A BURGEONING REALITY
It is not a question of if, but more of when and how, when it comes to being prepared for successful, robust zero-emission mobility. Issue 2, 2021
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Issue 2, 2021
The Time is Right
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While many analysts believe that 2021 is a pivotal year for the start of large-scale deployments of electric vehicles, operators must maintain a critical eye on the current vehicle range achievable by today’s EVs.
When Hard Work & Dedication Pay Off
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With over 40 years in the trucking industry, IMTA’s Director of Safety & Compliance Don Egli will be officially retiring on July 1, 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
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Industry News
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Economic Update
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ATA Update
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ATRI Update
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IMTA Events
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Iowa DOT 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
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IMTA Cornerstone Sponsors
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ISSUE 2, 2021
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“It’s time for everyone who can to get back to work.” GOVERNOR KIM REYNOLDS regarding the decision to cut federal unemployment benefits
“Our goal is to make money and not creating problems for society,” DARKSIDE RANSOMWARE GANG in response to their cybersecurity attack on the Colonial Pipeline
“At the end of the day, we should not be arguing about who’s saying what. We should focus on unity, coming together and making sure that republicans are securing seats in 2022.” IOWA U.S. SENATOR JONI ERNST regarding the removal of Representative Liz Cheney from her leadership position
LISTENING IN
“WhatFacebook, job is worth sellingand your “What Twitter, Google political soul for?” have done is a total disgrace and an MSNBC’S JOE SCARBROUGH embarrassment to our Country.” slamming Republican lawmakers for selling PRESIDENT DONALD TRUMP out to President Trump in response to the continued suspension of his social media accounts
“I have to say — after all the fighting and the tooth-gnashing over the past few years – it was nice to see the whole world come together to make fun of a boat.” COMEDIAN JIMMY KIMMEL jokingly celebrating the end of the Suez Canal blockage
“For the past decade, we have seen the glimmer of the Golden State reduced by one-party rule that places politics over progress and special interests over people. Sacramento needs an honest leader with a clear vision.” REALITY TV PERSONALITY CAITLYN JENNER regarding her interest in running for Governor of California
“The verdict also lets us know that this is a time that is not about celebration because there’s still a lot of work to do.” IOWA REPRESENTATIVE AKO ABDUL-SAMAD in response to police officer Derek Chauvin’s guilty verdict in the murder of George Floyd
CHAIRMAN'S MESSAGE As I sit down to write this column, we just completed the perhaps redefining a new normal. I know there is tremendous spring meeting of the IMTA Board of Directors. Our first optimism and excitement for upcoming association events big group, in-person meeting since November of 2019, right and activities. We expect attendance for our upcoming before the pandemic hit us full force in early 2020. It felt events to be extremely strong as we are all anxious to see GREAT! Seeing so many familiar faces that weren’t framed one another. But I challenge you to look beyond just your by a virtual tile was wonderful. Attendance was excellent favorite events and activities as you evaluate the value of reflecting a shared and strong desire to get back to “normal”. your association membership. There was an obvious energy during our time together with During the last 15 months lively discussion and terrific engagement. While our associ- your association’s unique ation, our companies, and our country have had to rely on value was evident in so many meeting virtually, nothing can replace the excitement and ways. While we had to cancel real interaction we all enjoyed as we greeted each other. It and pause all in person events was gratifying to be together again. Coupled with the great and activities, the IMTA team feeling of being together, are the positive developments our kept us informed, serving as industry sees on the horizon. From strong economic indica- a trusted resource offering tors to the potential of real investment in our infrastructure. virtual information sessions, IMTA’s volunteer leaders need to be commended. These training opportunities, and individuals are extremely dedicated and committed to their townhall calls. Importantly, role as a board member. It would have been easy, and in some Brenda and staff kept very cases preferable, to simply take a break from the board over connected to state and the last year. There were certainly a number of competing national officials. These relapriorities to deal with. But that did not happen, instead tionships were critical as we these 35 leaders became even more engaged offering time, looked to IMTA and ATA insights, and sharing how their respective organizations for guidance, direction, and DAN VAN ALSTINE 2021 IMTA Chairman of the Board were navigating through the pandemic. Instead of stepping counsel. These important back, the board stepped up and leaned into every challenge organizations were our eyes, our ears, and our voice as any number of federal and state that came their way. IMTA has always identified numerous priorities in their agencies were scrambling to ensure that interstate comeffort to serve the membership, and even a merce continued. These associations took pandemic did not get in the way of pursuon the issues that we did not have time to IMTA HAS ALWAYS ing these important priorities. In 2020, we deal with and offered up the consistency IDENTIFIED NUMEROUS knew we had to wage a war against lawsuit and accuracy that is critical in a time of PRIORITIES IN THEIR abuse and that priority continued throughuncertainty. They defended the industry; EFFORT TO SERVE THE out the year despite the pandemic. At the they had our backs and they continued printing of this magazine the 2021 legisto fight for us while also helping us naviMEMBERSHIP, AND lature was still working towards adjourngate through the peaks and valleys of the EVEN A PANDEMIC DID ment and our lawsuit abuse legislation is pandemic. While there were no events to NOT GET IN THE WAY still in play. attend, our presence and the value of our OF PURSUING THESE unified voice through these associations This board has been relentless in their was more effective than ever. That is the support and generous with their engage- IMPORTANT PRIORITIES ment relative to this top priority. These true power of an association. personal contributions of time by every I certainly look forward to seeing you board member to be active and present is what really moves at the upcoming events. Our recent board meeting served the needle when it comes to legislative priorities. The IMTA as a great reminder to the value and importance of being board is fully committed, enthusiastic and unwavering in together. I hope that we all have an added appreciation of their advocacy for their fellow members. I am very proud what our association can do. And with that in mind, we to be associated with such a fine group of leaders and can should all be doing whatever we can to recruit new members assure you that every board member is committed to working and strengthen our base so we can be even more effective. on your behalf! Our industry continues to do its job of ensuring our standard As the vaccination process has been implemented, more of living is maintained and enhanced! Thank you for your continued support. and more people are finding their way back to normal. Or
ISSUE 2, 2021
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A New Era of
CLASS
Midwest Peterbilt Group pbtruck.com
Sioux City, Council Bluffs, Des Moines, Norfolk & Lincoln
PRESIDENT’S MESSAGE As the 2021 legislative session finally came to a close as we look towards the future. A future where we will on May 19 our hopes of passing critical lawsuit abuse remain steadfast in our resolve to continue to fight for legislation were also snuffed out. Despite a tremendous this important reform. effort until the very end, we were unable to get the job Our goal is to simply restore done this year which created a very disappointing end fairness and common sense. When a commercial vehicle to a hard-fought battle. The sting of defeat is never a pleasant experience acts wrongfully and causes a especially given the importance of this legislation to crash or injury, it should be held the trucking industry. Every single IMTA member is accountable and those injured impacted by the ongoing efforts by plaintiff attorneys should be compensated. There as they unfairly target the trucking industry to simply is not a trucking company out there that would not stand line their own pockets. We were relentless in our efforts to educate and high- behind that statement. light the necessity of these important lawsuit abuse However, over the last sevreforms. Legislators were attentive, interested and even eral years, unfair litigation sympathetic, but the trial bar was as equally relentless tactics have become more in their efforts and in the end a majority of legislators common. Lawsuits and setsupported trial lawyers. tlements against a trucking Despite the outcome, I could not be prouder of the company that was not at fault leadership provided by IMTA. The number of members in the accident have become BRENDA NEVILLE that made phone calls, sent emails, or had face to face as equally common. These IMTA President & CEO conversations with their legislators hit unprecedented frivolous lawsuits have now levels. Members of all sizes and demographics stepped destabilized the tort system up, often on multiple occasions to engage with their and transformed commercial lawmakers. These important convervehicle accident lawsuits into a profit sations provided the personal and THE LIST OF REPUBLICAN center for plaintiff attorneys. real-life insight that so effectively As a result of this environment, LEGISLATORS THAT highlights the current challenges trucking companies are closing CHOSE TO SIDE WITH every trucking operation is facing their doors, professional truck drivTHE TRIAL BAR VERSUS because of lawsuit abuse. ers are leaving the industry in record TRUCKING CONTINUES The IMTA lobbying team also numbers, and insurance carriers are TO BE REVIEWED AND needs to be recognized for the outexiting the market. In the end we all THE LESSONS LEARNED standing work they did. Dave Scott are impacted as prices for groceries, and Marc Beltrame were unwavering medicine, fuel, and everything else DURING THE 2021 in their commitment to our lawsuit continues to rise. LEGISLATIVE SESSION abuse initiative. They dealt with This is a fight that we cannot give up. WILL BE EXTREMELY significant hurdles and challenges Without trucks, our cities, towns, VALUABLE AS WE FOCUS and communities would fail to thrive, almost daily as this battle ensued. ON OUR STRATEGY They are effective, reliable, and, and would lack the essential necessiGOING FORWARD. ties to survive. Trucks are central to committed advocates for Iowa’s trucking industry. our state and nation’s economy and The list of Republican legislators that chose to side our way of life. Every time a plaintiff attorney makes a with the trial bar versus trucking continues to be decision to go after a trucking company in pursuit of a reviewed and the lessons learned during the 2021 legis- frivolous and unnecessary lawsuit, those impacts will be lative session will be extremely valuable as we focus on felt by all of us every single day. This is a critically important fight that we will not our strategy going forward. This loss, while disappointing, is merely a setback…an give up. opportunity for us to learn and strengthen our position
ISSUE 2, 2021
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UP CLOSE & PERSONAL
Representative Brian Best, 2021 House Transportation Chairman 4th term, District 12 (Glidden, Iowa)
1
What is the role of the House Transportation Committee?
