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IN THIS ISSUE VOLUME 22 | ISSUE 6 2017
FEATURES
COVER STORY
SMALL TOWN BIG WHEEL 28
The history and happenings of Jimmy Starr’s Woodfield, Inc.
By Bethany May
CAPITOL WATCH
COMPLYING WITH CHANGING LAWS A TAXING ISSUE 19
New tax laws to affect trucking businesses
By Steve Brawner
TIPPING POINT ON FUEL TAX TO COME 24
Recent polls report opposition to fuel tax
softening, but national tipping point still elusive
By Todd Traub
TRUCKING’S CRYSTAL BALL 36
ATRI survey reveals trucking’s biggest concerns
By Rebecca M. Brewster
TRADE SECRETS
YEAR OF INNOVATIONAL THINKING 40
University of Arkansas’ Innovation Studio celebrates first year,
tackling the problems of retail and logistics
By Bethany May
CRACKING THE CODE TO CYBERSECURITY 43
Why trucking needs to stay alert to cyber threats
By Todd Traub
SCENE AROUND
GRIDIRON GATHERING 46
ATA’s Annual Razorback Tailgate is a DEPARTMENTS
bright spot in a tough season
By ATR Staff 7 Up Front: by Shannon Newton
9 They Said It
TAKING THE TECH SHORTAGE TO TASK 48 10 News in Brief
ATA council hosts Legislative Task Force on 12 New Members
Workforce Education Excellence 17 Calendar of Events
By ATR Staff
50 Insider Trucking
52 Stat View
53 Advertiser Resource Index
54 The Last Word: by Carl Vogelpohl
PHOTOS ON THIS PAGE AND COVER
BY JOHN DAVID PITTMAN
ARKANSAS TRUCKING REPORT | Issue 6 2017 5
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UP FRONT
Award-Winning Magazine of the Arkansas Trucking Association
Arkansas Trucking Report is owned by the Arkansas Trucking Association,
Inc. and is published bimonthly. For additional copies, to order reprints
of individual articles or to become a subscriber to ATR, contact Caitlin
Walraven at 501.372.3462.
executive editor
SHANNON NEWTON
managing editor
BETHANY MAY
contributing writers REMEMBERING THE EMPTY SEATS
STEVE BRAWNER LACEY THACKER
[email protected] [email protected]
JENNIFER BARNETT REED ANGELA THOMAS This time of year, there’s a lot of pressure to spend weeks (and your whole paycheck)
[email protected] [email protected]
JIM HARRIS TODD TRAUB shopping for and wrapping holiday gifts for your family, but in the minutes after
[email protected] [email protected]
RENEE MILLER DEANA NALL all the presents are opened, bellies full of chocolate oranges and surrounded by a
[email protected] [email protected]
art director small mountain of crumpled reindeer paper and ribbon, we can forget that the most
JON D. KENNEDY
The Freelance Co. LLC, [email protected] expensive gift is the one we sometimes take for granted — living in a free country.
production editors
SARAH SHEETS, KATIE THOMASON, DAVID O’NEAL
illustrator For all the reasons to love the holidays — presents, parties, your kids in matching
BRENT BENNETT
[email protected] pajamas on Christmas morning — the expectation to make merry and have an
photographers
JON D. KENNEDY, JOHN DAVID PITTMAN abundance of joy is not always the reality for the families who have an empty seat at
the dinner table. The songs tell us to trim up the tree and deck the halls, but there’s a
melancholy about the season for anyone remembering loved ones who have laid down
their lives for us to freely celebrate whatever holidays we want.
www.arkansastrucking.com
president This year, the Arkansas Trucking Association had the opportunity to recognize the
SHANNON SAMPLES NEWTON
[email protected]
vice president, safety programs and industry engagement brave men and women who have paid for our freedom. The Wreaths Across America
DAVID O’NEAL, CDS
[email protected] program is a movement to honor, remember and teach families about the ultimate
director of operations
SARAH NEWMAN SHEETS sacrifice. A wreath factory that grows their own fragrant Balsam donates thousands of
[email protected]
communications coordinator wreaths. Then hundreds of volunteer truck drivers deliver fresh evergreen to veteran
BETHANY MAY
[email protected] cemeteries around the country, where volunteers lay the wreaths against tombstones
business development coordinator
AMANDA LAMB and say aloud the names etched in stone from wars past and present.
[email protected]
corporate services coordinator
KATIE THOMASON Arkansas Road Team Captain Mark Buckley, who served in the U.S. Navy from 1979 to
[email protected]
executive assistant 1987, recently drove to Columbia Falls, Maine, to pick up the red-ribboned laurels for
CAITLIN WALRAVEN
[email protected] veteran graves in Memphis, Birdeye and Jonesboro.
CHAIRMAN OF THE BOARD
AL HERINGER IV
Star Transportation, LLC
Vice President What started as a single ceremony in Arlington National Cemetery has grown to over
BOARD OF DIRECTORS
ROCHELLE BARTHOLOMEW MIKE MCNUTT 1200 sites in all 50 states, made possible by Worcester Wreath Company, more than
CalArk International, Inc. Distribution Solutions, Inc.
President CEO, Owner 150 volunteer trucking companies, and citizens that give up a Saturday morning of
MARR LYNN BEARDEN MARK MORRIS
Marrlin Transit, Inc. Morris Transportation, Inc.
President President shopping for gifts to show their gratitude for the gifts we already have — freedom, so
CARL BOJA JAMES REED
TravelCenters of America USA Truck richly paid for in violence and sacrifice and love.
Vice President Fleet Sales CEO
GREG CARMAN G.E. “BUTCH” RICE III
Carman, Inc. Stallion Transportation Group
President President & CEO Buckley was joined in Birdeye by fellow Road Team Captains Danny Fuller and Otto
JOHN CULP ALAN RIELS
Maverick USA Dedicated Logistics, LLC Schmeckenbecher, who served in the Marine Corps from 1981 to 1985 and 1967-1968
President President & CEO
DAN CUSHMAN TRACY ROSSER respectively, to unload the wreaths and pay respects.
P.A.M. Transportation Services, Inc. Walmart Transportation
President & CEO Senior Vice President
CRAIG HARPER JOHN SMITH
J.B. Hunt Transport, Inc. FedEx Freight In an industry where 25 percent of the workforce is made up of veterans, I’m not
Executive Vice President & COO SVP Operations
KORY LARSON VICKI JONES STEPHENS surprised to see drivers eager to recognize the service of fallen military.
The Larson Group C.C. Jones, Inc.
COO President
JEFF LOGGINS TIM THORNE
Loggins Logistics, Inc. ABF Freight Proud would be a better word. Or grateful, to work alongside those who have served
President & CEO President & CEO
ROB LYALL DOUG VOSS our country and who continue to carry light, love, freedom, and even presents on those
Tyson Foods, Inc. University of Central Arkansas
Vice President - Transportation Associate Professor of Logistics
Distribution 18-wheelers.
An affiliate of the American Trucking On Christmas morning, when I’m surrounded by my own mountain of reindeer paper
Associations
and the contents of stockings are scattered around my feet, I will be remembering
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking
companies, private carrier fleets and businesses which serve or supply the
trucking industry. ATA serves these companies as a governmental affairs those who have an empty seat at their table and whispering prayers of thankfulness for
representative before legislative, regulatory and executive branches of
government on issues that affect the trucking industry. The organization also my freedom.
provides public relations services, workers’ compensation insurance, operational
services and serves as a forum for industry meetings and membership relations.
For information, contact ATA at:
1401 West Capitol, Suite 185
Post Office Box 3476 (72203)
Little Rock, Arkansas 72201 Drivers Legal Plan
Phone 501.372.3462 Fax 501.376.1810 Shannon Newton
www.arkansastrucking.com
President, Arkansas Trucking Association
ARKANSAS TRUCKING REPORT | Issue 6 2017 Drivers Legal Plan 7
Over 100 Locations in 16 States
NEW & USED TRUCK SALES | PARTS | SERVICE | BODY SHOP
LEASING & RENTAL | FINANCE | TRANSPORT REFRIGERATION
Dealership
Leasing & Rental
Truck Source
Carrier
RoadReady
THEY SAID IT
“This time we will not only plant our
flag and leave our footprint, we will
establish a foundation for an eventual
mission to Mars and perhaps someday
to many worlds beyond.”
—President Trump on his plan to return to the moon and reinvigorate the space program
“I know that
none of it “It can transform
is regret,
none of it into a robot, fight
is remorse,
none of it
is second- aliens and make
guessing.”
— Former Arkansas Razorbacks Football one hell of a latte.”
Coach Bret Bielema reflecting on his
five-year tenure at the University of
Arkansas before his final game with the —Tesla’s Elon Musk in a tweet on his company’s new electric heavy-duty truck
team
“This is a 12-day trip, the longest Asia trip by a
President since George H.W. Bush back in 1991.
Basically, the Republicans are trying to get this tax plan
passed, and they’re like, ‘You know what, Mr. President?
Go to Asia, eat steak, try not to start a war.’”
—Jimmy Kimmel, late night TV host jokes about President Trump’s recent visit to Asia
ARKANSAS TRUCKING REPORT | Issue 6 2017 9
NEWS IN BRIEF
registrant to set up an International
Registration Plan (IRP) account online,
in addition to new features for existing
customers to upload documents and
instantaneously print cab cards online.
Online customers will also be allowed
thirty (30) days to submit additional
source documents.
The new online processes are
the result of Arkansas Trucking
Association’s efforts to modernize the
process and service carriers who are
registering in Arkansas with more con-
venient options.
SPLIT SLEEPER BERTH PILOT a positive or no effect on subsequent The Arkansas Department of
PROGRAM DELAYED FOR neurobehavioral performance. Finance and Administration made the
FURTHER PUBLIC COMMENT Currently, drivers who use sleeper upgrades following legislation supported
Plans for flexible sleeper berth berths must divide their non-duty time by the Arkansas Trucking Association
pilot program are behind schedule with one eight-hour period and another
after another public comment period two-hour period. The exempted 240
closed on Nov. 27. The Federal Motor drivers participating in the pilot will
Carrier Safety Administration website be allowed to split the 10 hours in the
said the pilot was supposed to begin in sleeper berth (using splits of three and
July 2017. According to Sean Garney, seven hours, four and six hours, or two
director of safety policy for American five-hour periods).
Trucking Associations, the pilot pro- The added flexibility will permit
gram is now expected sometime next drivers to rest whenever they are tired
spring or summer. or to take advantage of congested times
The pilot program, which is expect- by getting rest.
ed to cost $2.6 million, will be designed The most recent comment period
to answer the question of whether split closed with 143 comments.
sleeper berth time affects driver safety and sponsored by Rep. Andy Davis.
performance and fatigue levels based NEW ONLINE VEHICLE Earlier this year, when signing the new
on data from ELDs, onboard monitor- REGISTRATION SERVICES bill into law, Gov. Hutchinson praised
ing systems, roadside violations, wrist AVAILABLE JAN. 1 the industry, saying the law is “just a
actigraphy, pyschomotor vigilance tests, Arkansas Trucking Association perfect example of improving efficiency
subjective sleepiness ratings, sleep logs, applauds the announcement of for the consumer, but it’s also reflective
and other data such as vehicle miles new and modernized services from of the trucking industry governing your
traveled. the Department of Finance and own affairs. You say, ‘There’s a problem;
Proponents of the pilot hope to Administration’s Office of Motor let’s get a solution for it.’”
corroborate the findings of most sleep Vehicles. Beginning January 1, 2018,
studies. Well-timed split sleep has either new services will allow a first-time
10 Issue 6 2017 | ARKANSAS TRUCKING REPORT
were creating a solution that would
WELCOME, meet the need. We didn’t want to go
through this exercise and end up with
NEW ATA MEMBERS! something that companies weren’t
going to choose to use.”
