck driver availability, fleet capacity additions (or lack thereof), continued inventory restocking, continued re-shoring of manufacturing (thanks in part to the great strides recently made in the world of automated manufacturing), continued consumer preferences for goods over services, and the gradual full reopening of the broader U.S. economy. Assuming that the vaccine roll out will be successful, that it would be foolish to implement new taxes in the first half of 2021 (as we are in the early stages of recovery from the COVID-driven recession), and that carriers are disciplined about not adding too much capacity into the market, the second half of 2021 (following an uncertain but likely solid freight market in the first half of 2021) could be very strong for the freight market. Enjoy the ride but remember to build your plans around alternative scenarios as our economic crystal ball is presently a bit cloudy.
STORY: Donald Broughton, Broughton Capital LLC
In The Information Age, Two Dangerous Things Happen: Ever expanding access to information and data, that is both deeper and more complete than ever before, produces an endless stream of ‘easy’ answers. The easy answers which are often the most widely believed, ironically also tend to be the most incorrect. We have reached the proverbial land where an infinite number of monkeys type for an infinite amount of time until one of them produces Hamlet. Precisely asking the right question(s) has become the most valuable component in reaching the answer(s) that reveal(s) the truly insightful wisdom.
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IOWA TRUCKING LIFELINER
Extraordinarily complex explanations are offered. Paranoia and intricate convolution are masqueraded as intellect bordering on omniscience, while openly catering to the fear and ego of the audience. All of us are better served by humbly accepting that: we are not all knowing; the past is hard to explain and the future is even harder to predict; even those with a deeper understanding of the past and a clearer vision of the future struggle to benefit from it; and the Einstein rule (i.e., Everything should be made as simple as possible, but no simpler.”).
BELTS!
After entering this into evidence, we offer the following:
Freight flows are the economic indicator that combines the greatest extended foresight with the highest degree of consistency and reliability. Simply stated – we assert that, freight flows see further into the future of the economy more dependably, and with fewer false signals, than any other indicator. As early as February 2020, freight flows were signaling that Covid-19 would create the worst level of economic disruption and calamity since the 2008-2009 financial crisis / recession. In May 2020, freight flows began to signal the worst was over, and on an ever increasing and ever broader basis they have signaled an ever stronger economy.
Current freight flows are indicating:
Donald Broughton Managing Partner Broughton Capital LLC
Broadly - the recovery is already well underway; economic growth will be technology driven and more disruptive but also more dynamic than previous cycles; led by the U.S., Asia, and Northern Europe; propelled by unprecedented productivity increases and without any material measurements of inflation. We predict: most financial markets will continue to inflate in value, the European Union will struggle to survive, and the U.S. trade deficit will steadily shrink until becoming a surplus (within the next 10 years). Sector specifically – the housing, technology, and pharmaceutical industries are booming and will continue to grow robustly for several years. Transportation specific – supply chains will grow increasingly shorter; in all lengths of haul the volumes of expedited and parcel will continue to vigorously expand, with the shortest length of haul exploding; logistics / brokerage will outperform LTL which will outperform truckload which will outperform intermodal which will outperform rail, but all modes will prosper. In this column in the months to come, we will elaborate on many of these predictions and invite reader feedback on which prognostications should be given priority. Summary - the economy is already rebounding more vigorously than most people appreciate, and it will continue to grow faster for a longer period than anyone predicts. Fasten your seat belts, because it is going to be an incredible ride!
STORY: Ernie Goss, Creighton University
Expansionary Federal Reserve Policy, The Value of the Dollar and Trucking Industry Revenues The Value of the U.S. Dollar and Trucking Revenues A declining value of the U.S. dollar makes U.S. goods and services more competitively priced abroad. That is, a 10% decline in the trade weighted value of the U.S. dollar, on average, reduces the price of U.S. goods and serves by 10%, other factors unchanged. For example, currently a Ford Fusion selling for $23,000 would sell for 18,987 Euros in Germany. Should the value of the U.S. dollar
decline by 10%, that Ford Fusion would then sell for 17,261 Euros in Germany. This would result in more purchases of Ford Fusions by Germans and would increase the revenues of trucking companies that transport the auto to a U.S. port for German delivery. Figure 1 profiles trucking annual trucking revenue growth against rate of change in the value of the U.S. There appears to be a clear negative, or inverse, relationship between trucking revenues and the value of the U.S. dollar.
