TRUCKING & MARIJUANA
An issue that is going to be in the forefront & the trucking industry cannot & will not sit this one out. Issue 3, 2021
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Issue 3, 2021
Trucking Responds to Vaccine Requirements
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A large number of seats could wind up unfilled if even a small percentage of drivers refuse to get the vaccine, at a time when trucking companies are already straining to fill seats in order to take advantage of the high demand for their services.
One of History’s Biggest Booms Has Begun
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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. As a result, the demand for transportation services will continue to grow.
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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Members in the News
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Industry News
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Economic Update
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ATRI Update
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ATRI Update
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IMTA Update
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Final Thought
OUR STAFF BRENDA NEVILLE, CAE President & CEO
brenda@iowamotortruck.com
JANELLE STEVENS Director of Communications, Education & Events janelle@iowamotortruck.com
ALLISON MEINERS
Director of Safety & Member Services allison@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
IOWA MOTOR TRUCK ASSOCIATION 717 East Court Ave, Des Moines, IA 50309 515.244.5193 | iowamotortruck.com
SPONSORS IFC p4 p10 p11 p18 p19
Thompson Truck & Trailer
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Truck Center Companies
Great West Casualty
Renewable Energy Group Truck Country TrueNorth Companies
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MHC Kenworth Central Trailer Service O’Halloran International
IMTA Cornerstone Sponsors
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McGowen Hurst Clark Smith Thermo King Sales & Service
IBC BC
Midwest Peterbilt Group Midwest Wheel Companies
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Quality Services Corp. Washer Systems of Iowa Royal Flush Truck & Trailer Wash
ISSUE 3, 2021
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“That was as special and breathtaking a setting for a baseball game that I can ever remember being a part of.” NEW YORK YANKEES MANAGER AARON BOONE when describing the Field of Dreams game that brought Major League Baseball to Iowa
“In Iowa, we will continue to support individual liberty over government mandates.” GOVERNOR KIM REYNOLDS in response to an investigation by the Iowa Department of Education over the state’s ban on mask mandates
“I’ve learned about business, I’ve learned about taxes, I’m learning about finances. I’ll just continue to do what I can do off the court so I can excel when I’m done on the court.” IOWA BASKETBALL STAR JORDAN BOHANNON on how NCAA’s name, image, and likeness has taught him more than he expected
LISTENING IN “The fair being closed for 11 days is like a regular business being closed for 12 months.” IOWA STATE FAIR CEO GARY SLATER on what it means to have the fair return after cancelling in 2020
“We have to protect our mind and our body, rather than just go out there and do what the world wants us to do.”
“Either run or step away. I sometimes feel either way I make a decision, there will be some regret sometime down the road.”
OLYMPIC GYMNAST SIMONE BILES regarding mental health preventing her from competing in the 2020 Tokyo Olympics
U.S. SENATOR CHUCK GRASSLEY when discussing whether or not he will run again for U.S. Senate
CHAIRMAN'S MESSAGE Did you make a difference today? our grocery stores, to the gasoline for our vehicles, to the As many of you know, that is a question that I frequently medicines, and yes even the toilet paper, (if it wasn’t on the ask people. And as you could also expect, this random ques- shelf it wasn’t a trucker’s fault), came via a truck. On reflection produces a variety of interesting and thought-provoking tion, what these dedicated professionals really delivered, answers which I always enjoy hearing. was peace of mind that we would all be ok. The pandemic In its simplicity, this question tees up a lot of responses offered disruption and uncertainty, our industry brought and always makes people think, which is why I always like some comfort, some feeling of normalcy. to throw it out there. From the earliest days of As I come to the end of my role as the Chairman of the Iowa Motor Truck Association, this same question was asked the COVID crisis, and the subof me but in a broader context. Did you make a difference sequent economic upheaval, our industry stood as the as the IMTA chairman? I am a firm believer in the power of the collective. shining example of resiliency, Gathering and aligning the voices of our members is at the determination, and fortitude. heart of our association’s mission and its ongoing success Our state and nation came to as an effective advocate. Because of that philosophy, I have truly understand and respect never viewed this position in a singular sense. So, the real the critical role of trucking question is, are we making a difference as an association, and its people. We clearly demonstrated that our indusas an industry? Yes, we are making a difference every single day, with an try is essential for each of our daily lives and the stanemphasis on “we”. Our strength as an organization comes from our unity dard of living we all enjoy. and our shared passion for and belief in our mission. The Leveraging that goodwill and collective voice of our association has always been the steady showcasing our leadership DAN VAN ALSTINE 2021 IMTA Chairman of the Board and consistent voice in telling the story of Iowa’s trucking role must remain at the core industry. Over time this collective voice has become louder of our advocacy for this great and even more influential as our issues continue to be in the organization and the members we serve. forefront. Our views are solicited, our ideas are heard, and I have gained an even greater appreciation of the imporour actions and resources have produced tance of our advocacy efforts and I am so results. Being an honest, accurate and very proud of the many IMTA members BEING AN HONEST, effective voice for Iowa’s trucking industry that continue to be engaged, active, and ACCURATE AND is what we do, and we do it well. involved in our efforts at the statehouse. EFFECTIVE VOICE FOR Over the last two years, I have had a I saw the impact that was made with special, front row seat to the discussions, lawmakers when we told our story. I was IOWA’S TRUCKING the debates, the decisions, the action as amazed at the number of IMTA members INDUSTRY IS WHAT we navigated the uncharted waters of a that stepped up and helped with our lawsuit WE DO, AND WE DO pandemic. I have seen the passionate and abuse legislation. Once again, the collecIT WELL. tive, loud voice made a powerful impact unrelenting commitment that the associon this important legislative priority. This ation leaders, the members, and the staff have to our priorities. I have had the privilege of seeing work will remain at the forefront with next year’s legislative this industry step up and provide the valuable leadership session, and far into the future. that was needed when a global pandemic swooped in and So yes, we do make a difference! It has been my distinct honor to be a part of this latest chapter of the storied legacy of changed our lives forever. I will always cherish the conversations I had with driv- the Iowa Motor Truck Association. I have truly enjoyed every ers as we handed them a boxed lunch in the early days of minute of this leadership role and have been humbled and the pandemic. Most were shocked at the gesture; all were honored to work with many of you over the last several years. extremely grateful. These professional women and men were Thank you for your support, your membership, and most committed to doing what they do best, ensuring that what importantly, your dedication to making a difference every we needed in our daily lives was available. Everything from single day. the oxygen required in our hospitals, to the food staples in
ISSUE 3, 2021
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PRESIDENT’S MESSAGE Throughout the history of the Iowa Motor Truck played by a multitude of IMTA members and supporters Association, volunteer leadership has been the hallmark at many different levels. of our continued success and effectiveness as an orgaThe level of support provided by our trucking memnization. In 1942, when John Ruan convinced a group bers as well as our valued vendors is second to none. of his trucking colleagues to start an organization, they Because of the ongoing involvement and engagement didn’t hesitate to get involved. Little did they know that by the membership, IMTA is this would entail several years of their personal time as a highly capable and stalwart well as their personal money. advocate. The big acts and more These early IMTA leaders had little to no experience importantly the small acts of in lobbying or government relations but that did not leadership enable this associadeter them. The whole premise for starting the asso- tion to be extraordinarily effecciation was to have a voice at the Capitol and to unify tive. It is not unusual for IMTA an industry. They showed up to meet with legislators to generate hundreds of calls or and potential members, armed only with their passion hundreds of dollars in response for an industry that provided them a good income and to a rallying cry for action. Our voice is effective and above all, unlimited opportunities. Their effectiveness in those early days was grounded respected. in an unwavering belief in their causes and positions. I believe that the forefaThey knew the value of the trucking industry and the thers of the Iowa Motor Truck potential of a strong association, and they were unre- Association would be very lenting in their efforts to remind everyone else of that proud to see the association today. While many things have value too. BRENDA NEVILLE In those early years, this small group of volunteer changed, the one thing that IMTA President & CEO leaders crisscrossed the state recruiting members, hasn’t changed is the imporhosting association events, and promoting the truck- tance of member involvement. ing industry, all while running trucking operations that You can and do make a difference. they had started from scratch. Their Don’t ever underestimate your unbending work ethic coupled with ability to provide leadership and be LEADERSHIP COMES IN their intense desire to have the best part of the solution. Your voice does MANY DIFFERENT FORMS trucking association in the country matter! Our IMTA community is AND EVERY DAY WE fueled their efforts in those early comprised of varying levels of experARE THE BENEFICIARIES years. tise, education, and demographics. OF THE OUTSTANDING Thankfully the hard work paid off We have the resources to solve the and within 5 years they had a probig and little problems. Because of LEADERSHIP THAT the leadership provided by the memfessional staff, money in the bank, IS DISPLAYED BY bership, we can identify the issues and most importantly, respect and A MULTITUDE OF admiration from the outside world. that pose a threat and those that IMTA MEMBERS AND What started as a dream scratched provide an opportunity, and we can SUPPORTERS AT MANY out on a napkin over drinks in a take action quickly. DIFFERENT LEVELS. smoky bar set a very important and We all share an unwavering comvaluable course for Iowa’s trucking mitment and deep loyalty to the industry. trucking industry, and we are stronger, louder, and Now almost 80 years later, this legacy lives on and the smarter together. There is power in numbers and that volunteer leaders of the Iowa Motor Truck Association has been proven for over seven decades at the Iowa continue to be the hallmark of our success. Leadership Motor Truck Association. comes in many different forms and every day we are the So let’s keep the momentum going. I look forward to beneficiaries of the outstanding leadership that is dis- our continued work together.
