Trucking

Trucking
Without Trucks, America Stops

Tuesday, August 19, 2014

Golden And "Other" Eggs

We all have probably heard the fable about the goose that laid eggs made of gold. They got one golden egg each day, and it made them rich, but the owners felt that killing and cutting her open would make them rich beyond their wildest dreams because surely she was full of golden eggs inside. Their ignorance and greed got the best of them! They took their eyes off of the sure thing they had and lost it because of unrealistic expectations.

In the world of trucking, driver turnover may be the visible culprit that gets all the blame for diminishing a company's profits through both hard and soft costs, but in reality, churn (recruiting's word for turnover) is an effect and not a cause.

Most of the time, it is easier to blame the departing driver of thinking that "the grass is greener" elsewhere than to really examine the company culture for factors that contribute to churn. In a large company with many drivers, and many support personnel, the truth is harder to find because of the bond among those who work inside. This creates a "them vs us" mentality between support personnel and drivers. Since information is controlled by support personnel, often without a Driver Advocate being provided by the company, it can be made to appear that drivers who quit are nothing more than job-hoppers who are never going to be content anywhere regardless.

A small company can be just as detrimental to its own financial health when it ignores the metrics because it chooses to play the nepotism and cronyism game. If a company owner hires people to head up his or her company just because they are relatives or friends and not because they are field-qualified for the position they will occupy, there is no incentive to try and find the right button that will stop the revolving door of driver turnover. Micromanagement becomes what passes for safety. Cost-cutting becomes the primary focus because no one has a clue that cutting costs as a primary endeavor is a sure sign that a company is receding instead of growing.

Make no mistake about it; if you are in the business of transporting goods, whether it be computers or produced water from well sites, the wisest investment you can make is in driver retention. This is the business end of your business. None of your customers care how many desk jockeys you have if you are in the transportation business. (this does not remotely suggest that they are not important to your business) They care about the part of your company that is directly advantageous or adverse to their interests.

In trucking, your drivers are you as far as the companies you do business with on a regular basis are concerned. They can make or break you in more ways than one. So why would you place someone in charge of your drivers who has no clue? Why would you turn over the goose to someone who thinks that all geese lay golden eggs? What is even more ludicrous...Why would you allow someone to run your company into the ground by running off your tenured, safe, and productive drivers? Has your HR person shared the numbers with you on what it costs to hire, train, and bring new drivers up to speed?

Imagine how much you are losing in direct costs; not to mention the losses incurred through loss of productivity. That means suffering losses that come from damaged equipment because less-than-qualified drivers were hired by a hiring manager who has no clue as to what to look for, loss of customer respect, low morale, and losses incurred due to drivers that are hired and leave within a week or two because they cannot meet the demands of the job or simply see the discrepancies. And all this does not even take into consideration the reputation your company is garnering all the while with both drivers and customers. I could name at least one major oilfield service company that could be the poster child for the effects of doing things in such manner; and several others that seem to be following suit.

Just as the two foolish owners of the goose that laid golden eggs were ignorant of the inner workings of the goose, so it goes that there are foolish owners of trucking companies that still consider drivers second-class components of their business and allow their middle managers to oppress, discourage, disrespect, and frustrate their golden egg-laying geese to the point of moving on in search of better opportunities. After all, if all the golden egg-laying geese leave, the only ones left will be those that lay the "other" kind of eggs; the kind that cost you money instead of making it for you.

I think we would do well to remember that the definition of insanity is: "Doing the same thing the same way repeatedly while expecting different results each time."

Tudaloo & Happy Trails!

Francisco Gomez
Commercial Driver Liaison Services
Check out my professional profile and connect with me on LinkedIn. http://lnkd.in/jkRwJg

Sunday, May 19, 2013

Wannabe

If someone calls another person a wannabe; in the words of an old western movie, "Smile when you say that stranger!"

You see, the term wannabe can mean someone is trying to be something they cannot be. For instance, a person who joins a community patrol because he or she wants to be a Police Officer but doesn't qualify. It can also mean that someone is being that something they wannabe very poorly. Someone who runs for president but always ends up last in the polls is a wannabe president. Sometimes, wannabes actually make it into office. A wannabe in both these cases will always remain a wannabe.