ISSUE 1, 2021
23
Figure 1: Annual growth rate U.S. trucking vs. value of U.S. dollar, 1997-2019 20.0% 15.0% 10.0%
20
18
-1 9
-1 8 20
16
14 -1 5 20
12 -1 3 20
-1 1 10
9 -0 08 20
20
7 -0 06 20
5 -0 04
3
20
9-
02 -0 20
-5.0%
19 9
19 9
79
8
0.0%
00
5.0%
-10.0%
KEY U.S. Trucking Revenue Value of U.S. $
-15.0% -20.0% -25.0%
Table 1: Correlation coefficients: 1997-2019 Trucking revenue Trade weighted value of dollar
-0.40
Exports per $1,000 per GDP
0.88
However, to more precisely determine the relationship, one calculates correlation coefficients. Table 1 lists correlation coefficients among important determinants of trucking revenues. As expected, there is a strong -0.40 association between the value of the U.S. dollar and trucking revenue, a stout +0.88 relationship between U.S. exports and trucking revenues, a very strong +0.96 association between manufacturing sales and trucking revenues, and a robust +0.90 association the sale of farm goods and trucking revenues.
Looking Ahead for Trucking Revenues and The Value of the U.S. Dollar
In 2020, President Trump approved the phase one trade agreement with China, and USMCA was Manufacturing sales 0.96 also approved. Both agreements were very supFarm sales 0.90 portive of U.S. exports and the trucking industry. Source: E. Goss calculations based on U.S. Bureau of Economic Analysis Adding fuel to the trucking expansion, the Fed took unparalleled monetary policy steps, beginning in 2019, and extending into 2021. In March 2020, the Fed reduced short-term interest rates by 1.5%. This action followed second half 2019 cuts of 0.75%. Additionally, the Fed took aggressive action regarding long-term interest rates by purchasing U.S. Treasury bonds and mortgage-backed securities, boosting its bond holdings from $3.8 trillion in August 2019 to $7.4 trillion in January 2021. This action had the impact of contributing to a reduction in the value of the U.S. dollar. Importantly for the trucking industry, the Fed’s expansionary policies contributed significantly to a 5.4% slide in the trade-weighted value of the U.S. dollar, and a 7.2% fall in the value of the dollar against the Chinese Yuan between August 2020 and January 2021. The slump made U.S. agriculture commodities and manufactured goods more competitively priced abroad, enlarging trucking revenue.
Conclusions
Ernie Goss, Ph.D. MacAllister Chair in Economics Department of Economics and Finance Creighton University
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IOWA TRUCKING LIFELINER
The U.S. Federal Reserve (Fed) has purchased approximately $3 trillion in U.S. Treasury bonds and mortgage-backed securities since the onset of Covid-19. Furthermore, the Fed has reduced short-term rates to practically 0%. Results from the analysis contained in this study indicate that these actions have reduced the value of the dollar contributing to increases in manufacturing and agriculture commodity exports, thus boosting trucking revenues. Additionally, the 2020 signing of USMCA and phase one trade deal with China also contributed to jumps in U.S. manufacturing and agriculture commodity exports. This had a positive impact on U.S. trucking revenues. Given that the Fed intends to continue expansionary monetary policies, and the Biden Administration has signaled less restrictive trade policies, the 2021-22 outlook for U.S. trucking revenues is bullish.
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ATA UPDATE One State’s Scheme Threatens the Whole Industry It is more than 1,00 miles from Des Moines to Providence, R.I. --- more than 20 hours of driving to get from statehouse to statehouse, but what is happening there could have a profound effect on truckers in Iowa and across the country.
CHRIS SPEAR
ATA President & CEO The American Trucking Association (ATA), headquartered in Washington D.C. is the eyes, ears, and voice of the trucking industry in front of lawmakers and regulators on the national level. ATA’s mission is to effectively advocate and communicate efforts designed to improve safety and profitability for its members. All 50 state trucking associations are members of the Federation affiliated with ATA. IMTA works closely with ATA on numerous issues of mutual importance and priority.
In 2016, leaders in Rhode Island came up with RhodeWorks, a financing scheme to outsource funding for their failing infrastructure by tolling only large trucks. And not all large trucks – but a combination of trucks mostly from outside of Rhode Island. Politicians in Rhode Island made it clear, the brunt of the tolls are going to be borne not from the citizens of Rhode Island, or even businesses in Rhode Island, but outof-staters who need to travel to or through the state. It was robbing Peter to pay for Paul’s roads – if Peter lived three states away and was asked to deliver Paul’s groceries. So, the American Trucking Associations did what we always do when our industry is targeted – we fought back by suing the state for attempting to impose discriminatory, unconstitutional tolls. The state of Rhode Island argued this suit should be handled in their courts – an argument that was rejected, so soon we will be making our case in the federal court that Rhode Island is violating the Commerce Clause of the Constitution by favoring in-state businesses over ones from out of state, and by forcing tractor-trailers alone to pay for bridge projects that all motorists benefit from. Trucks make conspicuous targets for tolling schemes like this. ATA helped defeat a proposal for truck-only vehicle miles traveled taxes at the federal level, but other states are watching what happens in Rhode Island to see if they can get away with this kind of discrimination.
