Award-Winning Magazine of the Arkansas Trucking Association Vol. 27 | Issue 3 2022 | $4.95
MICHAEL BARR
Cowboy Wisdom
Conference coverage | ELECTRIC VEHICLES | DIY SUPPLY FIX
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Trucking Association. We applaud their
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Aon’s Transportation & Logistics Practice
is dedicated to improving client programs
and cost of risk for motor carriers and
additional commercial transportation.
For more information on Aon’s
Transportation & Logistics practice
please contact leader Mark Brockinton
at [email protected]
Aon is proud to support the Arkansas
Trucking Association. We applaud their
commitment to advancing the trucking
industry’s image, efficiency,
competitiveness and profitability.
Aon’s Transportation & Logistics Practice
is dedicated to improving client programs
and cost of risk for motor carriers and
additional commercial transportation.
For more information on Aon’s
Transportation & Logistics practice
please contact leader Mark Brockinton
at [email protected]
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IN THIS ISSUE
VOLUME 27 | ISSUE 3 2022
FEATURES
COVER STORY
COWBOY WISDOM 30
Michael Barr, president of JM Bozeman
Enterprises, talks ranching and reputation
By Deana Nall
CAPITOL WATCH
CONSUMERS PIVOT: LESS
GOODS, MORE SERVICES 18
Stephens analyst predicts a freight
recession is 'almost unavoidable'
By Steve Brawner
TRADE SECRETS
LEAD GENERATION: WHAT THE POPULATION
REVEALS ABOUT POTENTIAL JOB CANDIDATES 22
Experts discuss strategies and solutions for addressing
workforce shortages at ATA conference
By David Monteith
DIY SUPPLY 39
How two companies are building their own workforce
and equipment supply to address industry shortages
By Dwain Hebda
ATRI STUDY: ACTUALLY, ELECTRIC
TRUCKS NOT ‘ZERO EMISSION’ 42
DEPARTMENTS New research reveals today’s electric vehicles bring
a lot more challenges for only a little less carbon
Up Front: by Shannon Newton 7 By Steve Brawner
They Said It 9
News in Brief 10 SCENE AROUND
New Members 12 GAME PLAN FOR SUCCESS 46
Calendar of Events 14 Recap of the 2022 ATA Annual
Advertiser Resource Index 15
Council Quarterly 28 Conference & Vendor Showcase
By ATR Staff
Insider Trucking 53
Stat View 56
The Last Word: by Sec. Solomon Graves 58
PHOTOGRAPHY ON THIS PAGE AND COVER BY JOHN DAVID PITTMAN
ARKANSAS TRUCKING REPORT | Issue 3 2022 5
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US TICK?
We have the most modern semi-trailer repair
facilities in all of Arkansas and Oklahoma, but
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utilitytristate.com
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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 us at
[email protected] or at 501.372.3462.
executive editor
SHANNON SAMPLES NEWTON
managing editor
BETHANY MAY
contributing writers VITAL ROLE AT RISK
STEVE BRAWNER
[email protected] ROBERT O’CONNER
ERIC FRANCIS [email protected] The heavy task of delivering 10.23 billion tons of America’s freight every year takes
[email protected] DEANA NALL
[email protected]
DINA GRUEY millions of people. Millions of people, fulfilling different roles — some put on a uniform
[email protected] TODD TRAUB
[email protected] before grabbing company keys, others invest in their own class 8 tractor, or pop the hood
DWAIN HEBDA
[email protected] WERNER TRIESCHMANN
[email protected] to maintain the machines, pick up the phones and create efficient routes, train the next
DAVID MONTEITH
[email protected]
art director generation of drivers or keep the books. Every role matters. An unreasonable burden to
JON D. KENNEDY
The Freelance Co. LLC, [email protected] interstate commerce would be to dismantle one of the most critical roles—the owner-
production editors
KELLY CARGILL CROW, SARAH NEWMAN, KELCIE SONNIER, KATIE THOMASON operator.
illustrator
BRENT BENNETT
[email protected] For nearly three decades, the Federal Aviation Administration Authorization Act has
photographers
JON D. KENNEDY, JOHN DAVID PITTMAN forbidden states from enacting laws relating to prices, routes and services of motor carriers
to avoid an unreasonable burden on interstate commerce.