ISSUE 3, 2021
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UP CLOSE & PERSONAL
IMTA’s Newest Member of Senior Management Team Allison Meiners, Director of Safety & Member Services
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ell us about your role at the IMTA as T the Director of Safety and Member Services
We recently merged the positions of safety and membership. If you dive deep into the two, the positions really complement each other and will allow us to build upon our well-established programs. I will be overseeing both areas of the association
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hat are you W looking forward to the most when it comes to working at the Iowa Motor Truck Association?
Building partnerships with our members. From allied, to carriers and everything in between, getting to know and work with the great folks that make up our industry is what I am most looking forward to.
ALLISON MEINERS Director of Safety and Member Services
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ow will this job H differ from what you did at Ruan?
Adding the membership piece will be the biggest differentiator. Regulatory and safety has been my primary focus for the last seven years, and I am excited to learn and grow with the membership side of the association.
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hat do you believe will be one of the W biggest challenges for carriers in the future when it comes to safety and compliance?
I went back and forth on this, but I’m going to go with, combating lawsuit abuse. There is a great story to be told on the lengths carriers go to ensure our industry (and the motoring public) is coming home safe every day. The challenge is getting the facts of that story to folks outside of our industry.
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ow are you going to approach the H membership services side of your new role at IMTA?
Fostering and building relationships is something I enjoy. Understanding what our members appreciate, but also what they desire, is my priority.
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IOWA TRUCKING LIFELINER
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hat are three guiding principles that W you rely on in both your personal and professional roles?
Value – always adding value. Understanding WHY we’re doing something and what we can do to add value, is in the forefront of my mind. Collaborate – we’re better together. Whether it’s working on a project at home with my family or working with the industry – the more hands we have on deck, the better the output. Humility – we can all learn from each other. I will never claim to know all there is to know on any topic and would never expect anyone else to know all there is to know. I am constantly learning personally and professionally.
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ou have been involved with IMTA over Y the years as a volunteer leader, what is something about IMTA that you have always admired or appreciated?
The association truly recognizes how important every member of the industry is and makes sure everyone is heard and appreciated. It doesn’t matter if they’re behind the desk, wrench, or steering wheel, everyone has a place, voice, and value.
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s the driver shortage continues to be A a main concern by carriers of all sizes, how do you believe IMTA can weigh in on this important issue?
I believe there are a lot of things that feed into the driver shortage, but one thing we can do is continue to give tools to our members to retain their team and overall fleet. Educate members on reasons drivers are exiting the industry and how we can proactively work to keep them. Outside of the existing drivers, we need to continue to advocate for the industry and the great jobs the industry offers.
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I n your first few weeks at the association, what have you learned about the association that you didn’t know?
I have the upmost appreciation for the staff. I knew they put in a lot of time, but literally every minute of the day is ensuring the best for our members and industry. I appreciate the opportunity to be a part of the same mission.
UP CLOSE & PERSONAL
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Who are some of the folks that have served as valuable role models and mentors in your life?
Professionally, the person who hired me at Ruan, Bob Hogstad was a great mentor. Bob would always take the time to share a one-liner or experience that would always make me stop and reflect. Personally, my mom is my greatest role model. I have four siblings, and my mom was always the glue that held everything together. Coming to events, making sure I had the best Halloween costume, giving me the best advice, having so many happy childhood memories, I could go on and on. I’ve always admired her, but now as a mother, I appreciate all the little (and big) things she has done for us even more.
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What does your first 60-day plan look like?
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What do you enjoy doing when you aren’t working?
The Meiners Family: Morgan, Carver, Matt, Sidney, Allison, Lainey
Connecting with the members and building relationships will be my primary focus. Along with that, building a plan with proactive resources, communication and education will be a priority.
My husband and I have four kids that are involved in lots of activities such as cross country, dance, soccer, baseball, track, and flag football. If I’m not being a minivan taxi mom, I’m probably spending time with friends and family, going on a bike ride, going out for dinner, or watching a sporting event (specifically the Hawkeyes, Cyclones, Twins, or Vikings).
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Throughout her involvement as an IMTA member, Allison has been heavily involved with the Iowa Council of Safety Management and the annual Truck Driving Championships.
Introvert or Extravert?
Extravert.
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ell us something about yourself T that most people may not know about you?
I grew up just outside of Coin, Iowa.
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Family/Background summary.
My husband, Matt and I live in Polk City. We have four kids, Morgan, Carver, Sidney, and Lainey. Matt works as a paramedic for the Polk City Fire Department.
ISSUE 3, 2021
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MEMBERS IN THE NEWS Thompson Re-enters the Trailer Market with Two Strategic Partnerships Thompson Truck & Trailer has announced a strategic partnership with two trusted trailer manufacturers, combining the top-tier service that Thompson is known for, with the innovative technology and manufacturing experience of Side Dump Industries and Maxxim Industries. “At Thompson we are always looking for ways to provide solutions for our customers,” said Travis Thompson, President and CEO of Thompson Truck & Trailer. “By re-entering the trailer market, we are solidifying our position as the total truck solution, giving our customers one place where they can fill all their parts, service, truck, tire and now trailer needs.” Side dump trailers have become more popular in recent years and many severe service companies are switching to this style to take advantage of the higher volume loads and increased efficiency. Side Dump Industries (SDI) trailers are manufactured in Sioux City, Nebraska, and are constructed using only the super tough, yet malleable Grade 100 Steel for more durability and longer life. SDI trailers have a 50° dump angle – which is nearly 10° more than other side dumps available, meaning loads release faster with less material sticking to the tub. Thompson’s second trailer partner, Maxxim Industries, specializes in grain, sand, and livestock trailers and is constantly investing in technology and research to stay ahead of the curve in a highly competitive industry. While other grain trailer manufacturers are currently taking orders for 2022 and even 2023, Maxxim order boards are out just a few months, filling the current high demand. The first of these grain trailers will be arriving at Thompson in early fall, and custom orders can be placed at any time. Thompson plans to have several grain trailers in the rental fleet for businesses to rent during peak operation times.
Truck Country Expanding, Will Add Second Dubuque County Location Truck Country is expanding its reach with a second location in Iowa’s Dubuque County. Truck Country leadership announced that terms have been reached to open a truck parts and service center in Dyersville, Iowa, on the western edge of Dubuque County. The facility will be in addition to the dealership Truck Country operates in the eastern reaches of the county, in Dubuque. The Dyersville branch, located at 1551 15th Avenue SE, will complement, and serve as a satellite location for Truck Country’s full-service dealership in Dubuque. “With Truck Country’s strong brand recognition, our new Dyersville location will focus on serving the parts and service needs of those in western Dubuque County, as well as the adjoining areas,” Truck Country President Doug McCoy said. “This is an exciting time to be part of the Truck Country team. We look forward to not only serving our current customers in the area, but also connecting with new ones.”
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IOWA TRUCKING LIFELINER
Dan Cook Appointed to ATA’s National Accounting & Finance Council
Dan Cook, principal and practice leader for National Accounts and M&A Support within TrueNorth Companies, has recently accepted a board and DAN COOK executive committee position with ATA’s National Accounting & Finance Council (NAFC). NAFC creates value for its members through education, research, professional interaction and technical assistance regarding finance, accounting, tax, and risk management issues impacting the trucking industry. The Council also conducts surveys and develops industry best practices where appropriate. Cook will assist with these initiatives. “It’s an honor to join NAFC,” Cook said. “The council does a great deal to assist and influence the transportation industry. I’m proud and honored to support their efforts.”
MEMBERS IN THE NEWS Ruan Announces New Leadership Roles
Heyl Companies Acquires Holiday Express
Ruan is pleased to announce the promotion of Chad Willis to the role of Chief Transformation Officer (CTO), leading the technology team; Marty Wadle to the role of Chief Commercial Officer, leading the Commercial Solutions team; and Sofia Samuels as Vice President of Marketing and Communications, serving as part of the Commercial Solutions leadership team.
Heyl Truck Lines has acquired Holiday Express Corporation, a family-owned trucking company that has been in business since 1969, operating over 50 tractors and 80 reefers. Based in Estherville, IA, Holiday Express offers local, regional, and OTR services.
As part of his new role, Willis will lead their technology team, which includes their Information Technology, Operations Support Services, and Extended Operations Center teams. The team is tasked with providing their Des Moines Campus and 300 operations across the country with fundamental technology solutions and systems integrations that enable them to work efficiently and securely. This includes supporting and enhancing their transportation management systems, custom applications, proprietary software, in-truck and office hardware, and more, along with accelerating the transformation of business processes to stay ahead of current and anticipated customer needs.