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IOWA TRUCKING LIFELINER
Tolling boosters argue trucks do not pay their fair share, an absurd accusation when trucks pay roughly half of the taxes that fund the Highway Trust Fund. In addition, there exists a system – the International Fuel Tax Agreement and the International Registration Plan - that ensures the fuel taxes and other fees trucks pay are fairly divided by states where they operate. States like Rhode Island and others are getting their fair share from the trucking industry and then some. Those same boosters will argue that trucks do most or all the damage to the roads – which the National Academy of Sciences’ Transportation Research Board (TRB) has stated is a “prevalent misconception.” TRB highlighted that roads will not be damaged by traffic they are designed to support – if those roads are properly designed and cared for. One of the reasons these advocates turn to tolls, and to the truck-only tolls, is that they cannot make the tough political choices to properly fund their infrastructure. But rather than make the tough choices, they shift the bill to drivers who cannot vote them out. The stakes could not be higher in ATA’s lawsuit against Rhode Island. If the state’s discriminatory tolls are allowed to stand, other states will have a blueprint to pile tolls on our industry. We will soon be undertaking arguments in federal court. While this battle has been going on for years, it is far from over. This kind of litigation is important, and it requires significant resources. The ATA Litigation Center is aggressively raising funds to take on and win this fight, and we need your support. With your help, we will be able to ensure states do not target our industry as a “piggy bank” now or in the future.
ATA UPDATE Introducing Sherri Garner Brumbaugh, Garner Trucking, 2021 ATA Board Chair Garner Trucking, Inc. is a family-owned and operated business started in 1960 by Vernon E. Garner and Regina R. Garner. The company is located in Findlay, Ohio (northwest Ohio) with a focus on transportation services, warehousing, logistics management of thirdparty services and equipment repair. All these entities operate under the umbrella of Garner Trucking, Inc. During the early years Sherri’s father, Vern Garner, built a solid company foundation with hard work and enthusiasm. His first experience was with agricultural products. As he drove his truck and saw the opportunity for expansion, he began to increase the fleet, his employees, and the company facilities. Garner Trucking, Inc. continued to grow and expand. In 2002, Vern proudly served as the Chairman of the Board of the American Trucking Associations. In 2005, he was inducted into the Ohio Trucking Association Hall of Honor. Throughout his career, Vern always credited his success to a great team of supporters, including his family. In 2007, Vern lost his battle with cancer, and his wife Jean took over as the CEO. In September of 2008, Jean named her daughter Sherri as President of the company. Sherri had been working at the company for 18 years. Sherri has continued to move the company in a positive direction with an unwavering focus on the drivers. “Home time – it is important to me and my drivers. We work hard to make sure Garner drivers get home safely and when they need to,” said Sherri. Sherri graduated from Liberty-Benton High School; The Ohio State University, where she received a bachelor’s in education; and then a masters from Bowling Green State University. An educator by
trade, but a trucker by heritage! Sherri began working for the company in junior high school mowing the company lawn; then washing trucks in high school. After college and a brief stint teaching, she returned to the company where she has worked in accounting, operations, and then she oversaw SHERRI GARNER BRUMBAUGH the company’s computer systems. “In a small company, you wear many hats. At Garner, I have worn several!” says Sherri. Throughout her career, Sherri has always been a strong advocate for the trucking industry. She has also been very active in several organizations such as the Ohio Trucking Association, Truckload Carriers Association, and the American Trucking Associations. She has always been committed to giving back to an industry that she deeply respects and loves. Today she holds the highest position within the American Trucking Associations as the 2021 Board Chair. Sherri is excited to continue to promote and offer her support and expertise in numerous ATA efforts and initiatives.
Sherri Garner Brumbaugh at a Glance: » Married and mother to three sons —they all trap shoot together and have a great 5-man team » Attended Ohio State University and was a member of the “Best Damn Band in the Land!” » Percussionist — played cymbals in the band (because they were the most fun!) » Bachelor’s degree in teaching, Master’s Degree in Guidance & Counseling » First project at the company — spending too much on pallets and Sherri dug in and found out that they were not being tracked properly. Presented the data to her dad and they have never paid for another pallet since. » Pursued leadership in ATA because there weren’t enough women in leadership roles and she wanted to be a role model and make a positive impact to the advocacy efforts of the organization.