Transportation Committee oversees transportation policy issues for the state. Not just highway policy but laws that affect bicycles, trains, licenses for cars as well as trucks and semis. We also are involved in policy on roads and their usage and vehicle weight issues.
2
hat were some of committee’s W primary goals in the 2021 legislative session? What were your biggest victories in the 2021 session?
Transportation Committee goals this year were to pass a hands-free law. We were able to get it out of committee but did not have enough votes for the floor. I am glad that we got the bill passed that allows the county Treasurers to collect $75 for CDL skills tests. Hopefully, this will encourage counties to offer these services. I am disappointed that we could not get enough votes to move the bill that would put a cap on liability for freight companies. That was a Commerce Committee Bill.
3
s we look towards A 2022, what is on the horizon for transportation initiatives/ priorities?
Next year I will take another shot at a hands-free bill. Liability cap bill I am sure will come up again and I will certainly support it.
4 REPRESENTATIVE BRIAN BEST 2021 House Transportation Chairman
I owa is a big trucking state, in this leadership position, what are some areas specific to trucking that you continue to focus on?
Our committee continues to work with DOT to move Iowa’s transportation system forward. I realize the importance of the trucking industry and have an open mind. I enjoy working with the IMTA and their lobbyists.
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IOWA TRUCKING LIFELINER
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ood roads and safe bridges are G extremely important to the trucking industry, as the Transportation Chair, how are continuing to ensure that Iowa’s infrastructure continues to be in the forefront?
The key is to maintain our roads and bridges as efficiently as possible. Modern infrastructure is a big key in Iowa’s and America’s economic future.
6
Tell us a little bit about yourself.
I grew up in Glidden and graduated from GliddenRalston High School in 1978. I graduated from University of Northern Iowa in 1982 and lived in Kansas City, Des Moines, and Spencer until 1990. I was lucky to find employment in Carroll and in 1990 I moved back to Glidden. I am a credentialed Respiratory Therapist. My wife, Sharon and I own a Sleep Lab in Carroll, Western Iowa Sleep, so we are plenty busy. I ran for Iowa House in 2013 and was elected. I thoroughly enjoy my job as a State Representative, as well as the Chair of Transportation Committee. It is an honor to represent Western Iowa.
UP CLOSE & PERSONAL
Senator Waylon Brown, 2021 Senate Transportation Chairman 3rd term, District 26 (Osage, Iowa)
1
What is the role of the Senate Transportation committee?
The Senate Transportation Committee deals with all things transportation in Iowa - driver’s licenses, weight limits, railroads, bicycles, electric vehicles, vehicle registration, and so on. The goal is ensuring a reliable transportation system and infrastructure in the state for all who work, drive, or travel through the state.
2
hat were some of committee’s W primary goals in the 2021 legislative session? What were your biggest victories in the 2021 session?
The Transportation Committee discussed several topics throughout the legislative session this year, including distracted driving, blue lights for emergency vehicles, and even “personal delivery devices,” allowing the use of robots for parcel delivery in Iowa.
3
s we look towards 2022, what is on the A horizon for transportation initiatives/ priorities?
Once the legislative session ends, one of the best parts of the off season is getting feedback from constituents and stakeholders about legislation from this year’s session or problems they are dealing with where legislation could help ease the burden of government. We will know more about what is ahead for us in the coming months as committee members hear from more constituents back home.
4
I owa is a big trucking state, in this leadership position, what are some areas specific to trucking that you continue to focus on?
A consistent goal for us in the Iowa Senate is passing legislation that makes Iowa a great place to live and work. Each of the committees is tasked with moving legislation to expand the workforce, bring more jobs to the state, and increase opportunities. Infrastructure is key to economic development and so is clear and reasonable policies established around the transportation infrastructure in Iowa. This goal is part of the Transportation Committee’s work each year.
5
ood roads and safe bridges are G extremely important to the trucking industry, as the Transportation Chair, how are continuing to ensure that Iowa’s infrastructure continues to be in the forefront?
Each year the Transportation Committee deals with several issues like weight limits, updates for technology, and the issues I mentioned earlier, all coming to us from constituents across the state. The goal is to protect the infrastructure we have and improve it so commerce is easy to conduct, and people can have good careers and a high quality of life in Iowa.
6
ell us a little T bit about yourself.
Outside of the Capitol I am the owner of my own construction business and a farmer. SENATOR WAYLON BROWN I am a former member 2021 Senate Transportation Chairman of the Mitchell County Farm Bureau Board and the St. Ansgar Planning and Zoning Board. I have two kids, and I ran for office because I wanted to make this state better for them and families like mine. As a farmer, small business owner, father, and husband, I know many of the struggles Iowans and their families are facing, and I ran for Iowa Senate to be part of the solution to solving those problems.
ISSUE 2, 2021
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ISSUE 2, 2021
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INDUSTRY NEWS Jobs Report for April Far Below Expectations In early May the Bureau of Labor Statistics reported that total nonfarm payroll employment rose by just 266,000 in April. Economists’ expectations for April’s employment gains were close to 1 million payrolls and there were still 9.8 million individuals unemployed last month. The employment change from March to April was disappointing across most sectors, aside from the leisure and hospitality industry, which added 331,000 payrolls. Employment in construction remained unchanged. The manufacturing industry lost 18,000 workers. (A result of the semiconductor chip shortage?) The transportation and warehousing sector removed 74,100 payrolls, including a loss of 1,500 in for-hire trucking employment. Related, the unemployment rate edged up in April to 6.1% from 6% in March, partially due to more people coming into the labor force. While the unemployment rate in April was far lower than in the summer of last year, employment was still off 8.2 million jobs from February of 2020. The Institute for Supply Management’s manufacturing index was reported at 60.7% for April. (Any reading above 50% indicates an expanding manufacturing sector.)
Change For-Hire Trucking Employment Through April 2021 20,000 0 -20,000
Month-tomonth Change
-40,000 -60,000
Transportation Secretary Pete Buttigieg Unveils Alternative Fuel Corridor Designations Transportation Secretary Pete Buttigieg announced a new round of alternative Fuel Corridor designations as part of the Biden administration’s push to advance electric vehicle charging infrastructure. The Federal Highway Administration’s Alternative Fuel Corridor’s program recognizes highway segments that have infrastructure or plans for infrastructure that support alternative fuel options. The program charts sources of various alternative fuels including electricity, compressed natural gas, liquefied petroleum gas and hydrogen. Buttigieg made the announcement on Earth Day. “That relationship to the problem of climate change means that we in transportation can also be the biggest part of the solution,” Buttigieg said. The Round 5 alternative Fuel Corridors designated “corridor ready” by Federal Highway Administration (FHWA) encompass stretches of roads in 27 states. Corridor ready means EV charging stations are located no more than 50 miles apart and no more than 5 miles off the highway. According to the Round 5 list, compressed natural gas options are available near US Route 61 in Iowa. “These routes, which connect communities large and small, signal the clear demand for cleaner, more affordable transportation across the country,” Buttigieg said. Buttigieg, speaking in Washington, stresses that the transportation sector can help curtail greenhouse gas emissions.
