2023 ENVIRONMENTAL, SOCIAL,
AND
GOVERNANCE REPORT
TMC Transportation consistently looks for opportunities to invest in the future by growing our company with the most advanced technology available, additional facilities to help expand and support our objectives into the next generation, and, of course, hiring and retaining the most hard-working and dedicated employee-owners in the industry.
As our company continues to grow, we are constantly assessing how we can improve our practices related to environmental, social, and governance issues. Through regular evaluation and assurance that our business practices are creating a strong balance of these three areas, we will continue to exceed the expectation set by our company motto, “Destination: Excellence.”
This report is an effort by TMC Transportation to show our success and continuous growth relating to environmental, social, and governance policies. The enclosed information is being voluntarily produced for transparency to our employee-owners, customers, and vendors. The report contains many forward-looking statements of TMC’s goals or plans for the future. However, as with all aspects of life, goals and plans are ever evolving and may change based on multiple factors, such as market trends, company status, and unforeseen uncertainties or risks. We advise the reader to hold caution with such forward-looking statements.
STATEMENT FROM MIKE DUFFY, SENIOR VICE PRESIDENT OF MAINTENANCE
At TMC Transportation, our motto of “Destination: Excellence” is what we live by, and it has been the roadmap to our continued success for over 50 years. It’s why we are the leader in the flatbed transportation industry.
Sustainability—doing business with the future of our company and our communities in mind— plays an important role in helping us reach Destination: Excellence. We set and achieve goals that benefit our business, our employee-owners, our customers, and the communities that we operate in, both today and in the future. We demonstrate sustainability and a focus on continuous process improvement throughout our business activities. That includes our training programs that teach our drivers proper driving technique, our commitment to purchasing late-model equipment, our efficient load routing practices, our emphasis on reducing engine idle time, the way we repurpose used engine oil for facility heating, and the construction techniques and materials we utilize. In every area of our company, we work to benefit all our stakeholders through sound, sustainable practices.
For us, it’s always about Destination: Excellence.
We’re proud of our history and the reputation that we’ve earned, but we will never stop working to improve our business practices, customer service, and environmental footprint.
Mike Duffy Senior Vice President, Maintenance
2023 AWARDS & RECOGNITION
SAW A 11.6%
INCREASE IN ESOP SHARE PRICE.
INCREASED EMPLOYEEOWNERS’ VACATION ACCRUAL BASED ON TENURE.
COMPANY HIGHLIGHTS
CELEBRATED 10 YEARS OF EMPLOYEE OWNERSHIP.
REDUCED USAGE OF PAPER BY SWITCHING TO AN ELECTRONIC A/P SOFTWARE.
DELIVERED 99.99% OF LOADS CLAIM-FREE FOR THE SECOND YEAR.
ORDERED OUR FIRST ZERO-EMISSIONS VEHICLE.
DECREASED OSHARECORDABLE INJURIES BY 7.3% SINCE 2022.
BROKE GROUND ON OUR NEWEST TERMINAL IN COLUMBIA,SOUTH CAROLINA.
RECOGNIZED TMC’S FIRST DRIVER IN COMPANY HISTORY TO REACH FOUR MILLION SAFE MILES, LES BOHLKEN.
REACHED 100% LED LIGHTING ON ALL TRUCKS.
ABOUT TMC
TMC Transportation is the nation’s largest employeeowned flatbed trucking company. For more than 50 years, our dedication to excellence has defined how we do business, both as a flatbed carrier and as a logistics brokerage. Throughout our industry, we’re known for our integrity, innovation, highly trained drivers, impeccably maintained late-model equipment, superior safety standards, claim-free delivery record, and unwavering dedication to quality and customer service.
In both our flatbed fleet and our logistics brokerage, we strive to provide best-in-class transportation solutions with the highest level of customer service. And because TMC is employee owned, everyone at TMC both contributes to and benefits from our company’s success. Together, we are TMC, and we own excellence.
1972
March 6th
We hauled our first load.
1990s
Early 90s
Introduced TQM and “Centralized Dispatch.”
1990s
Late 90s
Expanded the Des Moines office, opened the industry’s first hospitality center, and opened our first maintenance facility in Indiana.
2000s
Early 2000s
Acquired Joplin terminal, opened our maintenance facility in South Carolina, and moved our yard training in-house.
2010
Started brokering excess freight.
2014-2020
Opened TMC Logistics offices in Ames, Iowa, and Fort Worth, Texas.
2017-2020
Built new terminals in Brownsburg, Indiana, and Columbia, South Carolina.
2022
TMC celebrated 50 years of excellence.
