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The Roemer Report On-Line, Feb, 2002

BUMPY ROAD AHEAD: Like many other industries, trucking can expect 2002 to be a difficult year, say experts recently polled by Road King magazine. Freight has slowed, trucking companies are failing, insurance premiums are rising, and the used truck market remains in a glut. The good news is that diesel fuel prices have dropped, and much of the driver shortage is, for the time being, no longer a major issue. But overall, it's a challenging time for motor carriers; the ones who survive this period will come out more efficient, more productive, and smarter in the end. Predictions for the year include more bankruptcies and mergers, low freight volumes, lower driver pay, tighter credit, higher insurance premiums, and continued slow sales of new and used trucks. Low consumer confidence, rising unemployment, and lagging manufacturing all point to less freight. Meanwhile, companies are finding it harder to obtain credit, with some lenders asking for a 20 percent down payment on a truck and proof of five years of profitable operation. Despite the gloomy news, some transportation analysts say the economy may show a slight recovery by summer. One economist explains: "Tentatively, we're thinking we see a non-robust recovery for the first half of 2002."

HANDS-FREE CELL PHONES RISKY TOO: At first, safety officials assumed that it was the actual holding of the cell phone while driving that posed a safety risk. Now, a study suggests that it is not the holding of the phone, but the talking that is the culprit. A University of Utah study finds that drivers can be distracted by the conversation regardless of whether using a hands-free or hand-held cell phone. Laws like those in New York State, where the use of hand-held cell phones are now banned while driving, may be ineffective, say the researchers. According to the study, drivers engaged in a telephone conversation responded more slowly to traffic lights and missed signals much more frequently than drivers listening to the radio or audio books on tape. Response time between drivers using hand-held phones compared to those using hands-free devices was indistinguishable, say the researchers. The study concluded that what distracts drivers is the conversation itself, not holding the phone. The researchers estimate that cell phone users spend 60 percent of their time talking on the phone while driving. The National Highway Safety Traffic Administration estimates that at any given time, 3 percent of passenger vehicle drivers (500,000 drivers) are talking on cell phones.

COPING WITH THE TECHNICIAN SHORTAGE: A good mechanic is hard to find. To hear some fleets and truck dealers talk, any mechanic is hard to find. While the federal government expects demand for diesel technicians to increase only 10 to 20 percent through 2008, those in the industry think otherwise. They say the supply of skilled mechanics is tight and will only get tighter as engines become more complex and aging mechanics retire. A 1995 survey suggests there are several reasons for the lack of mechanics-the pay, society's image of the job, and the difficult, dirty working conditions. A more recent survey by Commercial Carrier Journal (CCJ) confirms those findings. It also finds that three-fourths of respondents believe the technician shortage has remained the same or gotten worse during the last 12 months. CCJ's survey revealed that many technicians left jobs because of unfavorable work hours, suggesting that more flexibility would help retain workers. Another reason mechanics left jobs was due to the company culture. "Most shops still have a command and control model of management," says one fleet maintenance manager. Investing in management and communications training for shop managers could help improve the culture and in turn reduce turnover. At the root cause of the shortage, however, is the low value society places on trades and crafts, says one industry insider. Teens are encouraged to attend college, but few know about other options like vocational school. Fleets admit the industry has done a poor job of attracting students to the field. But trucking companies actively involved in recruiting at schools say the effort pays off.

MORE PARKING ON ITS WAY: There just aren't enough parking spaces available for trucks. So concluded a 1996 study by the American Trucking Associations, which found that the nation lacked more than 28,000 parking spaces, posing a safety risk when drivers park on ramps and other nondesignated areas. Thanks to Transportation Secretary Norman Mineta's recent decision, states are now able to use certain federal funds to build new parking spaces, enhance commuter parking areas, and make other changes to ensure truck parking safety. Massachusetts says it has begun an "aggressive program" to build new rest areas and upgrade existing ones. Montana urges truckers to rest at weigh stations and portable weighing sites when they are closed. Virginia has a project underway that will direct truckers on major interstates to available parking spaces. At least eight other states have reported efforts to increase truck parking, and many others say they are aware of the problem and are actively studying possible solutions.

