July 11, 2006

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Headline News


Regulatory Roundup

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:

  • Since 2004, the U.S. has created about twice the number of jobs as the rest of the G-7 Countries combined.
  • Employment increased in 48 states over the past 12 months ending in May.
  • Real GDP grew at an annual rate of 5.6 percent for the first quarter of this year.
  • Productivity increased at a strong annual rate of 3.7 percent in the first quarter.
  • Real hourly compensation rose at a 3.2 percent annual rate in the first quarter .
  • Real consumer spending has increased at an annual rate of 5.1 percent in the first quarter.
  • 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:

  1. Develop and to pilot an enhanced safety training curriculum as part of an overall CDL program.
  2. Expand the number CDL holders possessing enhanced operator safety training to further reduce crashes involving Commercial Motor Vehicles (CMVs).
  3. 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:

  • Constructing safe rest areas that include parking for commercial motor vehicles;
  • Constructing commercial motor vehicle parking facilities adjacent to commercial truck stops and travel plazas;
  • Opening existing facilities to commercial motor vehicle parking, including inspection and weigh stations, and park-and-ride facilities;
  • Promoting the availability of publicly or privately provided commercial motor vehicle parking on the National Highway System using intelligent transportation systems and other means;
  • Constructing turnouts along the National Highway System for (CMVs);
  • 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
  • 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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Industry News

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….?

  • Focus on the moment—how to be an effective communicator when you place a call or when you receive a call from a driver?
  • Follow a 7-point sales process?
  • 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:

  • David Mattson, Vice President, Sandler Sales Institute, Stevenson , MD
  • 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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Recruitment & Retention Basics

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

$2,100

3 weeks of revenue NOT made while switching

$7,500

(Minus expense for the above that didn't happen for fuel, maintenance)

($3,150)

3 weeks of family income needed (those kids didn't stop eating)

$2,100

Subtotal of above costs

$8,550

Increased pay after 130,000 miles/One Year -

$2,600

Net cost to change after 1 year

$5,950

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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