» Looking forward to meeting other truckers across the country as the ATA Chairwoman. » Her platform as ATA Chair — combatting human trafficking. » Great appreciation and respect for state trucking associations due to being very active and supportive of the work at the Ohio Trucking Association. » Very committed to a healthy lifestyle — every day she exercises, meditates, and invests in her overall health and wellbeing. » Three words she hopes people would use to describe her — approachable, caring & change maker!
ISSUE 1, 2021
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WWW.GATR.NET • 1.800.771.4287 Elk River, MN 763.441.2205
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Cedar Rapids, IA 319.298.1000
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IOWA MOTOR CARRIERS FOUNDATION ANNUAL FOUNDATION AUCTION
New Format/Same Outstanding Support Over $50,000 Raised in Less Than 30 minutes!
For many years now, the Iowa Motor Carriers Foundation has held its annual fundraiser in conjunction with the annual IMTA Management Conference. This is the Foundation’s largest fundraiser and is a fun and entertaining event that kicks off a very well attended Management Conference. But as the COVID pandemic continued to impact in-person events and the 2020 IMTA Management Conference was cancelled the Foundation Board was not deterred by this little wrinkle. While the in-person event is always very popular, the decision to do the auction “virtually” was quickly made and work began in setting up this unique platform.
It was with some trepidation that Foundation Board Members, IMTA staff, and an enthusiastic auctioneer piled into a small studio to conduct this first ever live online auction. Many enthusiastic supporters quickly started logging on and as soon as the auctioneer stepped up to the microphone, the bidding began. And within a 30-minute time period, all 12 prize boxes were sold to the highest bidder and over $50,000 was raised for the ongoing work of the Foundation. “I can’t emphasize enough how pleased and appreciative we are for everyone that made this auction a success, especially those that have once again provided financial support to the Foundation through a winning bid. The generosity of the IMTA membership means a great deal to me personally and
Joe Bair served as the professional auctioneer for the first ever virtual auction, while Foundation Board Members Gary Handley and Delwin Van Wyk watch for virtual bids from the High Roller Room.
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IOWA TRUCKING LIFELINER
A special thanks to the following companies for supporting the Foundation by purchasing a package at our first-ever online “LIVE” auction. • Ennis Corp. • Heartland Express • JMT Trucking Co. • Panama Transfer, Inc. • Ruan Transportation • Schuster Co. • Truck Country • Van Wyk, Inc. • Weinrich Truck Line, Inc. • WestWind Logistics, LLC to the Foundation,” said Steve Schuster, Chairman of the Iowa Motor Carriers Foundation.
Normally we have a large, energetic filled venue for the live auction but this year we hosted the event in our smallest venue yet with attendees joining via Zoom.
IOWA MOTOR CARRIERS FOUNDATION LEAD IMTA COUNCIL SILENT AUCTION New Record Set with Over $13,000 Raised
The LEAD IMTA Council once again did an outstanding job with the annual silent auction and set a record with over $13,000 being raised by the group. The silent auction was held in conjunction with the virtual Trucking Recovery Initiative event and offered IMTA members the opportunity to participate in the bidding through an online program. All of the money raised goes to the
Iowa Motor Carriers Foundation to support its many efforts in research, public relations, and show trailer activities. A big thanks to all the IMTA members took part in the bidding and a big thanks to all the companies that donated cash or prize packages. The silent auction combined with the live auction netted over $60,000 to the Iowa Motor Carriers Foundation.
A special thanks to the following companies for supporting the Foundation by providing a prize package or purchasing a prize package in the silent auction. • Britton Transport • Decker Truck Line, Inc. • Des Moines Transportation Co. • Dickey Transport • Ennis Corp. • Foodliner • GATR Truck Center • Green Products Co. • Hanifen Co.
• Hy-Vee / PDI • Midwest Wheel Companies • Niece Trucking • O’Halloran International • Panama Transfer • PrePass Safety Alliance • Pyle Transportation • Relion Insurance Solutions • Ruan Transportation
• Schuster Co. • Simons Trucking • Solar Transport • Sukup Manufacturing • Thermo King Sales & Services • Thompson Truck & Trailer • Truck Country • Van Wyk, Inc.
Silent Auction Background Since its inception in 2017 the LEAD Council has raised nearly $35,000 for the Iowa Motor Carriers Foundation. The silent auction has proven to be a successful opportunity for IMTA members to contribute to the Foundation on a smaller, yet still impactful, level compared to the live auction. Throughout the years the silent auction has featured unique prize packages that are all donated by the LEAD IMTA Council members and the IMTA membership. “The LEAD silent auction is an exciting, simple way to get members to support the efforts of the Foundation. We all have a competitive spirit, and you get to see that come alive when the clock is ticking on the prize packages,” said LEAD IMTA Council member Blake Grolmus, Ruan Transportation. This year’s silent auction will be set up at the annual Management Conference at the West Des Moines Sheraton in West Des Moines, on September 14 & 15, 2021.