ESCAPE RAMPS-A LAST RESORT SAFEGUARD: Few things are more harrowing for a driver than a loaded, runaway truck barreling down a mountain highway. Fortunately, escape ramps located on steep downhill grades offer the driver a chance to gain control of the vehicle and avoid what could be a very serious accident. "A truck escape ramp is a last-resort safety device," explains an engineer with the West Virginia Department of Transportation. "If a truck driver, through error or mechanical failure, gets out of control, we build an escape ramp so he or she can have a safe place to go. It gives them a choice of getting in an inconvenient situation rather than a life-threatening one." The number of ramps in the United States tripled between 1970 and 1990, suggesting they are crucial to promoting highway safety. Ramps are generally built on long mountain grades or on short, steep hills near heavy traffic. The decision to build a ramp is usually based on accident statistics, truck operations on the grade in question, and engineering considerations. Ramps typically work by slowing and eventually stopping the vehicle with a bed of loose material, such as sand; gradient resistance helps stop the vehicle. Wyoming, however, is redesigning one ramp so that a series of actual safety nets will slow the truck and eventually bring it to a stop. Still, the principal engineer of the Wyoming DOT says he would consider it a success if the new ramp were never used. While adequate rest, reliable equipment, and preparedness of drivers are the best ways to avoid the need for escape ramps, even the most experienced and cautious drivers can run into difficulties. And that's why truckers and safety officials say the ramps are absolutely essential.

HEALTHY DRIVERS COST LESS: Encouraging your drivers to be healthy shows you care. But it also saves you money-sometimes big money. Stuart Lowenthal, specializing in truckers' lifestyle issues, says that trucking companies would be wise to reduce these health problems among drivers in order to save on casualty and health insurance premiums: (1) Smoking. Each driver who smokes costs $447 in medical claims annually. Those who recently quit cost about half that much. Consider that 54 percent of truck drivers smoke. (2) Stress. The next time someone wants to offer your employees a stress-management program and you think it costs too much, consider that the highly stressed employee will cost you $708 more each year in medical claims than the individual experiencing low stress.
(3) Exercise. Drivers who exercise regularly can save you $444 annually. In addition, drivers who exercise sleep better, take fewer sick days, and have greater stamina, thereby increasing your savings. (4) Obesity. This is by far the most expensive health problem, costing up to $747 per driver each year. Obesity, resulting from a poor diet and lack of exercise, contributes to high blood pressure, heart disease, stroke, diabetes, and much more. (5) Sleep. While it's impossible to put a dollar value on adequate sleep, it is safe to say that well-rested drivers are more alert and vigilant and are involved in fewer accidents. In fact, a study at Stanford University found that routinely sleeping five hours or less per night is worse than driving legally drunk. Another study found that sleeping less than five hours per night is equivalent to having severe, untreated sleep apnea.

SAY IT RIGHT: For some strange reason, e-mails have become a sloppy business. They run from the verbose, stream-of-consciousness variety to the over-abbreviated choppy version. Nearly every business today relies on this form of electronic communication. Therefore, organizations should invest some time and energy to make sure their e-mail correspondence hits the mark. Here are some tips from communication experts on how to gain the competitive edge with your e-mails: (1) Do it in style. That doesn't mean reverting to the old-fashioned, stuffy business style. Aim for something called "business casual," a tone that is both personal and professional. This type of writing includes strong verbs and key actions and eliminates unnecessary qualifiers. It also includes standard punctuation, something many business people have a habit of eliminating in their e-mails. (2) Respond only if necessary. If you receive an e-mail, don't feel obligated to send a response, unless the situation calls for it. (3) Think, then write. In the instantaneous world of e-mail, many people respond immediately, without thinking through the issue or proper response. (4) Skip the jokes. Not everything is funny to everyone, and even less so in e-mails. Skip the witty repartee. Keep it professional. (5) When in doubt, pick up the phone. Some issues require a phone call or face-to-face visit. When you're actually speaking to someone, you can read between the lines, negotiate, and show your respect for their concerns.


Genius is nothing but a greater aptitude for patience.-Benjamin Franklin