Issue link: http://read.dmtmag.com/i/328674
And he's seen the lows, with his fleet dropping to 260 power units from its high, shaking Hodges' fundamental be- liefs in trucking. But now, Hodges says, the company is experiencing the re- bound and will soon be back over 300 tractors. But through it all, one constant has re- mained in Hodges' stewardship of Titan Transfer and its service to a broad, diverse customer base. He and company presi- dent Phillip Edwards continue to build the fleet with nothing but Peterbilt trucks, and they're now buying Model 587s powered by the PACCAR MX engine exclusively. "I'm a real believer in continuity and uniformity," says Hodges. "There's value in our long-term, exclusive relationship with Peterbilt. I don't like it when people pull business from us because somebody drops their rate a penny or two below ours. I'd be hypocritical if I did the same thing to either our supplier partners or our employees. "You really learn the value of a rela- tionship when you've been through what we have the last two and one-half years. As long as Peterbilt continues to bring value to our relationship as they have since the beginning, we'll remain loyal to them." Identifying value Much of the "value" Peterbilt brings comes in very tan- gible forms such as the Model 587 and the PACCAR MX en- gine. Hodges says the economy has disguised the greater challenge that will again face the industry, that being a driver shortage that will hit trucking "like a tsunami." Hodges, in fact, foresees the day when drivers will be so empowered that carriers may choose to give up certain customers rather than preferred drivers who might not want to run certain routes. "That's why we give them the creature com- forts, and the Model 587 has them," he says. "We want to give our drivers the very best equipment we can afford to give them, and complement it with specifications such as Ultra Shift automatic transmissions and premium interiors." Hodges has long been a proponent of the economic value of running Peterbilt aerody- namic designs. He was on board early when the Model 387 was introduced over a decade ago, and was rewarded with an immediate 1.0 mpg fuel economy improvement. Similarly, Titan was among the test fleets for the PACCAR MX engine, and Edwards now says the next 50 Model 587s he has on order will be powered by the MX. The MX test engines have already responded with improve- ments in fuel economy. "That's unusual because it's so early in the process," says Edwards, who's been on board with Hodges since the startup. "Usually there are some adjustments to be made with the trans- missions and engine to ensure you're shifting at optimum levels, but we realized an immediate improvement with the MX." SCR is the way Hodges is also very confident with the MX's Selective Catalytic Reduction (SCR) means of treating exhaust. "We had tried another approach from another manufacturer and it was a disaster. Fortunately, our relationship with Peterbilt helped us get out of that equipment. But I really believe SCR, and its means of aftertreating the exhaust chemically, is the way to go. It will allow the diesel engine to perform at the efficient levels it could operate at back in 2003. I don't believe a diesel engine can perform at optimum levels in an EGR environment." Hodges' comfort level with his equipment is a key reason he sees a continued streak of brighter days ahead for his company. "What we went through the last two and one-half years has positioned us to be stronger than ever coming out of it." he says. "Titan Transfer has a bright future, with Peterbilt Model 587s and MX engines powering the way." "I really believe SCR, and its means of aftertreating the exhaust chemically, is the way to go..." — Tommy Hodges, Titan Transfer, CEO