CHAD WILLIS
MARTY WADLE
SOFIA SAMUELS
Ruan’s Commercial Solutions team was formed in 2018 to unify activities across Sales, Marketing and Communications, and Network Engineering teams. In his newly elevated role, Wadle will assume additional responsibility for identifying and forming external partnerships, along with business and capability development. He serves on Ruan’s executive leadership team and will continue to lead efforts in defining services for the marketplace, growing business, and effectively allocating capital investments across service lines. Sofia Samuels most recently served as Vice President, Marketing Services at Sachs Horace Janson. Prior to that, she was Chief Marketing Officer for the American Welding Society and has held a variety of marketing leadership and business development roles at Ryder, UPS, and DHL. Her professional background spans a broad blend of B2B and B2C expertise with specialties in integrated marketing, sales leadership, customer experience, customer service, e-commerce, publishing, and partnership marketing.
This acquisition complements Heyl companies, also a familyowned company, in the freight and logistics business for 70 years, operating over 400 tractors and 900 reefers. Heyl is headquartered in Akron, IA with terminals in Sioux Falls, SD, Edinburg, TX, Zephyrhills, FL and Okotoks, AB Canada. Heyl offers local, regional, and OTR services as well as a brokerage division. Holiday Express’s proven dedication to safety, performance, and loyalty to customers mirrors the Heyl philosophy and makes this a great match. According to Heyl companies President, Bruce Koele, “The acquisition of Holiday Express is a positive move for Heyl Truck Lines, Holiday Express, and for all of our employees and customers! There will be many additional opportunities for qualified drivers and support staff. We are excited about the additional resources, capacity, and services that we will be able to offer to our customers as a result.”
Grask Truck Group Announces Rebranding of Dealer Locations Cedar Rapids Truck Center has recently rebranded their dealership locations to GTG Peterbilt, with the city (Cedar Rapids, Davenport, Quincy, and Waterloo) as the identifier. As their business continues to grow GTG Peterbilt believed it was important to solidify their presence and recognition in the market as a premier provide of customer service in the Midwest.
ISSUE 3, 2021
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INDUSTRY NEWS Infrastructure Nears the Finish Line In a strong, bipartisan vote of 69-30 on August 10, the US Senate passed the Infrastructure Investment and Jobs Act. The bill authorizes $477 billion in new funding over the next five years for surface transportation programs, including $347.5 billion for highways — a 38% boost above levels set by the last highway reauthorization bill, the FAST Act. It also provides $37 billion for bridges — the greatest investment in our nation’s bridge network since the formation of the Interstate Highway System.
CHRIS SPEAR ATA PRESIDENT & CEO
ATA fought victoriously to include crucial workforce development provisions for our industry in the package. The bill establishes a three-year, national pilot program based on the DRIVE-Safe Act, authorizing up to 3,000 18-20-year-old drivers at any one time to undergo advanced safety training in order to participate in interstate commerce. It also establishes a Women in Trucking Advisory Board for the Federal Motor Carrier Safety Administration and funds a DOT advertisement campaign to promote workforce needs in trucking and other transportation sectors.
On safety policy, the bill contains a compromise provision requiring automatic electronic braking systems on new heavy-duty commercial vehicles. This AEB requirement would go into effect two years after the legislation’s enactment. It includes language to strengthen efforts addressing distracted driving in passenger vehicles and risks associated with marijuana-impaired driving. It also directs DOT to conduct a comprehensive CMV crash causation study. Equally important is what’s not included in the bill. ATA fought tooth and nail to keep harmful, anti-trucking measures out of the package, such as labor provisions from the PRO Act, independent contractor reclassification, truck-only Vehicle Miles Traveled taxes, a rollback of meal and rest break preemption, side underride guard mandates, hours-of-service reform rollbacks, and a returning of CSA scores to public view. Federal infrastructure investment has long been a top strategic priority for our association and industry, and this bill brings us one step closer to making that goal a reality. The groundwork we laid over several years is paying off. By forging close working relationships with committee chairmen and influential legislators from both sides of the aisle, in both the House and Senate, we put ourselves in a strong position to shape this final outcome within the current political realities. While not perfect, this bill will deliver measurable returns for the trucking industry, alleviating costly freight bottlenecks throughout the National Highway System and providing access to new talent pools to grow and strengthen our driver workforce.
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IOWA TRUCKING LIFELINER
The bill now moves to the House for consideration. Speaker Pelosi has said she will only take it up after the House votes on a budget resolution. However, she’s now under increasing pressure from moderates within her caucus to move on infrastructure first. “Like much of the country, Iowa’s aging infrastructure risks slowing economic growth and eroding daily comfort and convenience,” said Senator Grassley who supported the bill. “This bipartisan bill fixes potholes, rebuilds bridges, upgrades water systems and brings broadband to rural corners of our state. Investing in Iowa’s infrastructure will pay dividends for decades to come.” Figures provided by Grassley’s office show Iowa is expected to receive at least $4.2 billion for road repairs, $431 million for bridge repairs and $227 million for clean water initiatives. The final figures could be higher as some of the money will be distributed through competitive grants. Grassley, in his statement, said the infrastructure bill that passed the Senate includes several provisions in bills that have already garnered bipartisan support in the Senate. Senator Joni Ernst did not support the bill and pointed to the Congressional Budget Office estimate that the bill would add
SENATOR CHARLES GRASSLEY
IA
EXPECTED TO RECEIVE AT LEAST
$4.2 BILLION FOR ROAD REPAIRS
$431 MILLION FOR BRIDGE REPAIRS AND
$227 MILLION FOR CLEAN WATER INITIATIVES
INDUSTRY NEWS $255 billion to the national deficit over a decade. “Congress and the American people were promised an infrastructure bill that was fully paid for, but that’s clearly not the case,” Ernst said in her statement.
SENATOR JONI ERNST
Ernst said she offered amendments to the infrastructure bill to help pay for the proposal, but they were voted down.
“While I certainly support improving America’s hard infrastructure — like our roads and bridges — I simply can’t support saddling more debt onto the shoulders of future generations of Iowans and opening the door for Bernie Sanders to ram through his multi-trillion-dollar liberal tax-and-spending spree,” she said.
Both Grassley and Ernst intend to oppose Democrats’ larger, $3.5 trillion “human infrastructure” bill. Democrats intend to pass the measure through the reconciliation process, which only requires 51 votes, to avoid a Republican filibuster. That legislation would expand Medicare, expand caregiving for people with disabilities and the elderly, subsidize childcare, pay for community college and fund programs to fight climate change. “It’s a shame my Democrat colleagues are still intent on following this bipartisan exercise with a partisan multi-trillion-dollar reckless tax and spending spree, which I will oppose,” Grassley said.
THIS BIPARTISAN BILL FIXES POTHOLES, REBUILDS BRIDGES, UPGRADES WATER SYSTEMS AND BRINGS BROADBAND TO RURAL CORNERS OF OUR STATE.
Majority of Consumers Feeling Supply Chain Disruptions 83% of U.S. adults surveyed by Gallup reported noticing significant price increases in the past two months. Additionally 60% of Americans surveyed by Gallup say they have struggled to get products due to shortages, while roughly 57% have experienced significant delays in receiving a product they ordered. Overall, the poll found that seven in 10 Americans have had at least one of these issues, while 46% have had both. The shipment delays and shortages have become a byproduct of COVID-19-related economic disruptions to manufacturing, shipping and labor supply that are expected to continue as the delta variant spreads.
unable to get a product due to a shortage, 58% reported significant delays and 84% significant price increases. In the South, approximately 61% of survey respondents reported shortages, 56% reported delays and 83% reported price increases. In the Midwest, about 60% reported shortages, while 58% reported delays and 79% reported price increases, and in the East, 58% reported shortages, 54% reported delays and 83% reported price increases. Gallup surveyed 3,475 adults between July 19-26. The survey has a margin of error of plus or minus two percentage points.
While Americans in upper-income households earning $90,000 or more were found to be more likely than lower-income adults to report experiencing significant delays in product shipments, they were just as likely as households in lower income brackets to report being unable to get a product or noticing price increases. The poll finds that 62% of households earning $90,000 or more reported they were unable to get products due to a shortage, while 63% said they experienced significant delays in receiving a product. For households making between $36,000 and $89,999, 62% reported being unable to get a product due to shortages while 55% reported shipping delays. As for households making less than $36,000, 58% reported product unavailability due to shortages while 48% reported shipping delays. Meanwhile, 82% of households earning $90,000 or more reported significant price increases in the past two months, compared to 83% of households making between $36,000 and $89,999 and 81% of households making less than $36,000 reporting the same. Regionally, 62% of survey respondents in the West reported being
ISSUE 3, 2021
13
INDUSTRY NEWS Biden Pressed to Slash Big Truck Pollution as Next Climate Target Now that he’s outlined tough new emissions requirements for carmakers, President Joe Biden is facing pressure to enact similarly stringent rules for big trucks still operating under standards that environmentalists say are too lax. Climate change activists are urging Biden to match requirements California proposed last year that call for truck companies to cut nitrogen oxide emissions from heavy-duty trucks by roughly 75% below current standards beginning in 2024 and 90% in 2027. Biden has pledged a “Clean Trucks Plan” to encourage technological development and impose regulations to reduce the sector’s greenhouse gas emissions, but the rules aren’t expected to be finalized until 2022. Heavy-duty trucks make up 10% of the vehicles on the road but are responsible for 30% of carbon dioxide emissions and higher percentages of other pollutants, according to the Sierra Club. “We need federal standards to protect communities across the nation; setting standards with aggressive targets would deliver vital health benefits for those living near warehouses, highways, and ports,” said Katherine García, acting director of Sierra Club’s Clean Transportation for All campaign. Environmentalists are urging Biden to make truck emissions a priority after he stood on the South Lawn of the White House earlier this month, surrounded by electric and hybrid cars made by American manufacturers, and said he was imposing tough new regulations for carmakers. His plan requires them to produce fuel-efficient fleets of cars, SUVs and pickup trucks that average 52 miles (84 kilometers) per gallon by 2026. He also announced a target that half of all vehicles sold in the U.S. would be capable of emissions-free driving by the end of the decade.
