EROAD FLEET DAY
SPOTLIGHT ON
INDUSTRY ISSUES The 2022 EROAD Fleet Day on 20 July at Hamilton’s Claudlands Events Centre shone the spotlight on heavy transport – undoubtedly a positive move. The content was more targeted and covered the main industry issues. Here are some highlights.
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a Ara Aotearoa Transporting New Zealand CEO Nick Leggett kicked off the heavy-transport stage by giving an overview of the industry’s significant issues and what the association is doing about them. He started with a comment on the recent Grant Thornton Cost Index, which revealed a 23% increase in CPK over the past year. “One in five operators can’t pass on their increases to their customers. This is serious – if truckers can’t pass on the costs, they could go broke.” Another finding was that 80% of businesses had increased wages, and the median for drivers has risen from $26 two years ago to more than $31. “That’s important because we’ve been regarded as being a low-wage industry. Operators have realised it’s needed in order to attract people. It’s a good story to tell.” In relation, Leggett alluded to the association’s Road to Success traineeship. “It’s not necessarily
16-year-olds we need to appeal to. It could be people in their 30s or 40s. We have to take all comers and diversities. Recognition of that is dawning for operators.” Leggett said that the industry needed to confront its responsibilities with emissions. Transporting New Zealand has adopted a Green Compact, laying out what industry can start doing now. “Demands around our emissions footprint are changing. It will not come all at once, and it will be expensive. But we have to face it positively and be open.” On the subject of roads, Leggett commented: “We’re feeling the lack of maintenance. The wear and tear on gear is appalling – we have evidence of that. It’s a health and safety issue as well – with tyres blowing on really bad roads. There’s going to be more of it unless we continue to stand up.” Leggett warned against the government’s Fair Pay Agreement
Nick Leggett.
costs are and what you must watch out for. Know your fleet – trucks have been able to talk to us for years, the problem is we’re not listening. Know and understand your drivers – lots of companies don’t engage often enough. Know your customers and understand their goals. The sooner you find out, the sooner you can plan. Finally, start thinking and planning for the longer term.” Regarding decarbonisation, Smith suggested operators pragmatically
adjust their businesses and squeeze value from existing ecosystems. “Don’t wait until your customer demands it – have a plan for when the conversation happens,” he said. “We’ve still got people who won’t wear seatbelts,” Smith said as he spoke about road safety, adding that trucks were highly visible and the industry needed to reduce its exposure. He said distractions needed to be eliminated. “We need to be
Bill. “This is going to reduce the flexibility of the industry to respond to its requirements. We’re going ‘back to the future’ like we did things over 30 years ago. We don’t have the resources for it, and the legislation doesn’t provide for it. Transport might be affected early on, and the industry needs to be as prepared as possible. The reality will be stark. Strong and consistent advocacy is needed.”
…and more issues With a shrinking workforce, degrading infrastructure, rising costs, regulatory uncertainty and a lumpy global supply chain, operators need to realise things aren’t going to get back to normal… that was the sentiment of James Smith, National Road Carriers Association COO. Smith used the platform to offer delegates guidance on navigating some of the most pressing issues – starting with understanding their own businesses. “Know what your
108 New Zealand Trucking
September 2022
