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The Roemer Report On-Line, Feb. 2000

WHAT THE FUTURE HOLDS FOR TRUCKING: The next century will see a majority workforce of women and minorities, say demographers, and trucking is no exception. The number of women, blacks, and Hispanics has never been greater, according to government statistics. Blue-collar jobs that pay welllike truckingare expected to attract more women and minorities. Also, the stereotype of the trucker is fading, luring more diverse job candidates. Here are some other predictions: (1) Trucking will attract those in other industries. "The idea of one carrier doing everything is gone," says one expert. That means transportation will be more regional and specialized, making it more attractive to more workers. Those changing careers will see trucking as a good career. (2) Carriers will be more creative in recruiting. With the continuing driver shortage and strong economy, carriers may become more active in recruiting women and minorities. If the federal government buys into it, the trucking workforce may even be supplemented with offshore workers. (3) Drivers' jobs will become less demanding. Truckers will see improvements in equipment and technology and receive higher pay due to the driver shortage. As driving becomes physically easier, people who would not have considered trucking 20 years ago may give it a try.

INTERNET FOR EASIER TRUCKING: The future of trucking will be inextricably linked to the Internet, say experts. Carriers and truckers must adapt to the Internet if they are to survive and prosper. Just consider these predictions for the near future: (1) Truckers won't use CDs; all their software will be online. "Everything truckers can do on a PC today will be available on the web in the future," says the president of one software company, who believes CDs containing trucking software may become obsolete. Among the benefits: you won't lose data if your computer crashes and information like construction and weather reports will be up to date. (2) More owner-operators will find loads online. Landstar is just one owner-operator carrier that posts all of its loads on its website. That enables owner-operators to plan their entire week in advance; they don't have to look for loads once they reach a new city. (3) Carriers can do virtually any task online. From buying tires, parts, and even insurance to arranging for service, truckers, like a growing number of professionals, will be able to do more work from their computers. (4) Communication will get easier. Hands-free mobile communication is just around the corner. Instead of having to pull over to go online, truckers will be able to use their cell phones while driving to hear messages through a computerized voice over the Internet. And thanks to voice recognition technology, drivers will be able to talk back via e-mail or fax. All in all, the Internet will be an everyday and crucial part of a trucker's life, say forecasters. "In the next four years," says one expert, "people who are afraid of the Internet won't necessarily be out of work, but they will be at a competitive disadvantage."

WHAT PRICE SAFETY? When it comes to safety, trucking companies often find themselves between a rock and a hard place. They know that many of the new high-tech safety devices can prevent accidents, but rarely can they afford all the safety accessories they want. And the federal government doesn't make it any easier. While the U.S. Department of Transportation strongly advocates carrier use of expensive safety devices, Congress has not exempted high-tech safety accessories from federal excise taxesnor has it allowed accelerated depreciation on the basis of the devices' extra cost. In effect, carriers are forced to "pay the equivalent of a luxury tax for advancing the cause of highway safety," laments one CEO. Electronic braking systems (EBS) teamed up with air discs on the steer axle can reduce a tractor-trailer's stopping distance by about 16 percent, a dramatic improvement according to some experts. When EBS and air discs are applied to the trailer and tractor, a combination vehicle traveling 60 mph can stop within 200 feet. For comparison, heavy combination vehicles are required to stop within 355 feet, while cars must stop within 194 feet.

Despite these benefits, cost remains prohibitive for most fleets, and the National Highway Traffic Safety Administration has not conducted any tests of air discs on 18-wheelers. Meanwhile, there are dozens of anti-fatigue products on the market, collision warning systems, rollover warning systems, cruise control that automatically maintains a safe following distance, and other high-tech safety devices. Clearly, the many high-tech devices on the market have the potential to make a big impact on highway safety. Unfortunately, however, many carriers simply cannot afford the devicesand until price comes down or until the government rewards carriers for being safety consciousno changes are expected in the foreseeable future.

HIGHER SPEEDS, HIGHER COSTS? Texas recently joined the majority of states when it raised the highway speed limit for trucks to the same limit for passenger cars, which in this case is 70 mph. While studies suggest that same speed limits for trucks and cars are safer than differing speed limits, some drivers aren't happy with the higher speed limit for trucks on Texas highways. And some of the people worrying the most happen to be truckers. Some truckers, for example, are thinking of the bottom line. They contend that while drivers can go a bit faster, the higher speeds can cost them money. Not only do faster speeds consume more fuel, but drivers will miss out on bonuses linked to low fuel bills. Another worry for drivers is that companies will expect them to deliver goods even faster than before. The Texas State Legislature decided to permit trucks to travel at the same speed as cars because highways are safest when vehicles travel at the same speed, said Randall Dillard of the Texas Department of Transportation. Still, the increased speed limit does not affect all truckers. Because trucks are tuned to operate most efficiently at 55 or 60 mph, many companies place governors on their trucks' engines to limit speed to 60 or 65 mph.

FHWA STUDIES SPECIALIZED TRUCKS: The Federal Highway Administration (FHWA) is seeking public input on whether trucks hauling trash, home fuel oil, and cement should be exempt from federal weight limits. As part of its research, which was mandated by Congress in 1998, the agency is seeking comments on the economic, safety, and infrastructure effects of truck weight standards on these specialized trucks. The report, which should be available by mid-June, will focus on single-unit trucks equipped with heavy-duty cargo-carrying bodies and equipment for loading or unloading freight. Under current regulations, the maximum legal weight for specialized trucks is often below their gross weight limit as determined by axle limitsthis is due to the vehicles' short wheelbases.

MEXICAN TRUCK BAN CONTINUES: Despite the North American Free Trade Agreement, Mexican trucks that do not meet U.S. safety standards still are not allowed into the United States. The policy has been in effect since 1995. Although NAFTA, a trade alliance between the United States, Canada, and Mexico, allowed Mexican trucks unrestricted access into this country beginning in 1995, Mexican trucks deemed unsafe have not yet been permitted to cross into the United States. Due to safety concerns and pressure from organized labor, the date for compliance has been pushed back twice, with January 1, 2000, as the most recent date. In June, more than 250 lawmakers urged the White House to delay giving Mexican trucks total access to the United States. Mexico has protested the U.S. decision, saying the delays violate the trade agreement. Approximately 44 percent of Mexican trucks inspected in the United States were taken out of service because of safety concerns. Mexican trucks often fail to meet U.S. weight, driver, and insurance standards.

MOTIVATING GROWTH: The growth of a business depends on a number of factors, but perhaps none is more crucial than satisfied employees. Contented employees serve the customer well, and, as a result, business grows. While the right package of compensation and benefits does much to satisfy workers, employers have found focusing on intrinsic rewards is equally important. Intrinsic rewards are those that meet basic human needs. In the end, they create more satisfied, productive, and content employees. Here are the primary intrinsic strategies for motivating and rewarding employees: (1) Mutual commitment. Employees who witness commitment communicated at all levels are more likely to be committed to the organization and the product or service they help provide. Commitment should begin with an organization's mission and value statements and be apparent in all aspects of work. (2) The two Rs. Respect and recognize your employees. Compliment them on the work they've done. Recognize their efforts. Then watch their pride grow and their feelings of trust and loyalty to the organization expand. (3) Encourage learning. Training employees is mutually beneficial. Workers receive the support they want to grow professionally and the company gains a more skilled workforce. (4) Get them involved. Studies indicate employees who are encouraged to participate in decision making work harder and better for the organization.

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