SINCE EVERY GALLON OF FUEL SAVED REDUCES THE COST OF MOVING FREIGHT AND THE PRICE OF CONSUMER GOODS At the White House event, Biden framed both the new car rules and his forthcoming effort to crack down on truck emissions as a crucial part of his climate agenda. “It’s about leveraging once-in-a-generation investments and a whole-of-government effort to lift up American autoworkers and strengthen” American leadership on clean car and truck technology, he said. The Obama administration issued the first truck-emission regulations that went into effect in 2014, when big trucks got about six miles per gallon of fuel. The regulations called for a 9% to 23% reduction in emissions and fuel consumption for trucks weighing 8,501 pounds (3,856 kilograms) or more, based on weight class, cab type and roof height for each year from 2014 to 2018. A second phase of the Obamaera standards covered the model years between 2021 to 2027, with the years between 2018 and 2020 being voluntary. Truckers have a vested interested in keeping fuel consumption low “since every gallon of fuel saved reduces the cost of moving freight and the price of consumer goods,” said Glen Kedzie, vice president and energy and environmental counsel for the American Trucking Associations, which lobbies for major truck companies. “Our industry moves nearly 12 billion tons of freight annually -- we are not recreational drivers, and our carriers have a vested interest in fuel efficiency because fuel is our industry’s second largest expense after labor,” Kedzie said.
Oil Prices Up But Expected to Decrease in 2022 Despite crude oil prices increasing 25% from January to May, the US Energy Information Administration (EIA) expects the prices to stabilize soon, averaging about $68 per barrel in the third quarter before declining to an average of $60 per barrel in 2022. “In the coming months we expect global oil production to catch up with increases we’ve seen in demand in 2021,” said EIA Acting Administrator Stephen Nalley. “US and global oil producers are increasing their production, which should help moderate oil prices that have increased significantly as global economic concerns about COVID-19 ease.” Global petroleum and liquid fuels consumption is expected to rise by 6% to 97.7 million barrels per day in 2021 and rise by 4% to 101.3 million barrels per day by 2022.
14
IOWA TRUCKING LIFELINER
INDUSTRY NEWS PHMSA Has Proposed Various Amendments to Harmonize with International Standards and Revise The Hazmat Table. The U.S. Occupational Safety and Health Administration has issued updated guidance regarding workplace coronavirus precautions, incorporating, among other things, the Centers for Disease Control and Prevention’s July 27 COVID-19 guidance.
• Recommends that fully vaccinated employees who have close contacts with people with coronavirus wear masks for up to 14 days unless they have a negative coronavirus test at least 3-5 days after such contact;
The guidance does not specifically discuss trucking but instead focuses on higher-risk workplaces with mixed-vaccination status workers, such as manufacturing; food processing; and high-volume retail, where there is often prolonged close contact with other employees and/ or the public. However, certain portions may be relevant dependent on the transmission status in your region and/or interactions of your employees with other businesses and the public.
• Clarifies recommendations to protect the unvaccinated and other at-risk in certain industries (not trucking).
The updated OSHA guidance: • Recommends that fully vaccinated employees in areas of substantial or high community transmission wear masks in public indoor settings in order to protect the unvaccinated;
OSHA does not specifically state what “areas of substantial or high community transmission” might be in terms of numerical metrics nor what exactly “public indoor settings” means so it has been advised that everyone to use their best judgment on whether these heightened protections are necessary based on locally reported virus transmission and whether your employees interact with non-employees. OSHA also continued to emphasize that vaccination is the optimal way to protect employees.
Price Growth Is Winning the Race: Inflation Is Devouring Wage Gains New data shows inflation jumped again in July, as price hikes overshadow the benefits of wage gains. Rising prices on everything from groceries to gasoline have eaten away the wage gains workers have seen since the start of the year, leaving most Americans earning less than they were before the pandemic began. Prices climbed 0.5 percent over the month from June to July, a slower pace than in recent months but still sizable enough that it outpaced the healthy wage gains workers across the income spectrum have received. As a result, real earnings decreased 0.1 percent over the month, government data shows. The consumer price index, a key measure of inflation, rose 5.4 percent in July from the same month last year as the cost of meat and
dairy products, hotel room stays, restaurant dinners and other items increased, according to Labor Department data released Wednesday. It’s the second straight month of year-over-year increases at that level, the biggest jump since 2008. The data marks the latest month in which rising prices have overshadowed wage gains, all but erasing the impact of pay hikes that have been celebrated from Biden on down as a sign of workers’ new bargaining power and of the robustness of the economic recovery. Economists were quick to point that some of the sectors that had seen the most dramatic price hikes — used cars and trucks in particular — slowed substantially in July, bolstering the view that much of the rise is likely to be transitory and prompting some to forecast that inflation has reached its peak. Still, the data shows that inflation, at least for now, is having the greater effect on families’ bottom lines, and it remains to be seen how long the situation will linger.
ISSUE 3, 2021
15
INDUSTRY NEWS Sweeping New Federal Vaccine Requirements Announced by President Biden – Trucking Responds! When President Biden announced new federal vaccination requirements affecting as many as 100 million Americans, it caused quite a stir. The announcement came as the White House is growing increasingly frustrated with the rate at which Americans are getting vaccinated. The changed announced by the President would mandate that all employees with more than 100 workers would be required to be vaccinated or tested for the virus weekly. Biden announced the new requirements as part of a new “ACTION PLAN” to address the latest rise in coronavirus cases and the stagnating pace of COVID-19 shots. In addition to the vaccination requirements, Biden also moved to double federal fines for airline passengers that refuse to wear masks on flights or to maintain face coverings on federal property.
“AS I’VE SAID ALL ALONG, I BELIEVE AND TRUST IN IOWANS TO MAKE THE BEST HEALTH DECISIONS FOR THEMSELVES AND THEIR FAMILIES. IT’S TIME FOR PRESIDENT BIDEN TO DO THE SAME. ENOUGH IS ENOUGH.”
GOV. KIM REYNOLDS
The Department of Labor’s Occupational Safety and Health Administration (OSHA) will develop the rule which could result in penalties of up to $14,000 per violation. Trucking companies with approximately 50 tractors can have at least 100 employees, based on rough estimates. Statistics compiled by the Federal Motor Carrier Safety Administration and FreightWaves Passport Research reveal that fleets with 56 or more tractors make up roughly 1.3% of the nation’s fleets but over half of the total number of tractors (see chart). That means a large number of seats could wind up unfilled if even a small percentage of drivers refuse to get the vaccine, at a time when trucking companies are already straining to fill seats in order to take advantage of the high demand for their services.
Adjusted FMCSA Data on Total For-Hire Interstate Fleets and Tractors by Fleet Size (April 2021) Fleet Size 1 Tractor
“President Biden is taking dangerous and unprecedented steps to insert the federal government even further into our lives while dismissing the ability of Iowans and Americans to make health care decisions for themselves.” About 49.6% of Iowa’s population has been vaccinated against COVID-19.
Total For-Hire Interstate Fleets
Total Tractors
% Total Fleets
% Total Tractors
138,354
138,354
56.9%
8.4%
2 to 3 Tractors
53,467
123,934
22.0%
7.5%
4 to 20 Tractors
42,041
328,264
17.3%
20.0%
21 to 55 Tractors
6,084
201,157
2.5%
12.2%
56 to 100 Tractors
1,678
125,046
0.7%
7.6%
101 to 550 Tractors
1,328
267,154
0.5%
16.3%
551 to 4,999 Tractors
201
255,808
0.1%
15.6%
5,000 Plus Tractors
20
202,860
0.0%
12.4%
243,173
1,642,577
Source: FMCSA, Freight Waves Passport Research calculations
16
Iowa Governor Kim Reynolds criticized the President’s plan and continues to urge eligible Iowans to get vaccinated but is strongly opposed to a vaccination mandate.