Apr: -1,500
-80,000 -100,000
2017
2018
2019
2020
2021
US Department of Labor
Expansive unemployment insurance, a skill mismatch, health concerns, and childcare responsibilities could explain labor shortages throughout the economy, and why April’s jobs gain was so much lower than expected. Still, the leisure and hospitality sector did fine in April. However, we cannot discount the fact that there are lots of job openings (job ads were up 42% year-over-year in April), yet some people may not return to work until they have run through most of their stimulus checks. Nevertheless, they will eventually have to return to work. One jobs report does not give us a lot of answers. We know there are a lot of job openings, and the recovery will not be straightforward. Source: American Trucking Associations
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IOWA TRUCKING LIFELINER
A DC Fast-Charging station in use at the Dinosaur Welcome Center in Dinosaur, Colorado.
INDUSTRY NEWS Fuel Prices on the Rise, Cyberattack on largest US Pipeline On May 7, a cyberattack forced the largest US fuel pipeline to shut down and analysts are worried the disruption could result in a spike in gas prices. The Colonial Pipeline system which spans more than 5,500 miles and transports about 45% of all fuel consumed on the East Coast was the victim of a cybersecurity attack that involve ransomware. This major pipeline transport 2.5 million barrels per day of gasoline, diesel, jet fuel and home heating oil.
COLONIAL PIPELINE
5,500 MILES AND TRANSPORTS ABOUT 45 PERCENT OF ALL FUEL CONSUMED ON THE EAST COAST The shutdown could extend a recent jump in gasoline prices — especially if the outage persists — piling on the pain for drivers as the seasonal peak in demand approaches.
The US Department of Transportation issued an emergency “hours of service” exemption in response to the shutdown that will allow truck drivers transporting gasoline, diesel, and jet fuel to work longer days.
The pandemic had already put the industry under pressure, then a recent press release from the National Tank Truck Association highlighting a shortage of tank truck drivers created additional panic relative to gas/fuel shortages.
“It’s very difficult to pin the exact amount prices may rise, but for now, it appears to be a few cents per gallon, possibly growing more significant if the pipeline remains shut down for more than 2-3 more days,” wrote several fuel analysts.
IMTA did an informal poll of its members and of the 45 carriers contacted, 41 stated that they were seeing fuel prices rising and were very concerned that additional increases will now be likely and continue throughout the summer.
Janelle Stevens Completes 10 years at IMTA Janelle Stevens, Director of Communications, Education and Events for the Iowa Motor Truck Association celebrates ten years with the association. Janelle came to the association from the Iowa Cubs organization and immediately established herself as a valuable member of the staff. Initially her focus was on the development and oversight of IMTA events. But it was quickly determined that she had the skill set along with the management skills to do much more. Janelle has continued to improve IMTA’s events, its education program and most importantly its communication platforms. “Janelle has been committed to our mission since day one. She understands the importance of serving the membership and is continually looking for ways to excel and be more effective in providing valuable ROI to the members. She is valued and appreciated tremendously. We continue to be very proud of her outstanding work and look forward to her continued leadership at IMTA,” said IMTA President and CEO, Brenda Neville.
JANELLE STEVENS
ISSUE 2, 2021
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INDUSTRY NEWS Big Victory in Texas to Strengthen Nationwide Effort to Curb Lawsuit Abuse A bill that proponents say will help control abusive lawsuits against commercial motor vehicle operators following accidents has passed the Texas Senate. House Bill 19 will have a big impact on the commercial auto insurance market, as it aims to limit lawsuits following commercial vehicle crashes its supporters say. The insurance industry-supported measure by Rep. Jeff Leach would, among other things, require a two-part trial in civil actions involving a commercial motor vehicle if requested in a motion by the defendant. In the bifurcated trial system, the driver of the vehicle subject to the civil action must be found “negligent in operating an employer defendant’s commercial motor vehicle” before the lawsuit can proceed to the second phase, which involves a claim against the driver’s employer, according to a House summary of the bill. A Senate analysis explaining the reasoning behind the bill states that around “88 percent of all commercial trucking companies in Texas are considered small mom and pop businesses. These companies, although heavily regulated by the state and federal government, are experiencing a sharp increase in the number of collision lawsuits filed against them. As a result, commercial vehicle insurance rates are skyrocketing, increasing from 10 percent to 30 percent in 2018 and 2019, respectively.” Leach said in his summary that the number of lawsuits arising out of commercial motor vehicle crashes in Texas has increased by 118% over the past 11 years. HB19 first passed the House of Representatives on April 30 with the addition of two amendments, “which included a technical amendment and an amendment requiring TDI to study the impact of the legislation on the insurance industry,” according to the Insurance Council of Texas.
Texans for Lawsuit Reform and the Keep Texas Trucking Coalition supports HB19, as does the Independent Insurance Agents of Texas, the Insurance Council of Texas, and the American Property Casualty Insurance Association (APCIA), which says it is concerned about the increase in attorney involvement in automobile accidents in Texas. The bill’s opponents say it’s a giveaway to JOHN ESPARZA TEXAS TRUCKING trucking companies and insurers. Texas ASSOCIATION Watch, which describes itself as a consumer advocacy organization, said on its website that the bill gives “trucking corporations less incentive to follow safety measures” and makes “it harder to punish trucking companies through our courts when they violate safety standards.” Following Senate passage of the bill, American Trucking Associations President and CEO Chris Spear said in a statement: “Despite the plaintiff bar’s best efforts to lie about and distort the contents of this bill, the Texas Senate took a resoundingly bipartisan vote today to curb lawsuit abuse and restore balance and fairness to the civil justice system.” Texas Trucking Association President and CEO John Esparza added: “With the unanimous passage of House Bill 19, the trial process will continue to ensure accident victims are compensated when wrongfully injured, while also protecting businesses across the state from biased and unfair courtroom tactics.” The Texas House must concur with the Senate version before the bill is sent to Gov. Greg Abbott for his signature. If signed by the governor or allowed to become law, the measure would become effective on Sept. 1, 2021.
Governor Reynolds Ends Federal Unemployment Benefits Programs to Encourage People to “Get Back to Work” Governor Reynolds and Workforce Development Director Townsend announced that Iowa will no longer be participating in the federal pandemic-related unemployment benefits programs, as of June 12, 2021. This program allowed for an extra $300 for all unemployed workers. The Governor also suspended the waiver to employers from being charged for COVID-19 related claims. All unemployment claims will be charged to the employer starting June 13, 2021. This was halted in March 202 as the pandemic forced shutdowns. The state charges varying payroll tax rates to employers depending on how many of their former workers have received benefits.
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IOWA TRUCKING LIFELINER
Governor Reynolds made these decisions because business leaders have expressed concerns about the small number of job applicants they are receiving. Governor Reynolds joined Republican Governors in Alabama, Arkansas, Mississippi, Missouri, Montana, South Carolina, and Tennessee in ending federal programs. “It’s time for everyone who can to get back to work,” Reynolds said in a statement.
GOV. KIM REYNOLDS
INDUSTRY NEWS IMTA Leaders Keeping on Top of Important Trucking Issues The American Trucking Association held its annual Mid-Year Management Conference where the top national issues were discussed. The Iowa Motor Truck Association was represented by several folks that serve in various leadership roles for the national organization. “The mid-year meeting is always a valuable meeting but this year it was even more valuable as we continue to deal with a new administration and the many unknowns that accompany any new President,” said Brenda Dittmer, Weinrich Truck Line, and Iowa state VP to ATA.
Renee & Randy Guillot (Triple G Express Inc.); Dan & Chris Van Alstine (Ruan Transportation); Hugh Ekberg (CRST The Transportation Solution, Inc.); IMTA President Brenda Neville
LAWSUIT ABUSE, INFRASTRUCTURE INVESTMENT, ENVIRONMENTAL INITIATIVES, AND WORKFORCE ISSUES CONTINUE TO BE THE TOP PRIORITIES. The three-day event is filled with informative meetings, educational sessions, and several networking events. The event was held virtually last year due to COVID, so the 2021 event had record attendance with over 400 registrants. “Lawsuit abuse, infrastructure investment, environmental initiatives, and workforce issues continue to be the top priorities. We have to be diligent in our efforts to stay informed and be proactive on these important issues,” said IMTA Chairman Dan Van Alstine, Ruan Transportation.
