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A TARGET MEDIA PARTNERS PUBLICATION<br />
5400 Laurel Springs Pkwy Suite 703, Suwanee, GA 30024<br />
CEO: Jim Sington<br />
CFO: Bobby Ralston<br />
Vice President: Ed Leader<br />
ACCOUNT EXECUTIVES:<br />
Meg Larcinese<br />
MegL@targetmediapartners.com<br />
(678) 325-1025<br />
Greg McClendon<br />
GregMc@targetmediapartners.com<br />
(678) 325-1023<br />
Carol Trujillo<br />
CarolT@targetmediapartners.com<br />
(213) 221-9993<br />
Sean Hayes<br />
SeanH@htwoservices.com<br />
(256) 405-4017<br />
John Hicks<br />
JohnH@targetmediapartners.com<br />
(770) 418-9789<br />
GENERAL MANAGER:<br />
Megan Hicks<br />
MeganH@targetmediapartners.com<br />
SALES MANAGER:<br />
Jerry Critser<br />
JerryC@targetmediapartners.com<br />
ART DIRECTOR:<br />
Kelly Young<br />
kelly.young@targetmediapartners.com<br />
FEATURES<br />
Class 8 Update..................................................................................... 8<br />
Show Truck Pictorial......................................................................... 12<br />
Owning The Wheel........................................................................... 18<br />
Sudoku Puzzle.................................................................................... 22<br />
ADVERTISERS<br />
Admiral Merchants Motor Freight........19<br />
Brisk................................................... 15, 24<br />
Coal City Cob Company........................21<br />
KL Breeden........................................ 16, 23<br />
P.I. & I Motor Express...............................7<br />
RTI.............................................................11<br />
Schneider National, Inc........................ 4-5<br />
Stageline......................................................9<br />
Star Freight...........................................3, 17<br />
UPS Freight................................................6
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© 2018 United Parcel Service of America, Inc.
CLASS 8 UPDATE<br />
BY KLINT LOWERY<br />
A couple of<br />
CLASS 8-RELATED<br />
news items to note:<br />
COSTS OF JOB-HOPPING: DRIVERS CAN FIND THEMSELVES GETTING NOWHERE FAST<br />
You would think a professional truck driver<br />
today would feel like it’s a week before the<br />
homecoming dance and they’re the prettiest girl<br />
in school. It’s getting so even if a driver isn’t a<br />
perfect “10,” if they have a CDL and haven’t been<br />
featured on “COPS” lately, they’re a hot ticket.<br />
Capacity is tight these days, with the industry<br />
already down by an estimated 70,000 drivers and<br />
every projection indicating the driver shortage is<br />
not only going to grow but accelerate. Carriers<br />
are cast in the role of anxious suitors, competing<br />
to turn drivers’ heads with offers of higher pay,<br />
plenty of miles and more nights at home.<br />
Of course, recruiting is one thing.<br />
Retention is another matter<br />
altogether. Job-hopping<br />
has always been an<br />
unfortunate reality<br />
in the trucking<br />
industry.<br />
Jay Green,<br />
vice president<br />
of business<br />
development at<br />
People Element, a<br />
company that works<br />
with human resources<br />
departments in various<br />
industries, including<br />
over 100 companies in<br />
transportation, and Shelley<br />
Mundy, director of recruiting<br />
at Brown Trucking Company and former cochairman<br />
of the Truckload Carriers Association’s<br />
Recruitment & Retention Human Resources<br />
Committee, discussed the costs of job-hopping<br />
from a carriers’ perspective.<br />
Being a buyer in a seller’s market can be<br />
frustrating, and some carriers may have to<br />
make adjustments in policies and attitudes to<br />
overcome an environment that is ripe for jobhopping.<br />
But as Green and Mundy explained,<br />
even though drivers would appear to be in the<br />
catbird seat these days, constantly leaping from<br />
