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July 11, 2006
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Headline News
5.4 Million Jobs Created Since August Of 2003
The government releases new job figures, which shows there have been 5.4 million
jobs created since August of 2003. The nation's unemployment rate is 4.6
percent, which is lower than the average of the 1960s, 1970s, 1980s, and 1990s,
according to The White House .
The nation's economy remains strong:
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Since 2004, the U.S. has created about twice the number of jobs as the rest of
the G-7 Countries combined.
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Employment increased in 48 states over the past 12 months ending in May.
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Real GDP grew at an annual rate of 5.6 percent for the first quarter of this
year.
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Productivity increased at a strong annual rate of 3.7 percent in the first
quarter.
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Real hourly compensation rose at a 3.2 percent annual rate in the first quarter
.
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Real consumer spending has increased at an annual rate of 5.1 percent in the
first quarter.
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Industrial production has increased 4.3 percent over the past 12 months.
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Ensure Complete Internal Assessments Of Data
Federal Motor Carrier Safety Administration (FMCSA) delays re-posting SafeStat
scores on its website, to ensure the complete internal assessments of the data.
Secretary of Transportation Norman Mineta, informed the American Trucking
Associations, Inc. (ATA) of FMCSA's decision.
FMCSA's decision comes as ATA has been voicing its concerns about SafeStat with
Secretary Mineta. In March, ATA sent a letter to Secretary Mineta, requesting
FMCSA not to re-post SafeStat scores on its website, because of problems
associated with the data and with the SafeStat algorithm, according to the Nebraska
Trucking Association .
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CPL Amended by NHTSA
On June 29th , the National Highway Traffic Safety Administration (NHTSA)
published an amended Conforming Products List (CPL) for instruments that
conform to the Model Specifications for Evidential Breath Testing Devices.
Since the last publication of the CPL, five instruments have been evaluated and
found to meet the Model Specifications, as amended on September 17, 1993, for
mobile and non-mobile use.
Please note, that only those devices listed without an asterisk (*) are
authorized for use in confirmation testing in the DOT alcohol-testing program.
To review the list in its entirety, please click here. Or for further
information, contact Dr. Maria E. Vegega, Office of Behavioral Safety Research,
Behavioral Research Division (NTI-131), National Highway Traffic Safety
Administration, 400 Seventh Street, SW, Washington, DC 20590; telephone: (202)
366-4892.
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Increase Funding For Commercial Driver Training
Programs
As prescribed by SAFETEA-LU 2005, the Federal Motor Carrier Safety
Administration (FMCSA), has announced on the federal government's grant
website, “Grants.gov”, that it will create grants, which will increase funding
for commercial driver training programs.
FMCSA expects to award 30 grants for a total of $1 million, which will
accomplish these three goals:
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Develop and to pilot an enhanced safety training curriculum as part of an
overall CDL program.
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Expand the number CDL holders possessing enhanced operator safety training to
further reduce crashes involving Commercial Motor Vehicles (CMVs).
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Assist economically distressed regions of the U.S. by providing workforce
training opportunities for qualified individuals to become CMV drivers.
The Federal Government will match 80% of the grant, while the remaining 20%;
will be matched by the grant recipient. The applicants, whom are eligible to
apply for the grant, are the following: state and local governments; nonprofits
having a 501(c)(3) status with the IRS, other than institutions of higher
education; nonprofits that do not have a 501(c)(3) status with the IRS, other
than institutions of higher education ; vocational-technical schools; and truck
driver training schools. And, deadline for grant submission is July 24, 2006.
For further details of the grant, click here-
http://www.grants.gov/search/search.do?oppId=10098&mode=VIEW.
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Enhanced Truck Parking On The National Highway System
The Federal Highway Administration (FHWA), has published a “notice and requested
for comments” in the Federal Register , to determine how a pilot
program, will enhance trucking parking on The National Highway System.
The pilot program was approved as part of the highway funding legislation signed
into law last August, and it will provide about $6.2 million in grants per year
through 2009 for states and municipalities to improve CMV parking. The comment
period, will determined how those grants are enacted throughout the country.
According to Section 1305 of the Highway Bill, the grants must serve the
National Highway System and fall under one of the following categories:
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Constructing safe rest areas that include parking for commercial motor
vehicles;
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Constructing commercial motor vehicle parking facilities adjacent to commercial
truck stops and travel plazas;
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Opening existing facilities to commercial motor vehicle parking, including
inspection and weigh stations, and park-and-ride facilities;
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Promoting the availability of publicly or privately provided commercial motor
vehicle parking on the National Highway System using intelligent transportation
systems and other means;
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Constructing turnouts along the National Highway System for (CMVs);
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Making capital improvements to public commercial motor vehicle parking
facilities currently closed on a seasonal basis to allow the facilities to
remain open year-round; and
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Improving the geometric design of interchanges on the National Highway System
to improve access to commercial motor vehicle parking facilities.