“There is still work to be done, as
Together, We Are the Power of Association additional enhancements will roll out
in 2018. Improving the governmental
We welcome the following new members. Each new member services that our members rely on is
adds to the Arkansas trucking industry’s collective strength to an important priority for the associa-
promote, protect and serve with a unified voice. tion and we are proud of the strides
that will be realized come January 1,”
Newton said.
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Offers transportation refrigeration services
During a congressional round-
table on emerging technologies in the
trucking industry, American Trucking
NEWS IN BRIEF, expedite the process with each truck. Associations reiterated trucking’s strong
Continued from page 10 Christy Earnhart at the Arkansas record of investing in and implement-
Office of Motor Vehicles said, “The self- ing innovative technologies to improve
According to Arkansas motor car- registration process will be beneficial safety on the nation’s highways.
riers, the state’s administrative pro- to all new account holders as well as “J.B. Hunt and many ATA mem-
cesses have been out of date and an service bureaus establishing accounts bers are early adopters of emerging
impediment to the pace of business. for their customers. They will no longer safety technologies,” Greer Woodruff,
All trucks engaged in interstate com- have to mail, email, fax or come to the senior vice president of safety, security
merce are required to register with the IRP Unit to establish their accounts. and driver personnel at J.B. Hunt, said
IRP in a particular state where they do Once they have been established, they on behalf of ATA. “In fact the trucking
business, with the money disbursed to can continue to create all future supple- industry spends over $9 billion annu-
other states where they travel. First-time ments 24-hours a day if needed.” ally on safety including technology
carriers have been required to register “Efforts to improve the process enhancements to help ensure that driv-
by mail or in person at DFA offices have been a big undertaking,” said ers and passengers of all vehicles make
in Little Rock. Afterwards, they could Shannon Newton, Arkansas Trucking it safely to their destination.”
register online, but they’ve been forced Association president. “We brought The roundtable was hosted
to wait for licenses and credentials to multiple carriers to the table, some by the House Transportation
arrive by mail, leading many to send a who were registering here and others and Infrastructure Committee’s
company representative to Little Rock to that were not, to make sure that we Subcommittee on Highways and Transit.
12 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Woodruff also pressed lawmakers patchwork of state standards or at best,
to include commercial vehicles in auto- a de facto national standard that is set
mated vehicle legislation under con- without the appropriate opportunity for
sideration in Congress to ensure that the entire regulated community — many
state and federal laws do not conflict members of which are not based in
or impede the safety and efficiency of California — to weigh in.”
interstate commerce.
A leading expert on transportation RIELS JOINS ATA BOARD
safety, Woodruff serves on the Federal OF DIRECTORS
Motor Carrier Safety Administration’s Alan Riels of
Safety Advisory Committee. Dedicated Logistics,
Inc. is the new-
TWO PROVISIONS IN EMISSIONS propulsion. They can move only when est member of the
RULES HALTED pulled by a tractor or another heavy- Arkansas Trucking
Last year’s Clear Air Act gave duty truck,” TTA argued. Association Board of
former President Obama the authority American Trucking Associations, Directors.
to write emissions rules. However, however, is concerned that repealing Riels is the pres-
two key provisions that would limit pieces of the federal regulation ident and CEO of Dedicated Logistics,
greenhouse gas emissions from big presents the opportunity to dismantle LLC, a Crossett-based freight carrier
trucks have been halted. the nationwide standards and leaves with over 60 trucks. At the Nov. 3
In the original Environmental the rules vulnerable to state-by-state ATA Board of Directors meeting, Riels
Protection Agency emissions proposals, regulations, which could be much more was nominated and affirmed to fill
glider kits — incomplete truck bodies stringent in places like California. the vacant position, previously held by
that users can build out with older and Chris Spear, ATA’s CEO and the late Wayne Smith of Wayne Smith
less expensive engines, transmissions president, said in August, “ATA believes Trucking, who passed in May 2017 after
and axles—were subject to standards a single national standard set by federal serving on the board for over 20 years.
of aerodynamic efficiency. However, regulators is preferable to at worst, a
opponents argue that glider kits are not
motor vehicles or engines, only pieces
used to assemble a full vehicle, and The coverage you need. The guidance you trust.
SM
therefore not eligible to be regulated.
“The previous administration
attempted to bend the rule of law
and expand the reach of the federal
government in a way that threatened
to put an entire industry of specialized
truck manufacturers out of business,”
EPA Administrator Scott Pruitt said in
a statement.
Likewise, a federal appeals court
halted implementation of aerodynamic YOUR RESOURCE FOR ALL FORMS OF TRANSPORTATION AND RISK MANAGEMENT
efficiency standards set for trailers
based on the interpretation of “new
motor vehicles” and “new motor LITTLE ROCK
vehicle engines” as “self-propelled 1500 Riverfront Drive
vehicles.” Little Rock, AR 72202
The Truck Trailer Manufacturers (501) 661-4800
Association, which has an ongoing (800) 542-0226
lawsuit against the regulation, asked
the court in September to halt the www.regionsinsurance.com FAYETTEVILLE
trailer portion. ©2017 Regions. Regions Insurance is an affiliate of Regions Bank. Products 1465 E. Joyce Blvd. Suite 205
“Trailers are not self-propelled. and services are offered by Regions Insurance Inc. and underwritten by Fayetteville, AR 72703
They emit nothing, and they lack unaffiliated insurance companies. Regions Insurance does not provide legal (479) 684-5250
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engines or any other means of
ARKANSAS TRUCKING REPORT | Issue 6 2017 13
NEWS IN BRIEF, pursue excellence in their approaches America, said the shuttle would contin-
Continued from page 13 to safety,” said American Trucking ue to operate after undergoing a com-
Associations President & CEO Chris plete diagnostic assessment. He said the
Riels started Dedicated Logistics Spear, adding, “Safety is what defines vehicle--which can communicate with
in June 2002 with his mother Ruth our industry.” traffic signals, detect other vehicles and
Riels. He is a graduate of University of “Whether it’s through educational brake for pedestrians—has data that can
Arkansas-Monticello and also owns forums for our members, or deliver- shed light on the shuttle’s first incident.
Mechanical Solutions, a truck repair ing safety presentations in high school “That’s probably the positive point
shop in Crossett. auditoriums, we’re always looking for of all this,” Bell said, “is that we have
“Alan has been an asset to our ways to raise the bar on safety,” said extensive data to be able to tell us what
association for many years. He has David O’Neal, vice president of safety occurred and what we could do in the
always been willing to advocate for poli- programs and industry engagement future to improve upon.”
cies that strengthen the entire industry for Arkansas Trucking Association.
and share his experiences with lawmak- “We’re grateful to be recognized with FOUR OPIOIDS ADDED TO DOT
ers and other members,” said Shannon the Excellence in Safety Award for our DRUG-TEST PANEL
Newton, president of the association. efforts over the past year, and look According to the Department of
forward to continued growth and Transportation, a new drug testing
ATA RECOGNIZED FOR improved safety for all drivers.” standard will go into effect on Jan.1 to
EXCELLENCE IN SAFETY add four commonly abused prescription
AUTONOMOUS SHUTTLE PROVES opioids to the drug testing panel used
HUMAN ERROR CAUSES MOST for truck drivers and all safety-sensitive
INCIDENTS transportation workers.
Within hours of its first route in The final rule, published Nov. 13,
downtown Las Vegas, an autonomous aligns DOT’s drug testing with the
electric shuttle bus was struck by a Health and Human Services testing
delivery truck (with a human driver). guidelines, which as of January 2017
The Metropolitan Police includes hydrocodone, hydromorphone,
Department determined that the shut- oxymorphone and oxycodone.
tle came to a stop when it sensed the In October, President Trump
truck was trying to back up. However, declared opioid abuse a public health
the human truck driver was found to emergency and donated his third quar-
be at fault when he continued to back ter salary of $100,000 to HHS to fight
up the truck until its tires touched the against addiction.
front of the shuttle. Damage was minor, House Transportation Committee
Arkansas Trucking Association was and no one was hurt. Democrats urged Transportation
honored with the State Excellence in Maurice Bell, vice president of Secretary Elaine Chao to act quickly on
Safety Award at the American Trucking mobility solutions for Keolis Transit
Associations’ Safety, Security and
Human Resources National Conference
and Exhibition in Memphis on Nov. 14.
The award is given annually to
a state trucking association making
innovative and impactful progress on
promoting safety to their members.
Arkansas Trucking Association was
recognized for its variety of safety
programs, including a member-driven
safety management council, education
offerings, communications and services
that benefit both members and the gen-
eral public.
“Safety is a reward in and of itself,
but at ATA we also believe in recogniz-
ing the people and organizations who
14 Issue 6 2017 | ARKANSAS TRUCKING REPORT
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NEWS IN BRIEF,
Continued from page 14
Exclusive. All-Inclusive. Simple.
Patron
the regulation given high-profile trans-
Utility Tri-State, Inc. portation wrecks where opioids were
found in workers’ systems.
The final rule also removes methy-
Supporters lenedioxyethylamphetamine (MDEA)
from the existing drug testing panel
Aon and adds methylenedioxyamphetamine
THANK YOU Drivers Legal Plan (MDA). The DOT will continue to only
2017 Founders! Stephens accept urine testing; although HHS is
The Larson Group studying oral fluid testing and hair test-
ing under its guidelines, they cannot
be accepted by DOT until HHS adds
alternative testing protocols to their
rulemaking.
‘BOTS’ RESPOND TO DOT
REQUEST FOR COMMENTS
In the last issue of Arkansas
Trucking Report, we reported that the
Department of Transportation pub-
lished in the Federal Register a request
for public comment on existing rules
and agency actions that should be
repealed, replaced, suspended or modi-
fied. DOT collected many responses, but
it turns out many of them were submit-
ted by ‘bots.’
In 1932, a small number of companies came together to lay the
A ‘bot’ is an app that performs an
foundation for today’s Arkansas Trucking Association --- the automated task. In this case, 477 com-
recognized voice for the trucking industry in Arkansas. ments, about one-third of the 1,483
Members today continue to provide the support that builds comments DOT received, were automat-
upon those foundations. Founders Club members support ATA ed and not submitted by an individual
human.
because they believe, like we do, that trucking is the backbone
The issue was realized when the
of our economy.
same word-for-word response was sub-
Contact Amanda Lamb at [email protected] mitted over and over:
or 501-372-3462 to become a “The ELD rule should proceed as
2018 member of the Founders Club. planned this December. The rule is not a
change to hours of service, it’s simply a
16 Issue 6 2017 | ARKANSAS TRUCKING REPORT
CALENDAR
OF EVENTS
JANUARY
JANUARY 23
ATA BOARD OF DIRECTORS MEETING
JANUARY 26
NATMI ACCIDENT PREVENTION,
MANAGEMENT AND INVESTIGATION
COURSE
The Victory Building
Little Rock, Ark.
FEBRUARY
change in how professional drivers record has—the kind of food you might have FEBRUARY 7
hours of service. Delaying the ELD rule to invent in a secret laboratory hidden ATA NEW MEMBER BRUNCH
The Victory Building
will endorse drivers to operate outside of in Bentonville, Ark.,” said reporter Julia Little Rock, Ark.
their current hours of service, and that is DeWitt.
simply not safe to the motoring public. The The results have been interesting. FEBRUARY 21
NATMI INNOVATIVE DRIVER
industry needs to embrace legal and safe Walmart’s senior director of sourcing, RETENTION STRATEGIES COURSE
operations with ELD use. This issue has Victor Verlage showed off a yellow-rind The Victory Building
been legislated, promulgated, and litigated. watermelon from the lab. The color, Little Rock, Ark.