However, California Assembly Bill 5 (AB5), popularly known as the “gig worker bill,”
essentially requires companies that hire independent contractors to reclassify them as
www.arkansastrucking.com
president employees. Enforcing an ABC test all but eliminates a motor carrier’s ability to contract with
SHANNON SAMPLES NEWTON
[email protected] an owner-operator because they are both in the business of transporting goods for hire.
vice president
KELLY CARGILL CROW
[email protected] California Trucking Association challenged the state’s law because it violates FAAAA, and
director of operations
SARAH NEWMAN an injunction kept the law from enforcement. But upon appeal, the Ninth Circuit did not
[email protected]
director of corporate services agree, so CTA petitioned the United States Supreme Court to review the case.
KATIE THOMASON
[email protected]
communications director Before SCOTUS ended its most recent session on June 30, the justices declined to hear
BETHANY MAY
[email protected] CTA’s arguments for federal preemption. The injunction will soon end, endangering the
director of safety and loss prevention
MIKE BRUST jobs of California’s 70,000 owner-operators and stripping them of their choice to be their
[email protected]
administrative assistant own boss.
KELCIE SONNIER
[email protected]
These individuals had taken control of their careers. They could refuse loads,
BOARD OF DIRECTORS
CHAIRMAN OF THE BOARD take vacations and support their families in a way that works for their individual
JEFF LOGGINS
Loggins Logistics, Inc. circumstances. Ending the independent contractor model is not just a legal decision;
President & CEO
MICHAEL BARR MARK MORRIS it squashes livelihoods, causing financial devastation for those who have to start their
JM Bozeman Enterprises Morris Transportation Services, LLC
CEO President careers over as employees or relocate to preserve their businesses.
GREG CARMAN JAMES REED
Carman, Inc. USA Truck
President President & CEO
NEIL CORDER G.E. “BUTCH” RICE III Our industry will no doubt be challenged without the entrepreneurial, dedicated men
Wayne Smith Trucking Stallion Transportation Group
President President and women who have taken ownership of their careers and delivered for our country and
JOHN CULP ALAN RIELS
Maverick USA Dedicated Logistics their own households. Consumers will notice when the already-stressed supply chain loses
President President & CEO
JEFF HAMMONDS SETH RUNSER
Walmart Transportation LLC ABF Freight another link and prices increase, but for the ones behind the wheel of their own trucks,
Vice President of Logistics President
AL HERINGER IV PATRICK SIMMONS the impact will be personal.
Star Transportation, LLC Tyson Foods
Vice President Vice President Transportation
BRAD HICKS GABE STEPHENS There’s a lot we don’t yet know about the state law and just how far it reaches outside
J.B. Hunt Transport C.C. Jones, Inc.
EVP & President of Highway Services Vice President California’s borders. Any motor carrier leasing an owner-operator under federal leasing
ROB KIBBE TODD VENABLE
Aon MHC Kenworth – Little Rock
Executive Director Client Services Branch Manager regulations in the state is at risk. Will the ABC test apply just to drivers who reside in
MIKE MCNUTT JOE VITIRITTO
Distribution Solutions, Inc. PAM Transport California? What about drivers who live elsewhere but contract with companies in
CEO, Owner President & CEO
LANCE MOLL DOUG VOSS California? Or the drivers who live in Arkansas, work for Arkansas companies but pick up
FedEx Freight University of Central Arkansas
President & CEO Professor of Logistics & Supply
Chain Management a load of avocados in San Diego or almonds in Bakersfield?