The deadline for comments is August 25th , and they can be submitted
anonymously. However, all submissions must include the agency name and the
docket number, FHWA-2006-25066.
To submit your completed comments, click here -
http://dms.dot.gov/submit/dspSubmission.cfm
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Develop Recruiting Sales Skills To Close The Deal
Since recruitment of drivers is an important element for trucking companies, TCA
is offering an audio conference to learn the 10 skills of driver recruitment,
which will take place on Thursday, July 20, 2006 from 12:00 pm to 1:30 pm
eastern standard time.
Would you like to know how to….?
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Focus on the moment—how to be an effective communicator when you place a call
or when you receive a call from a driver?
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Follow a 7-point sales process?
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Establish rapport on the phone in 30 seconds?
This is an exciting opportunity to learn those skills and many other skills from
the following experts:
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David Mattson, Vice President, Sandler Sales Institute, Stevenson , MD
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Eric Stegman, Vice President, Driver Development, Craig Transportation Company,
Perrysburg , OH
To find out more about the audio conference or to register,
click here. To register online
click here.
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Scholarship Recipients Will Strengthen Trucking Industry
FOR IMMEDIATE RELEASE
July 5th , 2006
Contact: Tom Burns, Communications Manager
703/838-8859 or tburns@truckload.org
Truckload Carriers Association Awards Scholarships
Alexandria , VA , July 5 th , 2006 – The Truckload Carriers Association
Scholarship Fund continued its long tradition of providing financial aid to
truck drivers, their spouses, children, or grandchildren by awarding eighteen
college scholarships, amounting to $38,500, for the 2006-2007 academic year.
The scholarships were awarded on the basis of need, academic excellence, major
field of study, and quality of an assigned essay. Special consideration is
given to those students studying in the field of transportation.
“The scholarships will enable these students to have an important
impact upon the trucking industry,” stated Don Orr, Chairman of the
Scholarship Fund. “Through a tireless fundraising effort and the continued
support of the trucking community, we were once again able to
award over $38,000 dollars to eighteen scholarship recipients.”
Recipients Receiving Memorial Scholarships in honor of Thomas Welby and Kai
Norris in the amount of $3,000 are:
Barry Wertz, is the Driver Recruiter/Safety Supervisor for Kinard Trucking, Inc.
and since childhood, he has had an interest in trucks. His career in the
trucking industry, has led him to finish his college degree, which he had given
up completing 15 years ago, by recently enrolling at Elizabethtown College and
is studying Business Administration.
Amanda Chambers, is receiving a TCA scholarship for the second time. She is
currently studying Applied Meteorology with a concentration in Research at
Embry-Riddle Aeronautical University and her mother is a Sr. Billing Clerk for
Lawrence Transportation Systems. Her writing has improved, while working the
past two summers as a Marketing Assistant at Lawrence Transportation Systems,
which has helped in her studies.
Recipient of our Truck Writers of North America Scholarship of $2,500 is:
Mathew Curtis, works at U.S. Xpress Enterprises, in their Direct Operations
Department and this experience has enable him to learn the importance of the
trucking industry. He is currently studying Business at the University of
Tennessee at Chattanooga and hopes to continue working at a trucking company in
a corporate position.
Recipients Receiving $2,000 Scholarships are:
Russell Brown father works as a Driver for Dart Transit Company, which has
enable him to provide for his family and taught his son the concept of
unconditional love. Russell is studying Sports Marketing & Management at
Indiana University.
Todd Bulicek has gained invaluable insights about the trucking industry, through
the stories his mother has told him, as she is the Lead Driver Payroll
Specialist, for CRST International, Inc. Todd is studying Business at Kirkwood
Community College, which has lead him to want to learn more about the trucking
industry.
Scarlette Burton, mother works for Mercer Transportation in their Department of
Credit Collections, and has taught her the importance of a strong work ethic.
Scarlette is studying Political Science at the University of Louisville .
Ashley Cooper father works as a Dispatcher for Hall Bros. Transportation. Inc.,
which has enabled her family to become involved in the community. She is
studying Elementary Education at Indiana State University , so she can continue
her involvement in the community as an educator.
Amanda Daigle father is the owner-operator of Daigle Transportation, Inc., which
has taught her the concepts of strength and responsibility. Amanda is studying
Spanish and Secondary Education at Merrimack College .
James Davis, is receiving a TCA scholarship for the second time. He is studying
business and sports management at Bowling Green State University . As a child,
he attended safety meetings with his father, who works for Jet Express, Inc.
James also has worked in the trucking industry, as a part-time package handler
for UPS and hopes to use the logistics principles he's learned from the
trucking industry in the professional sports industry after graduation.
Bethany Donnillon, mother works as a Billing Specialist for Dart Transit
Company, which has enabled her to understand the importance of the trucking
industry to the economy. She is currently studying Business and Spanish at the
University of Saint Thomas , which could lead to a career in the trucking
industry, because of the expansion of trade.