The time to move forward is now.” he said, was originally an accident, but MARCH
DOT does not yet know who offers a competitive edge because it’s so MARCH 1
launched the boilerplate responses, easy to identify. ATA BOARD OF DIRECTORS MEETING
but the culprit did plagiarize parts Employees test new foods in the MARCH 12 – 16
of a speech by American Trucking Sensory Lab, rating everything from NATMI CDS/CSS CERTIFICATION
Associations President and CEO Chris chicken poblano burrito bowls to birth- COURSE
Spear when he said to Management day cake flavored oatmeal. The Victory Building
Conference & Exhibition attendees, If consumers want a sweet and Little Rock, Ark.
“This issue has been legislated, promul- salty snack like the “Tropickle,” they MARCH 25 – 28
gated, and litigated. The time to move won’t be able to find them at Amazon, TRUCKLOAD CARRIERS ASSOCIATION
forward is now.” and that exclusivity that the lab offers ANNUAL CONVENTION
could be the key to staying on top of the Gaylord Palms Resort & Convention Center
Kissimmee, Fla.
WALMART’S SECRET FOOD grocery empire.
LABORATORY OFFERS 2018 SAVE THE DATES
COMPETITIVE EDGE TRUCKING CAN BE FUN AND
A recent Planet Money episode GAMES IN NEW KID’S APP MAY 16-18
ATA ANNUAL BUSINESS CONFERENCE
reported Walmart’s newest venture— Dr. Panda, the world’s #2 paid kids’ & VENDOR SHOWCASE
inventing food. The popular National app developer, launched a new app, Dr. Hot Springs, Ark.
Public Radio program and podcast vis- Panda Trucks, for kids to control up to JULY 12–14
ited Walmart’s Culinary & Innovation 7 different trucks to customize a con- ARKANSAS TRUCKING
Center to try the “Tropickle,” a bright struction project. CHAMPIONSHIP
red pickle infused with tropical fruit Game designer Onno van Duin Rogers, Ark.
punch. recognized that kids are fascinated by
With increased competition from trucks and that inspired the app in ence, but as they play they can also
Amazon in the grocery sector after the which players use a bulldozer, crane, learn about the functions of each truck
Seattle-based ecommerce site acquired wrecking ball, and four other trucks and how to construct and design their
Whole Foods in August, Walmart is get- to become familiar with the different very own building. This open-ended
ting creative to protect its place in the functions of different vehicles on a con- game allows for limitless creativity and
grocery space, Planet Money reports. struction site. encourages storytelling,” shared Tom
The strategy is to “sell food Amazon “In Dr. Panda Trucks, kids not Buyckx, CMO and general manager of
can’t possibly have—that no one else only have an exciting and fun experi- Dr. Panda USA. ATR
ARKANSAS TRUCKING REPORT | Issue 6 2017 17
Complying with Changing
Laws a Taxing Issue
New tax laws to affect trucking businesses
By Steve Brawner Senate have passed different versions. child tax credit from $1,000 to $1,600.
Contributing Writer On Nov. 16, the House package was Meanwhile, to reduce the impact on the
approved largely along party lines. For federal budget deficit, it would end cer-
This much is certain: Congress is businesses, that package would cut the tain deductions such as those for state
trying to pass a tax reform package, and corporate tax rate from 35 to 20 percent and local taxes, medical expenses and
if it does, it will affect trucking. and create a top rate of 25 percent for student loans.
How much, and in what ways? It’s pass-through entities including sole The Senate version also reduces the
still too early to tell. But as of press proprietorships, partnerships, limited corporate tax rate from 35 to 20 per-
time, some of the most important pro- liability companies, and S corporations. cent, but it would keep the seven brack-
visions would The first $75,000 for business owners ets, the top one being 38.5 percent. For
• Allow 100 percent first-year deduc- earning $150,000 or less would be taxed individuals, it would double the stan-
tions for purchases such as trucks at 9 percent, but that provision would dard deduction to $24,000, double the
and trailers; be phased in. child tax credit from $1,000 to $2,000,
• Would offer advantages to compa- For individuals, the current seven and cut various personal exemptions
nies organized as C corporations tax brackets would be reduced to four, such as the one for state and local taxes.
versus other forms; the top one being 39.6 percent. The The plan effectively would end the man-
• Would reduce or end the estate tax. standard deduction would double to date for individuals to purchase health
The House of Representatives and $24,000. It also would increase the
ARKANSAS TRUCKING REPORT | Issue 6 2017 19
But Bell said trucking companies
“THE BIG THING YOU HEAR IS THAT WE WANT TO will do exactly that, because they don’t
SIMPLIFY THE TAX CODE, BUT BASED ON WHAT I’M want to pay taxes and because the tax
savings make the business equation
LOOKING AT, THIS IS NOT A SIMPLIFICATION more favorable. During a presentation
OF THE TAX CODE.” in Nashville before 40 or 50 members
of the National Association of Small
—TROY HOGAN, CPA, DIRECTOR OF KATZ SAPPER AND MILLER’S Trucking Companies, he asked attendees
whether business or tax considerations
TRANSPORTATION SERVICES GROUP
would drive their purchases. Almost all
of them said they didn’t want to pay
taxes.
insurance or pay a fine that was created ing 100 percent deductions during the “Let’s say you had $500,000 tax-
by the Affordable Care Act, otherwise first year, rather than 50 percent, during able income, and you could buy four
known as Obamacare. the next five years. If passed, that would new trucks, and you have zero taxable
Supporters say reducing taxes alter trucking companies’ behavior. income, what are you going to do?” he
would spur the economy. The non- “It’s probably going to change up said. “Buy new four trucks or pay taxes
partisan Committee for a Responsible the way that the companies buy their on a half million dollars? So the way
Federal Budget says the two versions equipment on trade-ins in their eco- they’re going to look at it is that the
would each add at least $1.5 trillion to nomic cycle, and they may be buying tax savings are going to supplement the
the national debt. their equipment based off of the taxable purchase of the equipment.”
The ending of the individual man- income,” Bell said. So I don’t know if
date, included at the behest of Arkansas that’s good or bad, but I’m sure taxes C CORPORATION BENEFITS
Sen. Tom Cotton, seems vulnerable. are going to drive the purchase of equip- Another big issue related to the
Before becoming law, the House ment in the next five years because of tax proposals is that they give bigger
and Senate will have to be reconciled. the liberalized rules that are out there.” advantages to C corporations than
The two groups have agreed to the bill Complicating the matter is the they do pass-through entities – sole
in principle, but they continue to nego- fact that the congressional maneuver- proprietorships, partnerships, limited
tiate how to pay for it before sending to ing is occurring at the end of the year, liability companies and S corporations.
President Trump to sign. After failing to when companies are making decisions That difference led Sen. Ron Johnson,
end Obamacare, Republicans are eager that affect their tax liability for this R-Wisconsin, to announce his opposi-
to pass something before next year’s year and next. Trucking companies are tion to the plan.
elections. deciding whether or not they should Bell said almost all of his clients
Regardless of what happens, truck- buy trucks and trailers now, or whether have those kinds of statuses versus a C
ing companies will have to comply. they should wait until 2018 when new corporation. Even though those types
Richard Bell, CPA, president and provisions, if passed, would allow them of companies pay a higher top rate of
CEO of the accounting firm Bell and to deduct more. 39.6 percent, most trucking companies
Company, said his clients have had a Troy Hogan, CPA, director of Katz prefer them because, unlike a C corpo-
good year. They primarily are smaller Sapper and Miller’s Transportation ration, they don’t have to pay a tax on a
and mid-sized companies with 25-50 Services Group, said he advises clients dividend.
trucks, with some having up to 100 to make decisions based on what makes Bell said if the tax package passes
units. He said trucking companies have business sense rather than how it affects as is, many trucking companies might
been on the equivalent of a “bull run,” their taxes. After all, a company that decide to become C corporations. If
helped by favorable tax rules passed buys equipment simply to earn a tax so, it would mirror what happened in
during the Great Recession that enabled break is spending $1,000 to save $300. 1986, the last time major tax reform
them to write off half of the cost of “I mean, you’re running a busi- was passed under President Reagan,
acquired trucks and trailers, and up ness,” he said. “If you need equipment, when changes to the code advantaged
to half a million dollars, in the year of let’s buy it now. And on the flip side, S corporations and led many trucking
purchase. don’t buy equipment just to garner tax companies to switch then.
deductions. You’ve got to be able to “Now, 30 years later, it appears that
TRUCK AND TRAILER support the use of that equipment, and the tax code’s flipping back to favoring
DEDUCTIONS we’ve got a driver shortage right now, so a C corporation, and so there may be a
Both the House and Senate versions we don’t need to be buying trucks for
would change those provisions by allow- tax deductions.”
20 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Building Partnerships
That Last
PROVEN EXPERIENCE
IN COMMERCIAL TRANSPORTATION CLAIMS SINCE 1962 INCLUDING
HEAVY EQUIPMENT, CARGO, AND ENVIRONMENTAL CLAIMS.
CIA Transportation Claims Magazine Arkansas Ad.indd 1 8/21/17 12:39 PM
reversion of those S corps and partner-
ships and limited liability companies “NOW, 30 YEARS LATER, IT APPEARS THAT THE
back to C corps, so I guess history has a
way of repeating itself,” he said. TAX CODE’S FLIPPING BACK TO FAVORING A C
The fluid nature of the tax situa- CORPORATION, AND SO THERE MAY BE A REVERSION
tion means trucking companies may OF THOSE S CORPS AND PARTNERSHIPS AND LIMITED
want to wait before making that deci-
sion, said Hogan. His firm serves more LIABILITY COMPANIES BACK TO C CORPS, SO I GUESS
than 120 carriers with revenues from HISTORY HAS A WAY OF REPEATING ITSELF.”
$5 million up to $200 million.
“I would hate to have a truck- —RICHARD BELL, CPA, PRESIDENT AND CEO OF THE
ing company that was a C corporation ACCOUNTING FIRM BELL AND COMPANY
wanting to switch to S and file all the
paperwork by year end,” he said. “Then
we learn something new in 2018, and
then you can’t get out of it. You can’t spouse, the children that are involved. ently challenging – more so for trucking
undo what you did. That would be trag- There are all the employees of the com- companies than others because they
ic. …I think we will have some answers panies where the owner has died. Death must obey rules at the federal level and
before the end of the calendar year, but has a great impact on a lot of different in up to 50 states. Hogan said certain
today I’m asking to hold on big deci- people and a lot of different job roles. If states are more troublesome than oth-
sions like that.” it’s not properly planned, it can be just a ers. For example, carriers should always
dang train wreck.” file a return in New Jersey even if they
ESTATE TAX CHANGES only run a few miles in that state. He’s
Of particular interest to large REFORMED, BUT NOT ANY had clients whose trucks have been
trucking company owners would be SIMPLER impounded because they didn’t file a
the way the bills deal with the estate Hogan questioned if the changes return there. Pennsylvania can review a
tax, which is currently 40 percent. The being considered would actually make trucking company’s complete financial
House plan would double the exemption the tax code simpler. He said that some history.
from the current $5.5 million to $11 Americans will end up paying higher “If they find out you’re not filing,
million in 2018 and about $22 million taxes if the proposals pass because of they’ll go back 20 years and make you
for couples, scrapping it completely in the loss of itemized deductions. In one file returns,” he said. “It’s a nightmare
2024. The Senate plan also doubles the scenario, a taxpayer earning $400,000 trying to file returns for the last 20
exemption but doesn’t end the tax. annually in W-2 wages with certain years. Who keeps records that long,
There were 11,917 estate tax filings itemized deductions would pay $4,100 right?”
in 2015, but because of the exemp- more in taxes. As for his clients, it’s hard The tax package is a fluid situation,
tions only 4,918 filings resulted in a tax to tell what changes they would face. and a lot can change. Trucking com-
liability. That year, it netted the federal “The big thing you hear is that panies will have no choice but to pay
government nearly $17.1 billion, accord- we want to simplify the tax code, but attention and respond.