Representatives from across Iowa attending the Mid-Year Management Conference
ISSUE 2, 2021
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ECONOMIC UPDATE
What a Difference a Year Makes! WHERE WE ARE NOW? The history books will say many things about 2021, but whatever else is recorded, it will go down as one of the strongest years on record for spot and contract pricing increases in the history of trucking in the U.S. The surging demand in both the industrial and consumer economies collided with a trucking marketplace that was already struggling with capacity constraints; the Covid rules which were imposed only made matters worse. Predictably, pricing power has exploded, first in the spot market and in turn in the contract market. After spot market rate increases of over 75% in Dry Van, over 65% in Flatbed, and over 60% Reefer; not surprisingly, followed by contract rate increases of 29% in Dry Van, 18% in Flatbed, and 17% Reefer – both spot and contract rates have surged to new record highs exceeding the halcyon rates reached at the peak of 2018. For many in trucking, who over the last several decades grew accustomed to thinking of pricing increases of more than 5% as ‘very high,’ achieving strong double digit price increases in contract rates seems difficult to imagine. However, as the unimaginable has become reality, those of us with more than a couple of cycles in our rear view mirror, start to become increasingly anxious about the sustainability of the surge and the duration of the strength. We know trucking is a cyclical industry. Conditions this good have never lasted, and they are usually followed by some equally difficult times. Obviously, the eventual outcome will depend on whether economic demand continues to grow (and at what rate it grows), and whether capacity expands (and at what rate it expands). We believe continued rate increases in 2021 are a real probability, and that while strong increases in 2022 on top of the current rates seems irrational, there
door, the experienced investor knows the data is continuing to tell us this party is just getting started.
WHERE ARE WE GOING?
DONALD BROUGHTON
Managing Partner, Broughton Capital LLC
is data suggesting pricing could remain elevated through 2022. We find ourselves in a usual position. After becoming bullish and publishing our outlook, many months before others became bullish or publicly predicted a bullish outlook, we have now been joined by a chorus of bullish forecasts. Normally, the contrarian that lives within us starts looking for reasons to change course when our view is joined by the consensus. Instead, we uncharacteristically find ourselves more confident in our outlook. The experienced investor in us relishes it when the ‘group think’ comes around and shows up where we have already placed our bets, and has learned the hard way that it is extremely painful to stay at the party too long. Nevertheless, our confidence in our higher than anyone else’s forecasts has continued to rise, and almost every incremental data point adds to our conviction in our extremely bullish predictions. Simply put, although our inner contrarian will continue to look for the exit
Continued economic growth at an accelerated pace - 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). Demand exceeds capacity in all modes – Load posting in the spot market is 1.5X levels achieved at the peak of 2018, and >6.0X the rate at the bottom a year ago.
WHAT ABOUT TRUCKING? Dry Van - demand is being driven by strong consumer spending and the explosion in e-commerce. We expect the strength in consumer spending to continue as new household formation has reached a frenetic pace and housing starts are at levels not seen since 2006 (before the 2008 housing crash). We will explain more about the strength of housing in the Flatbed section, but feel required to point out why it drives so much Dry Van activity. Purchasing a new house is only the first step for a young couple. Almost a decade of spending follows the house purchase, as they make the house their home. E-commerce plays an equally powerful role - distribution centers are not the traditional balanced model which Walmart perfected (i.e., homogenous loads inbound are
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matched at a ratio of 1 to 1 with outbound loads of mixed goods that are exactly what each store needs). Outbound loads fully utilize each trailer’s capacity and depending on the retailer and the season, may weigh out before they cube out. In the land of e-commerce fulfillment, inbound loads are less optimized (goods mixed to meet immediate and volatile demand). After each item is bubble wrapped and placed in a cardboard box that is often too large, the outbound loads always cube out and they run at a ratio as high as 8 to 1 when compared to the of inbound loads. This expands the number of loads inbound and explodes the number of outbound loads. Over the road truckers might dismissively point out that, “All of the outbound loads are very short lengths of haul.” While they would be correct in their assessment, we believe that the sheer magnitude of additional drivers needed combined with the ability to offer drivers the luxury of being “home every night” will thwart most over the road Dry Van carriers’ ability to attract and retain enough drivers to grow their fleets. Instead, most will struggle to keep their current fleets seated. Reefer - demand did not collapse quite as much as Dry Van and Flatbed did, which is part of the reason for its lower level of volatility in spot and contract pricing. Grocery stores still had to be stocked during the quarantine and the Covid vaccine is only one of the medical supplies which require temperature control. Although any incremental demand from medical supplies is already fading, an entirely new driver of incremental demand has been created. Not just pizza and Chinese food anymore – over the last year many restaurants failed, but those that survived are thriving. Consumer buying habits have been completely retrained. Diners of all ages
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have learned how to order breakfast, lunch and dinner on their phone. Delivery services such as Door Dash and Grub Hub are booming. In areas where restaurants have fully reopened, many of them are back to pre-Covid (not socially distanced) maximum capacity for in-house dining, yet their receipts from take-out are still exceeding the receipts from dine-in. Since most restaurants do not serve any processed food, they use far more fresh / frozen food stuffs than most households. Since they also tend to make larger serving sizes the amount of food stuffs they consume is magnified even further. We believe the vast preponderance of this shift in purchasing behavior is permanent. If it is, it not only magnifies demand, but in a similar fashion to the e-commerce demand for local drivers, Door Dash and Grub Hub compete for available labor, offering regular home time without the need for a CDL or a drug test. Most Reefer fleets will be unable to grow and will struggle to keep their current fleets seated. Flatbed – strong demand is being already being driven by the construction and automotive industries, with significant waves of additional demand about to be added by the oil & gas exploration, manufacturing and agricultural industries. Housing - there are more millennials than boomers (74.6 million vs. 71.4 million). Longer life expectancies and higher levels of education tend to drive getting married later in life. Just as their parents got married later than their grandparents, they are getting married later. As they finally MOOB (Move Out Of the Basement), they are taking advantage of ultralow mortgage rates and they are often buying houses that are larger and more updated than their parent’s homes. Demographics alone should drive a multi-year boom in housing that will be further supported by the significant populations of Gen-Xs and Gen-Zs that
follow them and the increased use of the home as the workplace by people of all ages. With unshipped export grain balances hitting record highs, agriculture appears to be in the early stages of a significant rebound as well. With the ‘other indicators’ (crane utilization, housing starts, lumber pricing, skilled labor metrics, etc.) remaining uniformly bullish and the rail volumes broadly gaining intensity, we see ever more credence to our “robust growth and surging rate of acceleration of the industrial economy” thesis. The recent rally in WTI crude oil prices, to levels that materially exceed the cost of production via fracking in all the major fields, has already driven rig count dramatically higher. Just as e-commerce and food delivery govern the addition of capacity in Dry Van and Reefer, Oil & Gas Exploration will offer alternative high paying employment to potential drivers for the Flatbed industry. 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. The drivers of demand in each segment are also offering employment alternatives to drivers, thwarting the ability of each mode to add capacity. The combination of sustainable demand and constrained capacity should extend the length of this period of prosperity for the entire trucking industry. Fasten your seat belts because it is going to be an incredible ride! After spending over two decades as one of Wall Street’s top Analysts and one of its leading Market Strategists, Donald Broughton founded Broughton Capital in 2017. Broughton is notorious as a hard-hitting forensic accountant, using Sell ratings more often than any other analyst. He is highly regarded for translating goods flow data into economic forecasts that have proven to be highly prophetic. Additionally, Broughton is convinced that most individuals know much more about the economy than they realize and believes that economists are only boring because they are lazy or choose to be.
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WHEN THE TIME IS RIGHT WHEN THE TREND BECOMES REALITY: Shifting Gears to Zero Emissions and a Practical Approach for Medium- and Heavy-Duty Trucks By Damon Aldrich
For most fleet operators, the first step in moving to zero emissions tends to be about vehicle selection. However, the biggest impediment to electrification is a lack of available charging infrastructure. Making informed decisions is challenging in the ever-changing electrification market. With objective guidance, a cost-effective, scalable and interoperable system is within reach.
