The Trucker Newspaper - November 15, 2018

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b Tonnage from page 23 b
year, tonnage increased 7.0 percent.
The not seasonally adjusted index, which
represents the change in tonnage actually
hauled by fleets before any seasonal adjustment,
equaled 110.2 in September, which
was 8.2 percent below the previous month
(120.1).
In other news impacting trucking, the Labor
Department reported that U.S. employers
added a stellar 250,000 jobs last month and
raised average pay by the most in nearly a
decade.
The Labor Department’s monthly jobs report
also showed that the unemployment rate
remained at a five-decade low of 3.7 percent.
The influx of new job-seekers in October
increased the proportion of Americans with
jobs to its highest level since January 2009.
On a seasonally-adjusted basis, for-hire
trucking added 2,400 jobs in October compared
with an addition of 5,800 jobs in September.
Consumers are the most confident they
have been in 18 years and are spending freely
and propelling brisk economic growth.
U.S. consumer spending rose in September
by a solid, inflation-adjusted 0.3 percent, led by
increased spending on health care services and
motor vehicles.
Personal incomes rose 0.2 percent in September
— the smallest gain since June 2017.
Roughly half of that increase was wiped out by
inflation.
b USA from page 23 b
“Davis represents a unique opportunity to
add capacity, loyal customers, and exceptional
drivers — all of whom are committed to the
continued strong performance of the business,”
Reed said. “The Davis family has been a great
steward of the organization, with a strong track
record of success and profitability, and this
partnership reflects the next natural step in the
progression and growth of Davis.”
Reed said the acquisition gives USA Truck a
greater presence in the Southeast and provides
three key strategic opportunities: increased
alignment with driver domiciles, enhanced
maintenance facility presence, and financial
synergies.
“We believe there are opportunities to enhance
the flow of driver movements into and
out of existing markets — which we anticipate
will minimize deadhead and enhance capacity
availability and service to our customers,”
Reed said. “We intend to drive improvements
to the maintenance cost structure of both USA
Truck and Davis by leveraging Davis’ existing
terminal infrastructure.
“Finally, we anticipate the realization of
certain financial synergies, especially in the
procurement area. We believe these advantages,
coupled with what we expect will be a substantially
and immediately accretive business,
make this acquisition a great fit.”
The transaction will be primarily funded via
the company’s revolving credit facility and cash
on hand, with a minimal equity issuance provided
to Todd Davis to ensure strong alignment
with interests of USA Truck shareholders. 8
Consumer spending was the key driver
of overall growth during the July-September
quarter. The economy climbed at an annual rate
of 3.5 percent, helped by the strongest jump in
consumer spending in about four years, the
Commerce Department said.
Privately-owned housing units authorized
by building permits in September were at a
seasonally adjusted annual rate of 1,241,000,
0.6 percent below the revised August rate of
1,249,000 and 1 percent below the September
2017 rate of 1,254,000.
Single‐family authorizations in September
were at a rate of 851,000, 2.9 percent above
the revised August figure of 827,000. Authorizations
of units in buildings with five units or
more were at a rate of 351,000 in September.
Business November 15-30, 2018 • 27
Privately‐owned housing starts in September
were at a seasonally adjusted annual rate
of 1,201,000, 5.3 percent below the revised
August estimate of 1,268,000, but 3.7 percent
above the September 2017 rate of 1,158,000.
Single‐family housing starts in September
were at a rate of 871,000, 0.9 percent below the
revised August figure of 879,000.
Privately‐owned housing completions in
September were at a seasonally adjusted annual
rate of 1,162,000, 4.1 percent below the
revised August estimate of 1,212,000, but 7.0
percent above the September 2017 rate of
1,086,000.
Single‐family housing completions in September
were at a rate of 844,000, 8.7 percent
below the revised August rate of 924,000.
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The September rate for units in buildings
with five units or more was 312,000.
Sales of new single‐family houses in September
2018 were at a seasonally adjusted annual
rate of 553,000, according to estimates
released jointly by the U.S. Census Bureau and
the Department of Housing and Urban Development.
This is 5.5 percent below the revised
August rate of 585,000 and is 13.2 percent below
the September 2017 estimate of 637,000.
Trucking serves as a barometer of the U.S.
economy, representing 70.2 percent of tonnage
carried by all modes of domestic freight transportation.
ATA calculates the tonnage index based on
surveys from its membership and has been doing
so since the 1970s. 8