job to job can have some pitfalls for them they<br />
may not be thinking about.<br />
Everyone has those days when Johnny<br />
Paycheck’s voice rings in their ears, egging them<br />
on to, “Take this job and shove it.” And if you’re<br />
sitting in that cab all day, sparks flying in your<br />
mind from whatever ax you have to grind, it can<br />
be tempting to sing along.<br />
Got a beef with management, why not just<br />
walk? You don’t have to put up with — whatever<br />
your beef is. After all, companies are falling<br />
all over each other to sign up drivers. Even if<br />
you are relatively happy with your job, it’s<br />
understandable in today’s market to be tempted<br />
see what’s out there.<br />
“Who doesn’t want to better their career?”<br />
Green said. “We sort of measure our self-worth<br />
on being in a better situation this year than we<br />
were a year ago. Drivers always have their ears<br />
on,” Green said. “They’re the most wanted<br />
people in America.”<br />
8 I Job Opportunities
CLASS 8 UPDATE<br />
But he warns drivers, even though<br />
switching jobs can be one of the quickest<br />
ways to improve your income and other<br />
aspects of your career, jumping ship every<br />
time something goes wrong or someone rattles<br />
a couple extra cents per mile may actually<br />
cost them in the long run.<br />
The first, obvious thing drivers need to<br />
consider is that when you switch jobs there’s<br />
going to be at least a slight gap in pay. One<br />
gap may not hurt, but if it’s happening once or<br />
twice a year, it will take a lot of miles to make<br />
up for lost time, even at a higher rate.<br />
Mundy added that before drivers jump at<br />
that higher rate, they need to look at the whole<br />
compensation package, starting with the health<br />
care benefits the new company is offering. If the<br />
new company’s health plan offers less coverage<br />
and higher premiums and deductibles, it will cut<br />
into that extra pay in a hurry.<br />
And, with few exceptions, there will be a<br />
gap in coverage, maybe a couple months’<br />
worth, where everything would be out of<br />
pocket.<br />
“There are drivers who plan ahead and<br />
they get a three-month supply of their<br />
prescriptions,” Mundy said.<br />
Thinking even further ahead, she said,<br />
drivers, like all American workers for that<br />
matter, need to consider what job-hopping<br />
does to any retirement savings plan they<br />
might have. A study by Fidelity Investments<br />
found that in 2013 alone, American workers<br />
forfeited $203 million cashing out or rolling<br />
over 401(k) accounts or missing out on<br />
employer contributions, either because of the<br />
timing of the job-switch or because they didn’t<br />
stay at the company long enough to reach the<br />
employer contribution threshold.<br />
“A certain percentage of drivers, it doesn’t<br />
click with them, the value and the benefit<br />
they’re getting in staying with that company<br />
long-term from, say an IRA or a 401(k),”<br />
Green said.<br />
He and Mundy both commented that<br />
many drivers don’t even start those kinds of<br />
accounts.<br />
In the long run, jumping from job to job,<br />
especially impulsively, can cost drivers in a<br />
way they can’t really measure, Mundy said,<br />
and that’s spending too much of your career<br />
at square one, always being “the new guy.”<br />
In truck driving, another job is always just a<br />
hop away. “Capacity is so tight,” Green said.<br />
“Somebody will always hire a driver right now.”<br />
But always looking for something better may<br />
be what keeps you from finding that something<br />
better. Driver shortage or not, the best carriers<br />
can still afford to be picky because they’re on<br />
everybody’s wish list, he said.<br />
Mundy added that at her last job, work<br />
history mattered, even with veteran drivers.<br />
“We looked at the past 10 years of work<br />