MISSION STATEMENT
The mission of TMC is to be recognized as the standard-bearer of quality performance in flatbed transportation. We will accomplish this by searching out the very best people, training them in the fundamentals of quality, and empowering them to develop innovative techniques focused on customer satisfaction. Emphasis will be placed on continuous process improvement in all measurable aspects of our business.
COMPANY CULTURE
The life values of TMC’s founder Harrold Annett are the driving force behind the TMC philosophy. His dedication to honest, hard work and his unyielding commitment to excellence are the core values that we live by. We take great pride in TMC, and it shows in everything we do. There is a TMC way of doing things, and these fundamental values have guided us in our 50-plus years of doing business. We operate with a high sense of integrity—we choose to practice our values rather than simply profess them. We have incredibly high standards and a relentless focus on quality.
SUSTAINABILITY INITIATIVES
TMC Transportation recognizes that the freight industry is a contributor to environmental pollution. We are committed to constantly assessing our carbon footprint and reducing our impact on the environment to improve the quality of life for future generations.
FLEET AND OPERATIONS
TMC Transportation encourages and promotes the reduction of carbon emissions in the daily operations of our fleet. As part of this commitment, we have created a pay scale for our drivers that is directly impacted by their individual fuel consumption, idle time, and out-of-route miles. This holds drivers accountable to ensure they are trip-planning each delivery and pick-up for the most direct and fuel-efficient route possible to maximize the return for themselves and the company.
FUEL EFFICIENCY
TMC’s trucks are individually monitored for fuel efficiency. We proactively route drivers in underperforming low-MPG trucks into terminals to provide driver coaching and perform low-MPG maintenance campaigns on mechanical systems to ensure they are performing at manufacturer expectations.
FLEET AND OPERATIONS
BUILDING AND GROUNDS
To help drivers reduce their idle time, all trucks are equipped with an auxiliary heater, an inverter, thermal insulation, and shore power plug-in capability.
• The auxiliary heater is a stand-alone unit that runs off the truck’s batteries to heat the interior of the cab without running the truck’s engine. Each heater’s automatic temperature control also keeps the driver from having to manually start the heater, which allows for less disruption of the driver’s sleep schedule. On average, an engine burns approximately 0.8 gallons of fuel per hour while idling. Below is a table showing the burn rate of the auxiliary heater, depending on the setting.
The inverter allows for the use of residential-type 120V appliances, accessories, and CPAP machines by converting the truck’s 12V batteries into 120V power.
The thermal insulation package is the equivalent of additional insulation in an attic and results in less need for truck-powered A/C or heating systems (and reduced idle time).
Shore power capabilities allow the truck to be plugged into a 120V source (like an outlet in a house). That power source will run all electrical systems on the truck and charge the batteries without running the engine.
SPEED LIMITATIONS
All TMC trucks are governed at 65 miles per hour. While this could appear to be simply a safety precaution to reduce the risk of accidents, governing a semi-truck’s speed also impacts its emissions and fuel efficiency. The industry standard penalty due to wind/rolling resistance for each mile per hour above 55 in a semi-truck is 0.1 mile per gallon (MPG).
This 0.1 MPG adds up over time. By way of example, say that Truck A is able to run 7 miles per gallon at 65 mph. If Truck A ran for 10 hours at 65 mph, it would use a total of 92.86 gallons of fuel per day. If Truck A increased its speed to 70 mph, the miles per gallon of fuel would decline to 6.5. Running for 10 hours at 70 mph, the total gallons that the truck required would increase to 111.11. That is a difference of an additional 18.25 gallons/day, 91.25 gallons/week (operating at 5 days per week), or 4,562.5 gallons/year (operating for 50 weeks).
LED LIGHTING
TMC Transportation has been using 100% LED lighting for all of our trailers since 2006. In 2023, we were able to reach the 100% mark for trucks, as well. LED lighting is known for being more energy efficient. The bulbs have a longer lifespan, which reduces the need for replacement bulbs and lowers costs in the long-term. LED lights also offer better brightness and visibility than halogen lights.
EXTENDED OIL CHANGE INTERVALS
We also work to reduce our use of resources by extending the mileage between oil changes on our trucks. The normal interval for an oil change in the trucking industry is 12,000 to 25,000 miles. Our maintenance department waits 40,000 miles between oil changes, which reduces the amount of used oil we generate.
If we operated under the industry standard, each unit would require 4.8 oil changes per year. With approximately 3,150 units currently in operation, we would use 166,320 gallons of oil annually. However, by waiting until 40,000 miles, each unit only requires 3 oil changes per year, using 103,950 total gallons of oil.
In other words, we are conserving 62,370 gallons of oil each year through this practice.