A Burgeoning Reality Vehicle electrification is immersing the transportation sector in the most significant powertrain transformations in a century. It was not long ago that the idea of electric cars brought about a few groans and guffaws — mainly due to their quirky designs and reasonable concerns about “range anxiety” — and that was assuming dealers actually offered zero-emission, battery-electric cars, let alone zero-emission commercial vehicles capable of heavy loads and dynamic routes. The questions abounded — “Is electrification really happening?” — and the response is best answered by observing
what car and truck original equipment manufacturers (OEMs) are doing, as well as the magnitude of investments in EV R&D. See Daimler with its battery-electric (eCascadia) and hydrogen fuel cell (eActros) models in production and an $85 billion investment in EV development through model year 2025. Similarly, PACCAR and Volvo have launched electric heavy-duty versions of their most popular class 8 trucks, with the Volvo LIGHTS program facilitating the change of California’s utility rules to allow private businesses to sell electricity as a fuel at public stations for mediumand heavy-duty trucks. State and federal laws and mandates for zero-emission goods movement are normalizing a trend of electric vehicle adoption — accelerating the transition to 100% zero emissions by 2050 — and the number of such mandates is growing. What began several years ago as ZEV mandates in California and a few coastal states has grown to 15 states and the District of Columbia “committing to work collaboratively to advance and accelerate the market for electric medium- and heavy-duty vehicles, including large pickup trucks and vans, delivery trucks, box trucks, school and transit buses, and long-haul delivery trucks (big-rigs),” according to the California Air Resources Board. What’s more, the Biden administration released a fact sheet in March 2021 that announces a $15 billion investment plan in new infrastructure for charging, alternative fuel corridors, funding for charging R&D, and to transition the federal fleet to zero emissions. One of the alternative fuel corridors designated includes nearly all of a long stretch of Interstate 80 in the eastern half of Iowa. To be fair, while sightings of Teslas and new battery-electric trucks may remain limited in some areas, the national and regional trends are prompting a growing realization by fleet operators, their customers and drivers themselves: It’s not a question of if, but more of when and how, when it comes to being prepared for successful, robust zero-emission mobility. While many analysts believe that 2021 is a pivotal
ACCELERATING
THE TRANSITION TO
100 PERCENT
ZERO EMISSIONS
BY 2050
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year for the start of large-scale deployments, operators must maintain a critical eye on the current vehicle range achievable by today’s EVs. The next year or two will also yield a steep learning curve for operators — from utility coordination for service upgrades for new electrical loads involved in charging, to integrating electric vehicles into operating norms of vehicles so they are truly ready for duty.
Jumping In (Vehicle or Charger First) Let’s say you’re convinced: “Zero emissions is real; it’s happening. Now what?” In many cases, customers begin the EV transition with the selection of new or replacement electric vehicles — with or without a charger equipment offering from the vehicle manufacturer. Turnkey development of charging or fueling infrastructure is offered by vehicle OEMs, charger manufacturers and resellers, charging network operators and EV consultancies. But beware: While turnkey offerings can be beneficial, customers can be subject to one-size-fitsall biases and knowledge gaps that lead to unplanned scope, stranded assets, additional costs and — worst of all — a lack of end-to-end accountability that could leave customers without reliable infrastructure when they need it most. Similarly, starting with an electric charger product selection may commit owners and operators to products that are misaligned with their vehicle and duty-cycle requirements, long-term operational goals, and customer commitments. Conversely, if the decision is to purchase ZEV fleet vehicles first and figure out how to charge or fuel them later, service interruptions, unanticipated costs, lengthy implementation time, lack of available space and other constructability problems may arise. Understandably, many operators feel pressure to jump on the zero emissions bandwagon. But selecting the right partner with an objective point of view will accelerate your realization of electrification’s many long-term benefits. Furthermore, all of these closely related decisions are subject to technology advancements and obsolescence cycles that should be carefully considered to avoid future stranded assets.
Understandably, many operators feel pressure to jump on the zero emissions bandwagon. But selecting the right partner with an objective point of view will accelerate your realization of electrification’s many long-term benefits.
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Avoid Turnkey Risks The objectivity of programmatic design-build approaches, agnostic to hardware, software and vehicle brands, is a vital element in providing lasting, high-quality solutions that operators can depend on. An experienced design-builder starts with your vision and operational data in mind. Upon initiation, the design phase prioritizes the customer’s operational requirements above the capabilities of any single software solution, vehicle or charger. By starting with a criteria-based assessment, fleet operators can navigate the complicated electrification environment and make decisions that will cost less and serve their companies well over the long term. During construction, and without the benefit of a sound, programmatic design, customers are exposed to the greatest potential for unanticipated costs and operational delays. The role of a design-builder is to minimize those risks through holistic planning. Specifically, the design-builder is responsible for linking operator strategy, such as operational and financial targets, with the right equipment, the right design and expedited execution. What follows are some of the common pitfalls and risks.
Unplanned Project Dependencies Determination of an operator’s load profiles is critical to forecast both expected energy costs and any utility upgrades necessary for the required charging infrastructure. The latter will vary greatly site to site depending on facility operations, dwell times, vehicle performance, charger power, available electrical capacity and condition of the local power grid. Location is consequential; for example, the electric capacity of the grid near a bus yard in a remote area is typically lower than the grid capacity near an urban bus yard or warehouse. It is important to engage with the local electric utility early to understand the process, timeline and requirements for service upgrades and interconnection.
Cost Overruns The bulk of charging infrastructure installation costs falls within the construction phase but can be estimated much earlier, in the project initiation and design phases.
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Well-supported cost estimates are critical to see that project funding and finance mechanisms can be determined as early and accurately as possible. Otherwise, cost overruns may result, and federal, state and utility funding may become oversubscribed, leading to budget gaps or requiring delays until funds are replenished.
Charger Unknowns While the EV charging market has matured significantly in recent years, product performance, longevity and reliability estimates are still difficult to verify. Post-installation warranties and service plans may be unavailable or costly, requiring customers to determine early in the purchase cycle what uptime service levels, on-site labor, parts inventory and other support they will need.
The ‘Plug-and-Play’ Fallacy A charger may look like an appliance, but proper operation depends on a number of factors, including network connectivity, firmware/software compatibility and scheduled maintenance. Furthermore, most medium- and heavy-duty electrification initiatives should consider the benefits of integrating chargers with fleet management systems and load mitigation technologies (e.g., site controllers, dynamic load sharing and other features to lessen demand charges). This can be challenging because information on equipment capabilities, compatibility with software protocols, constructability and interoperability with vehicles and other infrastructure is often unavailable or requires extensive knowledge to implement.
Advantages of Design-Build A programmatic design-build approach is advantageous in many industries, but it is particularly valuable for fleets, because the energy requirements and constructability of new charging technology require deep knowledge and experience. During the initial concept phase, the design-build team will explore important questions regarding your operations and facility needs, including: • Site feasibility and layout. • Existing on-site power and available utility service capacity upgrade costs. • Charger location selection, technology options and automation requirements.
• Load growth over time with scaling of electric vehicles (future-proofing). • Battery storage as part of a more comprehensive resiliency plan. • Vehicle performance data and compatibility with service requirements. As EV technology evolves in range and capability, and as energy requirements grow, design-build will provide many additional benefits.
Flexibility and Continuity In the developing EV market, project requirements can change in response to new technology, building code requirements, product availability and other unforeseen factors. For example, site selection depends in part on the constructability of a particular charging solution, available electric capacity from the local utility, and other considerations. An experienced design-build team can anticipate and mitigate many of these challenges.
Ability to Work Further Upstream in the Project Development Cycle Because the design-build team works together from initial concept through completion, owners benefit from the knowledge and experience of electrification professionals in engineering, procurement and construction throughout the project. This keeps the project in sync. For example, early decisions on charger socket locations in a freight or bus yard can be evaluated holistically to meet connectivity requirements for smart charging, code requirements for constructability and operational requirements for interoperability among different vehicle makes and models.
Vendor-Agnostic Approach When operators turn to a design-builder to begin their electrifi-
cation transition, they avoid the conflict of interest that comes with relying on a single vehicle or charger OEM for objective advice on other available solutions. In addition, once options are fully considered, planning any project does not pivot solely on accommodating charger equipment or vehicle requirements. Most owners will be better served by designing holistic electrification requirements first and then seeking the product solutions and components that are the best functional and economic fit.
The Time Is Right Operators have near-term opportunities to fund the learning curve while transitioning to electric. Technology is continually evolving and presenting new opportunities for energy and operational efficiencies. It can be hard to anticipate changes and gather the detailed and accurate information you need to make intelligent long-term decisions. The design-build approach addresses these challenges by integrating electrification planning from initial concept through completion. An experienced team includes members who can work far upstream of the construction process to study developing vehicle and charger technologies; analyze the existing electric infrastructure and identify required modifications; and evaluate logistics, such as how to make charging stations effective in congested depots and goods movement yard. It’s never too early to talk to an experienced design-build team about your electrification goals. Because a design-build team has knowledge and experience in all aspects of the process and is completely focused on electrification, it knows where the trends are headed. The sooner you begin the design-build process, the more that team will be able to help in putting together an effective plan.
