Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: http://read.dmtmag.com/i/769491
PULSE January 2017 | Overdrive | 3 By Max Heine Editorial director mheine@randallreilly.com pealed to encourage a pay- for-all-time system. For owner-operators, such a changed landscape might have indirect longer-term benefits for rates/income. "I'd prefer if they would implement basic working regulations [for employee drivers] to trucking to include abolishing pay per mile," Soucy noted. Such a change like- ly would require close coordination with Con- gress and a Department of Labor friendly to such a movement. Don Lanier recalled Chao's own time at the top of the DOL in his commentary about what he saw as a "politi- cal favor" appointment. Chao is the wife of Mitch McConnell, Republican Senate leader. As DOL head, the Taiwan-born Chao, who came to the United States as a young child, drew criticism for not vigorously enforcing those same overtime and other wage protections. One of journalism's rituals is to publish eco- nomic forecasts at this time of year. Because there are so many indicators to work with, such crystal-balling can be a hodgepodge of optimism and pessimism. For example, the Cass Freight Index on expenditures has been negative on a year-over- year basis since early 2015. It's been moving closer to positive territory since early summer, but is that good enough for a robust 2017? Or consider trailer orders as a short-term indicator. Dry vans and reefers remain strong, but open-deck trailers have fallen off, says Don Ake, vice president of commercial vehicles for FTR Transportation Intelligence. While you can't control fickle economic forc- es, you have control over your operation. Radio host Kevin Rutherford, a longtime presenter at Overdrive's Partners in Business seminars, urges those with much time left in the industry to take more charge over their career path. For too many company drivers, he writes, that path often starts with: "Drive for five companies in five years, and realize you're not making min- imum wage." That path eventually will end this way: "Get replaced by an autonomous truck." Instead, company drivers should look into becoming a leased owner-operator. Leased guys should think about getting their own operating authority, even becoming a small- fleet owner, or becoming a broker, Rutherford advises. "Autonomous trucks can and will replace drivers, but they can't replace critical-thinking, problem-solving, successful business owners," he writes. Rutherford also highlights the ability to embrace new technology, which "always favors the little guy – if you understand it and use it." Bill Vitti, chief sales officer of load-matching company Truckstop.com, also notes that area. "I recommend leveraging technological solutions that are available to help you improve decision-making quality and enhance business success, thus allowing you to focus more on your core competencies," Vitti says. "Also, busi- ness is still about relationships, so I recommend doubling down on relationships with a few core strategic tech- nology and customer partners." The kind of owner-opera- tors Vitti and Rutherford have in mind are mirrored by the average client of financial ser- vices provider ATBS, earning $60,000 net income in 2015 and poised to do at least that well for 2016. Also consider the thousands of above-average operators earning $70,000, $80,000 and more. If you're struggling to run that kind of operation, there are plenty of tools to help you with technology, financial planning, load evaluation – you name it. These include programs, mate- rials and services from Ruther- ford, Overdrive, Truckstop.com, ATBS and others. "Focus on your life and your business," Rutherford says. "There are some really exciting things that are going to happen in the transportation industry if you are ready." Find your edge Technology, in the form of autonomous trucks, will one day eliminate some driving jobs, but it also creates tools that allow smart operators to excel. Other voices, via OverdriveOnline.com Kelly Smith: Back off all of the [California Air Resources Board] regulating. [Several] small truck companies here have already gone out of business. We will be next if they don't back off the CARB regs. Paul Marhoefer: Parking, parking, parking. Dan Tucker: I'd suggest a sincere look at the simplicity/ complexity of each [and every issue in the poll] and prioritiz- ing them according to what can be done, if it can be done, and how easy it would be to do.