AUTOMATIC TIRE INFLATION SYSTEM
All TMC trailers are equipped with an automatic tire inflation system. When a tire’s pressure falls below the appropriate level, the system will use compressed air from the trailer reservoir to inflate the tire. Automatic tire inflation systems improve fuel economy by
decreasing rolling resistance, in turn increasing both the truck’s MPG and the lifespan of the tire. This also prevents blow outs, reducing the amount of time a driver may spend waiting for repair on a roadside breakdown.
INVESTMENTS IN NEW EQUIPMENT
We are committed to having top-of-the-line, current equipment on the road, and we want to ensure that it is as efficient as possible. In 2023 alone, TMC Transportation invested approximately $130 million dollars into new equipment for the fleet. But we are not just purchasers of this equipment—we play a direct role in influencing the creation of the energy-efficient equipment we buy. Our maintenance management team actively works with our equipment providers to map future product development to meet or even exceed industry and environmental standards. For more than a decade, we have participated in one-onone meetings and panel discussions with managers from multiple carriers and manufacturers to shape the development of industry-leading equipment.
CARGO SAFETY AND SECUREMENT
Flatbed trucking presents a daily challenge of safeguarding freight to avoid exposure to the elements or the standard risks associated with transportation. To address this risk, our drivers are extensively trained in and routinely reviewed for proper load securement above and beyond the requirements of the FMCSA. In 2023, our claim-free delivery was over 99.99%. Of the almost 700,000 loads hauled by TMC Transportation drivers and owner-operators, only 219 loads were reported with damage. In the event of an incident or accident resulting in damaged cargo, TMC Transportation’s Claims Department works to salvage the damaged cargo. In fact, of the 219 loads reported as damaged, only two resulted in cargo going to a landfill instead of being sold, donated, reused, or repurposed.
SMARTWAY TRANSPORT PARTNERSHIP
TMC Transportation participates in the SmartWay Transport Partnership, an innovative, market-driven collaboration between the Environmental Protection
Agency (EPA) and the freight industry designed to help businesses learn to move goods in the cleanest, most energy-efficient ways possible to reduce greenhouse gases and air pollution and protect public health. Since 2004, SmartWay Partners have kept more than 134 million metric tons of harmful air pollution out of the atmosphere, while saving 280 million barrels of oil and $37.5 billion in fuel costs. TMC Transportation became a SmartWay carrier in 2008 and has continued to be an active participant in the initiative ever since.
We are also proud to use SmartWay-verified tires, which allow us to reduce our carbon footprint and improve fuel efficiency. Tire manufacturers have increased tire efficiencies through technology and manufacturing improvements, leading to certain tires with an improved low rolling resistance that can benefit fuel economy. TMC Transportation is doing our part to reduce our carbon footprint by running SmartWay tires where we can. We currently run 25 different SmartWay-approved tires made by four different tire manufacturers:
• Bridgestone
• Michelin
• Yokohama
• Continental
CALIFORNIA AIR RESOURCES BOARD
CERTIFICATION
The California Air Resources Board (CARB) is an entity based in California that strives to reduce greenhouse gas emissions, in part through the Clean Truck Check program. Under this program, any truck that enters the state of California must be registered, pay a fee, and then submit biannual onboard diagnostic (OBD) records to show that its emissions equipment is working properly and that it is not producing emissions beyond model and engine year requirements.
While only trucks that actually enter California are registered, 99.9% of TMC’s fleet operates in compliance with CARB Clean Truck Check. All TMC maintenance facilities have trained technicians who are able to test and submit OBD records in compliance with the program.
BIODIESEL AND RENEWABLE DIESEL
Through our partnership with Pilot Flying J, TMC Transportation works to reduce our carbon footprint in our
diesel fuel purchases. TMC Transportation frequently purchases renewable diesel or biodiesel blend fuels, when available. While biodiesel and renewable diesel are similar and made from vegetable oils (primarily soybean oil) and animal fats, the processes for making these fuels differ significantly.
Renewable diesel is a hydrocarbon. It is made from organic biomass that is refined in a process similar to petrodiesel, making it chemically identical to petr-
odiesel. Because it is 100% pure diesel, it is used as a replacement for petrodiesel. Renewable diesel is currently available at select Pilot Flying J locations in Texas, California, Oregon, and Washington. Over 57% of TMC’s fuel purchases at these locations in 2023 consisted of renewable diesel.
Unlike renewable diesel, biodiesel is a mix of petroleum-based diesel fuel and biofuel. The production process for this type of fuel is less complex than renewable diesel. In the biodiesel blends that TMC purchases, the amount of biofuel ranges from 1% to 19%.