ing to the IRS. based on what I’m looking at, this is “I think it’s going to take some
Hogan said that it’s affected few of not a simplification of the tax code,” careful planning, some careful year-end
his clients in his 15 years with the firm. he said. “A lot of aspects make things planning at the end of this year to know
Bell said some of his have had to pay it. more complicated. I was sitting through whether we should accelerate income
It can be a complicated process. this explanation of how they want to into ’17 or defer income into ’18,”
Trucking owners should be prepared to tax flow-through passive income, and Hogan said. “We just don’t have all the
pass on their wealth to the next genera- I was thinking they were out of their answers yet. All we have is a bunch of
tion, Bell said. mind. If you read in the news, they guesses, so I would just advise them to
“There’s a lot of people, or a lot of push a lot about how they’re decreasing get with their advisor and map out what
moving parts that go into administrat- the tax brackets from seven to four, and their taxable income could look like for
ing an estate,” he said. “Accountants, that’s going to simplify. That has abso- 2018 and what makes sense here.”
we play our role. There are the roles that lutely nothing to do with simplification Editors note: At time of printing,
are played by tax attorneys. There are because the computer handles all that. both versions of the bill are in conference,
roles that are played by trust adminis- That doesn’t make anything easier. It’s with the bill expected to pass before
trators. You use the bank trust depart- all behind the scenes anyhow.” Christmas. ATR
ments. There’s maybe the surviving Complying with tax laws is inher-
ARKANSAS TRUCKING REPORT | Issue 6 2017 23
Tipping Point on
Fuel Tax to Come
Recent polls report opposition to fuel tax softening,
but national tipping point still elusive
By Todd Traub into the picture. Americans to get their points of view
Contributing Writer Those are some of the results found on the trucking industry, infrastruc-
in a survey presented by award-winning ture and potential methods of funding
People support the trucking indus- pollster Neil Newhouse at the American infrastructure improvements.
try as much as they ever have, and they Trucking Associations Advocacy and “This sample is right in line,”
support improving the roads and bridges Government Affairs Luncheon dur- Newhouse said. “Demographically,
the truckers use. However, just like ing the Management Conference and ethnically, education-wise, partisanship
trucks at an interchange, the opinions Exhibition in Orlando in October. and regionally, it’s on line with the cen-
go in different directions when dollars The ATA national poll, taken June sus population across the country and
and cents — and politics — are brought 25-28, surveyed a sampling of 800 it’s on line with national surveys.”
24 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Newhouse is partner and co-found-
er of Virginia-based Public Opinion “THE BOTTOM LINE FOR THE SURVEY IS NOT
Strategies, a national public affairs and EVEN THE NEWS ABOUT FUEL TAX OR AMERICAN
political research firm widely known as OPPOSITION SOFTENING, IT’S NOT ABOUT THAT.
the leading Republican polling company
in the nation. THE BOTTOM LINE IS THE TRUCKING INDUSTRY
HAS NEVER BEEN MORE POPULAR OR HAD A
TRUCKING MAKES A GOOD STRONGER IMAGE.”
IMPRESSION
His survey’s major revelations were
that the image of the trucking industry —NEIL NEWHOUSE, PARTNER AND CO-FOUNDER OF LEADING
among the general public is enjoying REPUBLICAN POLLING COMPANY, PUBLIC OPINION STRATEGIES
great strength, that an increasing per-
centage of Americans believes infra-
structure spending should be a priority Three quarters of Americans have comes a more favorable view of infra-
and that opposition is easing — thanks a favorable impression of the industry, structure spending.
to consistently low gas prices — to some according to Newhouse’s polling data, a In Newhouse’s polling, 62 per-
sort of gas tax hike to fund infrastruc- viewpoint that is consistent across the cent of the voters believed the country
ture improvements. nation. More than 70 percent of those should spend more on transportation
“The bottom line for the survey polled in all four regions had a favorable infrastructure. Again this was consis-
is not even the news about fuel tax or view of the industry, with the strongest tent in every region as 60-64 percent
American opposition softening, it’s support coming from the South at 80 agreed on increased infrastructure
not about that,” Newhouse said “The percent. A majority also believed trucks spending.
bottom line is the trucking industry are responsible for moving the greatest “I’d say [there’s] openness to it
has never been more popular or had a amount of freight. rather than approval,” Newhouse said.
stronger image.” With that industry favorability
ARKANSAS TRUCKING REPORT | Issue 6 2017 25
Despite the rabidly partisan charge motorists a per-mile fee, that’s a
political divides that exist today, infra- non starter,” Newhouse said.
structure spending has bipartisan The federal fuel tax hasn’t been
acceptance among voters as more than increased since the early 1990s and the
WHEN VOTERS KNOW half of those identified as Republicans, Arkansas Trucking Association is one of
A FEDERAL GAS TAX Democrats and Independents expressed many to support the idea.
their openness to the idea.
The American Transportation
INCREASE MEANS Research Institute, the nonprofit
LESS GOVERNMENT INFRASTRUCTURE SPENDING IS research organization of the ATA,
BORROWING AND LESS POPULAR …IN THEORY released a report in early November that
The enthusiasm falls off, however,
DEBT BURDEN ON when actual means of funding improve- finds a gas tax hike is the “only mean-
ingful mechanism” to pay for infra-
FUTURE GENERATIONS, ments are discussed. structure improvements proposed by the
THEY CONVINCINGLY The idea of leasing highways was current administration.
AGREE WITH IT. opposed by 81 percent of the voters, Gas prices and concern about the
with 62 strongly against it. A hypotheti- state of the nation’s roads and bridges
cal motorist fee also hit a wall of oppo- are the two factors driving the data
—NEIL NEWHOUSE, PARTNER sition, with 80 percent against and 66 Newhouse said.
AND CO-FOUNDER OF LEADING percent strongly opposed. “No. 1, the relatively low prices
REPUBLICAN POLLING Opposition to tolls has softened people are paying for gas and the fact
COMPANY, PUBLIC OPINION since 2014, dropping from 76 percent to that gas prices have not been as volatile
STRATEGIES 61, and there is some support for raising as people have seen them in the past.
the federal gas tax, with 46 percent in … No. 2 is the increased concern,
favor and 53 percent opposed. increased level of concern, about the
“I think if anything’s going to be infrastructure, about the condition of
passed it looks like a gas tax. …If you the nation’s roads, highways, bridges,
etcetera.
SUPPORT VARIES INSIDE (AND
OUTSIDE) THE BELTWAY
“And I guess along with that
Americans are listening to their
political leaders talk about the need for
infrastructure renewal. They’re paying
attention to what Donald Trump has
to say.”
It is probably no great surprise that
divisions over the fuel tax are along
political lines.
Republicans, traditionally anti-tax,
show the strongest opposition to a fuel
tax hike, 62 percent, while 55 percent
Serving the transportation industry since 1982. of Democrats support it. A gas tax
increase is also opposed by 55 percent of
Independents.
While voters don’t seem to support
2725 Cantrell Rd., Suite 201 “meaningful” gas tax increase of 10-30
Little Rock, AR cents a gallon (33 percent support a
5-cent hike), support shoots up when
800-737-3037
Dill Brothers Insurance www.dillbrothers.com they are told it would only cost average
A Triangle Company drivers $2 a week.
When that is considered, support
Outstanding Service • Quality Products •Competitive Price has increased from 34 percent in 2014
to 55 percent in June. And the support
26 Issue 6 2017 | ARKANSAS TRUCKING REPORT
is steady in all regions, ranging from POLITICS (AND HIGHWAYS) money going toward roads, bridges
51-60 percent approval. ARE LOCAL and transportation; Grand Rapids,
“Being anti tax is kind of a Newhouse said he doesn’t think a Mich., extended an expiring millage to
platform position for Republicans,” tipping point has been reached yet that support mass transit; and Mahoning
Newhouse said. “For Republicans to be would cause wholesale political support Co., Ohio, extended an expiring sales
at least somewhat open to the idea of a of a fuel tax increase, at least at the tax to be used for the Western Reserve
fuel tax — and that’s why I thought this national level. But support is beginning Transit Authority.
survey was kind of interesting — it gave to manifest itself at local ballot boxes. Traditionally, taxes have hardly
us a couple different messaging leverage On Election Day, Nov. 7, a number been embraced by Americans, but if
points that might be used to pressure or of bond issues and new taxes were shown to serve their better interests,
convince Republicans.” approved and other taxes extended, as seen in the local elections and
The message, according to all with the intent of improving roads in Newhouse’s polling, voters are
Newhouse’s presentation, is that when or funding transportation projects, in displaying a willingness to vote for
voters know a federal gas tax increase different counties around the country. taxes and tax hikes.
means less government borrowing In Denver a $431 million “This is voters and the guys
and less debt burden on future gen- obligation bond for surface who make the decisions on this
erations, they convincingly agree with transportation was approved; in both are politicians, so there is a huge
it. Total support is 67 percent, with DeKalb Co. and Athens-Clarke Co., difference there,” Newhouse said. “I
73 percent of Democrats, 65 percent Ga., voters approved 1 percent sales don’t think we’ve reached the tipping
of Independents and 61 percent of taxes primarily for transportation point yet because I think Americans
Republicans more likely to back an and transportation-related projects; need to believe this is a crisis rather
increase. in Lawrence, Kan., a sales tax put than just a problem. …It’s going to be
“We’ve not seen it in the past,” toward mass transit was extended awhile before we get this done, but it’s
Newhouse said of the support. “In pre- and another approved for roads; a at least evidence we’re making progress
vious surveys done for ATA, voters were $105 million bond issuance in Maine on public opinion.” ATR
pretty closed to the idea of a gas tax.” was approved, with almost all the
Expertise you can count on no matter
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and finance businesses of Wells Fargo Bank, N.A. and its subsidiaries. IHA-4449403
ARKANSAS TRUCKING REPORT | Issue 6 2017 27
Small Town Big Wheel
PHOTOGRAPHY BY
JOHN DAVID PITTMAN
28 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Small Town Big Wheel
THE HISTORY AND HAPPENINGS OF JIMMY STARR’S WOODFIELD, INC.
By Bethany May
Managing Editor
Just before the Civil War, Camden, Ark. was the second
largest city in the state and a hub of transportation in south
Arkansas. A busy port brought steamboats up and down the
Ouachita River and attracted businesses like John T. Chidester’s
stagecoach and mail wagon services that carried mail from
Memphis to Fort Smith. In the late 1800s and early 1900s, rail-
roads allowed access to forests and the logging industry.
Arkansas’s first oil well was discovered there in the ’20s,
and business boomed. The population almost quadrupled to over
11,000 by 1950. In the ’60s, Highland Industrial Park opened as
manufacturing and defense brought good jobs to the area.
The economy has ebbed and flowed in the years since
Camden was incorporated, and when one of the region’s oldest
and biggest employers, International Paper Mill closed in 2000,
more than 1000 people lost their jobs. Defense contractors like
Lockheed Martin and Raytheon have moved in to take advan-
tage of Camden’s industrial spirit, but knowing the history of
a place like Camden makes you appreciate a transportation
company like Woodfield, Inc. and its owner and president Mr.
Jimmy Starr.
ARKANSAS TRUCKING REPORT | Issue 6 2017 29
he doesn’t protest. “But,” he interjects,
“I taught her to drive.”
TRUCKING ROOTS
Starr was born in Oden, Ark. just
north of Mount Ida, the youngest of
eight children. His parents had both
died when he was five or six years old,
and he was raised by older sisters and
moved around a lot. Eventually, he
ended up in Camden at Harmony Grove
School where he met Kathy.