But it can also mean that someone is genuinely interested in being something they can be. That is the case with those individuals who have the necessary qualifications to learn to drive a Class A Commercial Combination Vehicle; a "Semi" if you prefer. These people have maintained a good driving record. Their background is acceptable to hiring entities and they are drug-free.

Of course, this is just the first echelon of screening; or it should be. Are they able to hear, understand, and execute instructions? Do they have the necessary motor skills to coordinate their extremities to function accordingly in order to carry out those executions? Is their cognitive acumen sufficient to execute all the simultaneous processes that can occur while operating such a vehicle? Did you think this was a job for dummies?

Some of the smartest people out there are today's Truck Drivers. They navigate this country's Interstates and highways by directions, maps, and signs. They go places they have never been before by using their minds and their wits. They operate sophisticated technology in their everyday function. They treasure common sense as something extremely valuable; because it is. These people are Time Managers, Traffic Controllers, Customer Service Representatives, Captains, Safety Officers, Babysitters, and highly skilled operators of up to 40 tons of machinery and payload; sometimes more when they are specialized to move even heavier loads.

So, let me direct a question at those who "wannabe" one of these most excellent people: "What makes you think a 24 hour CDL school can prepare you for even a start in this profession?" I would say that those type of schools are the "wannabes" of training. And yet, they exist and do business without impediment.

The other wannabes in this genre are those schools that pay low wages and use "have-beens" to instruct student drivers going into an occupation whose demands are foreign to these "instructors" who have been away from trucking for a long time; and have not kept up with its advances, changes, or current demands, due to their involvement in construction, real estate, or some other business endeavor; or who are now retired and just need to make some extra money.

Start out with a deficiency in instructional staff, add 3 to 4 students per truck with one "instructor", and divide 8 hours of actual practice between those students; and how much "training" time do you actually receive? If the range is distant from the parking area for the trucks, that is maybe another hour or more per day during range week that you will lose.

Now, add to that 1 or more "slow" students, and it really becomes difficult for those who learn faster. It keeps the process from moving forward and affording the student, who can learn at a faster pace, more opportunity to be trained more fully. In the end, this type of school can't do much better of a job in training a wannabe. One factor in this is the complacency of its instructional staff. Another one is the combination of students who learn at different paces.

In the end, passing the State CDL Test becomes the objective they shoot for. Learn the CDL route that the state uses, learn the maneuvers they test on, and practice these over and over again until the students all feel competent to pass. Here's your CDL with a certificate that says you completed a 160 hour course according to DOT Entry Level CMV Driver requirements.

But did you really? If there were just 3 of you on that truck, you will have actually trained (hands on) for  approximately 80 hours of that 160.

It cost you, the taxpayers, or someone else an average of $4300 to attend that school. If that school has just 3 trucks running with 3 students per truck, it stands to gross $38,000 in just 4 weeks. The more students you train per truck, the better the bottom line looks. The higher the tuition; and some schools can cost up to $7,000, the higher the profit. Also, the shorter the course (say 3 weeks instead of 4) the less expense there is for the school.

Vocational Training is supposed to prepare a person to enter a field with confidence. The training must be up-to-date! The instructional staff must be "cutting-edge" knowledgeable about all facets of the industry they are preparing these people for. They cannot simply sit at their desk and browse the Internet while the students watch outdated videos. They are defrauding the students, the school, the industry, the taxpayers, and the public at-large when they do so. They must do more than entertain the students on the truck with "war stories" of the road back when they were "out there".

If we are to train "Professional CMV Drivers", people involved in doing so must first be professionals themselves. And it isn't about what one used to be. Tudaloo & Happy Trails!

Francisco H. Gomez
Commercial Driver Liaison Services

Friday, October 5, 2012

The Spaghetti Ain't Sticking!


In 2008, the ATRI (American Transportation Research Institute) published a report on the impact of driver training upon safety. Among the factors considered and the metrics compiled in their research, the following data was made public:
 
"The selected driver population matched the national new entrant driver population in another key area; length of employment. Driver turnover is a critical issue within the trucking industry, with many carriers experiencing turnover exceeding 100 percent annually. Among the new entrants included in the study, slightly more than 25 percent were no longer employed by the carrier that initially hired them by the 60th day of employment. At 100 days, more than fifty percent of the new entrants had left and less than three percent worked for the original
employer on the one year anniversary of the date of hire."
 
