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The Trucker Newspaper - December 15-31, 2015

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Business<br />

<strong>December</strong> <strong>15</strong>-<strong>31</strong>, 20<strong>15</strong> • 27<br />

ATA’s Truck Tonnage Index (Seasonally Adjusted; 2000=100)<br />

135.0<br />

130.0<br />

125.0<br />

120.0<br />

1<strong>15</strong>.0<br />

110.0<br />

107.5<br />

OCT - 10<br />

JAN - 11<br />

APR - 11<br />

JUL - 11<br />

OCT - 11<br />

JAN - 12<br />

APR - 12<br />

JUL - 12<br />

OCT - 12<br />

JAN - 13<br />

Volvo Trucks layoff, weakening sales<br />

signal possible weak time for Class 8<br />

Jack Whitsett<br />

jack.whitsett@thetrucker.com<br />

DUBLIN, Va. — Industry analysts pointed<br />

to a mass layoff at Volvo Trucks’ New River<br />

Valley Assembly Plant as a sign that Class 8<br />

truck sales, already sliding, may be in free fall<br />

as an uncertain new year looms.<br />

Volvo said <strong>December</strong> 2 it will lay off 734<br />

production workers in February due to a slowdown<br />

in demand.<br />

“This was the weakest November order activity<br />

since 2009 and was a major disappointment,”<br />

said Don Ake, FTR vice president of<br />

Commercial Vehicles, “coming in significantly<br />

below expectations. Orders are expected to be<br />

APR - 13<br />

JUL - 13<br />

OCT - 13<br />

JAN - 14<br />

APR - 14<br />

JUL - 14<br />

OCT - 14<br />

JAN - <strong>15</strong><br />

APR - <strong>15</strong><br />

JUL - <strong>15</strong><br />

OCT - <strong>15</strong><br />

better, but not necessarily good, the next two<br />

months.”<br />

November Class 8 orders are expected to<br />

be 60 percent below the same period last year,<br />

ACT Research of Columbus, Indiana, reported.<br />

“<strong>The</strong> November orders are very concerning,”<br />

Ake said. “People were optimistic when<br />

orders held up well during the summer. Now<br />

we get into the peak order season and have<br />

the lowest orders of the year. <strong>The</strong> weak orders<br />

are the reason for the recent OEM announcements<br />

regarding production cutbacks<br />

and layoffs. Truck inventories are high and<br />

See Volvo on p33 m<br />

Tonnage up 0.7 percent; year-to-date<br />

numbers up 3.3 percent over last year<br />

THE TRUCKER NEWS SERVICES<br />

ARLINGTON, Va. — <strong>The</strong> American Trucking<br />

Associations’ advanced seasonally adjusted<br />

For-Hire Truck Tonnage Index increased 0.7<br />

percent in September, following a decrease of<br />

0.9 percent during August.<br />

In September, the index equaled 135.1<br />

(2000=100), up from 134.1 in August. <strong>The</strong><br />

all-time high of 135.8 was reached in January<br />

20<strong>15</strong>.<br />

Compared with September 2014, the seasonally-adjusted<br />

index increased 3.1 percent,<br />

which was above the year-over-year increase<br />

of 2.1 percent in August. Year-to-date through<br />

September, compared with the same period last<br />

year, tonnage was up 3.3 percent.<br />

<strong>The</strong> not seasonally adjusted index, which<br />

represents the change in tonnage actually<br />

hauled by the fleets before any seasonal adjustment,<br />

equaled 138.9 in September, which<br />

was 1.4 percent above the previous month<br />

(136.9).<br />

“<strong>The</strong> see-saw pattern in truck freight tonnage<br />

continued again in September, except<br />

that the gain didn’t fully wipe out August’s decline,”<br />

said ATA Chief Economist Bob Costello.<br />

“However, over the last few months tonnage<br />

See Tonnage on p36 m<br />

Courtesy: VOLVO TRUCKS<br />

Volvo still intends to move forward with its plan to spend $38.1 million in upgrades at its<br />

New River Valley production plant.<br />

Courtesy: ARCBEST<br />

JUDY McREYNOLDS<br />

ArcBest, CEO honored by Women’s Forum of New York<br />

THE TRUCKER NEWS SERVICES<br />

FORT SMITH, Ark. — ArcBest Corporation<br />

and President and CEO Judy R. McReynolds<br />

were honored November 19 by the Women’s<br />

Forum of New York at the third biennial<br />

Breakfast of Corporate Champions for achieving<br />

at least 20 percent female representation on<br />

their board.<br />

ArcBest, which has a representation of 27.3<br />

percent women on the board, was applauded as<br />

a corporate game changer for making special<br />

efforts to advance women in the boardroom.<br />

“I’m pleased that ArcBest is being recognized<br />

for its strides toward a more diverse<br />

board,” McReynolds said. “We believe in appointing<br />

the best people to the board and at the<br />

executive level. We’ve been fortunate to have<br />

strong women candidates fill these positions.<br />

As long as companies focus on putting the best<br />

people in leadership, we’ll see more women<br />

occupying those roles.”<br />

ArcBest board members include McReynolds,<br />

Janice E. Stipp and Kathy D. McElligott.<br />

Stipp, who serves on the board’s Audit<br />

Committee, is chief financial officer of Rogers<br />

Corporation, an engineered materials firm<br />

that enables clean energy, Internet connectivity<br />

and protection applications. McElligott<br />

is executive vice president and chief information<br />

and technology officer of McKesson<br />

Corp., the largest pharmaceutical distributor<br />

in North America, according to a news release.<br />

“We commend ArcBest Corporation and<br />

their work toward achieving a greater gender<br />

balance in their boardroom,” said Janice Ellig,<br />

co CEO of Chadick Ellig and chair of the<br />

event. “ArcBest knows that more women on<br />

boards is smart business and their success is an<br />

inspiration to others.”<br />

<strong>The</strong> event brought together an audience of<br />

more than 500, including CEOs and directors<br />

along with business leaders, government officials<br />

and media leaders.<br />

Following the awards presentation, Judy<br />

Woodruff of “PBS News Hour” moderated a<br />

CEO panel discussion on why and how top<br />

U.S. companies should strive for gender parity.<br />

Additionally, this year’s breakfast expanded to<br />

include a follow-up symposium which included<br />

moderated sessions by Moira Forbes of ForbesWomen,<br />

Cyrus Sanati of Fortune.com and<br />

Susanna Schrobsdorff of TIME magazine.<br />

<strong>The</strong> symposium closed with a luncheon<br />

keynote speech by Securities and Exchange<br />

Commission Chair, Mary Jo White, who was<br />

introduced by Michael Fucci, Chairman of the<br />

Board, Deloitte LLP.<br />

ArcBest Corporation is a logistics and<br />

transportation firm and parent company to ABF<br />

Freight, ABF Logistics, Panther Premium Logistics,<br />

FleetNet America, U-Pack and ArcBest<br />

Technologies. 8

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