TYPE OF FUEL
BIODIESEL BLEND
GALLONS PURCHASED IN 2023
27,585,850
(3,313,740 OF WHICH WAS ACTUAL BIODIESEL)
RENEWABLE DIESEL
674,879
MAINTENANCE FACILITIES
Responsible use of resources is a major goal in all of our maintenance facilities. Our maintenance shops have implemented technology that allows us to recycle used engine oil from our trucks. In our shops located in Joplin, Missouri; Gaston, South Carolina; and Brownsburg, Indiana, we utilize used engine oil to heat our facilities. We also use it to heat the water for our truck wash bay in Des Moines, Iowa. Any oil that is not burned at these facilities for heat is recovered by a third party to be re-refined.
Utilizing our used oil in these ways leads to a significant reduction in our consumption of natural gas. On average, a single gallon of used oil utilized for heat was equivalent to 131.89 cubic feet of natural gas. To the right is a table showing the gallons of used oil burned in our maintenance facilities for heat purposes and a comparison of how much natural gas would have been needed otherwise.
TOTAL GALLONS OF USED OIL BURNED FOR HEATING FACILITIES AND WASH WATER
EQUIVALENT
CUBIC FEET OF NATURAL GAS THAT WOULD HAVE BEEN REQUIRED
RECYCLING INITIATIVES
While we are somewhat limited in what we can reuse directly onsite, TMC Transportation utilizes outside partners and vendors to responsibly recycle, reuse, or manage products, when possible, including the following initiatives:
• Coolant is recycled and reformulated.
• Air conditioning refrigerant is reclaimed, recycled, and reused.
• Vehicle batteries are recycled for lead.
• Scrap steel and aluminum are recycled.
• Tires are recapped and put back into service when the quality and condition allow. Otherwise, they are recycled.
• Used engine fluids (such as motor oil and antifreeze) are recycled, reused, and managed. This includes containerized waste from both our TMC-owned locations and customer locations with dedicated onsite TMC personnel.
BUILDINGS AND GROUNDS
Though the largest share of our carbon footprint undoubtedly comes from the operation and
maintenance of our fleet, we know that our buildings and facilities also have an impact on our environment. Accordingly, TMC Transportation looks for opportunities to adopt sustainable practices regarding our buildings and grounds. We have taken the following steps to make our facilities more sustainable:
• Lighting in all TMC buildings has been converted to LED. As discussed previously, LED lights last longer (reducing the need for replacements) and have better brightness and visibility than halogen lights.
• Used paper is retrieved by an outside shredding company to be recycled into new paper products.
• We have transitioned to an electronic-based accounts payable system, reducing our paper usage.
• All TMC-owned locations offer bins for recycling cans and bottles.
• The concrete walls used to construct our newest terminals in Brownsburg and Columbia are energyefficient and insulated.
At all company-owned terminals, we maintain ample green spaces. When building the terminals in Brownsburg and Columbia, we replaced dead trees and relocated or replanted healthy trees when possible. At company-owned locations, landscaping extensively utilizes trees around the buildings to provide natural shade and regulate the temperature during warm months.
It is deeply engrained in TMC’s culture to care for company grounds. The first rule every employee-owner hears when they join TMC is not to walk on the grass. While most assume this is strictly for appearance standards, the rule is actually beneficial in other ways. For instance, there are no paths of dead grass on the grounds, and our landscaping has a chance to flourish. It also prevents anyone from coming across unseen tripping hazards on the grounds. Finally, it reduces soil compaction, preventing poor drainage and flooding.
CAREFUL
HOSPITALITY
TMC Transportation owns and operates two hotels: Baymont Inn & Suites in Des Moines and Microtel Inn & Suites in Columbia, which are franchises of Wyndham Hotels & Resorts, Inc. Thanks to our daily practices in sustainability, both hotels are Wyndham Green® Certified.
Wyndham Green Certification addresses energy and water conservation, waste diversion, and operational efficiency, as well as guest, team member, and franchise education and engagement. This certification prioritizes quick-payback efficiency measures, some of which are no-cost to low-cost.
Below are some of the ways TMC Transportation implements Wyndham Green in our hotels. These measures allow us to minimize the use of energy, water, and detergents and reduce the amount of waste we send to landfills.
towels and bed linens or let staff know if they want new ones.
• Linen and towel reuse program: Guests who stay more than one night have the option to reuse their
• Interior energy-efficient lighting: We have implemented energy-efficient lighting in at least 75% of interior areas at our hotels.
• Basic recycling: We have established a recycling program for all areas of the hotels that collects paper, cans, and plastic. We provide recycling bins in all guest rooms.
• Data tracking to maximize efficiency: We use the Wyndham Green Toolbox to track energy and water usage data and performance on a monthly basis. This provides us with an understanding of hotel resource use and a baseline of hotel usage and costs. It also allows us to identify areas in which we can reduce our usage to conserve resources and lower costs.