This was four years ago, and we have come through the deepest part of a recession that was unprecedented since the Great Depression. In fact, this recession has come to be called "The Great Recession" by many.
 
As a driver recruiter for a major carrier in the years before and right up to March of 2008, I kept abreast of the turnover rate in the industry because I have always had a deep interest in the principles of retention, some of which are job satisfaction, employee engagement, and company culture. As is plainly denoted by the statistics in this report, even at the onset of the recession, drivers were frequently changing jobs.
 
The new entrants are perhaps the most revealing segment of the turnover phenomena. When less than 3 of every 100 recent driving school graduates remain with a company for one year, it should raise a number of flags; and it did! At about the same time as the country was slipping into the economic recession, turnover was an issue on the front burner. Unfortunately, the housing market collapsed and Wall Street had to be bailed out. That took its toll on the Trucking Industry as no recession before this one and after the Great Depression had ever done. That put the brakes on all turnover considerations because those who had jobs were holding on to them for dear life. That meant that retention would have to be considered later; if at all.
 
Companies were crashing and burning left and right. Drivers were being fired for over-idling their trucks; and for any other minor infraction that could be used to further reduce the driver force, since there was not enough freight to justify keeping them on the payroll. There were chargebacks for assorted reasons, and some drivers quit due to heavy-handed company policies that were meant to reduce the load on those companies that were trying to survive. Some drivers were returned to their terminals just to find out that it was time to clean out the truck because the company had shut down. In an atmosphere like that, what need was there for either recruiting or retention?
 
Having lived through other recessions in my life, I knew this one would either become a greater depression than the last one or turn around sooner or later in the future. In any case, I also knew that in all probability, things would have to start moving forward once again once this recession bottomed out. For that reason, I kept a close watch on economic conditions and especially on signs of the Trucking Industry showing signs of a return to forward movement. Those signs came when I saw the smarter players begin to move towards increasing their capacity. The call for driver recruiters increased exponentially almost overnight and class 8 orders suddenly grew as well. The job boards that had been devoid of any jobs in recruiting were suddenly posting jobs for recruiting managers.
 
This morning, I came across a statistic that confirmed for me what I knew would happen once the industry started its upward climb once again. Even with the overall unemployment rate at *8.1% nationally, trucking is now suffering 106% turnover according to a report from a trusted source. Imagine what it will be when the economy cranks up.
 
The WIA is funding training for new entrants on a level unheard of before the recession. There is money available for people to be trained for entrance into the field. But as the economy improves in other areas, and other industries start to recover, those who came from those industries into trucking as a means of keeping their bills paid will return to their industries of choice. Attrition will add to the shortage as some of those who reach retirement age decide to work part-time or not at all.
 
So it all boils down to this: Where 100 people used to stand in line for a chance at 10 jobs; trucking companies with a greater demand for capacity will now have to stand the scrutiny of those valuable assets we call professional drivers as to whether they are even worthy of being considered as an employer. What will these companies offer these drivers that others won't? What kind of hype will work in the trade publications in this new reality? How will they fare when they are examined minutely by the power of social media? How many drivers do not carry a smart phone yet; especially among the new and younger entrants? The old school methods will not work any more!
 
Change has come and more is coming yet! The aggresiveness of FMCSA rules enforcement and reporting will have its own impact on both drivers and carriers.
 
Now is the time to think outside the box. This is the right time to invest in innovative changes to recruiting efforts that provide not only for a 100% return on every dollar invested in recruiting; but most importantly, recruit with the principles of retention as an equally important part of every hire.
 
Let me put it this way: If your recruiting department is still banking on the old "spaghetti on the wall" methods of recruiting, and your recruiting team's idea of brainstorming is finding catchphrases to use in the trade publications; and their idea of effective recruiting is to send in an attractive woman (sex sells) or slick doubletalk Sam to promise them what can't and will never be delivered; then figure on needing some deep pockets, because at the present average rate of 106%, just multiply $8000 (average cost of each incidence of turnover; including Sam's salary) by the number of drivers you employ; and get an idea of what it will cost you to do it the "old school" way.