“When our parents passed away,
there was still four at home, and they
Any small business owner is proud That’s exciting to us.” divided us up. Me and my younger sister
to be a “job creator,” but in a city where His wife Kathy agrees, “It’s a privi- moved to Camden. Then my two twin
the population peaked over 50 years lege and an honor to be able to have brothers, they moved to Hot Springs.”
ago and has dropped 23% since then, jobs available for people. That’s probably He started dating Kathy when
someone who can provide good jobs is one of our main goals, to employ peo- they were sophomores at Harmony
valuable. ple, get them a good living and to have Grove High School. They graduated in
Sitting in his Woodfield office on respect for each individual, no matter May 1973 and were married in June
the southern edge of Camden, Jimmy how old they are. We strive every day to at Calvary Baptist Church, the same
Starr understands how being respon- build respect.” church they still attend, where Kathy
sible for employing others is a privilege. Starr nods back to Kathy, his wife has played the organ since she was a
“We’re thankful to be able to provide a of 44 years and partner in business for teenager.
job, a good job that people want to do. 30. She jokes that she raised him, which His father and eventually his broth-
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30 Issue 6 2017 | ARKANSAS TRUCKING REPORT
ers all drove a truck, and for as long that his brother drove. Then he bought as the trucking business grew, she
as he could remember, Starr wanted to another and another and another. decided to come help, and the two
drive a truck, too. As a newlywed at 18, Woodfield incorporated in 1988 and have been working together ever since.
he hauled wood around the state for the began over-the-road hauls in 1993. They used to share an office, literally
International Paper Mill. Now Woodfield, Inc. has 117 trucks. working side-by-side, but now Jimmy
“When I was 21, I was just wait- “It’s not big in comparison, but it’s runs operations on one side of the
ing to find somebody to hire me,” a full-time job for us,” he said. building while Kathy works billing and
Jimmy said. So when he turned 21, he accounting on the other side. They joke
met Steve Williams and Larry Lahey, RAISING THE FAMILY that Jimmy’s side makes the bills, and
who would later co-found Maverick Kathy was the receptionist at the Kathy’s side pays them.
Transportation in North Little Rock. Ouachita Valley Family Clinic, but Their children work somewhere in
Lahey’s father owned Steel Haulers, out
of Kansas City, and gave Starr his first
over-the-road driving job.
He drove a truck for 10 years, first
for Steel Haulers and then for Arkansas
Best Freight (ABF)’s flatbed division,
called the “scat division.”
On the road for a week at a time,
driving up and down the Midwest,
Jimmy said he kept his mind occupied
by planning for the future and his
family.
“When you’re gone, you think
about home a lot, your wife, family,
children …I think you just think about screen
simulation
what you want your life to be.”
In 1983 when his youngest son
Gregory was born and older son Scotty TAKE ON THE FSMA
was four years old, he sold his truck to
be closer to home. He had met a man WITH THE NEW
who offered to buy his truck while he
was driving to Pennsylvania for ABF. STANDARD OF
and a ride to the airport and flew back CLEAN
At first, Jimmy refused, but when
Greg arrived, he changed his mind. He
hauled his last load to Pittsburgh, drove
to the man’s shop, received his payment
to Arkansas, away from his career as a
full-time driver. Make a statement with Great Dane’s Everest reefer, the only trailer on
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not have had the responsibility of run- science now comes standard—because when it comes to safety and
ning the store, [leaving trucking] would efficiency, we always go the extra mile.
have been very difficult …The conve-
nience store was very time-consuming. I Take on the FSMA with the industry’s most powerful antimicrobial
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ARKANSAS TRUCKING REPORT | Issue 6 2017 31
“Spot On!”
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are spot on! The photos and in-depth coverage are excellent. You get it and it
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between. Scotty supervises the chip/ Jimmy Starr: At-a-Glance
flatbed division. Gregory is the van
operations manager, and Stephanie, FAVORITE MUSIC? Country music and Gospel
their youngest, works accounting and WHAT DO YOU WISH YOU KNEW MORE ABOUT?
payroll in the office with Kathy a few I wish I knew how to better manage costs in such a competitive industry.
days a week and out of her own office
in Magnolia the rest of the time to be WHAT IS THE LUCKIEST THING THAT HAS HAP-
closer to her own small children. PENED TO YOU? As far as luck goes, when I hit a hole-in-one in 2006
“We’re together all the time …any and won a new Ford pickup. However, by far the BEST thing that ever hap-
time we can be together, we’re good pened to me is my relationship with the Lord Jesus Christ, and my family and
with it. We don’t fight at all as far as I grandchildren.
know,” Kathy said. BEST COMPLIMENT YOU EVER RECEIVED? When I hear
For some people, it might be hard good things about my family and company and when people we know are out
to imagine working this close to family of town and see one of our trucks on the road, it gives me a sense of pride.
every day and liking it, but Jimmy Starr DO YOU HAVE A FAVORITE CHARITY OR CAUSE?
instantly smiles when talking about his Operation Christmas Child Shoebox Ministry by Samaritan Purse. It gives us
wife. “My best day is when I see Kathy a lot of joy to think about boys and girls receiving gifts who normally would
here in the morning.” not be getting anything. It also gets the message all over the world that God
It’s obvious that they not only enjoy loves them in their own languages.
working here, but that they really enjoy
working here with each other and have WHO OR WHAT INSPIRES YOU? My wife, Kathy, inspires me
raised their children at Woodfield to every day to be the best person I can be and to treat people fairly in work
value hard work. and in our personal life.
“I know Stephanie started out
when she was about 14, working with rier and except for customer pickup, we could make a good living driving a
me. I’d venture to say Scotty might have did all their transportation, inbound truck;” he just knew he needed to be
been 11 and Greg, maybe about the and outbound. We did that for 17 home more.
same age. When they got started, they years.” “To be honest with you, it’s been an
may not have liked it, but they did it. Woodfield really grew up in dia- issue for 24 years. Whether you have 10
They did it …and all in all, it’s worked pers, or hauling them, at least. trucks or a hundred or a thousand, it’s
out for the best for our family,” he said. “We didn’t ever really say we always going to be a concern. It is,” he
wanted anything. We grew according continued.
RAISING THE BUSINESS to the customer base we had and the At the top of his mind though is
We all start life in diapers, but freight that we were able to get and the safety. With the privilege of providing
Starr started his business in them. drivers and the equipment and so forth. jobs for people is the weight of being
In 1994, Woodfield was able to get We didn’t really ever say we wanted 50 responsible for those people’s lives and
some business from a company in East trucks or a hundred. We just woke up livelihoods.
Camden called Arquest that manufac- one day, and we had a hundred. “Kathy and I are responsible for
tured baby diapers. It wasn’t always “What we did learn was hauling everything, any part of it. It all ends
steady work because they had a carrier diapers was a very good business.” with us,” he said.
outside the region that was hauling With any business comes concerns. Woodfield shifted to electronic log-
most of their freight. In trucking, finding and retaining good ging devices for drivers to record their
“As years passed, we would just do drivers is always a struggle. working hours about three years ago,
everything they would allow us to do. We Starr acknowledges that it comes and Starr believes that once everyone is
had other customers that we hauled for, with the territory. When the economy logging electronically, the environment
too, but they were just right in our back grows, so does the demand for trucks for all drivers will be safer.
door and had product that went out, and and drivers. A few years ago, Woodfield “From our side, after a guy has
also, some came in. Whatever they would added more local, short hauls to their made his day, then it is time for a
allow us to do, we would do it. business to get a driver home every day, rest. We just feel better, because we’re
“The carrier that they had at that because he remembers the pull of want- responsible for it. When it’s your
time was not based here. Often, they ing to be with his own family while he responsibility then the liability is
were not able to provide a truck for was out on the road. He said he never something you are always concerned
whatever reason in the area …After a got tired of trucking when he left ABF. about. But we have not really had a lot
few years, we became their primary car- He loved it, and he was “fortunate you
ARKANSAS TRUCKING REPORT | Issue 6 2017 33
do with this pickup?’ He said, ‘I don’t
“WE DIDN’T REALLY EVER SAY WE WANTED 50 know. Just hit the ball.’ And lo and
behold, I place it right in the hole and
TRUCKS OR A HUNDRED. WE JUST WOKE UP we about all… ,” he trails off. “We just
ONE DAY, AND WE HAD A HUNDRED. WHAT WE couldn’t believe it.”
DID LEARN WAS HAULING DIAPERS WAS A VERY The golf pro couldn’t believe it
GOOD BUSINESS.” either. He heard them cheering from
the clubhouse and called the Ford deal-
er, saying “I’m telling you, somebody
has won that pickup, because they’re
of resistance.” they had found the stolen truck in a making too much noise out there.”
In addition to getting drivers home, suburb of Fort Worth. He bid on it, and Starr gave the Ford pickup to his
Starr says his other priority is to keep a few days later, he got it back. grandson last year for Christmas.
them moving when they are on the A lot of things have come back He shakes his head, “I’m sure it will
road. When a driver gets to his desti- around for Starr: his lost truck, his never happen again, but it happened on
nation, Starr’s goal is to have another career in trucking, and year after year that Saturday morning.”
load ready to pick up. He wants for in the industry. Now, Starr and Kathy spend the
Woodfield drivers what he wanted for weekends at the farm north of town
himself. UNTIL THE COWS COME HOME that they bought three years ago with
“We try to avoid laying over and to In a few weeks, Starr will gather cows and their Great Pyrenes puppy,
keep the guys moving. Because I know drivers and employees for a party Callie.
when I was driving a truck, if I wasn’t at The River Woods, a local venue Around the lunch table with Kathy
at home, I wanted to be moving.” with a dock right on the river and an and Stephanie, he laughs about how
outdoor stage. They’ll have a band close they’ve gotten to the animals.
LOST AND FOUND and host a Christmas party catered by Stephanie shows off home videos
Even though it’s been decades since Woods Place with fried fish and all the on her phone of Kathy greeting their
he’s driven full-time, Starr still relates trimmings. They’ll recognize some of first trailer of cattle in a sing-song
to his drivers and their time behind the the contributions employees have made voice, “Welcome to your new home.”
wheel. He’s maybe even a little nostalgic to the company over the past year. They pretend-tease her for some-
for driving. “It takes the seriousness out of times singing to the cows, and in the
Though Woodfield’s trucks are business just for a little while,” Kathy videos, it really does look like the bovine
shiny and new, just outside his office said. congregation, crowded around her, is
sits a maroon and white Peterbilt And they do take their work seri- ready to join in the hymns with a cho-
cabover from the 70s just like the one ously, but they know how to have fun, rus of “moos.”
he used to drive. His name is in script too. They recently took a cruise from But it turns out that Jimmy has
just under the driver side window and New York to Nova Scotia, Halifax. They bonded with the cows, too. In the morn-
“Woodfield,” across the door. It’s not flew into New York City and spent some ings before work, Kathy says, she’s heard
the exact same truck, he drove all those time in Times Square. Starr said, “We’d Jimmy talking to Loretta, one of the
years ago, of course. That one was actu- never been there, so it was like two cows, complimenting her hair and the
ally stolen. country bumpkins in the city. But we spray of bangs that hang over her eyes.
He was near Dallas, where ABF just had the best time.” He recounted He sighs, “I don’t know if I’ll ever
had a terminal in Mesquite, Tex. in some of the ports up the Eastern coast, retire. I’m sure one of these days, our
1979, and it was his first brand new but stops and smiles, “I would just say kids will wish we would. But we’re just
truck. He remembers that it cost that wherever she’s at, that’s where I’m not people who like to do nothing.
$53,000, which was a fortune at the going. I’m just as happy as I could be.” We’ve got to be doing something at all
time. He reported the truck missing, Jimmy Starr is modest about his times. But years will pass and there will
but after 30 days, there was still no accomplishments, but on a little table in come a time that we’ll want to settle
sign of the missing truck. his office sits a golf ball—the one from down, might buy a few more cows. But
“It was a cold winter night, and I’d his hole-in-one at a local tournament, we’ll be around for a long time.”
gotten a motel room …just got up the the one that earned him a brand new After almost 30 years, it’s not hard
next morning, and it was gone.” pickup truck a few years ago. to believe Jimmy Starr will be providing
He bought another truck and went He was on a team with a couple jobs in Camden until the cows come
back to work, when he got a call from friends and was the last one to hit. “I home. ATR
the Fort Worth Police Department that said, ‘Tom, now what am I going to
34 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Trucking’s Crystal Ball
ATRI survey reveals trucking’s biggest concerns
TOP 5 INTERCONNECTED
INDUSTRY CONCERNS
For the first time since 2006,
the driver shortage topped the list of
industry concerns. Improving eco-
nomic growth in the U.S. has many
concerned that the demand for truck
drivers will further outpace the sup-
ply of qualified drivers. The latest
estimate from the American Trucking
Associations has the driver shortage
climbing above 174,000 drivers by
2026 if current trends continue.