history, and if you had more than 14, you<br />
weren’t considered for a job.<br />
As much as drivers complain about carriers<br />
that promise them the world and then fail<br />
to deliver, it works the other way around,<br />
too. Why should carriers take a chance on<br />
someone with a history of bolting at the drop<br />
of a hat?<br />
“I’ve heard so many stories of, ‘hey, this<br />
guy wanted this, so we gave him this. And<br />
then he asked for that, and we gave him that.<br />
And then two weeks later he quit,’” Green<br />
said.<br />
“Eventually, you’re just going to cancel<br />
yourself out from carriers that want to hire,<br />
other than work that nobody else wants to do.<br />
You’re going to get stuck working routes you<br />
don’t like. You’re going to get stuck working<br />
the jobs that are harder. You’re going to get<br />
stuck working for places that pay a little less.”<br />
For drivers, job-hopping can become a selfperpetuating<br />
pattern and mean a stop-and-go<br />
career path full of frustrating detours and<br />
dead ends.<br />
10 I Job Opportunities
SHOW TRUCK PICTORIAL<br />
& Beautiful<br />
Billy Gibbs<br />
2000 Kenworth W900L<br />
Hampstead, MD<br />
12 I Job Opportunities
Pictures taken at the Paul K. Young Truck Beauty Championship (PKY) @ MATS<br />
Eric Turner<br />
2015 Peterbilt 389<br />
Ellenwood, GA<br />
SHOW TRUCK PICTORIAL<br />
Job Opportunities I 13
SHOW TRUCK PICTORIAL<br />
& Beautiful<br />
Edward<br />
Harwell<br />
1988 Freightliner FLT086<br />
Cave Springs, AR<br />
Curt Lalaone<br />
2002 Peterbilt 379<br />
Mt Pleasant, MI<br />
Pictures taken at the Paul K. Young Truck Beauty Championship (PKY) @ MATS<br />
14 I Job Opportunities
OWNING THE WHEEL<br />
BY LYNDON FINNEY<br />
CLASS 8 TRUCK ORDERS BACK UP AS<br />
BOOMING FREIGHT ECONOMY COLLIDES<br />
WITH FEWER PARTS WORKERS<br />
If you need to order a new Class 8 tractor get<br />
in line.<br />
There are few others ahead of you —<br />
150,000 to be exact.<br />
That’s the word from Kenny Vieth, president<br />
and senior analyst at ACT Research, who<br />
says with the current build out rate, it would<br />
take 7.8 months for your order to be delivered.<br />
“We are hearing right now if you want to<br />
order a truck today, you are looking at late first<br />
quarter or even second quarter,” Vieth said,<br />
noting that U.S. fleets are competing with Canadian<br />
and Mexican fleets for tractors.<br />
Build-out of tractors had decreased for three<br />
consecutive months before a significant increase<br />
in June, mainly because parts manufacturers<br />
couldn’t find enough workers.<br />
In March, 15,400 tractors were produced<br />
by OEMs, 14,100 in April and 13,600 in May,<br />
before the uptick that saw 19,200 in June.<br />
“The OEMs had difficulty in April and May<br />
getting fully produced units off the end of the<br />
assembly line so there were a lot of units that<br />
were red tagged in April and May,” Vieth said.<br />
“They were coming off the assembly line, but<br />
they had missing parts such as wiring harnesses<br />
or interior cab components, and in one<br />
instance we even heard windshields were a<br />
problem.<br />
What happened in June was the industry<br />
started to see the supply chain do a better job<br />
of getting components to OEMs who were able<br />
to start finishing some incomplete trucks from<br />
April and May, so they had more equipment to<br />
sell.”<br />
The demand for trucks will not likely<br />
slacken, Vieth said, pointing to the healthy<br />
U.S. economy, carrier profitability the recent<br />
tax cuts.<br />
“J.B. Hunt revealed a 7.1 percent profit<br />
margin last week and Marten just announced it<br />
had an all-time high profit margin in the second<br />
quarter,” he said. “Between the tax cut and<br />
the absolutely constrained capacity, spot rates<br />
are going up. We had an aggregate 24 percent<br />