IOWA TRUCKING LIFELINER
Earlier this year, Reynolds signed a law limiting “vaccine passports” by withholding state grants and contracts from local governments or businesses that require customers to prove they have received the COVID-19 vaccine. She has also signed a law banning local governments and school districts from enacting mask mandates. Governor Reynolds is concerned that the vaccination mandate proposal will only worsen the state’s workforce shortage and hinder continue economic recovery. “As I’ve said all along, I believe and trust in Iowans to make the best health decisions for themselves and their families,” she said in the statement. “It’s time for President Biden to do the same. Enough is enough.”
INDUSTRY NEWS Several national trade associations including the American Trucking Association issued statements of concern with the Biden proposal.
What’s Required
ATA President & CEO, Chris Spear, issued the following statement; “The first rule of any public health policy should be ‘do no harm.’ Unfortunately, these latest mandates and the unintended consequences they’ll create fall short of that standard. “ATA, its members and our drivers remain committed to delivering life-saving COVID vaccines, but these proposed requirements— however well-intentioned—threaten to cause further disruptions throughout the supply chain, impeding our nation’s COVID response efforts and putting the brakes on any economic revival.
The new requirements would impact over 80 million working Americans at every company with more than 100 employees and place significant new burdens on our industry. The specific requirements for employers identified so far – and we anticipate more – include the following: All employers with more than 100 employees will have to ensure they are all vaccinated or test each unvaccinated employee for the virus weekly.
“If these mandates are designed to protect Americans, then why the discriminatory 100-employee threshold, picking winners and losers for both employees and employers?
Employers will have to provide paid time off for employee vaccination or recovery from the vaccine’s side effects.
“As this proposal moves forward, ATA is examining all options and will choose a path that protects our industry—so that it can continue delivering on behalf of our country.”
Federal contractors will have to ensure 100% of employees are vaccinated, with no option to test unvaccinated employees as an alternative.
Iowa Motor Truck Association members have been equally vocal in their concern over the mandate. The association was inundated with calls once the announcement was made and almost 99% of the members polled expressed concern with the proposed mandate.
Violations of these requirements could result in fines that vary from about $1,000 per instance in most circumstances where there is little or almost no immediate danger to the workers, on up to $136,000 per instance for a willful or repeat violations.
“Many of the IMTA members are worried that this is just one more thing that will impact the current workforce issues. Many expressed concern that these mandates will force drivers out of the industry and discourage potential new drivers from entering the industry. The second biggest concern was the weekly testing requirement. Given that drivers are all over the country, implementing a weekly testing protocol is going to be a monumental task,” said IMTA President & CEO Brenda Neville. ATA & IMTA are working with a number of state and national stakeholders to ensure that the White House understands the implications of this rule to the supply chain.
“The one message we are conveying to all of our members is that none of this is going into effect immediately. These regulations fall under the Occupational Safety and Health Administration’s existing statutory authority for emergency rules. OSHA will need some time to develop its emergency rule, including exemptions on religious and medical grounds. There are some folks that have suggested it could take OSHA several months to develop these rules. I would also suspect the courts will end up being involved, too. We will continue to stay on top of this and continue to be very vocal with our concerns about this mandate and the potential impact on the trucking industry,” said Brenda Neville.
“AS THIS PROPOSAL MOVES FORWARD, ATA IS EXAMINING ALL OPTIONS AND WILL CHOOSE A PATH THAT PROTECTS OUR INDUSTRY—SO THAT IT CAN CONTINUE DELIVERING ON BEHALF OF OUR COUNTRY.”
CHRIS SPEAR ATA PRESIDENT & CEO
ISSUE 3, 2021
17
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20
IOWA TRUCKING LIFELINER
TRUCKING &
MARIJUANA A BUZZ KILL FOR SURE! On July 1, 2021, Virginia and Connecticut joined 15 other states, and Washington DC, in legalizing recreational marijuana, bringing the total to 18. In addition, 36 states have legalized medicinal marijuana. While states continue to legalize marijuana, Federally, recreational and medicinal marijuana use is still illegal. Some states have taken it a step further and are working to pass employee protection for pre-employment drug tests. Federal requirements still require drug tests with a five-panel test, which includes marijuana use. Medical marijuana and medicinal marijuana are not a legitimate medical explanation for a failed drug test under the US DOT drug testing regulations, regardless of the state laws. As an industry, from January 6, 2021, to June 1, 2021, over 42,500 drivers have been removed from safety sensitive positions due to testing positive for marijuana during a drug test. This means we have lost those drivers temporarily until they successfully complete a Return-to-Duty process, or permanently if they transition to another industry.
Table 1: Substances Identified in Positive Drug Tests
42,500
DRIVERS
HAVE BEEN
REMOVED FROM SAFETY SENSITIVE
POSITIONS
# Tests Identified
Substance
2020
2021
Marijuana Metobolite (∆9-THCA)
29,511
13,023
42,534
Cocaine Metabolite (BZE)
7,940
3,357
11,294
Methamphetamine (MET/MAMP)
5,187
2,184
7,371
(Total since Jan 6, 2020)
Amphetamine (AMP)
4,953
2,147
7,100
DILUTE
2,398
1,143
3,541
Oxymorphone (OXYM)
1,372
554
1,926
Oxycodone (OXYC)
1,106
453
1,559
Hydrocodone (HYC)
1,082
415
1,497
Hydromorphone (HYM)
1,000
379
1,379
Morphine (MOP)
443
161
604
Codeine (COD)
386
152
538
6-Acetylmorphine (6-AM)
302
83
385
Phencyclidine (PCP)
137
56
193
Ecstasy (MDMA)
65
23
88
Not Identified
43
0
43
Methylenedioxyam-phetamine (MDA)
30
13
43
All substances
55,955
24,143
80,098
Note: More than one substance can appear in a positive drug test Source: FMCSA Drug & Alcohol Clearinghouse
The number of states legalizing marijuana will not decrease, continuing to put the industry in a very difficult position with the federal regulations superseding state regulations. While we all know and understand the national standard for drunk driving is .08 percent blood alcohol concentration, and .04 percent for commercial driver’s license holders, there is no standard for drugged driving. Without the standard for testing drug impairment levels and having regulations around potential acceptable levels, the trucking industry will continue to lose drivers. Testing for drug impairments has been problematic due to current limitation of technology and agreed upon impairment level. Another product that has had an increased presence, and in some cases causing confusion in the industry, is Cannabidiol (CBD). CBD is one of at least 113 compounds found in cannabis and it has gained popularity in recent years for its perceived health benefits. Some distributors of CBD falsely claim that CBD oil extracted from hemp is not covered by the DEA’s Schedule I Classification, however, DEA rules do not recognize this distinction. CBD products always contain some level of THC and therefore use of these products may cause positive results for the THC metabolite.