ISSUE 1, 2021
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IMTA DIVISIONS UPDATE IOWA COUNCIL OF SAFETY MANAGEMENT Iowa Safety Professionals – Making an Impact, Making a Difference Since the 1950s, the Iowa Motor Truck Association has had a division for safety professionals. As the regulatory compliance landscape continued to change, trucking companies of all sizes recognized the need to have people specifically focusing on safety and compliance. That focus is still needed today, and the Iowa Council of Safety Management (ICSM) provides support, guidance, and tremendous networking opportunities to its members. While the Council was forced to move to an online platform in 2020 due to the pandemic, membership thrived as even more folks realized that they needed to be a part of this valuable division. As the volunteer leaders for the division started to look to the new year, they decided to change very little and once again membership has continued to flourish. “The regulatory environment is changing all the time and having an outlet to see how other carriers are responding to the continual changes is extremely valuable,” said ICSM Steering Committee member Allison Meiners, Ruan Transportation. ICSM offers monthly meetings which feature an educational session on a topic of importance. The Council also offers quarterly “mini” safety conferences that last up to four hours and focuses on several different topics and promotes networking among the safety professionals.
“We pride ourselves on having very informative speakers on the topics that are either impacting us now or will be on the horizon. We really want to be a valuable source of information and guidance to our members, and we take that very seriously,” said Marvin McGinnis, Solar Transport, and another member of the ICSM Steering Committee. While networking with other safety professionals is the cornerstone of the Council’s impact with its members, even through the pandemic, the Council was creative in offering platforms that did encourage Council members to interact with one another. “While the pandemic offered challenges, we still had a good year, and we are even more excited for 2021. We remain hopeful that we will be able to get back to our platform that includes in-person events, but in the meantime, we will continue to offer a great resource for anyone involved with safety in the industry and look forward to seeing our membership numbers grow,” said ICSM Steering Committee member Terry Pump, CRST The Transportation Solution, Inc. If you are interested in becoming a member of the Iowa Council of Safety Management, contact the IMTA office. Individual membership is $500/year with discounts for companies that have 3 or more people that want to join the council. The ICSM meets the second Tuesday of each month.
2021
ICSM STEERING COMMITTEE
RANDY KOPECKY
MARVIN MCGINNIS
ALLISON MEINERS
TERRY PUMP
DON HUMMER TRUCKING CORP.
RUAN TRANSPORTATION
SOLAR TRANSPORT
CRST THE TRANSPORTATION SOLUTION, INC.
KRYSTIN SITZMANN SCHUSTER CO.
Upcoming 2021 ICSM Sponsored Events The events listed below are open to the entire IMTA membership to attend. In-person events will be evaluated closer to the event date to determine if the event will need to be held virtually instead.
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Thursday, March 25 Fleet Safety 101 Webinar Online Platform
Thursday, June 17 & Friday, June 18 Iowa Truck Driving Championships Prairie Meadows (Altoona)
Tuesday, April 13 & Wednesday, April 14 Safety Professionals Conference IMTA Office (Des Moines)
Thursday, September 23 Fleet Safety 101 Seminar IMTA Office (Des Moines)
IOWA TRUCKING LIFELINER
Information specific to each event can be found at iowamotortruck.com
IMTA DIVISIONS UPDATE LEAD IMTA: NEXT GENERATION SPEAKS Tapping into Your Leadership Attributes While recalling my childhood it occurred to me how my leadership style has evolved especially in how I apply it to my life. Being involved with organizations that have a solid foundation and purpose was a big part of my younger years. My father was the one who instilled this value of involvement in me, and I retain that belief every day going forward. Now, the reason for this article…I have been with CJ Cooper Drug & Alcohol Testing for ten years now and have often wondered where leadership fits into this job field. How does one instill values, guidance, and motivation to someone to be able to urinate in a cup?
TRACY PETRAK
CJ Cooper & Associates, Inc.
Growing up, all kids tend to form a tightknit group of friends that always includes “that one” friend who stands out to everyone else. The friend that shoves themselves to the head of the haunted house line. The friend that pushes the limit with their parents knowing their parents would ultimately give in. Or the friend that never hesitates to cross any sort of line that is drawn in front of them. In my group of childhood friends, I was no way near being termed “that one,” instead I was the one who had the privilege selecting this fearless individual who was to be held to the highest standard. I would be the one to persuade the friend who had the gift of gab and who had the capability to sell our demented ideas to our parents. And yes, my delegation of friends was certainly rewarded in various ways by choosing the perfect friend to hold this esteemed title.