combined dry van, reefer and flatbed spot<br />
rate increase and contract rates are up almost<br />
14 percent for the year exclusive of fuel surcharge.”<br />
Despite the fact that the rate of growth in<br />
freight may be slowing down, Vieth says trucking<br />
is still in a very positive position.<br />
“The industry is meaningfully capacity<br />
constrained on drivers and the economy is doing<br />
well,” he said. “So, barring some surprise<br />
out of Washington or if trade wars become<br />
a chess game and there are some disastrous<br />
trade outcomes, the supply and demand should<br />
remain in balance tilted in the truckers’ favor,<br />
so the robust freight rate environment should<br />
continue through he second half of 2018 at<br />
least early 2019.”<br />
That’s evidenced by ACT’s sale forecast —<br />
316,000 Class 8 units in 2018 and 322,000 in<br />
2019 compared with 252,000 sold in 2017.<br />
18 I Job Opportunities
OWNING THE WHEEL<br />
BY DEL WILLIAMS<br />
As for June 2018 itself, the U.S. tractor retail<br />
sales totaled 15,893 units, up 14.2 percent<br />
from May and 29.7 percent from year-ago<br />
June.<br />
As for individual OEMs in June, Freightliner,<br />
Volvo and Mack each posted significant<br />
gains, according to WardsAuto.<br />
Freightliner was up 26.8 percent with sales<br />
of 7,672 compared with 6,050 in May; Peterbilt<br />
was up 26.4 percent with sales of 3,328<br />
compared with 2,632 in May; and Mack was<br />
up 26.1 percent with sales of 2,026 compared<br />
with 1,607 in May.<br />
Volvo also posted the largest gain in June<br />
compared with June a year prior with sales of<br />
2,542 compared with 1,630 in June 2017, an<br />
increase of 56 percent.<br />
International posted a 45.7 year-over-year<br />
gain with sales of 2,492 compared with 1,764<br />
in June 2017.<br />
WardsAuto reported sales-to-date in 2018<br />
were 110,025 compared with 84,322 for the<br />
first six months of 2017, an increase of 30.5<br />
percent.<br />
Freightliner continued to hold a solid grip<br />
on market share leadership to date at 35.6<br />
percent.<br />
Peterbilt was next with 15.5 percent.<br />
A sign that the need for Class 8 trucks is<br />
still strong, ACT Research reported with North<br />
American Class 8 orders in June cracked<br />
40,000 units.<br />
“North American Class 8 net orders continued<br />
to materially outpace the industry’s<br />
ability to sate demand, and June’s performance<br />
is more impressive in that it is typically one<br />
of the weakest months of the year for orders,”<br />
Vieth said. “When seasonally adjusted, June’s<br />
intake rises to 48,264 units. Seasonally adjusted,<br />
we have to track back to March 2006<br />
to find the only month in history that surpasses<br />
June’s volume.”<br />
20 I Job Opportunities
SUDOKU PUZZLE<br />
Sudoku<br />
How to play: You must complete the Sudoku puzzle so<br />
that within each and every row, column and region, the<br />
numbers one through nine are only written once.<br />
There are 9 rows in a traditional Sudoku puzzle. Every<br />
row must contain the numbers 1, 2, 3, 4, 5, 6, 7, 8,<br />
and 9. There may not be any duplicate numbers in any<br />
row. In other words, there can not be any rows that are<br />
identical<br />
There are 9 columns in a traditional Sudoku puzzle.<br />
Like the Sudoku rule for rows, every column must also<br />
contain the numbers 1, 2, 3, 4, 5, 6, 7, 8, and 9. Again,<br />
Difficulty: Easy<br />
there may not be any duplicate numbers in any column.<br />
Each column will be unique as a result.<br />
A region is a 3x3 box like the one shown to the left.<br />
There are 9 regions in a traditional Sudoku puzzle.<br />
Like the Sudoku requirements for rows and columns,<br />
every region must also contain the numbers 1, 2, 3, 4,<br />
5, 6, 7, 8, and 9. Duplicate numbers are not permitted<br />
in any region. Each region will differ from the other<br />
regions.<br />
22 I Job Opportunities