SOCIAL IMPACT
TMC Transportation is committed to having a positive impact on the individuals and groups in our communities. Both as an organization and as individuals, we recognize that we have a responsibility to be active forces for good, and we take action to give back to our communities on a regular basis.
INCLUSION, DIVERSITY, ANTIDISCRIMINATION, AND HUMAN RIGHTS
TMC Transportation believes that everyone—regardless of age, gender, race, religious affiliation, and political views—has a fundamental right to be treated with dignity and respect. We never tolerate harassment or discrimination of any type. TMC makes employment decisions based solely on company need and an individual’s qualifications for performing the job. We have been and continue to be an equal opportunity employer.
Likewise, we are committed to respecting human rights and conducting business with integrity. We protect and promote human rights in all areas of our business and work diligently to address any adverse human rights impacts of our activities. We foster safe, inclusive, and respectful workplaces, including building and maintaining sustainable work environments free from discrimination and harassment. We expect employees, partners, suppliers, and customers to share our commitment to respecting and promoting the human rights of the people we work with and the communities where we do business.
Approximately 45% of TMC drivers identify as a minority race.
EMPLOYEE STOCK OWNERSHIP PROGRAM
TMC Transportation is proud to be a 100% employeeowned company. We became employee-owned in October 2013 when CEO and founder Harrold Annett wanted to establish a succession plan that maintained the culture of TMC while rewarding employees for their dedication. All eligible employees are part owners of the company at no cost to them, through an employee stock ownership plan (ESOP).
Research studies consistently show that employee -owned companies perform better than other organizations, and TMC is living proof of that. Since establishing our ESOP in October 2013, our company has grown and prospered in every area of our operations. Our driver fleet has grown, our Logistics department has more than doubled in size, and we continue to expand our facilities footprint.
The ESOP adds financial motivation and ownership responsibility, since employees tend to feel more invested when they have a stake in their company. Directly benefiting from the overall success and profitability of the company encourages our employee-owners to work
harder, think creatively, and work efficiently as a team, creating a more rewarding work environment.
ESOP is an amazing benefit, and we believe it is a cornerstone of TMC’s success—and it also sets us apart from other companies. There are only about 10,000 companies with ESOPs in place nationwide, and it is even more rare to find an ESOP company within the trucking industry.
DRIVER SAFETY AND TRAINING
TMC Transportation’s primary focus in all operations is the safety of our employee-owners. We understand there is nothing more important to our company’s success than the safety of our drivers and everyone on the road around them. Company policies and procedures are always created with safety as the top priority.
Driver Orientation and Training:
Our driver orientation and training program is a crucial part of hiring and retaining the best drivers and ensuring they are safe on the road. Our training program is recognized as one of the best in the country because of its attention to detail and thoroughness, and it is one of the few on-the-job truck driver training programs in the country approved by the Department of Labor as a certified Heavy Truck Driver Apprenticeship Program. Before our drivers deliver their first load, they complete rigorous training to ensure they meet TMC and DOT standards. Our extensive training program includes:
• Equipment familiarization simulators
Load securement
DOT compliance and pre-trip inspection
Ongoing Safety Training and Communication:
Safety does not end at orientation; it is a principle our drivers carry with them every time they move or park a truck. Our safety managers continually reiterate TMC’s safety commitment to our drivers. Every one of our safety managers has professional experience as a semi-truck driver, and their background in trucking helps them relate to the drivers. They understand the challenges of commercial driving and can give drivers guidance based not only on the rules and regulations of the road, but also their own experience.
In addition, the Safety Department frequently sends out messages to drivers fleetwide about trends or issues we are seeing, either as a company or in our industry. These messages include guidance about how to prevent or reduce the risk of injuries or accidents.
We also hold in-person safety meetings for drivers at all terminals daily and monthly. Like the messages, the in-person meetings allow our safety managers to present information about current issues, often in more detail. These meetings also give drivers the opportunity to collaborate about different aspects of their role, including the most efficient and safe way to perform their job activities. During these meetings, safety managers remind drivers that their safety habits impact not only themselves, but the other drivers in the fleet and everyone they share the road with.
Promoting and Rewarding Safe Driver Conduct:
We hold our drivers accountable for their driving habits, and we incentivize safe driving. Drivers are routinely brought into a terminal or training center for remedial training after accidents, citations, or reports of safety concerns. Safety issues can also directly impact drivers’ pay over a one-month period. The Safety Department further incentivizes drivers to keep safety in mind and ensure they are completing thorough pre-trip inspections by offering bonuses for clean Department of Transportation inspections. Drivers on dedicated accounts may receive bonuses based on the overall safety records of all drivers on their account.