Where will those new drivers
come from? It’s clear that the industry
has to look beyond its current base of
middle-aged males. An ATRI analysis of
2016 data from the U.S. Census Bureau
shows that nearly 57 percent of our
workforce is 45 and older, while just 4.4
percent is aged 20-24. And that percent-
age is down from our 2013 data analysis
what they mean for you and your which showed 4.9 percent of our work-
By Rebecca M. Brewster business. force in that youngest age bracket.
Guest Writer One such indicator of cur- Survey respondents believe the top
rent trends and future issues for the strategy for addressing the driver short-
In today’s world, immediacy rules. trucking industry is the American age is to work with state and federal
Order something online in the morn- Transportation Research Institute’s authorities to develop a graduated CDL
ing — have it delivered that afternoon. annual Top Industry Issues Survey. program to attract safe younger drivers
Want to know about your friend’s vaca- ATRI’s annual survey is launched every to the industry. This is a top research pri-
tion — log onto their Facebook page. August and asks trucking industry ority for ATRI as well, and work is under-
Concerned about geopolitical interac- stakeholders — motor carriers and pro- way to develop and test a younger driver
tions — check Twitter. fessional drivers — to select their top assessment tool — one that would reliably
Knowing the here and now is easy. issues of concern and identify key strat- identify young individuals possessing the
Predicting the future more reliably than egies for addressing each issue. same traits as safe, older drivers.
Tarot cards and crystal balls, a little The 2017 Top Industry Issues Number two on the list of top con-
more challenging. And, strategically Survey results released in October cerns is the electronic logging device
planning for the future requires an provide a good roadmap for what the mandate. After a number of legal chal-
understanding of current trends and industry can expect in 2018. lenges, FMCSA’s long-awaited ELD
36 Issue 6 2017 | ARKANSAS TRUCKING REPORT
mandate goes into place on Dec. 18th.
However, given that the ELD mandate
ranked as the second-biggest issue fac- THOSE SHIPPERS AND RECEIVERS WHO RECOGNIZE
ing the industry in 2017, it is clear that THE HOS CONSTRAINTS UNDER WHICH DRIVERS
many in the industry remain concerned OPERATE AND WHO PROVIDE TRUCK PARKING AND
about the costs associated with deploy-
ing ELDs, what deployment will mean FACILITIES FOR DRIVERS WILL BE BEST POSITIONED
for industry productivity, and how the TO WORK WITH THEIR CARRIERS OF CHOICE TO GET
data collected will be used beyond HOS FREIGHT MOVED.
compliance. Others in the industry
indicated concern that the implementa-
tion window would be further extended
beyond Dec. 18, 2017. Throughout as the number three industry issue in drivers would be able to rest when tired
2018, it will be critical for the indus- the 2017 survey. and could provide an opportunity for
try to continue to work with its supply The top strategy identified by drivers to adjust their driving schedules
chain partners to manage the produc- survey respondents for addressing the to avoid some of the worst congestion
tivity impacts from widespread ELD HOS concern was to push for flexibility chokepoints. FMCSA’s pilot study to
deployment. in how drivers split their driving, on- assess the benefits of allowing split-
Many of the concerns surrounding duty and rest time. The current rule sleep will be underway throughout 2018
the ELD mandate derive from the specifies that drivers using the sleeper and based on its results (expected in
lack of flexibility in the hours-of- berth provision must take at least eight 2019), it may provide what motor carri-
service rules. While 2017 saw a final consecutive hours in the sleeper berth, ers and drivers are looking for in terms
determination and permanent removal plus a separate two hours either in the of additional HOS flexibility.
of the more restrictive 34-hour restart sleeper berth, off duty, or any combina- The number four issue on the sur-
provisions in FMCSA’s HOS rules, the tion of the two. Many in the industry vey is one that impacts professional
lack of flexibility in the rules kept HOS believe that with additional flexibility
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37
ARKANSAS TRUCKING REPORT | Issue 6 2017 12/6/17 6:17 PM
SSD Half Page_Arkansas.indd 1
drivers each and every day — the lack of driver who commented, “ELD leaves no leads them to do so from three to seven
safe, available truck parking. In fact, room for dealing with full truck stops times per week.
while truck parking is number four on making it nearly impossible to preplan.” It’s difficult to keep drivers in the
the overall survey, among professional This is another area where the industry when they are faced with
driver respondents, it’s the number two industry must work with its supply challenges such as finding a safe place
issue after the ELD mandate. chain partners to educate them on, and to rest. And, keeping drivers in the
The growing scarcity of available collaboratively address, the truck park- industry rounds out the top five truck-
truck parking creates a dangerous and ing shortage. Those shippers and receiv- ing industry issues. While related to
costly situation for truck drivers who ers who recognize the HOS constraints the driver shortage, driver retention is
are often forced to drive beyond allow- under which drivers operate and who a separate issue on the annual list of
able HOS rules or park in undesignated provide truck parking and facilities trucking industry concerns.
and, in many cases, unsafe locations. for drivers will be best positioned to Driver turnover surged through the
Numerous studies have documented work with their carriers of choice to get first half of 2017 after falling for the
the truck parking challenge, including freight moved. duration of 2016, indicating that the
the congressionally mandated Jason’s Another top strategy for addressing driver market has tightened consider-
Law Truck Parking Survey Results and the truck parking shortage is to educate ably and will likely continue to do so in
Comparative Analysis. the public sector on the safety conse- 2018. To combat driver churn, which
In 2018 we may see the truck park- quences resulting from closing public dramatically increases recruitment and
ing issue gain even greater attention parking facilities and failing to expand training costs, motor carriers have begun
with all drivers on ELDs. In ATRI’s 2016 truck parking availability. ATRI’s truck to compete with one another using sign-
truck parking diary research, commer- parking diary research quantified how on/stay-on bonuses. As documented
cial drivers who were already using elec- frequently drivers are forced to park in in ATRI’s annual Operational Costs of
tronic logs were nearly twice as likely undesignated/unauthorized truck park- Trucking research, other carriers are
as drivers on paper logs to spend more ing locations like highway shoulders focused on safety performance and
than 30 minutes looking for available or ramps, with 48.7 percent of drivers on-time delivery bonuses as a way to
parking. In that study, ATRI cites one reporting that the parking shortage improve their driver retention numbers.
38 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Although they represent five sepa- 2017 TOP TRUCKING INDUSTRY ISSUES
rate industry concerns, it’s difficult to
decouple the top industry issues as they 1. Driver Shortage
are inherently connected. The industry
is plagued with a perennial driver short- 2. ELD Mandate
age which may be impacted by some 3. Hours-of-Service
drivers choosing to leave the rather 4. Truck Parking
than move to electronic logs. There’s
also speculation that implementation 5. Driver Retention
of the mandate will result in productiv- 6. CSA
ity losses of 3 to 5 percent — which will
in turn further exacerbate the driver 7. Cumulative Economic Impact of Trucking Regulations
shortage. 8. Driver Distraction
Lack of flexibility in the HOS rules 9. Transportation Infrastructure/ Congestion/ Funding
will be underscored once all drivers are
on electronic logs and if ATRI’s truck 10. Driver Health and Wellness
parking research bears out, the lack of
truck parking will also become more
challenging for drivers whose available
drive and on-duty time expires without
a safe place to park. ATRI RESEARCH ESTIMATES THAT CONGESTION-
RELATED DELAYS COST THE TRUCKING INDUSTRY
AND LINGERING ISSUES $63.5 BILLION ANNUALLY RESULTING FROM OVER
While it no longer ranks as a 996 MILLION HOURS OF LOST PRODUCTIVITY.
top five industry issue, FMCSA’s
Compliance, Safety, Accountability
(CSA) program continues to rank in
the top 10 (#6 overall). As the year drivers, and negatively impact industry industry’s ability to recruit and retain
progresses, the industry will have a productivity. ATRI research estimates qualified drivers going forward will con-
better idea of how successful FMCSA’s that congestion-related delays cost the tinue to evolve.
crash accountability pilot program is at trucking industry $63.5 billion annually While a significant amount of the
removing non-preventable crashes from resulting from over 996 million hours industry’s attention has been directed
carrier BASIC score calculations. The of lost productivity. at the structural shortage of qualified
industry will also have an opportunity New ATRI research once again truck drivers, the shortage of diesel
to work with FMCSA to implement the affirms that raising the federal fuel technicians is also an issue that will
recommendations of the congressio- tax is the most efficient way to deliver require industry attention in the years
nally mandated National Academies of transportation infrastructure funding. to come. According to the U.S. Bureau
Sciences report on how to improve the And, an increase in the federal fuel of Labor Statistics, trucking will require
manner in which carrier safety perfor- tax will incentivize states to generate 67,000 new technicians by 2022, in
mance is measured under CSA. multi-million dollar matches to the addition to the more than 75,000 new
In 2018 we can also look for new federal funds which will ultimately diesel engine specialists the industry
Congress to address the nation’s infra- move the U.S. closer to the infrastruc- will need in that same time period.
structure challenges. Given that the ture investment goals proposed by both The 2017 report, Critical Issues in
trucking industry hauls a majority of Congress and the President. the Trucking Industry, is available from
freight in the United States, accounting ATRI’s website at www.truckingresearch.
for 66 percent of the nation’s freight ton- ISSUES TO WATCH org. The report includes the results of
nage and 73 percent of freight value, the Another emerging issue to keep the annual survey from its launch in
state of the nation’s roadways is a critical an eye on is autonomous vehicles. 2005, providing an indicator of rising,
issue confronting the industry and ranks Driver-assistive technologies have seen falling, and emerging priorities in the
9th overall on the annual survey. increased deployment in recent years, trucking industry. ATR
Poorly maintained roads and traf- and high profile test runs of autono-
fic congestion create wear and tear mous trucks have generated significant Rebecca Brewster is the president and
COO of the American Transportation
on vehicles, waste fuel and increase attention among trucking industry Research Institute.
emissions, create additional stress for stakeholders. What this means for the
ARKANSAS TRUCKING REPORT | Issue 6 2017 39
Year of Innovational Thinking
University of Arkansas’ Innovation Studio celebrates first year, tackling the
problems of retail and logistics
By Bethany May floor of a university parking garage. hooting, taking pictures and posting it
Managing Editor Just inside the lab, a closet contains on YouTube. They enjoy the experience
a small platoon of rolling robots from of that,” Johnson said.
There’s a laboratory on the south Starship Technologies, an Estonian tech The campus has become a testing
side of campus at the University of company. It sounds sci-fi, but the little ground for Starship Technologies after
Arkansas in Fayetteville, where a small white wagons are about the size of a partnering with the Innovation Studio
group of engineering students huddle cooler with an antenna that stands up last year to help bring the product to mar-
around a table to discuss expanding about three feet and a red pennant on ket, test it out on the hills of Fayetteville
payment options at self-checkout sta- its end. They are controlled remotely by and help set up hubs in the U.S.
tions in stores. Inside this lab, students student operators to roll across campus According to Johnson, the low
are addressing some of business’s biggest delivering parcels. stakes environment where students
retail and supply chain issues like asset The studio’s managing director, Dr. are excited to engage the technology is
loss, final mile delivery and improving Clint Johnson, says the students have perfect before the product goes out in
the brick-and-mortar shopping experi- embraced the vehicles and the technolo- the real world. “If something doesn’t go
ence. gy that supports them. When a student right, there’s a lot of brand equity that
The University of Arkansas’ gets a notification that his package is on could get eroded in that space.”