Once again, my answer came from my childhood experiences. I can utilize my superpowers by being actively involved with the Iowa Motor Truck Association. The IMTA is an organization with a distinct purpose and a solid foundation that will be forever ongoing. The time and effort each of the volunteer leaders dedicates to the IMTA is a value that is immeasurable and even enviable. I knew I just had to be part of the IMTA, so I jumped right in and went to work engaging myself. After testing the waters a bit and exploring all the opportunities the IMTA offered I decided to capitalize on the two things we can all use more of – personal and professional growth. In 2019 I participated in the IMTA Leadership Class and because of that experience I am now active with the Iowa Council of Safety Management (ICSM) and the LEAD IMTA Council. Little did I imagine that my own leadership styles and expertise could be beneficial to others within the industry. I was simply there to learn from them, and here they are learning from me as well.
TAP INTO YOUR OWN PERSONAL LEADERSHIP ATTRIBUTES AND PUT THEM TO GOOD USE, EVEN IF YOU ARE NOT TERMED “THAT ONE.” As a member of the IMTA your voice is heard, and your skills are put to work – I can personally attest to that. It is important to remember that your ideas can be valuable to someone if we just simply hear what is being said. This allows you to tap into your own personal leadership attributes and put them to good use, even if you are not termed “that one.” All thinkers and doers are accepted you just have to be willing to put yourself out there.
2021
LEAD IMTA COUNCIL
• Mike Bash, Britton Transport • Kelli Boyle, Ruan Transportation • Ben Couch, JT Logistics • Ben Dombroski, Stutsman Logistics • Mike Garreans, Truck Center Companies • Blake Grolmus, Ruan Transportation • Drew Hepler, Truck Country • Adam Hesse, Truck Center Companies • Jeff Martin, Green Products Company • Tracy Petrak, CJ Cooper & Associates • Jason Rose, Midwest Wheel Companies • Andy Schmitt, Sukup Manufacturing Co. • Robert Sullivan, Warren Transport, Inc. • Lexi Weber, Cottingham & Butler
ISSUE 1, 2021
35
CORNERSTONE SPONSORS THANK YOU TO OUR 2021 CORNERSTONE SPONSORS As of February 1, 2021 $25,000
PLATINUM
$8,000
MHC Kenworth
Interstate PowerSystems / I-State Truck Center
Midwest Peterbilt Group Midwest Wheel Companies Thompson Truck & Trailer Truck Center Companies
PATRON McGowen Hurst Clark Smith O’Halloran International, Inc. / Quality Services Corp. PrePass Safety Alliance
Truck Country TrueNorth Companies
$5,000
ASSOCIATE
$2,500
BMO Transportation Finance
Allied Oil & Supply, Inc.
Majestic Truck Service
GATR Truck Center
Bauer Built Tire & Service
Northland Insurance Co.
Housby
Bridgestone Commercial Solutions
Renewable Energy Group
Kwik Trip / Kwik Star Inc.
Dave Syverson Truck Centers
Reynolds & Reynolds, Inc.
Lube-Tech & Partners, LLC
Drivewyze
RSM US LLP
Mid-States Utility / Keizer Co.
Eastern Iowa Tire
Thermo King Christensen
Ottsen Oil Company
Engles, Ketcham, Olson & Keith, P.C.
US Cargo Control
Thermo King Sales & Service
Hanifen Towing
Truckers Insurance
Katz, Sapper & Miller
COLLEAGUE
Wilson Trailer Company Want to see your company listed as an IMTA Cornerstone Sponsor? Contact the IMTA at 515-244-5193 or visit www.iowamotortruck.com
IMTA UPDATE 2020 Review and 2021 Priorities Despite a year that was unlike anything predicted or prepared for, the Iowa Motor Truck Association had several highlights in 2020. As the pandemic became very real and things started to shut down in March of 2020, legislative efforts were just hitting its stride as key pieces of legislation were being introduced in litigation reform and in strengthening the code for Independent Contractors in Iowa. But when lawmakers came back for a very abbreviated session in June, IMTA scored big when both legislative initiatives were passed. Additionally, membership support remained strong as companies of all sizes continued to look to the Association to provide valuable assistance as they navigated through unchartered territory. “We never shut our doors and just like
the companies that we were serving, we worked many long hours and weekends when the pandemic first hit because there was so many things happening with the federal regulations and within all the respective states that getting accurate information to the membership was a top priority. Additionally, we were having regular communication with state and federal officials and wanted to provide some commonsense guidance to the membership,” said IMTA President Brenda Neville. That approach was effective and at year’s end, the Association reported a 94% retention rate. The Association also pivoted quickly and moved to online platforms and other modes of communicating and interacting with the members. Some key events were cancelled (Spring Golf Outing, Truck Driving Championships)
but many others moved forward and while they looked different, they still served a valuable purpose and brought the membership together. “We learned a lot throughout the pandemic, and we will continue to apply some of the things we learned into all of our programming going forward. But having said that we are also very anxious to get back to our in-person events and having those face-to-face meetings with the members and many others. We are in the people business; our stock is in our ability to build relationships, build enthusiasm among the membership, and have a presence. While this can all be done to some extent on a “virtual” platform, we are much more effective when we are able to execute a plan of action based on in-person events and efforts,” said IMTA President Brenda Neville.