Bryan McCulley's father works as a Terminal Manager at Oliver Trucking, which
has given him an insight into how the truck industry is involved in the
economy. He is studying Recreation and Sports Management at Indiana State
University .
Lori Sherman works for Con-Way Truckload Services, which has encouraged her to
learn something new everyday. Lori is studying Business Management at the
University of Phoenix and plans to enroll in an MBA program at some point.
Lauren Spiegel, is studying Visual Communications Design at Villa Julie College
in Baltimore , MD. Her father has spent his career as a truck driver for D.M.
Bowman, and through this relationship, she has learned the importance of the
trucking industry and how to be a strong and independent person.
Joshua Udermann's father is the owner of Master's Logistics and an active member
of the TCA. His father's business has enabled him to learn the social and
economic impact, of the trucking industry, along with his father's interest in
the various trade publications within the industry. This has led him to study
Journalism at Missouri State University .
Jenni Welder has worked in the past at Bar-Nunn Transportation, which is where
she became interested in marketing. Jenni is studying Business and Advertising
at Iowa State University and wants to work in a marketing department of a
trucking company.
Christine Winchester, family has worked in the trucking industry, which enabled
them to save their farm. By working in the trucking industry, it lead to a
strong work ethic and a passion for education, which lead her to study Early
Childhood Education at West Texas A&M University .
Jason Winteron's entire family has worked in the trucking industry, which has
taught him the importance of working hard and good communication skills. Jason
is studying Business Management at Utah Valley State College and plans to work
in the trucking industry.
Anne Woodall grew up listening to her father's stories of when he drove trucks
and she works as a Marketing Representative at the American Road and
Transportation Builders Association. She is also studying Business
Administration at Strayer University and plans to attend law school at some
point.
Truckload Carriers Association Scholarship applications for the 2006-2007 school
year will be available in December 2006. For more information, contact Tom
Burns at (703) 838-8859 or visit
www.truckload.org/scholarships.htm.
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Reduction Of Revenue Will Occur
With the increases in compensation packages for owner-operators, many of them
are frequently switching carriers, which will lead to the reduction of revenue.
What is causing the reduction of revenue? This article provides some important
insights.
The grass is always greener, isn't it?
A message to share with Owner Operators
Compensation packages for owner-operators have increased over the past 18
months or so. That was way overdue, but the new pay packages are tempting some
owner-operators to switch carriers frequently. Increased revenue seems easy to
understand but the trick is to also understand your costs. If you truly know
what your costs are, and if it still makes sense to switch, that's great.
But consider the story below that we heard when a guy recently got behind on his
tractor payments.
“What's wrong with this industry? I've switched carriers three
times in the last year, each time for more money, but now I'm broke.”
He made his decisions to switch frequently based on revenue only - without
considering costs. Sure, business people make decisions based on revenue but
out of necessity, decisions have to be based on costs too. And since costs for
owner-operators can be tricky we thought we could share some of the things
we've seen concerning switching carriers to make the decision to switch easier
to understand.
It can take three weeks to wind things down at the old carrier and get some
money coming in from the new carrier. It takes time to turn-in the trailer, the
satellite, the base plate, permit book, etc., then bobtail to orientation.
After orientation getting a load to deliver. It can take even more than three
weeks before a paycheck is received and money starts going home again. The cost
to switch too often looks like this:
3 weeks of tractor and insurance payments
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$2,100
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3 weeks of revenue NOT made while switching
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$7,500
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(Minus expense for the above that didn't happen for fuel, maintenance)
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($3,150)
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3 weeks of family income needed (those kids didn't stop eating)
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$2,100
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Subtotal of above costs
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$8,550
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Increased pay after 130,000 miles/One Year -
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$2,600
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Net cost to change after 1 year
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$5,950
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If someone said to you it made sense to spend four cents a mile to get two cents
back you'd be real quick to be skeptical of that logic. And you'd be right. But
that's similar to what happens when switching to a new carrier without
considering the full cost of switching.
And losing $5,950 on the above switch doesn't include “the cost of getting up to
speed” for learning a new system at the new carrier. It usually takes a few
months and at least $5,000 in lost opportunity just to get up to speed if
everything else is equal. This means you can spend as much as $11,000 changing
carriers. Does it make sense to switch for 2 cents more per mile? Sure it does
if the cost isn't too high to make the switch. Before switching, ask yourself:
Can I make more by staying home, understanding my costs and managing my
business better?
Switching carriers to make more money can be an illusion if you
don't know the costs.
“Instead of worryin' if the grass is greener, I'll get ahead by just stayin'
home and usin' more water on the lawn.” - Jack Buckley, Owner-Operator
This article has been contributed by American Truck Business Services (ATBS),
an Owner Operator business service provider. For more information please
call ATBS at 1-888-640-4829.
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