A company with just 500 units with solo drivers that experiences this level of turnover annually is hemorahging money to the tune of $4,240,000 each year. And as the 800 pound gorilla in the room would say, "But what do I know?" New reality; new paradigm! Tudaloo and Happy Trails!

Francisco H. Gomez                                            *7.8% as of 10/05/2012
Commercial Driver Liaison Services
www.procdldriver.com

Saturday, September 22, 2012

It is the first day of Fall 2012. The economic outlook has improved as of last week due to reports of an increase in housing starts and in sales of existing homes, but the desired downward trend in unemployment has not been dramatic; that is, unless we take into consideration that the Trucking Industry is already booming. If that were not so, the turnover rate would not be back up to 106%. The competition is getting fierce; and it's just starting!

As a leading indicator of change in the economy, trucking will always be the first to experience those changes due to its position between manufacturers and consumers. You know, what someone means when he or she says, "everything we wear, drink, eat, drive or even throw away as garbage; arrives at its destination by truck probably 95% of the time". Even when it is shipped by rail, more often than not, it will be transported to its final destination by truck.

So if we take all that into account and wax optimistic, because there is no percentage in waxing pessimistic, the figures should tell us that even at a slow, and somewhat fractured pace; the economy may suddenly come to be suprisingly robust for another round. Of course, those who are genuine pessimists will "hold down the fort" until they can find something other than the economy to be pessimistic about. All I can say is "Keep on Trucking!"

What does this mean for trucking? More loads, a need for more equipment, a need for more drivers, and unless all companies have now discovered the legendary "fountain of retention", the headache of having to deal with a new wave of turnover that threatens to take the industry to much greater averages than in the past. If at present, while the country is still complaining of high unemployment, the turnover rate in trucking is so high; what will it be like when all those who are coming on board just to keep food on the table get an opportunity to return to their field of choice?

Oh, maybe you thought each one of the new people coming into the industry is a die-hard, responsible, dedicated, and truck-loving professional driver who will accept the rigors of trucking; especially in OTR (what I like to call the big leagues, because it isn't the same running out to the oil patch or hauling sand and gravel to construction sites as it is running from CA to NY or Seattle to Miami). 

For some companies, as I wrote here over two years ago, this will be a greater challenge than the one they faced just trying to remain solvent during the height of the recession as others were folding up their tents. Some of these are now returning to the old habit of "throwing spaghetti at the wall and waiting to see what sticks", while others are still sitting and waiting for the economy to get better before even turning their attention to a greater recruiting effort. I feel for those few employees that were left in recruiting as the rest were layed off during the recession. They now have to bear the brunt of the work as the field heats up. They groan under the heavy load while their CEOs read the tea leaves searching for some assurance that the economy will get better before investing in human resources (of the professional driver genre) acquisition.

Now, figure social media, and the power it wields, into all that; and every company's past reputation has the potential to either place it in the running to reap bountifully or die slowly and painfully. One thing is for sure: This is not the Trucking Industry we came of age with. It is an industry being reshaped through pressure from all sides by government, the economy, human nature, technology and instant information, and even the instability of  world conditions.

So what is the key to success in the emerging Trucking Industry environment? Success will mean different things to different components of this industry. To the CEO, it will mean greater profitability and growth. To the middle manager, it will mean more resources of all kinds. To the professional driver, it will mean job satisfaction that creates a desire to stay even when offered more money someplace else.

If this were just about finding drivers and convincing them to join the company, it would be hard enough considering the effects of attrition combined with all other factors already mentioned. This is about finding the right drivers and the perfect paradigm to decrease turnover and hiring costs while increasing profitability. There is a way to do it, but it does not involve throwing spaghetti at the wall! Tudaloo and Happy Trails!

Francisco Gomez
Carrier/Driver Liaison
Commercial Driver Liaison Services
www.procdldriver.com

Monday, July 16, 2012

Enforcement on the Move!

FMCSA 18-12
Friday, July 13, 2012

U.S. Department of Transportation Orders MTI Transportation, LLC,to Shut Down

FMCSA finds Alabama-based truck company to be imminent safety hazard

WASHINGTON - The U.S. Department of Transportation's (DOT) Federal Motor Carrier Safety Administration (FMCSA) today ordered Alabama-based truck company MTI Transportation, LLC, to immediately cease all transportation services based on evidence that it was a chameleon operation for two unsafe truck companies previously shut down by the agency.