22
IOWA TRUCKING LIFELINER
CBD OIL Drug testing cannot distinguish whether the THC metabolite came from the use of CBD oil or the use of marijuana, therefore CBD oil use is not a valid excuse for a positive marijuana drug test. As discussions continue with drivers, it is important they understand the implications of CBD products. Since CBD is a Schedule I drug, its use will disqualify an individual from driving a commercial motor vehicle (CMV) when a drug test result is confirmed positive for the THC metabolite. It’s important that the trucking industry from the company CEOs to the drivers have an understanding that Federal levels supersede state levels, and the use of CBD does not guarantee a negative drug test. Lack of driver education on
the risks associated with using these products, regardless of state laws, could cost them their job. State legislatures that are continuing to legalize marijuana without establishing an impairment level are jeopardizing public safety at the highest level while also putting the trucking industry in a very precarious position. Unfortunately, establishing impairment levels continues to be a low priority. Adding to the debate are journalists like Rachel Premack with the Business Insider that continues to take shots at the trucking industry for it support of policies aimed at keeping the nation’s highways safe and drug-free. In a recent article she ridicules the trucking industry for doubling down on “booting marijuana smokers” and contends marijuana is less harmful than other illegal drugs and that the trucking industry has questionable safety motives. A common argument from legislators is that marijuana is “less harmful” and doesn’t impair a driver in a negative way. Scientific research and respected studies have proven that marijuana/THC significantly impairs motor coordination, reaction time and judgement. Studies have found a direct relationship between blood THC concentration and impaired driving ability. It takes a fully loaded tractor-trailer traveling at highway speeds the entire length of a football field plus both end zones to come to a complete stop. Ensuring that a drivers’
IT TAKES A FULLY LOADED TRACTOR-TRAILER TRAVELING
AT HIGHWAY SPEEDS THE ENTIRE
LENGTH OF A FOOTBALL FIELD
PLUS BOTH END ZONES
TO COME TO A COMPLETE STOP ISSUE 2, 3, 2021
23
Total Test Results (Drug or Alcohol) by Test Type 2020 2021
98%
55,8814
24,532
97%
Drug Test Results (Positive or Refusal) by Test Type Actual Knowledge
1,290 505
Pre-employment Random Post-accident
28,431
17% 20,110
83% 7,934
83%
12%
13,164
87%
88% 2,175 882
Reasonable suspicion
839 378
Return-to-duty
682 427 1,173 627
Follow-up
Alcohol Test Results (Positive or Refusal) by Test Type Actual Knowledge
111 39 33
Pre-employment Random
77%
Post-accident
Follow-up
70%
269
30%
62% 38% 105 49
Reasonable suspicion Return-to-duty
172
70% 1
62% 30% 128
105 23%
128
10 38 24
Source: FMCSA Drug & Alcohol Clearinghouse
reaction time and motor coordination are not impaired while operating a 80,000 pound truck is always a top priority. As this issue continues to be debated, the fact that there is no standardized field sobriety test for marijuana continues to enter the conversation. This is indeed a very real and urgent problem especially as more states are considering the legalization of pot for medical and recreational use. Trucking leaders across the nation are in support of lifting the federal restrictions on marijuana research. This research is critically important and will help dramatically in moving in the right direction for developing a standardized sobriety test. More research is needed and needed quickly. In the meantime, the industry is continuing to be put in a very tough situation and in polling collected from CEOs to safety personnel to the professional driver, there is continued support for the employers retaining the right to test for marijuana if the employee holds a safety-sensitive job …like driving a truck. The safety of the motoring public always has been and always will be a top priority. Motor carriers are responsible to
24
IOWA TRUCKING LIFELINER
553
Substance Identified in Positive Drug Tests (Total since Jan 6, 2020) Marijuana Metabolite (Δ9-THCA) Cocaine Metabolite (BZE) Methamphetamine (MET/MAMP) Amphetamine (AMP) DILUTE Oxymorphone (OXYM) Oxycodone (OXYC) Hydrocodone (HYC) Hydromorphone (HYM) Morphine (MOP) Codeine (COD) 6-Acetylmorphine (6-AM) Phencyclidine (PCP) Ecstasy (MDMA) Not Identified Methylenedioxyamphetamine (MDA) 0
5,000
10,000
15,000 20,000 25,000
30,000 35,000
40,000 45,000
Positive drug tests reported as of 6/1/21 Source: FMCSA Drug & Alcohol Clearinghouse
ensure that the drivers that they are putting behind the wheel of a truck are operating at the highest level. Many lawmakers assert that if a truck driver smokes marijuana on a Saturday and shows up for work on a Monday, they are not posing any threat to the company or their ability to operate a truck. It is no different than drinking heavily on a Saturday is a common example that is thrown out in the debate. This is a debate that will continue to dominate this issue, and some will argue it is different because alcohol is legal but now marijuana is legal in some states too. The waters continue to get murky. However, most of us in trucking will continue to err on the side of safety and recent studies show that impairment in heavy users persists long after the “high” is gone. As ATA stated in a recent editorial, “the trucking industry is clear-eyed about shifting public opinion on marijuana and we’re not seeking to reverse legalization efforts in states across the country. But while impairment and testing standards are being researched and developed, we believe commonsense measures
should be in place for workers whose jobs directly impact public safety. And as an industry that operates in all 50 states, we feel the federal government has an important role to play.” In talking to professional truck drivers at the Iowa Truck Driving Championships, every driver we spoke to was opposed to relaxing any rules relative to marijuana and driving a truck because of the impact it would have on highway safety. But these drivers also recognize the reality that many states are passing legislation to legalize marijuana and lamented that the inconsistency among the state rules and regulations is very problematic. This is no doubt an issue that is going to continue to be in the forefront and the trucking industry cannot and will not sit this one out. Research and collecting data are going to continue to be critically important and must be a top priority. Additionally, a high level of engagement and involvement by industry leaders, regulators and legislators must be a top priority as this important issue continues to evolve.
...THERE IS CONTINUED SUPPORT FOR THE EMPLOYERS RETAINING THE RIGHT
TO TEST FOR MARIJUANA IF THE
EMPLOYEE HOLDS A SAFETY-SENSITIVE JOB
…LIKE DRIVING A TRUCK
ISSUE 3, 2021
25
THE STATUS OF
MARIJUANA IN IOWA GOVERNOR KIM REYNOLDS AND REPUBLICAN LEGISLATIVE LEADERS WHO COMMAND LARGE MAJORITIES IN BOTH THE SENATE AND HOUSE PRESENTLY REMAIN OPPOSED TO FULL LEGALIZATION OF SO-CALLED “MEDICAL MARIJUANA”.
26
IOWA TRUCKING LIFELINER
Since 2012, just under half the states in the United States have legalized recreational use of marijuana for adults over the age of 21. New Mexico, Virginia, and South Dakota were the most recent states to approve measures in 2021, bringing the total to 18 along with Washington, DC. Overall, 37 states have legalized medical marijuana in some form. Now that every state bordering Iowa except Wisconsin has approved legalized dispensing of marijuana in some form and a third (Nebraska) has decriminalized possession of small quantities, Iowans are asking whether any changes to current legal and regulatory measures in this state are on the horizon. Iowa is currently one of only six states (joined by Texas, Wisconsin, Indiana, Kentucky, and Georgia) that allow only CBD oil to be dispensed to citizens under limited circumstances. Five states currently have even more restrictive approaches to marijuana than Iowa, not even allowing CBD oil (Idaho, Wyoming, Kansas, Tennessee, and South Carolina). Finally, two states (Nebraska and North Carolina) have mixed laws which decriminalize the possession of small quantities of marijuana for any reason.
Before exploring the political landscape of the marijuana issue in Iowa, it is first important to understand the current legal and regulatory status. Despite numerous attempts to decriminalize and/or legalize marijuana since the 1970s, Iowa has been slow to loosen its legal and regulatory approach. The first limited change was passage of the limited scope Medical Cannabidiol Act in 2014. This law only allowed limited use of CBD oil upon a neurologist’s certification that it would be useful to treat intractable epilepsy in children. The law was expanded in 2017 to allow for more uses, including cancer, chronic pain, multiple sclerosis, HIV/AIDS, Crohn’s, and Parkinson’s. A third expansion of this law was passed in 2020, which added to the list of medical conditions which would qualify patients to legally use CBD oil. Iowa Governor Kim Reynolds and Republican legislative leaders who command large majorities in both the Senate and House presently remain opposed to full legalization of so-called “medical marijuana”. The primary argument against further deregulation is a lack of consensus within the medical and public safety communities over the safety, efficacy, and
unintended consequences of higher quantities of the intoxicating chemical tetrahydrocannabinol (THC) found in marijuana as compared with the CBD oil currently available. Despite this reluctance, a small but growing number of legislative Republicans are taking on a more populist libertarian approach to the issue, seeking greater deregulation along with decriminalization similar to the other 37 states who have approved full medical marijuana. The 2022 session of the Iowa General Assembly which begins in January will be held during an election year. Given the reluctance of the Governor and legislative Republican leaders, further changes to Iowa’s marijuana laws are not expected. Further policy developments in border states which would expand marijuana availability, including efforts to allow full recreational use expected in Minnesota and Wisconsin, could put further pressure on Iowa elected officials as early as 2023.
Restrictive approaches/no CBD oil Allow CBD oil /limited circumstances Mixed laws
ISSUE 3, 2021
27
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ISSUE 3, 2021
29
ECONOMIC UPDATE
One of History’s Biggest Booms Has Begun We Predict Strong Growth with No Inflation for Many Years We are increasingly convinced that we are only at the beginning of what historians will call “The Great Post-Covid Boom.” For several basic reasons, the domestic and global economy is poised to produce a prolonged period of growth which creates extraordinary prosperity and raises the quality of life for billions of people. There will be challenges along the way, but the U.S. will remain the largest economy in the world. Our dollar will continue to be the global reserve currency. Our exports will grow faster than our imports and inflation will remain benign.
DONALD BROUGHTON
Managing Partner, Broughton Capital LLC
30
IOWA TRUCKING LIFELINER
OUR OUTLOOK STARTS WITH BASIC HUMAN NATURE. Human beings panic quickly and gain confidence slowly. It is why markets crash rapidly and take years to recover. Instead of individuals, markets and economies reflect a massive number of participants and an even more massive number of their actions or decisions. Here is another basic human nature - after surviving danger, after living through a period of great uncertainty, we become less risk-averse and endeavor to start anew, usually with something daring. When the danger has passed and we discover that we are still alive, we celebrate our survival by embracing risk and creating. Families are started. Businesses are founded and built. New ways of life are adopted. New jobs and sources of economic wealth are established. After the World War and the Spanish Influenza (yes, we have lived through a pandemic before – the global population is >4X what it was in 1918, influenza caused 12X more deaths than Covid), it is no accident that the economic boom of the Roaring Twenties followed.
Following World War II there was an even bigger and longer economic boom. Despite having their economies utterly destroyed, and a massive number of their young men killed, war-torn countries first completely rebuilt themselves and then flourished.
IT WAS A PANDEMIC, NOT A WORLD WAR. It was not a global war, but whether you were in an ‘at risk’ group or not, Covid was (and still is for many) a perilous risk that put our health, and the health of our loved ones in jeopardy; it is properly perceived as a threat to our lives. Most of us knew people who died after catching Covid. If not, we are all only one degree of separation from someone who did. And, whatever our proximity to those infected with the virus, our lives have been fundamentally altered in innumerable ways. All around the globe, we are breathing a sigh of relief. It is not dissimilar from the end of a world war, but there are fundamental differences. These dissimilarities will make this boom more vigorous and extend its duration.