McMillon Innovation Studio was made its way, the whole dorm is often await- Although cases of something going
possible by a donation from Walmart’s ing the robot’s arrival with the kind wrong are a hypothetical at this point,
CEO and Sam M. Walton College of of greeting the FedEx or UPS delivery because he said, they’ve driven “several
Business alumnus Doug McMillon, and driver only dreams of receiving. thousands of miles across the world
since it opened last October, the lab has “There would be whole apartment and have never had an incident of any
proven the potential for innovation can buildings of people outside ...waiting kind.” Even in Estonia, where the prod-
happen anywhere—even on the sixth and watching for it to come down, uct is from, the six wheels the size of
40 Issue 6 2017 | ARKANSAS TRUCKING REPORT
dessert plates can actually deliver des-
sert (as the vehicles are making food “WE WANT [STUDENTS] TO BE READY TO GO IN AND
deliveries in cities like Washington
D.C.) through snow the height of the CHALLENGE THINKING, CHALLENGE ASSUMPTIONS,
wheels themselves. ASK THE HARD QUESTIONS, ASK WHY. ULTIMATELY
Arkansas students have a hands-on THOSE ARE GOING TO BE THE STUDENTS, I THINK,
opportunity to learn about new ways to
approach the costly final mile of deliv- THAT ARE REALLY GOING TO HELP TRANSFORM THE
ery in any supply chain. This kind of BUSINESSES IN ARKANSAS AND TO DEAL WITH THE
collaboration is what the lab was made CHALLENGES THAT’RE AHEAD OF US.”
for—to marry students to business, said
Johnson.
The lab isn’t for a particular type —DR. BRENT WILLIAMS, CHAIR OF THE DEPARTMENT OF SUPPLY
of business or innovation. It’s actually CHAIN MANAGEMENT AT THE SAM WALTON COLLEGE OF BUSINESS
to nurture and accelerate innovative
thinking, says Dr. Brent Williams, chair
of the Department of Supply Chain INNOVATING LOGISTICS when you bought the item, and so we’re
Management at the Walton College Situated in Northwest Arkansas working with Walmart to try to identify
of Business, so the students who work near the biggest retailer in the country how can you mix and match and how
there are ready to become entrepreneurs and some of the biggest and best truck- might you play a different role.”
or intrapreneurs inside their compa- ing companies, the lab is well-posi- With several projects in the works,
nies, bringing new ways of thinking to tioned to challenge assumptions in the the lab has actual prototypes of prod-
problem-solving. supply chain and logistics sector. ucts all around the space. In every other
Customers want almost every- headline, we read about how ecom-
INNOVATIVE THINKING thing to come to them instead of merce is killing the brick-and-mortar
“Our mission is to produce stu- vice-versa, and that has made the final stores, but the students here are work-
dents who will become catalysts of mile extremely expensive. Starship ing on a product that doesn’t cut out
innovation, both in the marketplace Technologies offers one solution, but the brick-and-mortar experience, it
as an entrepreneur or in the business certainly not the only one. improves it—through the use of an arti-
world as an intrapreneur. Either of In the student union is a bank of ficial intelligence shopping cart.
those are great outcomes, but catalysts lockers, a product of the relationship A company called Five Elements has
of innovation,” Johnson said. between the studio, the supply chain partnered with the lab to improve the
Williams explains that the space is management department and UPS. As customer experience, develop mobile
here to prepare students to be innova- the first campus in the U.S. to have a apps and technology around how the
tive and “think from an innovation UPS locker, the University of Arkansas cart could communicate and interact
perspective.” He points to a semicircle is part of a test to understand what with shoppers. The prototype doesn’t
of chairs around whiteboards and a happens when you can get a hub closer look much different than your average
television screen mounted on the wall, to the customer. shopping cart. The shape’s the same, but
“Right here, [businesses] will come “It’s actually part of the classroom a built-in tablet lets a customer pull up
in with a challenge, with a business now so students are continuing to take his shopping list, make substitutions,
problem, and the ideation session will apart pieces of that experience and connect to navigation of the store and
be designed to bring together students, work through how you optimize it,” where every item is located, mobile
engineering and other disciplines, with Johnson said. payment and can even tell the cart to
business executives. “We’ve got students working with follow the customer out to his car to
“We want [students] to be ready to Walmart and Unilever to identify solu- unload his purchases.
go in and challenge thinking, challenge tions around packaging. If you think The idea is to make the most of
assumptions, ask the hard questions, about the role that packaging plays, time in the store instead of completely
ask why. Ultimately those are going to it’s very different now as we’re look- bypassing the store.
be the students, I think, that are really ing to an omnichannel world,” he said.
going to help transform the businesses “Traditionally packaging in a brick-and- INNOVATING STUDENTS
in Arkansas and to deal with the chal- mortar environment is all about the These solutions seem ambitious to
lenges that are ahead of us,” Williams brand building. Packaging in a dot-com entrust to students, but Johnson says
continued. environment is all about protection. the students have an advantage to inno-
You’ve already had the moment of truth
ARKANSAS TRUCKING REPORT | Issue 6 2017 41
vative thinking that the experts don’t: decided to tackle the problem for the business?”
they aren’t jaded. chance to develop their solution. In the Reeves and two computer sci-
“They haven’t spent the last 20 end, the winning team created an RFID ence students, Ted Thorpe and
years learning why something can’t tracking solution that could fit Tyson’s Jace McPherson, formed Lovelace
happen,” he said. “Everything is possible cabinets for substantially cheaper than Technologies to design a real product,
to them, and the companies they’ve existing market solutions. rfind, that automates the inventory pro-
partnered with so far have come to the Canon Reeves, sophomore in the cess and could save real companies like
lab for that kind of optimism.” engineering department, was on the Tyson $600,000 annually in recovered
The annual entrepreneurial design winning team and is now the CEO of assets.
contest is one way that a company can Lovelace Technologies. “We wanted to These real-world applications are
leverage that power of optimism and come up with something that was mod- possible because of the mentors avail-
possibility. Last year, the contest’s first ular enough to be applied in a variety able to students at the Innovation
sponsor, Tyson Foods, presented the lab of places. Tyson’s a great first customer, Studio. Danny Allred, the studio’s
with a problem --$600,000 of asset loss, but we wanted to go further than that new program director, is an alumnus
due to lost or misplaced scanners, the eventually,” Reeves said. of the University of Arkansas’ College
little handheld devices workers carry In the process of competing in the of Engineering. He spent most of his
around to track incoming and outgoing design contest, Reeves found an experi- career working at technology startups
inventory. ence deeper than just engineering les- in Austin, Tex. and earned his MBA
They were looking for a simple, scal- sons. He learned how to run a business. while there. His skillset fits the hybrid
able solution to be able to keep track of “It’s been extremely valuable for me between engineering and business that
them, understand when they’re checked to kind of reframe my mindset when the Innovation Studio aims for.
in, checked out. Students self-formed I attack a problem. It’s not as much of Allred said the Innovation Studio
teams to be able to solve this challenge the engineering part of it anymore, it’s mimics the startup environment, so he
and win $10,000 in seed money. the people part of it. How will people is in a position to teach what he learned
The solutions already on the market actually use this, and is this viable? Can in that space like how to do statements
were too expensive. Around 50 students I monetize this, and is it a sustainable of work, draft proposals and interact
with customers.
“Technology people aren’t well-
We Go the Extra Mile to known for communication skills so
you’ve got to teach them how to close
that gap,” he said.
Make Sure You Can Too! next great idea in logistics could come
It’s not hard to imagine that the
from a lab like this. With autonomous
trucking, platooning, electric com-
mercial vehicles, the trucking industry
DOT Drug Testing is our specialty. certainly seems to be on the precipice
of embracing innovation. The new tech-
nology will undoubtedly present new
problems that will need fresh ideas to
solve them.
Contact us for a free quote! Johnson said, “We would cer-
877-750-3660 tainly welcome the opportunity to work
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coming out with that type of a knowl-
Collection in over 5,000 locations nationwide edge and experience solving microcases.
I think that there’s a lot of ways that a
lab like this could be used to help grow
Fayetteville, AR that industry.”
Little Rock, AR Luckily, fresh ideas are in good sup-
ply at the McMillon Innovation Studio.
ATR
42 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Cracking the Code
to Cybersecurity
Why trucking needs to stay alert to cyber threats
By Todd Traub engineering and IT, said hackers using ran-
Contributing Writer somware in pursuit of big money are among
the biggest of the cybersecurity threats. In
It is the era of bots, fake news, hackers May, a ransomware crypto worm called
and international meddling. WannaCry targeted computers using the
Our computers have long been targeted Microsoft Windows operating system world-
by both the malicious and mischievous, the wide, encrypting data and demanding ran-
identity thieves who want to clean out our som payment in Bitcoin.
bank accounts and the pranksters who sim- “The FBI releases an annual public
ply like to throw a wrench into people’s daily cybersecurity report that shares the increas-
lives by disrupting popular websites. ing U.S. monetary loss from cyberattacks,”
The email dumps and controversies of Froat said. “Cyber criminals are working
the last election have underscored yet again toward financial gain. In some cases, it’s
the need for cybersecurity. But in today’s purely industry or societal disruption, but to
automated, app-for-everything world, in a particular company of a particular indus-
which we can turn on our lights and warm try, cyber adversaries are after an easy score.”
our houses with the touch of a smartphone The 1,093 breaches affecting U.S. com-
screen and automated vehicles await on the panies and government agencies in 2016 was
horizon, protecting our electronic devices a record and marked a 50-percent increase
becomes an across-the-board necessity. from 2015, according to the nonprofit
By late 2016, the costs of data breaches Identity Theft Resource Center, and because
had reached an average $7.35 million in the of underreporting there may have been more.
United States, and the average cost of a breach In this environment, the trucking and
rose by 5 percent from February 2016 to transportation industry is as fat a hack-
March 2017, according to information in an ing target as any other. Electronic systems
Arkansas Business article published Nov. 20. within today’s modern trucks make the rigs
In written comments Russ Froat, as potentially vulnerable to a hack as a celeb-
American Trucking Associations’ director of rity’s stash of personal photos.
ARKANSAS TRUCKING REPORT | Issue 6 2017 43
and weak or legacy passwords,”
Froat said of potential soft spots for
“THE WAKEUP CALL WAS TO SMALL- AND MEDIUM- cyber attacks. “For trucks, [National
SIZE CARRIERS AND BUSINESS OWNERS THAT ARE Highway Transportation and Security
UNAWARE THAT THEIR PERSONAL, DAY-TO-DAY Administration] guidelines and industry
PHISHING EMAILS AND MALWARE ACTIVITY CAN best practices describe connections from
the smartphone Bluetooth, infotain-
AFFECT PHYSICAL SYSTEMS SUCH AS TRUCKS AND ment/telematics, onboard router, and
AUTOMATED LOADING/UNLOADING PROCESSES.” any device that stores or communicates
data physically through onboard con-
—RUSS FROAT, AMERICAN TRUCKING ASSOCIATIONS’ nections are cyber-intrusion vectors.”