IT’S NEVER TOO EARLY
TO TALK TO AN EXPERIENCED
DESIGN-BUILD TEAM ABOUT YOUR ELECTRIFICATION GOALS
Damon Aldrich leads EV infrastructure deployment in California for Burns & McDonnell. He has a background in light-, medium- and heavy-duty transportation electrification projects across utility, municipal and vehicle OEM market segments. Before Burns & McDonnell, he oversaw EV charger installation, procurement and customer technical support for an EV firm, and served as director of vehicle services and in several other operations leadership roles at a major automotive OEM spanning nearly 18 years.
DAMON ALDRICH Burns & McDonnell
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ATA UPDATE Trucking Association CEO Says U.S. Supply Chain is Nearing Crisis Calls trucking the ‘linchpin of the United States’ supply chain,’ urges bipartisan action on infrastructure American Trucking Associations President and CEO Chris Spear told the Senate Commerce, Science & Transportation Committee that growing pressures on the U.S. supply chain are fast approaching crisis levels, and that immediate action from Congress is needed to ensure our economic recovery is not derailed by further disruptions. In testimony before the Subcommittee on Surface Transportation, during a hearing titled Freight Mobility: Strengthening America’s Supply Chains and Competitiveness, Spear outlined the trucking industry’s key priorities on infrastructure, workforce, safety, and the environment, detailing specific legislative steps lawmakers must take to ensure the integrity and longevity of the nation’s supply lines as the economy climbs out of the COVID crisis. “Investments in our supply chain are desperately needed, including the roads and bridges that connect our ports, rail yards and airports to the National Highway System. Do that, and you will witness measurable efficiencies, including gains in productivity and safety, job growth and sustainable employment, and historic reductions in carbon emissions,” Spear told members of the committee. “With your leadership, we remain hopeful that federal action can solve this growing national crisis,” he said. “Understand that if these investments are indeed made, you have the opportunity to go home before your constituents and point and say: that road, that bridge, that railroad, port, waterway, airport… I did that. I made that happen.” The trucking industry moves more than 72% of the nation’s freight tonnage, and over the next decade, trucks will be tasked with moving 2.4 billion more tons of freight than they do today. Breakdowns in our surface
CHRIS SPEAR
ATA President & CEO
transportation infrastructure, as well as a severe and widening truck driver and diesel technician shortage, threaten the industry’s ability to keep goods moving safely and on time. Freight bottlenecks and congestion on the National Highway System already cost the trucking industry an annual 1.2 billion hours of lost productivity, which is equivalent to more than 425,000 drivers sitting idle for an entire year — adding $75 billion to the cost of freight transportation. In addition, the industry currently faces a shortfall of nearly 61,000 drivers and will need to hire roughly 1.1 million new drivers over the next decade to keep pace with economy’s increased freight demands. Spear called on the Senate panel to advance a bipartisan surface transportation infrastructure bill this year, focused on roads and bridges, that is funded with a modernized user-fee system (gas/fuel tax). He also called on lawmakers to pass the DRIVE-Safe Act, legislation to remedy the driver shortage by promoting opportunity and enhancing safety training for emerging members of the trucking workforce. The bipartisan bill is backed by more than 117 organizations representing all levels of the U.S. supply chain.
INVESTMENTS IN OUR SUPPLY CHAIN ARE DESPERATELY NEEDED, INCLUDING THE ROADS AND BRIDGES THAT CONNECT OUR PORTS, RAIL YARDS AND AIRPORTS TO THE NATIONAL HIGHWAY SYSTEM.
THE INDUSTRY CURRENTLY FACES
A SHORTFALL OF
61,000
DRIVERS
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ATRI UPDATE New Research Documents the Realities of a National Vehicle Miles Traveled Tax
REBECCA BREWSTER ATRI President & COO
The American Transportation Research Institute has released a report detailing the costs of deploying and operating a national vehicle mile traveled (VMT) tax. With a goal of understanding the opportunities and challenges of a federal system, the research explored the technical and administrative requirements, as well as the costs of operating a VMT tax program.
tag of $13.6 billion and require ongoing replacement, telecommunications costs of approximately $13 billion annually, and account administration would be an additional $4.3 billion each year. Additionally, credit card transactions for electronic payment and even the shipping costs for hardware could each cost more than $1 billion.
It was found that replacing the federal fuel tax with a VMT tax that is assessed on 272 million private vehicles could result in collection costs of more than $20 billion annually – or 300 times higher than the federal fuel tax. The central reason for this large increase in costs is the shift in collection points – from a couple hundred fuel terminal operators to every registered motor vehicle in the U.S.
“With policymakers preparing to lay out a vision for the future of America’s infrastructure, ATRI’s analysis could not come at a more critical time,” said ATA President and CEO Chris Spear. “Most experts agree that some sort of VMT system is a part of that future, and ATRI’s report makes clear that implementing it will take thoughtful leadership, cooperation from stakeholders and a strong plan to transition away from current funding streams.”
Additionally, the report found that hardware costs alone would have an initial price
Some National VMT Tax Program Realities » A VMT tax program will move fuel tax revenue collection from fewer than 300 federal taxpayers to 272 million vehicle accounts. » Millions of vehicles and/or households will be unable to participate in a national VMT research program, due to obsolete vehicles, and/or inaccessibility to bank accounts, internet transactions and/or cellular coverage. » The most realistic technology approach would involve an onboard device, or dongle, which starts at $50 each. » The estimated cost to provide dongles to 272 million vehicles is approximately $13.6 billion. Vehicles manufactured before 1996 cannot use a dongle/OBD device, requiring a separate program. » The ATRI cost analysis does not include device packaging and shipping costs. If packaging and shipping were as little as $5.00 per dongle, initial shipping costs would be approximately $1.36 billion. » Collection costs of 40% for a federal VMT tax would be 30 times more expensive than collection costs for the federal motor fuels tax. The administrative cost to collect federal highway revenue will increase from 0.2 percent of federal fuel tax revenue collected, and 1-2% for state fuel tax administration, to 40% based on the existing Oregon VMT model (program administrative cost). If a long-term goal of dropping admin costs to 10% is realized in a national VMT tax program, it would still require $8 billion annually to manage the program. » Based on public data from other programs and industries, it is estimated that evasion and noncompliance with the program will exceed $7.87 billion annually. This loss will either reduce infrastructure investment or could be added to the costs borne by compliant VMT taxpayers.
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ATRI UPDATE ATRI Celebrates 20 Years of Research Excellence The year 2021 marks an important anniversary for American Transportation Research Institute (ATRI) - 20 years of providing critical research to address the trucking industry’s top issues. Since its reorganization into ATRI in 2001, the Institute has relied on charitable contributions from industry stakeholders to support our research improving the industry’s safety and productivity. ATRI is appreciative of its many supporters which includes trucking companies, state trucking associations, vendors and even individuals. “IMTA has been proud to be a loyal support of ATRI. This organization is critically important in our efforts. Each year ATRI provides us with facts specific to Iowa and the trucking industry. Additionally, the various research efforts they pursue often times are in lockstep with the IMTA priorities. The data and analysis they provide are extremely valuable in our efforts with legislators and regulators. We view them as one of our most important partners,” said IMTA President & CEO Brenda Neville. As ATRI celebrates their 20th anniversary they are most appreciative of their loyal supporters. This consistent support allows ATRI to deliver on their mission each and every day. Rebecca Brewster, President & COO of ATRI, was recognized during ATRI’s 20th Anniversary Reception & Dinner at the recent Mid-Year Management event.
Members of the ATRI Board of Directors on-hand for the celebration Front Row: Rebecca Brewster (ATRI), Brenda Neville (Iowa Motor Truck Association); Judy McReynolds (ArcBest Corporation); Dan Murray (ATRI) Back Row: Andrew Boyle (Boyle Transportation); Ben McLean (Ruan Transportation); John A. Smith (FedEx Ground); Dennis Nash (Kenan Advantage Group); Rich McArdle (UPS Freight); Chris Spear (ATA); Hugh Ekberg (CRST The Transportation Solution, Inc.); James D. Reed (USA Truck)
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IMTA EVENTS 2021 IMTA AWARDS PROGRAM September 15 Sheraton West Des Moines West Des Moines, Iowa
Recognize Your Outstanding Employees — Be a Part of the 2021 IMTA Awards Program 8 Different Awards Categories, Awarding Nearly $10,000 in Cash Prizes! Every company has outstanding employees and now you have the opportunity to give your star performers the recognition they deserve. IMTA has proudly showcased the superstars of the trucking industry through its annual awards program. This featured event is the grand finale at IMTA’s annual management conference and is a special evening of recognition as award winners take the spotlight; and also take home some serious cash among other special gifts for a job well done.