“We must keep our nation’s roadways safe for drivers and passengers,” said U.S. Transportation Secretary Ray LaHood. “This case sends the message that we will shut down unsafe truck companies that attempt to illegally operate.”

FMCSA placed MTI Transportation out of service after safety investigators discovered the company was transporting goods for the former BM&L Trucking, LLC, and IDM Transportation, Inc. On May 11, 2012, the FMCSA issued an imminent hazard out-of-service order against both BM&L Trucking and IDM Transportation for serious federal safety violations in the areas of vehicle maintenance and driver drug and alcohol testing compliance.

The agency’s safety audit of MTI Transportation found that three of the company’s drivers were previously employed by BM&L Trucking or IDM Transportation. Additionally, MTI Transportation used two commercial vehicles still registered to BM&L Trucking or IDM Transportation. The May 2012 imminent hazard out-of-service order now also applies to MTI Transportation.

"The practice of unsafe companies quickly reincarnating as chameleon companies to continue operations is unacceptable. Our agency is constantly doing everything within its current legal authority to keep one step ahead of these illegal actors,” said FMCSA Administrator Anne S. Ferro.

A copy of the imminent hazard out-of-service order can be viewed at http://www.fmcsa.dot.gov/documents/about/news/2012/MTI-Transportatio-IH-Order.pdf.
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Contact: Shashunga Clayton • Tel: (202) 366-9999
U.S. Department of Transportation | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
______________________________________________________________

I would be interested in learning how many units this company had altogether. Also, it would be interesting to find out whether those trucks and the drivers previously employed by BM&L and IDM are in any way related to each other. Are these drivers company or O/O?

Saturday, July 14, 2012

Respect

I recently read a post by someone who sees the issue from the standpoint of the Insurance Industry. Below is my response to his sales job on EOBRs. The comment that evoked this response is as follows:

"EOBR's, a form there of is in each and every one of the new automobiles on the road today. The electronic communications that major auto companies have in their cars and trucks keeps track of you no matter where you are and or if you have the service turned on or not. GPS's check your speed, max speed, time running, fuel, mpg, and more.

EOBR's can help, and they can help the company using them. Currently we are asked by the insurance carriers we write with, does your client have GPS's on all trucks, do they have EOBR's on all trucks. Some carriers are offering free camera programs to go into certain types of commercial vehicles, and the result is a free camera, lower insurance costs, and a stonger commercial client.

It makes the insurance carriers happier, due to yes a lot of answers will come in from those devices, but it also shows that the owner of the company has a strong desire to maintain an efficient and safe company.
Now do I like all of this on board check and double check equipment stuff that the car makers are putting in vehicles and we have no choice about it, no.

Is it coming anyway, yes. Will it change the dynamic of how people operate their vehicles, yes. Will it help with insurance costs and company expenses, yes."                  

Posted by: Curt A Crapo (Craypo)

My Response:

Well, we know that the Insurance Industry is on board with EOBRs (pun intended). They will be happier; and of course, that just thrills us.
From the facts that Mr. Crapo has just given us; we gather that:

1. A "form" of EOBRs has already successfully been sold to consumers via their new autos. What is that form? Could we be referring to navigation systems that also monitor the auto 24/7 as a service that provides help or assistance when needed and monitors vehicle components and functions? As a customer, I can choose to pay for that service or turn it off. As a commercial driver, if EOBRs are mandated and funded, (which I personally hope never happens because of the amendment now headed for the Senate) the EOBRs in trucks will become the whip of those who sit behind a desk for 8-12 hour shifts and have the convenience of going home and forgetting about trucking until their next shift. If improperly used, EOBRs will make sure a driver is accessible to the operations department anytime; including off-duty or sleeper. It will become the favorite tool of the micro-manager; who can't or won't do the job a driver does, but wants to tell the driver how to do it. Nothing said about how this will be addressed or even if it should be. Comparing EOBRs to what is sold in personal vehicles is like comparing apples to oranges.