2020 IMTA VICTORIES
2,000
OVER BOXED LUNCHES DISTRIBUTED TO TRUCKERS AS PART OF IMTA APPRECIATION EFFORTS THROUGHOUT THE YEAR
1, 531 IMTA MEMBERS
THAT TOOK ADVANTAGE OF OUR MONTHLY WEBINAR SERIES, WEBINARS IN TOTAL
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15
CONDUCTED TOWN HALL CONFERENCE CALLS ATTENDED BY OVER CARRIER COMPANIES
50
1,10 5 IMTA MEMBERS
THAT TOOK ADVANTAGE OF OUR COVID WEBINAR SERIES, WEBINARS IN TOTAL
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TRUCKING RECOVERY INITIATIVE, A NEW VIRTUAL CONFERENCE TO PROMOTE MOVING BEYOND THE PANDEMIC, WAS ATTENDED BY OVER IMTA MEMBERS
13 0
ISSUE 1, 2021
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IMTA UPDATE Strengthening Our Base, One Member at a Time Membership is the foundation of the Iowa Motor Truck Association. Since the day the Association was formed, recruiting members has been a top priority. In 1942, as they signed the paperwork to incorporate the Association, everyone in the room had to sign a membership pledge for the next five years. Volunteer leaders knew that having a committed group of members was important in showing the strength, unity, and sincerity of their efforts going forward. That same philosophy remains true today. “Having a strong, engaged, and active membership is extremely important to our ongoing effectiveness as an organization. Whether we are talking with regulators, legislators, reporters, or prospective members, being able to show the large number of folks throughout the state of Iowa that belonging to the Association is extremely powerful,” said IMTA Chairman of the Board Dan Van Alstine.
In 2020, the pandemic virtually shut down all outreach efforts and while alternative communication platforms were developed, nothing beats in-person membership outreach events. IMTA is cautiously optimistic that membership outreach events will be implemented in 2021. “We continue to monitor the current COVID-19 environment and will always keep the safety of our members in the forefront. But we are anxious to get out and interact with the members and start to do the things that we do best – membership outreach events where we combine networking, information updates, and catching up with friends and colleagues,” said IMTA President Brenda Neville. A preliminary membership outreach plan has been developed that will allow IMTA events in different areas of the state in the upcoming months. More details will be distributed as the COVID 19 restrictions are lifted.
As a statewide organization, having folks from all corners of the state and in a large majority of the counties is valuable, and that is what drives an ongoing membership outreach approach at the Iowa Motor Truck Association.
2021 IMTA Member Outreach Plan
Month when IMTA will be visiting
Northwest
North Central Northeast
Central Iowa — January Southern Iowa — February Southwest Iowa — March Southeast Iowa — April
East
West
Western Iowa — May Northwest Iowa — June
Central
North Central Iowa — July Southeast
Eastern Iowa — August Northeast Iowa — September
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IOWA TRUCKING LIFELINER
Southwest
South
IMTA UPDATE Your Association, Emerging Stronger in 2021 What lessons have we learned after enduring a year unlike anything we have seen before? What knowledge have we acquired and how will it impact our operation going forward? These are all questions that were posed as IMTA embarked on its annual strategic planning session as it looked towards 2021.
COVID-19 Pandemic After a long 12 months, the pandemic is still part of our daily reality. While the focus is now on vaccinations and returning to normal, we are still not there.
How Will IMTA Respond in 2021? IMTA will continue to take this pandemic very seriously and will not only offer assistance and support to the membership through timely and accurate information and guidance, but we will also continue to offer assistance, support, and leadership to our state leaders as they continue to develop and implement plans of action to help the state restore the environment that existed prior to the pandemic.
The “Unknowns” of a New Political Landscape As with every election cycle, there are many unknowns as new lawmakers and regulators emerge. With so many critically important issues at the forefront, navigating this new environment will continue to be a challenge.