Award categories include: • Professional Maintenance Technician • Outstanding Fleet Maintenance Program (company) • Outstanding Fleet Safety Program (company) • Outstanding Professional Driver (individual) • Master Truck Driver (individual) • Outstanding Dispatcher (individual) • Outstanding Safety Professional (individual) • Public Relations Award --- Carrier & Allied
DEADLINES:
Information Packets Available: Tuesday, June 15 Deadline to Submit Information Packets: Friday, July 16
2021 TRUCK DRIVING CHAMPIONSHIPS August 5 & 6 Hilton Downtown Des Moines Des Moines, Iowa
New Venue, New Schedule, New Year! After cancelling this event last year due to COVID, we are excited to announce that we are holding the annual Truck Driving Championships this year, and we hope that you will consider nominating drivers to compete. Due to COVID, we were forced to find a new location and we are excited to be holding the event at the Iowa Events Center parking lot and the Hilton Hotel, all downtown Des Moines. In addition to a new location, the schedule will be different this year and will include a kickoff evening at the Iowa Cubs baseball game. We are super excited about the 2021 TDC and hope that you are as well. While some things have changed this year, the mission of the event remains the same – providing a first-class experience for Iowa’s finest professional drivers!
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DEADLINES:
Information Packets Available: Thursday, June 3 Deadline to Submit Information Packets: Friday, July 16
IMTA EVENTS IMTA TECHNOLOGY CONFERENCE August 18 & 19
IMTA to Host First Ever Technology Conference
IMTA Office Des Moines, Iowa
Technology advancements in the trucking industry are booming and IMTA members are hungry for as much information as possible regarding technology. This conference will introduce members to a number of different technology applications and provide the perfect opportunity to hear from other carriers regarding the technology. You will find informative break out sessions, networking sessions and expert panel discussions on the schedule of this inaugural conference.
IOWA STATE FAIR August 12 - 22 Iowa State Fairgrounds Des Moines, Iowa
Promoting Iowa’s Trucking Industry at the Iowa State Fair One of IMTA’s top priorities is workforce development and our show trailer and driving simulator are just some of the tools that are being used to address this important priority. In a recent event at the fairground called “Future My Future” over 500 high school students walked through the show trailer with almost 200 spending time in the driving simulator. Because of the popularity of that event, the Iowa State Fair reached out to IMTA and offered us a great location to set up the trailer and show off the trailer and driving simulator. The demographics of the state fair attendees is what we are looking for in potential drivers so this will be an excellent opportunity to promote the industry and highlight the many rewarding careers that exist in the industry especially for drivers and mechanics.
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IMTA EVENTS
IMTA EVENTS ARE MAKING A COMEBACK:
IMTA Maintenance Technician Competition Crowns a (Repeat) Winner
Timing could not have been better when it came to hosting the second annual Maintenance Technician Competition. With pandemic restrictions being lifted technicians, company representatives, and even a couple spouses were able to cheer on the ten professional technicians participating in the competition. The pandemic unfortunately derailed our plans for a 2020 event. However, to get back to our routine of hosting in-person events, the planning committee stepped up and made sure the event served not only as a competition but as a safe, celebration for a job well done. “What the trucking industry experienced during the pandemic certainly proved to be challenging to all. But these guys, the technicians, did not even blink an eye to the increase in challenges that the pandemic posed to their shops. They are problem solvers through and through,” said committee member Jerry Bender, Midwest Wheel Companies. During the competition technicians took a written test and then participated in the hands-on portion of the competition. During the hands-on rounds, the technicians were challenged by eight different vendors by having to perform maintenance functions on things like brakes, tires, electrical, wheel-end, fifth wheels, suspensions, and identifying safety-related defects planted on a truck.
Besides the competition portion of the event, the participating technicians had various opportunities to network with the other technicians and the vendors that participated in the stations. “It is always nice to shop-talk with others in your field. You get to learn from their experiences, and I think we can all say that while we think we have personally seen it all, there are other stories out there that are just as mind-blowing. These are great guys that I hope to see again next year,” said participant John Snyder, Cornhusker International Trucks. When all was said and done, Jerry Bender & Jason Rose with Midwest Wheel Companies presented the following winners with their sponsored awards:
First Place — James Wheetley, Ruan Transportation
Second Place — John Snyder, Cornhusker International Trucks
Third Place — Dakoda Brown, Ruan Transportation
2021 Maintenance Technician Competition Committee Special thanks to our planning committee who dedicated time, expertise, and talents in getting this event pulled together. • Jerry Bender, Midwest Wheel Companies • Damon Gray, Ruan Transportation • Jason Jenkins, Walmart Transportation • Tim Modlin, Thermo King Sales & Service • Aaron Weiland, Schuster Co.
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IOWA TRUCKING LIFELINER
Damon Gray (Ruan Transportation); Tim Modlin (Thermo King Sales & Service); Aaron Weiland (Schuster Co.); Jerry Bender (Midwest Wheel Companies)
IMTA EVENTS
Front Row: James Wheetley (Ruan Transportation); Mike Todd (Ruan Transportation); Nate Finnstrom (Housby); Randy Glasgow (Thompson Truck & Trailer)
Nate Finnstrom (Housby) going through the electrical challenge at one of the testing stations.
Back Row: Mitchell Engelkes (Ruan Transportation); Neil Niehus (Schuster Co.); Dakoda Brown (Ruan Transportation); Chris Cross (Housby); John Snyder (Cornhusker International Trucks); Steve Most (Anderson Erickson Dairy)
Save the Date! National Technician Appreciation Week September 21 – 25, 2021
2021 Maintenance Technician Competition Sponsors As with any IMTA event, our sponsors play a big part in ensuring the success of the event. Thank you to the following companies for committing to the event. • GATR Truck Center • I-State Truck Center / Interstate PowerSystems • MHC Kenworth • Mid-States Utility Trailer Sales, Inc. / Keizer Co. • Midwest Peterbilt Group • Midwest Wheel Companies • O’Halloran International, Inc. a Trivista Company / Quality Services Corp. • Ottsen Oil Co. • Papa’s Truck and Trailer Repair • PrePass Safety Alliance • Thermo King Sales & Service • Thompson Truck & Trailer • Truck Center Companies • Truck Country • TrueNorth Companies
In a more hands-on, interactive station, John Snyder (Cornhusker International Trucks) participates in the fifth-wheel station.
2021 Maintenance Technician Competition Station Vendors A huge thank you to the vendors who supplied all the stations for the event. They provided a great deal of time during prep work and on-site at the event. • Bendix • Hendrickson • Holland • Iowa DOT
• MEI • Pomp’s Tire • Purkey’s • Stemco
And an even bigger thank you to Truck Center Companies for hosting this two-day event at their Altoona facility.
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CORNERSTONE SPONSORS THANK YOU TO OUR 2021 CORNERSTONE SPONSORS As of May 31, 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
ZF Group / WABCO
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 events save the date IOWA TRUCK DRIVING CHAMPIONSHIPS
Thursday, August 5 & Friday, August 6 Hilton Downtown Des Moines & Iowa Event Center
LEAD IMTA CONFERENCE
Wednesday, August 11 & Thursday, August 12 IMTA Headquarters
IMTA TECHNOLOGY CONFERENCE
Wednesday, August 18 & Thursday, August 19 IMTA Headquarters
ANNUAL MANAGEMENT CONFERENCE
Tuesday, September 14 & Wednesday, September 15 West Des Moines Sheraton
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ISSUE 2, 2021
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IDOT UPDATE Driving a commercial vehicle in Iowa? 511 has made some updates to help you! Professional drivers have a myriad of tools at their fingertips to complete a successful trip. For more than two decades, Iowa’s traveler information website, www.511ia.org has been one of those tools. As you may have noticed, the www.511ia. org website recently went through a major overhaul. For more than a year the Iowa Department of Transportation has ran a test version of the new site alongside the existing site and gathered your feedback on features and functions. With your comments taken into consideration, the new site was fully launched March 17. The “old” fullfeatured version and “trucker” versions of the 511 websites were retired. The information from both sites have been folded into one robust site designed to allow you maximum flexibility to find the information you need. For commercial drivers, this change means no longer having to navigate to a separate website version. Simply turn on the Commercial Vehicles toggle at the bottom of the layers menu to put it in “trucker mode”. Turning on this toggle automatically activates the “Restrictions for Commercial Vehicles” and “Weigh Stations” layers. All other layers are available to be activated by clicking on that layer.