2. EOBRs help the company. That's pretty cut and dried. But that says nothing about how it helps to resolve the problem in item 1. So it seems as though the idea is to help the company secure better control over the driver without taking the driver's needs into consideration at all.

3. EOBRs and an owner's desire to run a safe and efficient company are not married to each other. That is something married in the sales pitch made for the implementation of on-board recorders by mandate from those who are licking their chops at the potential profits. How many loads are safely delivered each day? What is the ratio of these to the ones lost to accidents?

In summary, we should heed the alert sounded by the Insurance Industry as to the impending mandated implementation of EOBRs. After all, that industry has successfully legislated itself into every aspect of our everyday lives. It should know which way the governmental wind blows.

But let me say this to every driver out there who physically pays the price to move America; If it must be, let it be! But do not sell your services cheaply. It is a seller's market and the occupation has sufficient numbers to effect changes in the pay structure of all commercial drivers via the same legislative channels.

And let me say this to every company on behalf of drivers who are not just "steering wheel holders". I would love to drive a truck by the letter of the law always and professionally administer my duties as a Professional Driver; even if it means having to spend an inordinate amount of time away from my family because my work week is 14-21 days long. And you're welcome to monitor my every move because I'm out here to get a job done in a safe and timely manner. I have nothing to hide.

But don't expect to have your cake and eat it too. Do not bank on hiring quality drivers under the current pay structure. Drivers are a determined breed. That's what makes us who we are and makes us willing to do the things others wouldn't even try because they want to be home where it's safe; and not out stranded in some snowstorm, traffic jam, construction, accident, or spending hours or maybe even days waiting for a load. But I, and those who think like me, would rather turn our skills elsewhere if the pay system doesn't change; because as much as we love trucking, when you succeed in turning it into a menial job to be dreaded, the only way you're going to get us is to pay us for every minute we spend in the cab of your truck!
R.  E.  S.  P.  E.  C.  T.; tell you what it means to me!

Thursday, July 5, 2012

Remote Control Drivers

I think big companies and associations who are in favor of EOBRs think this will cull the competition due to the prohibitive costs; and force drivers to submit to greater control due to a lack of options. They're probably banking on a global supply of drivers that they can import if necessary; something they've been experimenting with for a few years now. That's why some of the drivers who pull up to a warehouse can't understand the English language or be understood when they try to speak it. But those who are pulling for EOBRs are probably considering EOBRs their "one, two" punch.

What they don't realize is just how negatively this will affect their recruiting and retention efforts. I believe the opposite effect will be achieved. The whims of those CSRs, planners, shop managers, fleet managers and safety officers who are afflicted with a dictator complex; and use the data generated by EOBRs to "browbeat" drivers, will result in more and greater dissatisfaction among drivers in general. It will be the equivalent of "walking on eggshells" lest the machine say that the brake was applied too suddenly or the fuel feed was not applied gently enough. Even though a driver's time is cheaply bought under the pay-per-mile system; questions will arise as to stopping too often, etc. Under the guise of accountability, every driver will become a prisoner in his or her own truck.

Disengagement will occur much sooner in new recruits. Service records will suffer and accounts will be lost as loads are habitually late at pickup and delivery due to drivers adhering to the "letter of the law" in retaliation for the disrespect they feel subjected to. "Freedom of the road" will be a thing of history as every driver comes under the watchful eye of "big brother" back at headquarters who thinks he or she knows how to drive that truck better than the driver. Armchair drivers will be calling the shots!

Because drivers are by nature independent minded, retaliation will occur that creates more turnover and greater unrest among the company as a whole because a company is not the sum of its trucks, computers, or other assets. A company is the sum of its people; and people who are continually pissed off make terrible workers!

Anytime opression is used to control people, the results are always negative. Just ask King Louis XVI how the French Revolution turned out. Think I'm stretching it a bit? Take a ride across this country and take time to assess the overall spirit among drivers out there. I have; and it's a far cry from even just a decade ago. Some very good productive people are running around angry all the time because they sense the loss of their due liberties and the low value the industry places upon their contribution when it compensates them for just a portion of the time it requires of them and tries to make robots out of them.

The late and great Sam Walton said, "We are all working together; that's the secret." Think it's just "touchy feely"? Ask about driver turnover at his organization. Tudaloo and Happy Trails!