DISSIMILARITIES? WHAT’S DIFFERENT? Unlike the periods following a global military conflict, there are no economies which we have to ‘Marshall Plan’ to help them rebuild their way out of war-ravaged oblivion. It is also important to note - please believe that we intend no disrespect to our elders with this statement – the combat deaths of young, otherwise able-bodied men (and now women too) are a far larger economic deduction than the deaths of retired citizens who are not only past the point of producing economic value, they also tend to be very limited in
their consumption. Few Covid fatalities in the US have occurred in the under 50 age group (4.8%), even fewer in the under 40 age group (1.6%), and almost no one in the under 30 age group (<0.5%). Instead, Covid fatalities in the US have been highly concentrated in those >64 (80%) and even more concentrated in those >74 (57%), the negative economic impact is highly diminished. Not only is it far less than it would be if the fatalities were skewed toward the younger age groups, as it is in a military conflict, but arguably there is a positive economic effect as some of the wealth of the deceased is transferred to their grandchildren who are using their inheritance to buy their first house or buy a larger house. This adds even more momentum to the demographic demand which we described in our previous column (i.e., there are more millennials than boomers).
5+16+222730 US COVID DEATHS BY AGE
0 - 49, 5% 50 - 64, 16% 65-74, 22% 75-84, 27% 85+, 30%
ALMOST ALL OF THE ANSWERS TO COVID CAME IN THE FORM OF TECHNOLOGY. New hardware, devices, and software applications were developed. Innovative processes, procedures, and protocols were adopted. In an incredibly egalitarian
manner, people of all ages, and social-economic groups have dramatically expanded their use of technology in all parts of their lives. People of all races and religions have learned how to use Door Dash and Instacart. Zoom is used by the world’s largest businesses, as well as the 85-year-old grandmother. The dramatic acceleration in the use of technology and extraordinary expansion in the breadth of uses and users will produce productivity improvements; productivity advancements that will be astonishing. For economies, as well as the businesses and people in them, growth in productivity is growth in prosperity. It is also highly deflationary. The expansion in the use of technology and the advancements in its capabilities allow more products or services of higher quality to be produced. It also produces an ever-increasing amount of marketplace visibility to an ever-larger (from both a depth and breadth perspective) population of potential buyers and sellers. As levels of access, price discovery, and quality certification increase: more buyers can find exactly what they want for the lowest cost possible; and sellers with high-quality products and low pricing grow their volumes, while sellers with low quality or high pricing can be avoided.
ALL OF THESE FUNDAMENTALS WILL WORK TOGETHER AND MAGNIFY EACH OTHER. The new technology will be used by the vast preponderance of the world’s population to celebrate their survival. They will buy and sell the best products and services available, from anywhere to anywhere, at the most competitive prices available. With no industries or infrastructure to rebuild and few retirees to support, economic progress and development will come quickly. As economies of all sizes and levels of sophistication increase their wealth, they will magnify each other’s prosperity. The volumes and velocity of global trade
will shatter expectations. 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. All around the world, 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, China’s greatest rates of economic growth have passed, the U.S. trade deficit will steadily shrink until becoming a surplus (within the next 10 years), the US Dollar will continue to be the world’s reserve currency, and interest rates will remain at very low levels. Both domestic and export demand for US goods will continue to grow. As a result, the demand for transportation services to move those goods to domestic customers, as well as international ports for export will continue to grow. The drivers of domestic demand also offering employment alternatives to working in transportation, which thwarts 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 transportation industry. Our thesis continues to be - 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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ATRI UPDATE ATRI Research Initiative – Development of an Assessment Tool to Identify Safest Drivers A new initiative from the American Transportation Research Institute is exploring development of an assessment tool to identify the safest drivers among 18- to 20-year-olds, a key group that the trucking industry is targeting for expanded eligibility of commercial driver licenses for interstate travel. The group’s Young Driver Assessment Tool — which is in phase one of beta testing — has demonstrated that there is the potential to identify individuals who are likely to be safer drivers via development of safety profiles that incorporate personality traits, physiological characteristics and other aspects of mental health. “ATRI’s Younger Driver Assessment Tool can potentially identify those new entrant drivers who share the same personality attributes as safe, mature
veteran drivers,” ATRI President Rebecca Brewster said in a statement to Transport Topics. “We look forward to expanding our pilot test to include more younger drivers to further validate the tool’s accuracy.” Among statistically significant findings, ATRI found that drivers in the safest group based on their MVR and PSP data had the highest scores in the “conscientiousness and agreeableness” category, and the lowest scores in “experience seeking.” Drivers who were determined to be less safe exhibited marginally greater sensitivity to conflict in the “multisource interference task” category, indicating difficulties with cognitive control.
ATRI’s Dan Murray Receives Trucking Federation’s Prestigious Halladay Award The Trucking Association Executives Council has recognized ATRI Senior Vice President Dan Murray with the prestigious J.R. “Bob” Halladay Award. Presented to individuals who have made significant contributions to assist and support the work of the 50 state trucking associations that comprise the ATA Federation, the Halladay Award is only awarded when a TAEC region hosting the annual meeting deems an individual worthy of recognition. “Region 3 and the entire TAEC family is honored to be able to recognize Dan and appropriately thank him for all the tremendous work he has done for the industry and the state associations over his many years of service. We are all better because of Dan and the outstanding support he provides us through valuable data, research and information that is paramount in our ability to serve our respective memberships,” said TAEC Immediate Past Chair Brenda Neville, president and CEO of the Iowa Motor Truck Association. Dan has been with ATRI over 27 years and throughout his tenure has worked with the state trucking associations on myriad research issues. The award was presented to Dan at the 2021 TAEC Annual Meeting in Sonoma, California. “It is difficult for me to put words to what receiving this prestigious award means to me. It will continually remind me how great this industry is, and how fortunate I am to have developed so many
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lasting friendships,” Murray said. TAEC established the J.R. “Bob” Halladay Award in 1990. The award is named after Bob Halladay who held a long and distinguished career in the trucking industry beginning in 1952 with his appointment as Managing Director of the Kansas Motor Carriers Association. Halladay DAN MURRAY was instrumental in ATRI Senior Vice President developing legislation in the 1950s and 60s that enabled the trucking industry to assume a vital role in post-war America. In 1965, Halladay started a career with the American Trucking Associations, where he would hold a variety of positions before retiring in 1990 as Senior Vice President of Federation Relations.
ATA UPDATE ATA Has Joined the Partners for a Zero Emission Future — A New Industry-Led Coalition Partners for a Zero Emission Future (PZEF) supports efforts to build a cleaner more sustainable future through achievable national policies that ensure confidence among fleets by aligning economic and environmental benefits around the country. Amidst rapid developments in state and federal emission regulations, this growing group of industry stakeholders have come together, united by a commitment to minimize heavy-duty vehicle emissions and support the orderly adoption of heavy-duty Zero Emission Vehicles.
American Trucking Association Speaks Out on Proposed $3.6 Trillion Budget On August 11, the US Senate adopted a $3.5 trillion budget blueprint by party-line vote — the opening salvo in a controversial parliamentary procedure known as “budget reconciliation.” This hyper-partisan tactic enables Democrats to pass controversial legislation by averting a Republican filibuster, despite the Senate being narrowly divided at 50-50. Democrats intend to use budget reconciliation as a means to advance an extreme left-wing agenda, which includes hefty tax increases, PRO Act labor provisions, profligate social spending and other policies that threaten to slow our economic recovery by exacerbating labor shortages and rising inflation.
American Trucking Associations President and CEO Chris Spear issued the following statement today after the Senate adopted a $3.5 trillion budget blueprint by party-line vote: “On the heels of a momentous, bipartisan achievement for our nation’s infrastructure, Congress is now turning its back on middle America to placate elite, liberal interests. “President Biden led bipartisan talks through listening, compromise and keeping his word. These traits and common sense have become the exception in Washington, not the rule. With a 50-50 tie in the Senate and almost the same in the House, President Biden could again call for consensus and compromise. Americans are worried about rising inflation, getting back to work and responding to COVID and national disasters. Demonizing businesses and enabling partisan tax-and-spend policies following such a vital, bipartisan triumph is regrettable, will dampen our economic recovery and jeopardizes the fragile gains we’ve made. “The trucking industry and the families and businesses who depend on the supply chain call on President Biden, Leader Schumer and Speaker Pelosi to work in good faith across party lines for solutions all Americans can be proud of, not just a handful of liberal activists.”
PROPOSED
$3.6 TRILLION
BUDGET
ON THE HEELS OF A MOMENTOUS, BIPARTISAN ACHIEVEMENT FOR OUR NATION’S INFRASTRUCTURE, CONGRESS IS NOW TURNING ITS BACK ON MIDDLE AMERICA TO PLACATE ELITE, LIBERAL INTERESTS.
ISSUE 3, 2021
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IMTA UPDATE IMTA Priorities — 2021 Progress Report
1
Workforce Development
Every IMTA member, carrier and supplier, is dealing with the shortage of employees. While the driver shortage is generally in the forefront, finding employees for any number of jobs in our industry continues to be a number one concern. Here are some of the things that your association has been doing to focus on workforce development.