TMC also works to publicize drivers’ safety achievements throughout internal channels, social media, and external publications. Many of our active drivers have achieved at least one million miles, including:
While a driver is always the first line of prevention and defense in avoiding accidents and incidents, the second line is the truck itself. Each TMC truck utilizes state-of-the-art safety equipment, including Bendix® Wingman® Advanced, a detection and collision-avoidance system. The Wingman Fusion Collision Mitigation System helps the driver operate the truck safely through collision mitigation, lane keeping, speed limit recognition, adaptive cruise control, and advanced braking. The Bendix Electronic Stability Program serves to mitigate roll-overs and loss of vehicle control. These measures can help drivers stay safe in challenging situations on the road.
Injury Tracking and Prevention:
As a self-insured employer, TMC relies on our Workers’ Compensation Department to assist employee-owners with not only injury recovery but also injury prevention. The Workers’ Compensation Department routinely monitors trends related to injuries or near-misses. With the help of the Safety Department, those trends are then relayed to the
applicable departments with recommendations for how to avoid injuries moving forward. Additionally, the Workers’ Compensation and Federal Compliance Departments ensure that all drivers are up to date with their physicals and that their medical conditions are in compliance with FMCSA regulations.
MILITARY FRIENDLY EMPLOYER
TMC Transportation has a long history of hiring current and former military personnel into every job category at our company. Currently, over 36% of our drivers are veterans. Additionally, veterans play important roles throughout our organization, including in our senior management positions.
TMC Transportation genuinely appreciates the skills, knowledge, and attributes veterans have gained through their service to our country. We are honored to work beside the servicemen and women who have given so much to protect us. Each veteran driver in our fleet is honored for their military service with a patriotic decal featuring their branch of service on the side of their truck.
TMC Transportation is proud to have partnered with the U.S. Chamber of Commerce’s Hiring Our Heroes program to hire more than 500 military veterans. We also offer military veterans the opportunity to enroll in an apprenticeship program that is approved for the GI Bill. In addition, we help soon-to-be or recently discharged members of the armed forces find new career
opportunities through the Montgomery GI Bill and Post 9/11 GI Bill, pending approval from the Veterans Administration.
TMC is also proud to support members of our military during their service through care packages of snacks and comfort items. This is one small way that we can make a difference for these brave men and women while they are protecting our freedoms. During the Thanksgiving week, the Safety Admin Team assembled and sent out 80 care packages to active members of the military who are either friends or family of our employee-owners.
FAMILY ASSISTANCE FUND
TMC’s Family Assistance Fund was created almost 20 years ago to aid employee-owners and owneroperators during periods of hardship. The fund is an accumulation of money contributed through voluntary payroll deductions and annual fundraising events. It provides assistance to employee-owners or owner-operators during natural disasters, severe illness, or other hardships.
The fund also matches contributions that employee-owners and owner-operators make to non-profit organizations, offers several college scholarships to dependents of employee-owners and owner-operators, provides gifts to celebrate the birth of new babies, and supports families during times of loss. In 2023, the Family Assistance Fund contributed $126,354.78 to our employee-owners, owner-operators, and their families.
COMMUNITY ACTION AND INVOLVEMENT
TMC Transportation is grateful for the communities that have supported our company. That’s why each
year we give back to those communities by supporting organizations that focus on health, future generations, and our military veterans.
In 2023, we held food drives at several terminals and offices around the country. Our employees brought in over 3200 pounds of food and household goods to help their neighbors in need. Each TMC location donated items collected to its local food bank.
For the second year in a row, TMC Transportation was a sponsor of the Des Moines Turkey Trot. As part of the sponsorship, more than 75 employee-owners and their families signed up to walk or run in the Thanksgiving Day event, whether virtually or in person.
TMC Transportation routinely raises money for non-profit organizations through fundraisers, raffles, and competitions within the company. Last year, our employee-owners raised more than $3200 for St. Jude Children’s Research Hospital.
SPECIAL OLYMPICS CONVOY
For over 10 years, TMC Transportation has had the privilege of participating in the Special Olympics Convoy in Des Moines. In this yearly event, law enforcement officials escort a convoy of trucks from Veterans Parkway in West Des Moines to the Iowa State Fairgrounds to raise money for the Special Olympics. Each year, 20-25 TMC drivers take part in the convoy, choosing to give up their weekend—and their home time—in order to give back to their community. Many drivers participate year after year to show their support for the Special Olympics.
In addition to these generous drivers, other TMC employee-owners, family members, and friends join as passengers in the trucks or simply attend the event to show their support for the cause. In 2023, 114 trucks from across central Iowa made up the convoy, along with local law enforcement. The convoy raised approximately $67,000 for the Special Olympics to fund sports for children and adults with intellectual disabilities.
