MAKING YOUR MILES COUNT Robert D. Scheper
Seasons of Extreme Change Given the extreme changes coming to the trucking industry in 2022, it may be worthwhile to consider a strategy for approaching difficulties. Probably the best and most obvious attitude would be optimistic rather than fearful. However, optimism must be focused on the long-term outcome and not the present circumstances. For instance, being positive about KEEPING your existing circumstances may not be realistic. However, being optimistic can produce the highest probability of seeing the steps to take to adjust your operations, and to produce a net positive result.
I remember in grad school reviewing a consulting contract with my professor (the contractor was losing money in his business). 80% of the contractor’s revenue came from one customer, whose physical location was at the other side of the city. After reviewing the costs of operations, the consultant (my professor) concluded that the contractor would either have to increase his rates considerably to the specific customer or stop serving them. The contractor drew a cold sweat at the thought of dropping 80% of their revenue. However, numbers don’t lie when they are laid out transparently. Once it made sense, he acted on the facts. He called the customer and told them of the new rates or the option to go elsewhere. The customer chose to leave. When the work dried up and adjustments were made (partially new business and partially downsizing), the company started making money again. The choice was difficult but needed. He had 10 • OVER THE ROAD
faith (optimism) in the numbers and his own abilities to adjust accordingly. New regulations and restrictions will produce changes in carriers, employees, operators, and customers. The regulations are the instigator of the extreme changes in the trucking industry. These changes are not a slow-moving current but are white water rapids, complete with sharp rocks hidden from sight. If circumstances seem to require jumping out of one canoe and into another, we best make sure we know exactly what we are doing. That doesn’t always mean we have all our ducks in a row when we jump. Sometimes having them all in a row is simply operating too slow for our environment. In his book ‘The Will to Win’, Robert Herjavec (Dragon’s Den Canada) told the story of being mentored to race cars by a professional. He was racing around the track in training and, over the course of time passed three cars. He was impressed with himself as he came in to be evaluated. However, he found his teacher disappointed. The mentor told him that he missed an opportunity to pass two cars at once, rather than one at a time. In the replay that was clearly shown. It appeared that Robert’s mindset was limited to one at a time rather than a mindset of ‘all possibilities’. Often, we limit our own abilities by our own mindsets. Personally, I know I have. For me, gathering other opinions and perspectives is key to seeing the greater possibilities. There will be operators and drivers retiring at an astounding rate this year. Others may
JANUARY 2022