Different colored icons allow you to see at-aglance if a truck stop is reporting parking availability and if that location has available spaces.
Finding truck parking along Iowa Interstates is also made easier by www.511ia.org. By clicking on the “Rest Areas” layer, commercial drivers can click on a specific site, whether that’s public rest areas or select private truck stops, to see a list of amenities and available parking spots where that information is available. Gathering updated information on the road is vital to keeping the nations trucking industry moving safely and efficiently. Using these handy features on www.511ia.org offers a way to help you plan a safer, more efficient trip.
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IMTA UPDATE IMTA Director of Safety & Compliance Don Egli to Retire on July 1 With over 40 years in the trucking industry, Don Egli will be officially retiring on July 1, 2021. Don has spent the last 16 years at the Iowa Motor Truck Association overseeing the association’s safety and compliance efforts. He started his career in 1974 driving a truck for Landgrebe Motor Transport in Valparaiso, Indiana and quickly discovered a passion for an industry that became a worthwhile and satisfying career to him. While he is always comfortable and at ease behind the wheel of a truck (he still has a CDL), his real calling was in safety and helping people. Don not only has an unwavering commitment and passion to highway safety, but he is as equally passionate in his quest to help people understand and appreciate the value of having a true safety culture within their company. Don’s endearing and simple approach to safety and compliance made him a trusted advocate and treasured friend to countless company CEOs, truck drivers, safety personnel and regulatory officials across the nation. Not only does he have a deep understanding of the many regulations that impact the industry, but more importantly, he is gifted in his ability to help even the most inexperienced gain that same understanding and appreciation for the regulations and rules that are simply part of a trucking operation. While trucking has been his focus for over 4 decades, his faith in God and a deep love for his family has always been the impenetrable pillar of who he is as an individual. His Christian upbringing on the cherished family farm in Kouts, Indiana provided the important foundation that was pivotal in his continued success.
The love of his life, Terri, has been by his side throughout it all and has been the other “rock” of support that has allowed him to share his time, expertise, and support to the trucking industry. While it will be very difficult to replace such a valued member of DON EGLI IMTA Director of Safety & Compliance the IMTA team, we recognize that Don’s hard work and years of dedication to the industry must now be rewarded with some well-deserved time off that is only possible with retirement. IMTA will be hosting an official retirement party for Don on Thursday, July 1 from 3:00 - 5:0o PM at the Iowa Motor Truck Association offices. This will be an opportunity for IMTA to show our appreciation and gratitude for Don’s service to the association and Iowa’s trucking industry.
IMTA WILL BE
HOSTING AN OFFICIAL RETIREMENT
PARTY FOR DON
JULY 1ST FROM 3-5 PM
IMTA OFFICE (DES MOINES)
Don’s enthusiasm for the annual TDC shines through as he addresses the crowd of drivers and thanks them for a job well done.
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IOWA TRUCKING LIFELINER
IMTA UPDATE
1
What is your favorite memory from your career in trucking?
The trucking industry gets you into many places and situations that the average American seldom gets to see. I was honored to be the Chairman of the 2017 National Truck Driving Championships. Not because I wanted the recognition, but because it was something I could do for the truck drivers across America.
2
hat is your favorite IMTA memory over your W last 16 years at the association?
This is a hard question to answer. I have enjoyed everything about my time at IMTA. Starting with our events, to member visits, to being able to assist carriers with the safety and regulatory issues, to the many, many friendships I have made. But I would have to say that the most rewarding experience was when I was able to assist a carrier who had lost their operating authority due to something that one of their drivers had done. They put their heart and soul into correcting the issues that they had, and I have to say that I had tears in my eyes when I received word that their operating authority had been reinstated.
integrity and how to not be afraid to show my Christian faith in the workplace. Then it would be George Crouse. I had many great talks with George over the years and watched how he conducted himself in the business world. The last, and most important, would be my wife, Terri. She has kept me grounded and has been my sounding board for many years.
3
7
What was your favorite IMTA event and why?
Without a doubt it is the Iowa Truck Driving Championships. Anyone who knows me knows the support and respect that I have for our truck drivers, both in Iowa and across the country.
4
What motivated you to come to work every day?
Growing up on a dairy farm, my parents instilled a work ethic into us at an early age. I have always said that our IMTA members are our extended family. It was exciting coming to work every day, wondering what new situation would come our way and figuring out how we could help with a resolution.
5
hat was the biggest change you saw in the W trucking industry over your time in the industry?
I would say the improvement of safety and regulatory technology. Who would have thought that in my lifetime we would have the technology that we have today and on the horizon?
6
ho were some of your biggest mentors W throughout your career?
First and foremost my father. He taught us a work ethic on the farm that has stuck with me throughout my life. My mother taught me patience. Next would be Scott McCallister, a former Ruan Regional Vice President who saw something in me and gave me my first opportunity to get into the safety field. Next it would be Roland Weaver, a former Regional Safety Manager at Ruan. Roland taught me how to be a man of
Don was heavily engaged with the Iowa Council of Management, including their various driver appreciation events throughout the years.
hat would be some “words of wisdom” you W would share with someone that is coming into the trucking industry?
Never give up and never think that you know everything that there is to know.
8
hat are you looking forward to most once you W retire?
9
hat are some things you hope to do once you W are not working full time?
I am looking forward to spending time with my wife and our family. Over the years Terri and I have done everything together, and I cannot wait until the time that I do not have to tell her goodbye in the morning.
We will be spending a lot of time at our home in Naples, Florida, so I guess I’ll have to learn some older people stuff, like shuffleboard, bocce ball, etc.
10
Any other comments?
I would like that thank everyone for your kindness, friendship, and support over the years. You have all had a part in making the last 47 years enjoyable, entertaining, and meaningful to me. I will miss the daily responsibilities, but I am excited about what the future holds for the Egli family. God is so good!
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FINAL THOUGHT
Never give up the fight….
Even if you were not a golfer, the news of Phil Mickelson, the oldest golfer to win a major PGA Championships on Sunday, May 23, was one of those “feel good” moments that do not happen often enough. The previous record was held by Julius Boros, who won the 1968 PGA Championship at 48 years old. As Mickelson drained the final putt to win the tournament, fans erupted with wild cheers at the Ocean Course, and it was truly a positive and historic moment. However, the real story was in a tweet that Mickelson had sent out on May 11 (12 days earlier) saying; “I’ve failed many times in my life and career and because of this I’ve learned a lot. Instead of feeling defeated countless times, I’ve used it as fuel to drive me to work harder. So today, join me in accepting our failures. Let us use them to motivate us to work even harder.” We can all relate to those words, right? But those of us in the trucking industry may have an easier time relating to those words
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IOWA TRUCKING LIFELINER
because more often than not, the trucking industry gets knocked down. Often, the trucking industry is taken for granted and is underappreciated. But despite feeling defeated truck drivers, mechanics, dispatchers, safety directors and many other trucking employees get up and go to work every day with the motivation and dedication that is needed to deliver the products that everyone depends on. These committed employees are never deterred by the lack of appreciation, negative press and misconceptions that prevail. Instead, they use it as fuel to work harder, work smarter, and do a job that serves everyone. During the pandemic, the industry finally got the recognition it deserved. Seeing the big trucks on the road offered comfort and a sense of certainty that food, toilet paper, and other important items would still show up on the shelves. As we moved past the pandemic and looked towards recovery, once again it was trucks that were the heroes as they delivered vaccines to every corner of the United States. We all enjoyed the praise, recognition, attention, and mostly the respect that was long overdue. But we also know that those “warm fuzzies” can be short lived and now more than ever, we must keep up the fight
to maintain that positive image. Trucking is a hard and demanding business. Professional truck drivers must endure a variety of obstacles and challenges as they share the road with millions of people. Mechanics, dispatchers, safety directors, company CEOs, risk managers, and every other job in a trucking company faces continual challenges while playing an important part in every load that is delivered. Trucking is essential and important. Those of us in the industry never lose sight of the importance of this industry. We know how rewarding it is to work in the trucking industry but a whole lot of other people do not know this important fact. Now more than ever, we need to remind people of how important the industry is and the many opportunities that exist in the industry. We need people to get into the trucking industry, to fill all the different jobs that are needed to deliver the products that we all depend on. Be an advocate, be a recruiter and most importantly, be a fighter – always defend this industry and in doing so we can continue to create those “feel good” moments that happen every day when a truck delivers a load safely.
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