GOVERNANCE
TMC’S FOUNDER: HARROLD ANNETT
We cannot talk about TMC Transportation without talking about Harrold Annett, our company’s founder. Why? TMC Transportation would not be in existence but for Harrold and his vision. TMC Transportation was founded in 1972 when Harrold purchased the dormant trucking company The Mickow Corporation, which he later renamed TMC Transportation. Over the next 49 years until his death in 2021, Harrold’s visionary leadership helped TMC achieve unprecedented business success and become a nationally recognized leader in flatbed transportation.
Harrold believed that TMC’s employees were its greatest asset, and he wanted to find a way to plan for the company’s future that would maintain its culture of excellence and reward the people who had helped make it great. That’s why he established an employee stock ownership program (ESOP) in 2013. The
ESOP makes all eligible employees part owners of the company at no cost to them, ensuring that TMC maintains both its business success and its strong culture.
Harrold was the driving force behind TMC’s incredible growth, as well as the heart of our culture. In the words of Travis Johnson, Executive Vice President of Operations, “Harrold preached teamwork, hard work, integrity, passion, treating others as you would want to be treated yourself, and many more core values, on a daily basis.” These principles are as ingrained into the mindset of our employee-owners today as they were when Harrold opened the doors over 50 years ago.
We’re proud to carry these values into the future of our company.
BOARD OF DIRECTORS AND EXECUTIVE TEAM
TMC Transportation is a company built on integrity and pride—values that our Board of Directors instills into all aspects of our operation. Our Board of Directors believes strong governance is necessary to ensure the financial prosperity of our company and current and future employee-owners. With a combined total of over 170 years of tenure with TMC Transportation, our Board of Directors is well versed in the daily operations and needs of the company. They have played integral parts in growing our company to more than 5000 employees.
LARRY CLARK, CHIEFFINANCIALOFFICER
Larry oversees the following department:
• Financials: Larry tracks and analyzes all cash flow, manages financial planning, and guides the business in economic decisions that adhere to proper regulations.
• Larry was formerly the Executive Vice President of Accounting as well. He has recently turned these duties over to Andy Ketelsen. However, he continues to be available to Andy if he needs assistance.
MIKE KELLY, EXECUTIVEVICEPRESIDENTOFNATIONALACCOUNTS
Mike oversees the following department:
• National Accounts: National Accounts is closely aligned with the Dedicated department. Mike oversees many of the largest accounts at TMC, and his team ensures that these accounts are taken care of.
LOU GARTNER, EXECUTIVEVICEPRESIDENTOFBUSINESSDEVELOPMENT
Lou oversees the following department:
• Business Development: This team is our outside sales force for the asset side of TMC. They are responsible for growing and developing our business with new and existing customers.
TRAVIS JOHNSON, EXECUTIVEVICEPRESIDENTOFOPERATIONS
Travis oversees the following departments:
• Operations: Our Operations Department is responsible for our linehaul drivers. The department holds a host of operations managers and fleet managers. Our fleet managers are responsible for dispatching a fleet of 40-50 drivers and ensuring that each driver is getting what they need to be successful.
• Customer Service: Our Customer Service Department is responsible for our linehaul customers. They ensure the safe and timely delivery of our customers’ freight. Daily, they put together a puzzle of pairing our linehaul drivers with the freight available.
• Dedicated Operations: Our Dedicated Operations Department works with drivers who are assigned to specific customer accounts, providing guaranteed capacity for the customer and often allowing drivers to stay close to home. These drivers offer dependable, on-time pick-up and delivery and the best-in-class service TMC is known for, creating business efficiencies for our customers.
• Logistics: Our Logistics Department procures extra freight, pairs it with a partner carrier, and pairs any excess freight from the asset side of our business with our partner carriers. Additionally, Logistics ensures that our asset drivers keep moving anytime we are short on freight.
GLEN MCCRAVY, DIRECTOROFINSURANCECAPTIVE
Glen oversees the following department:
• Insurance Captive: Glen is involved in the continuous growth and development of TMC’s insurance captive. He works with Matt Paige as they move and manage various coverages to the captive insurance program.
• Glen served for 30 years as Executive Vice President of Risk Management and Human Resources. He has turned his duties regarding Risk Management and Human Resources over to Matt Paige and his duties regarding Training and Recruiting over to Jeff Wisgerhof. He is available to Matt and Jeff if they need assistance.
ANDY KETELSEN, EXECUTIVEVICEPRESIDENTOFACCOUNTING
Andy oversees the following departments:
• Accounts Payable: Our AP Department is responsible for ensuring that all our bills are paid. This includes paying vendors, our partner carriers, and employees’ expense reports.