How Will IMTA Respond in 2021? IMTA will continue to advocate for the trucking industry in a very loud and effective voice. The trucking industry is essential to everyone and with this important role comes an important responsibility to be relentless. While the political landscape has changed, our message and our legislative priorities have not changed. We will continue to fight for legislative solutions that will have a positive impact on the trucking industry.
Robust Trucking Environment While our nation may be upside down, the trucking industry has not missed a beat and is in fact, experiencing a very robust market. The only factor that continues to hinder that momentum is the lack of drivers. With capacity bursting at the seams, the strain of the driver shortage is even more dramatic. Continued uncertainty in the driver market is going to continue to be a compelling chokehold on the trucking industry’s ability to operate at its highest level.
How Will IMTA Respond in 2021? Workforce development is our number one priority. Ensuring that every IMTA member is successful is always in the forefront. We will continue to look for ways to attract people to this industry and explore legislative solutions that may offer assistance in our efforts.
Our Relevance as an Association Associations have a business model that is built on events, activities, and constant interaction, preferably in the form of in-person events. This business model was abandoned over the past year.
How Will IMTA Respond in 2021? IMTA is here to serve the membership and we take that job very seriously. Maintaining our relevance as a valuable business partner and a wise investment will always be a top priority. Regardless of the environment, we will be unwavering in our commitment to serve the membership with innovation, responsiveness, creativity, and above all with great honesty and humility. Our goal will continue to be that when you get your dues statement, there is no hesitation in writing that annual check…and if there is… then we haven’t done our job.
Overwhelming Support and Appreciation for the Trucking Industry The pandemic offered everyone a realistic view of the importance of the trucking industry. People have finally taken notice of the important role this industry plays, and they are appreciative and supportive.
How Will IMTA Respond in 2021? We will keep the momentum going and ensure that the positive story of the trucking industry continues to dominate the news waves and every other aspect of our storytelling adventure.
ISSUE 1, 2021
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FINAL THOUGHT
America’s Truckers are an Important Line of Defense Against Human Trafficking On any given day, there are tens of thousands of people being trafficked into and within the United States. A large percentage of these victims are minors, often young females, who are brutally forced to perform commercial acts of sex or labor against their will. Every day we must work at raising awareness for a heinous crime that far too often goes undetected. The trucking industry has stepped up. Professional truck drivers are the eyes and ears of America’s roadways, playing a vital role in ending modern day slavery. Over the past decade, America’s trucking industry has placed itself on the frontlines of this important fight, and has made meaningful contributions in the comprehensive effort to identify the victims and perpetrators of these heinous acts. The Iowa Motor Truck Association along with the American Trucking Associations, are partners with Truckers Against Trafficking, a nonprofit organization that trains professional truck drivers on best
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IOWA TRUCKING LIFELINER
practices in recognizing and reporting the red flags of human trafficking. Due in large part to its partnership with this important organization, our industry has served as an effective and powerful ally and asset to law enforcement who seek to identify and prosecute these crimes. To date, 708 likely human trafficking cases have been generated by truck drivers who witnessed suspicious activity and reported it. Truck drivers have identified 1,296 human trafficking victims and made nearly 2,700 calls to the national hotline after noticing questionable activity while out in the field. Because of the oppressive nature of human trafficking, perpetrators often commit their crimes during broad daylight, out in the open and undetected by the public. It is necessary that our communities can recognize the subtle signs of the crime and know how to report it. America is fortunate that truck drivers, the professionals who spend the most time on the road, are so committed to this cause, helping law enforcement catch these criminals, and saving the lives of innocent people. The American public must remain vigilant every day in battling the human trafficking crisis that plagues our communities and destroys lives. Despite the trucking
industry making outstanding strides this last decade, there is a limit to how far individual drivers can carry this progress on their own. We need all Americans to join the fight. Warning signs that all people should be aware of include an individual not having knowledge of their whereabouts or control of their identifications; restricted and controlled communications or not being allowed to speak for himself or herself; CB radio chatter about “commercial company” or flashing lights that signal a buyer location; signs of branding or tattooing of a trafficker’s name (often found on the victim’s neck); a van or RV that seems out of place or a vehicle dropping someone off and picking them up after 15 or 20 minutes. All individuals who believe they have witnessed or are aware of human trafficking should call the National Human Trafficking hotline at 1-888-373-7888. We urge you to join the trucking industry in the fight against human trafficking. The victim you save could be somebody’s daughter, niece or nephew, or a next-door neighbor. For more information on how you can get your drivers trained please contact the IMTA office at (515) 244-5193.
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