• The IMTA show trailer was at a prime location at the Iowa State Fair. The show trailer features a driver simulator and great videos and handouts highlighting the jobs and careers that prevail in the industry.
• IMTA members have access to the show trailer to use in their own community outreach efforts. If you are interested in doing something in your community to promote the industry, please consider using the IMTA trailer/ driver simulator to help enhance your efforts. Call the IMTA office to reserve the show trailer.
3
Protecting Your Bottom Line
Protecting the bottom line of the membership has always been an important priority and IMTA continues to look at ways in which we can help your bottom line.
• IMTA will be hosting a series of focus groups around the state in the upcoming months to seek feedback from the membership on ways that we can do more to help your bottom line.
4
Telling the Story of Trucking
Everyone has gained a greater appreciation of the trucking industry due to the pandemic and IMTA continues to build on the important momentum with monthly PR efforts designed to remind people about the valuable role that trucking plays to this state and nation.
• Iowa Schools Outreach – IMTA is gearing up to launch its annual outreach effort targeted at the 357 public school districts and 51 private schools in the state. This outreach effort provides the school with a list of available resources to share with students K-12 relative to the trucking industry. The focus of this year’s program will be jobs and careers in the trucking industry.
2
Lawsuit Abuse
The trucking industry continues to be targeted by plaintiff attorneys and IMTA is committed to focusing on this important issue.
• Legislative –IMTA will be introducing legislation once again in the 2022 session.
• Non-Legislative – IMTA has identified some ways in which IMTA members can be better prepared in the case of an accident through training and education. IMTA will be setting up a series of webinars and seminars that will offer valuable guidance in areas such as deposition training, internal controls and proactive measures that will minimize exposure.
5
Best in Class in Regulatory and Compliance Support
The regulatory environment for trucking is always present and always changing. IMTA will be relentless in its efforts to offer assistance and guidance to its membership.
• IMTA is pleased to welcome a new Director of Safety and Member Services to IMTA. Allison Meiners has hit the ground running and will be doing some great things for the association in this area.
• IMTA meets quarterly with its regulatory partners (IDOT, FMCSA, IDPS) and these meetings will continue to be scheduled for the upcoming year.
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IMTA UPDATE LEAD Council Networking Socials a Summer Hit
The Return of the LEAD IMTA Conference
IMTA members quickly got back in the groove of socializing and networking this summer at the Happy Hour & Networking Socials sponsored by the LEAD IMTA Council. These three statewide socials --- Cedar Rapids, Council Bluffs & Des Moines --- proved to be a tremendous success with nearly 200 members in attendance once all was said and done.
After having to cancel in 2020 due to the pandemic, the annual LEAD IMTA Conference returned this year and welcomed members with open arms. This year’s conference had an astounding 31 companies represented and plenty of new faces, even some faces completely new to the trucking industry.
One of the main reasons for the success of these events is that they were set-up specifically for socializing and networking. There was no agenda, no formal program; just a few hours for IMTA members to get back out there and reconnect with other IMTA members. And it served as a great opportunity for new members, or new faces to companies, to dip their toes into the IMTA world without being overwhelmed. “Maybe it’s because we all haven’t gathered together in so long, but there are so many new faces getting involved with the IMTA that it’s great to have social events like this to get to know everyone better,” said LEAD Council member Kelli Boyle, Ruan Transportation.
Mike Laundau, Russ McClaughlin, Todd Rathbone, and Dustin Ginther (Truck Center Companies)
2021 LEAD IMTA Conference attendees at the Welcome Reception.
The highlight of this conference is always the networking opportunities amongst members and the first opportunity to network took place the first night when attendees had to get creative and depend on teamwork to complete a scavenger hunt throughout downtown Des Moines. Then the next day attendees were broken into groups for the always popular “Situation Room” where they discussed hard-hitting topics that continually remain in the headlines. Additionally, attendees had the pleasure of hearing from economist Ernie Goss, IMTA lobbyists Marc Beltrame and Dave Scott, and IMTA member CEOs Jamie Cord from JT Logistics, Hugh Ekberg from CRST The Transportation Solution, and Kevin Gass from Perishable Distributors of Iowa. Taking their scavenger hunt very seriously! The winning team of Drew Hepler (Truck Country), Sarah Hammond (Hirschbach Motor Lines), Hannah Huber (Ruan Transportation), and Kirk Cleppe (Don Hummer Trucking) showed their creativity and talents to take home the winning prize.
Stacy Schmitz and Matt Schmitz (Panama Transfer); Steve Sisler, Logan Love, and Les Love (American Truck & Trailer) Jamie Cord (JT Logistics); Hugh Ekberg (CRST The Transportation Solution); IMTA President Brenda Neville; Kevin Gass (Perishable Distributors of Iowa)
Justin Simonson (GATR Truck Center); Ray Sweezy and Tim Brenner (Pella Corporation); TJ Nielsen (GATR Truck Center)
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IMTA UPDATE Iowa’s Trucking Industry a Visible Force at The Iowa State Fair, Over 9,000 Visit Show Trailer Iowa’s trucking industry had a strong and effective voice at the Iowa State Fair this year thanks to having the IMTA Show Trailer in a heavy traffic, highly visible location. According to the tracking device on the show trailer well over 9,000 individuals entered the IMTA show trailer throughout the 11-day event. Steady lines of fair attendees to test out the driving simulator remained consistent throughout the fair, and we have to believe that we recruited some new drivers to the industry through this effort especially since over 1,000 individuals test drove the simulator (preliminary numbers). In addition to the simulator the IMTA show trailer promoted the various careers offered by the trucking industry and the importance trucking plays in everyday life via videos, signage, handouts, and word of mouth from our volunteers. “This was hands-down one of the best opportunities to get the word about trucking out there to the public. The show trailer is definitely a valuable tool for the industry, and hopefully IMTA members take advantage of it by bringing it to their own communities and getting folks behind the wheel of the simulator,” said Erica Bellach from Thompson Truck & Trailer who volunteered her time at the exhibit. A big THANK YOU to those of you that volunteered their time to make this effort possible. Having a strong group of volunteers to help with this display is the only way we could have done it, so thank you to the following companies for helping with our efforts: CJ Cooper & Associates, CRST The Transportation Solution, Dickey Transport, Eldon C. Stutsman, Hirschbach Motor Lines, Hy-Vee, JMT Trucking Co., Midwest Wheel Companies, PDI, Solar Transport, Thompson Truck & Trailer, Truck Country, and Weinrich Truck Line.
9,000 VISIT
SHOW TRAILER
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FINAL THOUGHT
G.O.A.T We tend to categorize, label and rank everything around us. Being human is to analyze and keep records of the best, the worst, the most, and the least, to assign order to all things. Superlatives sell. That is why you see billboards for the biggest steak, the highest rollercoaster, and the fastest car. Later this summer, millions will tune in as the Olympic Games deliver some of the most impressive superlatives in the world. Athletes will earn titles like fastest runner, strongest weightlifter, highest jumper, best gymnast. In trucking, I’ve seen another superlative making recent headlines, declaring the driver shortage is the worst it’s ever been. In July 2019, months before the global pandemic, American Trucking Associations released numbers on the shortage, urging the industry to hire 1.1 million new drivers over the next decade, an average of 110,000 drivers each year. American Trucking Association’s’ Chief Economist Bob Costello cautioned, “The increase in the driver’s shortage should be a warning to carriers, shippers and policy
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IOWA TRUCKING LIFELINER
makers because if conditions don’t change substantively, our industry could be short just over 100,000 drivers in five years and 160,000 drivers in 2028.” Of course, conditions did change substantively, and not necessarily for the better. The sequence of events you know by now. The pandemic strained the trucking’s workforce by making a difficult job more difficult, and many near retirement used the opportunity to make an early exit. At the same time, the risk of the virus compelled large parts of the population to stay home and shift their spending from services to goods. Service sector employers furloughed and laid off workers to compensate for lower demand. Government assistance helped citizens keep spending and buying products to balance the economic crisis hovering behind the public health crisis. When vaccines arrived, demand for services returned, but the employees to do the serving were gone. Restaurants couldn’t staff their dining rooms. Flights were canceled without enough people to operate commercial airlines. Normally the trucking industry has high turnover and workforce competition from each other and from all of the other trade industries like construction and manufacturing.
But now, carriers are competing with literally everyone. “Now Hiring” signs are hanging in all the windows. Standing interviews, sign on and referral bonuses are rampant among all employers. These challenging circumstances seem to warrant the title – the greatest of all time. Call me optimistic, but relatively, it is a good problem to have: to be wanted and in demand. Even though the driver shortage is demonstrably the worst it’s ever been, it’s not the worst challenge to face. Trucking companies know what it’s like to operate with a labor shortage. This industry links America to all the things it needs. The cargo may change, but the necessity doesn’t. For other employers, they may be learning for the first time how to manage and industry wide talent deficit. But we have been there. We have done this. Even if this is the greatest challenge of all time, I still trust trucking to deliver. Our track record is superlative. Shannon Newton, President Arkansas Trucking Association *Reprinted with permission from Arkansas Trucking Report, Vol. 26/Issue 3 2021
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