DIRECTOR OF ENGINEERING AND IT It is important to know that manu-
facturers, technology suppliers and
service providers have extensive cyberse-
And given the importance of the and medium-size carriers and business curity standards and testing protocols,
trucking industry, and the safe opera- owners that are unaware that their Froat said. But it also important to prac-
tion of its vehicles, to the U.S. economy, personal, day-to-day phishing emails tice personal preventive cybersecurity.
it is vital those systems be protected. and malware activity can affect physical “For one, never wirelessly or physi-
Froat, said the repercussions are systems such as trucks and automated cally connect a device to any part of a
numerous and varied but the worst- loading/unloading processes,” Froat truck system without understanding
case scenarios resulting from major said. “It’s a shame that it did happen to the cyber risks,” he said. “Same goes for
cyberattacks would be, “impacting TNT Express. company networks — you wouldn’t click
freight commerce, U.S. economy, and After WannaCry then Petya — not on a link sent to you from a stranger’s
commuter lockdown/slowing emergency knowing how similar each intrusion email or reply to a random message.
responders.” vector was — it’s important for U.S. Treating the truck as a company asset
Within the transportation indus- fleets to take action in information like your computer. It’s much easier to
try, a summer cyberattack on FedEx’s sharing to prevent it from happening to wirelessly connect to a truck system
European subsidiary TNT caused major anyone else.” without a warning message popping up
disruptions in operations and com- to make you think twice.”
munications. From June 28–Aug. 18 THREAT WATCH Froat said he knew of very few
TNT disruptions meant “meaningful New vehicle technologies, con- attacks directed at motor carriers so
volumes” were lost to competitors, espe- nected systems for electronic logging far. He mentioned a shipper whose
cially in its express/overnight opera- devices and maintenance, as well as payments were misdirected because of
tions, said analyst Thomas Wadewitz in the all-pervasive cloud computing and false orders placed by hackers and noted
a message to clients. its applications within the trucking another instance in which disguised
FedEx put the price tag of the industry, threaten to make carriers hackers took loads from brokers, offered
impact at $300 million and the lost more susceptible to attacks. Froat said the loads to carriers via broker boards,
sales, coupled with other disruptions the susceptibility comes when onboard then took the brokers’ money and never
like those caused by Hurricane Harvey, electronics are connected with outside paid the carriers.
forced FedEx to cut its annual earnings communications that control physical “These are perceived to be the tip of
forecast. systems via computer. the iceberg when the chance of some-
Also in June, worm malware identi- Part of the job for Froat — who got one reporting an issue is less than 5
fied as NotPetya crippled Danish ship- his start as a mechanic with Penske percent of the time,” Froat said. “These
per A.P. Moller-Maersk for two weeks, in Baltimore before embarking on an $100,000 losses happen all the time
costing close to $300 million in lost electrical engineering degree — is to help and never hit the FBI or DHS.”
revenue in an attack that briefly shut develop technology industry members But so far, there are no reports of
down the Port of Los Angeles’ biggest can use to protect themselves from anyone hacking digitally connected
cargo terminal. cyber security threats. trucking systems.
While alarming, Froat said he That means identifying areas where
didn’t think the transportation attacks companies and trucks can be most vul- SECURITY FORCES
were a wakeup call to the larger carri- nerable. The Technology and Maintenance
ers and shippers, who have IT personnel “For the companies themselves, Council, a technical council of the
and cybersecurity prevention methods. it’s weak network security, network ATA, has been recommending volun-
“The wakeup call was to small- singularity, open internet access, tary practices to solve industry issues
44 Issue 6 2017 | ARKANSAS TRUCKING REPORT
since 1956. The TMC began addressing policy regarding cybersecurity. But cybersecurity doesn’t stop with
cybersecurity concerns in 2015 and has “These RPs are intended to be the ATA, Froat said. He unloaded a
worked with the ATA and other cyber- guidelines for fleets to create their own laundry list of organizations that have
security groups to identify issues since cybersecurity program for implementing working groups and are developing
2016. internal organizational support to assess guidelines and standards focusing on
That year, the TMC Fleet and respond to cyber security issues,” aspects of cybersecurity.
Maintenance Management Study Group Zachos said via email. “It is expected “And don’t forget the manufactur-
launched the Cybersecurity Issues that TMC will also initiate work some- ers, technology suppliers and service
Task Force to address fleet operational time next year on other cybersecurity providers who have integrated and con-
concerns. Its stated scope includes RPs related to computer technology.” tinually strengthen their own cyberse-
developing cyber security awareness, Zachos said research is underway curity,” Froat said.
prevention and mitigation, focusing to review best practices in government Froat also recommended solu-
on fleet business and operations for and other industries related to material tions found in the guidelines put forth
security measures. acquisition regarding cybersecurity. by the NHTSA — with whom the ATA
A product of TMC and the Task “Most likely the trucking industry met before they were published — and
Force is Fleet CyWatch. Expected to could adapt these best practices from the Heavy Vehicle Cybersecurity
launch in 2018, it is an incident report- other industries for its fleet based appli- Bulletin the TMC helped develop with
ing and response service for ATA mem- cations,” Zachos said. the National Motor Freight Traffic
bers designed to protect data systems
as well as onboard connected systems.
The TMC unveiled Fleet CyWatch at
the ATA Management Conference and “THESE $100,000 LOSSES HAPPEN ALL THE TIME AND
Exhibition in Orlando in October. NEVER HIT THE FBI OR DHS.”
More of an alert system than a
preventative, Fleet CyWatch will be part —RUSS FROAT, AMERICAN TRUCKING ASSOCIATIONS’
of the American Trucking Associations DIRECTOR OF ENGINEERING AND IT
(ATA) website and can be used by a
trucking company to report a breach to
the ATA, which then will alert govern- “In general, fleets and manufactur- Association, which also holds a twice-a-
ment agencies that would include the ers’ need to be active in industry devel- year working group addressing cyberse-
FBI or Homeland Security, which will opments,” Froat said. curity issues.
in turn provide the help the company To help provide and underscore When asked, Froat said it was
needs in handling the cyberattack. cybersecurity training, the TMC has hard to gauge the shape cybersecurity
A panelist at the cyber security also established its CyberTech Skills is in industry-wide. Some FBI-reported
presentation “Planning Ahead for Fleet Station as part of the SuperTech tech- national benchmarks don’t paint a rosy
Security” in Orlando, Froat said Fleet nician skills challenge held each picture, while in trucking specifically it
CyWatch answers the questions he September. would be hard to get an idea, Froat said,
heard most frequently at the panel “TMC would like to reach out to unless every carrier scored itself against
discussion: “Who do I call when I’m state trucking associations through- the National Institute of Standards and
hacked? What do I do?” out the U.S. and help set up a similar Technology Cybersecurity Framework.
“[It] is a great first step in joining cybertech skills event in order to pro- The important thing, Froat
the trucking cybersecurity discussion vide critical training for this important said — whether buying new trucks or
and preparedness strategies,” Froat said new skill,” Zachos said. equipment or installing or upgrading
of Fleet CyWatch. a computer network — is that truck-
Panelist Mark Zachos, president READINESS RESOURCES ing industry members know that the
of Michigan-based DG Technologies, a Froat said that for cyber security resources to prevent cyberattacks are
vehicle network solutions company, said conscious industry and association out there and that they use them.
the TMC has approved two recommend- members, Fleet CyWatch is an impor- “Trucking has a lot of other issues
ed practices, or RPs: contract consider- tant step in joining the discussion and that require more immediate attention
ations and insurance considerations. advancing preparedness. He recommend- than the trendy cyber topic,” Froat said,
Each consideration, whether con- ed Task Force resources like the RPs for “but rather than wait and see if a cyber
tracting to buy software or insurance, fleet planning, procurement and main- attack will happen, ATA is being as pro-
asks the buyer to think about what tenance; cybertech; information reports, active as possible for its members.” ATR
should be included in the contract or position papers, webinars and more.
ARKANSAS TRUCKING REPORT | Issue 6 2017 45
GridIron Gathering
ATA’s Annual Razorback Tailgate is a bright spot in a tough season
By ATR Staff
On Oct. 21, the Arkansas Trucking
Association hosted a tailgate party
before a tense game between the
Razorbacks and the Auburn Tigers.
It was a tough season for the
Razorbacks, and the Auburn game
was no different with the Hogs hold-
ing their own in the first half before
a disappointing third quarter with a
final score of 52-20. ATA members are
no fair weather fans though. Fans from
eight member companies gathered at
the Gazebos in the Gardens outside the
Donald W. Reynolds Razorback Stadium
in Fayetteville to call the Hogs. ATR
HAIL MARY SPONSORS ABF Freight crew – Tara
ABF FREIGHT Mendoza, Tim Thorne, Diane
UPS Thorne, Iyali Mercer, Greg Mercer,
Russ Aikman, Erica Brigance &
Josh Brigance
Linda and Jeff Loggins (Loggins
Logistics)
UPS
46 Issue 6 2017 | ARKANSAS TRUCKING REPORT
Darcy Scott (front right) of UPS with her family
Pregame talk with Tony Holt (MHC), Matt Wheeler (BMO), Zach
Lamb (MHC) and John Paul Hart (Utility)
Iyali Mercer, Greg Mercer, Erica
Brigance and Josh Brigance (ABF
Freight)
FedEx Freight’s Kelly Crow and her
husband Will
ABF Freight’s Alicen McMahan
and Tara Mendoza with their
ATA’s Sarah Sheets and her family. Razorback tattoos
Tyler Dunnaway, Rocky Burnett, Bill Dunnaway, Rusty Burnett,
Seth Stuck (Lew Thompson & Son Trucking)
ARKANSAS TRUCKING REPORT | Issue 6 2017 47
Taking the Tech
Shortage to Task
ATA council hosts Legislative Task Force on Workforce Education Excellence
By ATR Staff force needs the industry faces and how members to share their experiences
better to bridge the chasm between recruiting, training, supervising and
On Oct. 17, the Arkansas technician education and technician mentoring new technicians and to
Trucking Association’s Maintenance & careers. speak to the shared challenges and
Technology Council hosted its October Kenneth Calhoun of Roanwood the estimated 5,000 openings state-
meeting in conjunction with the Maintenance Data Management wide (according to a report from the
Legislative Task Force on Workforce moderated the discussion and invited Springdale Chamber of Commerce) for
Education Excellence’s meeting at Maintenance & Technology Council diesel mechanics and technicians. ATR
Maverick Transportation followed by a
tour of Maverick’s facilities. Rep. Bruce Cozart tries virtual driver training
The Legislative Task Force on
Workforce Education Excellence was
created in April 2017 and is in charge
of reviewing and researching ways to
improve technical education and work-
force development programs.
The task force co-chairs Sen. Jane
English and Rep. Bruce Cozart requested
to meet with trucking maintenance
professionals for insight into the work-
The ATA Maintenance & Technology
Council gathered in October with the
Legislative Task Force on Workforce
Education Excellence at Maverick
Transportation
48 Issue 6 2017 | ARKANSAS TRUCKING REPORT
LEGISLATIVE TASK
FORCE ON WORKFORCE
EDUCATION EXCELLENCE
LEGISLATIVE MEMBERS
Sen. Jane English, Co-Chair
Sen. David J. Sanders
Sen. Eddie Cheatham
Sen. Blake Johnson
Sen. Lance Eads
Rep. Bruce Cozart, Co-Chair
Rep. Dan M. Douglas
Rep. Rick Beck
Rep. Dan Sullivan
Rep. Sonia Eubanks Barker
Legislators enjoy a site tour of Maverick facilities NON-LEGISLATIVE MEMBERS
Mr. Kenneth Calhoun
Mr. Randy Henderson
Mr. Stephen Horton
Mr. Paul Rivera
Mr. Mike Rogers
Mr. Greg Taylor
George Arrants from National
Automotive Technicians Education
Foundation (NATEF) presents the
benefits of standardizing the
outcomes of all the technician
programs in the state
Christie Toland of Gentry School
District shares her experience helping
community and educational institutions Maverick Transportation’s Mike
partner to meet workforce needs Jeffress invites Rep. Carlton Wing
into the cab
As an employer Rick Vassar talks about Truck Centers
of Arkansas’ challenges to maintaining full employment in
their maintenance centers
Kenneth Calhoun of Roanwood Maintenance Data Management
moderates the discussion
ARKANSAS TRUCKING REPORT | Issue 6 2017 49
Insider Trucking
A look at the latest products, services and news from ATR advertisers
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50 Issue 6 2017 | ARKANSAS TRUCKING REPORT
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