• Accounts Receivables: Our AR Department is responsible for collecting money from our linehaul, dedicated, and logistics customers. AR also oversees the credit approval process for all customers.
• Payroll: Our Payroll Department is responsible for ensuring all drivers, office employees, and shop employees are paid.
• Billing: Our Billing Department is responsible for creating, processing, and sending invoices to our linehaul, dedicated, and logistics customers.
• Pricing and Rating: Our Pricing and Rating Department is responsible for reviewing, submitting, and processing all of our customer rates, including contracts and accessorial schedules.
SETH DELUTRI, EXECUTIVE VICE PRESIDENT-CORPORATEATTORNEY
Seth oversees the following departments:
• Legal Counsel: Seth provides legal counsel for TMC, which includes negotiating customer contracts, assisting with corporate governance and compliance, and helping to reduce risks.
• Information Technology (IT): The IT Department manages all computer hardware, software/applications, and technical support for employees. They also lead the charge in cybersecurity practices to protect TMC’s information, including employee and customer data. Their responsibilities extend to providing tools and platforms for our fast-paced business operations.
• Maintenance: Our Maintenance Department ensures that our trucks remain operable by performing preventative maintenance, major repairs, and body repairs, as well as responding to breakdowns on the road and warranty issues.
• Hospitality Center : This team manages both the Baymont Inn & Suites in Des Moines and the Microtel Inn & Suites in Columbia. Half of each hotel is open to the public, and half is reserved specifically for our drivers.
• Truck and Trailer Purchases and Sales: The truck and trailer purchasing team works to grow our fleet through buying new equipment. The Truck Sales Department is responsible for selling our used trucks to other drivers.
• Fuel Purchases: This team manages our relationships with fuel vendors.
• Facilities Management: Seth manages TMC’s leased and owned facilities, including finding the right locations for our business, executing purchases and leases, overseeing the design-build, working with contractors, and maintaining our buildings and grounds.
• TMC Racing: Seth serves as TMC’s liaison for our NASCAR sponsorships and ensures that our partnerships with racing teams remain strong.
MATT PAIGE, EXECUTIVEVICEPRESIDENTOFRISKMANAGEMENTANDHUMANRESOURCES
Matt oversees the following departments:
• Human Resources: Our Human Resources Department is responsible for recruiting office/maintenance employees and managing leaves of absence, benefits, unemployment, employee relations, and other personnel matters.
• Claims: Our Claims Department handles accident and cargo claims. The department works together to ensure not only that these issues are dealt with, but that the claims are investigated and that we are tracking our claims so that we can prevent future ones.
• Workers’ Compensation: Our Workers’ Compensation Department is responsible for handling on-the-job injuries. The department addresses the claims from start to finish by setting up medical treatment and compensating injured employees for their time off work until they are able to return to full duty. The department also addresses injury trends and coordinates with the Safety Department to prevent future potential injuries.
• Safety: Our Safety Department is responsible for equipping our drivers with safe practices while on the road. They make sure we are remaining compliant and leading the industry in safety standards.
JEFF WISGERHOF, EXECUTIVEVICEPRESIDENTOFTRAININGANDRECRUITING
Jeff oversees the following departments:
• Driver Recruiting: Our Driver Recruiting Department is responsible for bringing in new drivers every week, including people wanting to get their CDL, apprentice drivers, and experienced drivers.
• Driver Training: Our Driver Training Department is responsible for training all new drivers to uphold our standards.
• Driver Development: Our Driver Development Department is responsible for developing our drivers and those who support them, with a focus on Total Quality Management (TQM).
• Corporate Communications: Our Corporate Communications Department is responsible for the TMC brand, marketing content and strategy, employee communications, TMC news and updates, public relations, and corporate events.
2024 GOALS
• Put our first zero-emissions vehicle into operation by June, with more anticipated units to be added in the future.
• Implement a company-wide safety campaign. The campaign will focus on promoting safety and wellness for our employee-owners in all aspects of life, not just the workplace.
• Reduce waste in our cafés by transitioning to eco-friendly utensils and containers.
• Create a learning management system to improve employees’ access to new or refresher training across all departments.
• Continue to improve our current technology to further reduce our use of paper.
• Add front-facing cameras to all trucks.
• Consistently maintain an idle time average of less than 30% throughout the fleet.
• Utilize technology for trailer tracking and increase efficiency of the tracking system.
• Introduce a safety glasses requirement in all maintenance department buildings.
• Update hazard assessments for maintenance and driver positions.
• Transition to an updated electronic tracking device within all trucks.