An affiliate of the American Trucking
Associations What I do know is that the fight isn’t over. We need the voices of owner-operators and the
Arkansas Trucking Association (ATA) is an Arkansas corporation of trucking companies who contract with them to share why this role is important, why you chose to be
companies, private carrier fleets and businesses which serve or supply the
trucking industry. ATA serves these companies as a governmental affairs
representative before legislative, regulatory and executive branches of your own boss and what’s at stake if you lose that choice.
government on issues that affect the trucking industry. The organization also
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) Shannon Newton
Little Rock, Arkansas 72201 Drivers Legal Plan
Phone 501.372.3462 Fax 501.376.1810 President, Arkansas Trucking Association
www.arkansastrucking.com
ARKANSAS TRUCKING REPORT | Issue 3 2022 7
Drivers Legal Plan
TRUCK SALES | PARTS | SERVICE | BODY SHOP
LEASING & RENTAL | FINANCE | CARRIER
Jonesboro
MHC Kenworth
(855) 483-6994
Little Rock
MHC Kenworth
(866) 419-5718
MHC Truck Leasing
(866) 862-5283
MHC Carrier Transicold
(866) 243-9660
Fort Smith
MHC Truck Leasing
(866) 804-7860
Springdale
MHC Kenworth/Volvo
Dealership (866) 271-0785
Leasing & Rental
Truck Source Van Buren
Carrier MHC Kenworth
RoadReady
TRP (866) 811-1358
OVER 125 LOCATIONS IN 19 STATES
mhc.com |
TRUCK SALES | PARTS | SERVICE | BODY SHOP THEY SAID IT
LEASING & RENTAL | FINANCE | CARRIER
Jonesboro
MHC Kenworth “AB5 is so wide- “We’ve had
(855) 483-6994
Little Rock ranging that significant
MHC Kenworth
(866) 419-5718 inflation... If
MHC Truck Leasing knowing how
(866) 862-5283 there’s any hope
MHC Carrier Transicold to comply is
(866) 243-9660 for moderating
Fort Smith impossible for inflation,
MHC Truck Leasing
(866) 804-7860 many directly it’s going to
Springdale
MHC Kenworth/Volvo working in come from us
Dealership (866) 271-0785
Leasing & Rental spending more
Truck Source Van Buren trucking.”
Carrier MHC Kenworth
RoadReady money on doing
TRP (866) 811-1358 —Todd Spencer, president of the Owner-Operator Independent Drivers
Association, following the news that the Supreme Court declined to review things than
OVER 125 LOCATIONS IN 19 STATES CTA’s challenge to California’s AB5 independent contractor statute
spending money
“Too many drivers are quick on buying
to point the finger at others things.”
driving distracted but refuse to —University of Arkansas economist
Mervin Jebaraj in his predictions for
look in the mirror and improve ongoing inflation
their own behavior behind the
wheel. Everyone must do their ,
part to help make distracted RIP
driving socially unacceptable or Internet
inattentive drivers will continue Explorer.
to kill people on U.S. roads.” —PC World’s headline announcing the
end of Microsoft’s 26-year-old web
—Jonathan Adkins, executive director of Governors Highway Safety Association, browser that controlled 95% of the
on the release of a new report to identify actions to address distracted driving browser market in the early 2000s
mhc.com |
ARKANSAS TRUCKING REPORT | Issue 3 2022 9
NEWS IN BRIEF
ATA, STATE POLICE ADDRESS
CDL TESTING BACKLOG
A collaboration between the
Arkansas State Police and Arkansas
trucking industry is helping address a
backlog of trained, professional truck “We commend the Arkansas State THERE 'ISN'T VERY MUCH MORE
drivers that are urgently needed to fill Police for implementing swift and deci- TO BE DONE' ON GAS PRICES,
a deficit of some 80,000 truck driving sive resolutions to address the backlog SAYS COMMERCE SECRETARY
jobs nationwide. of CDL skills tests,” Newton said. “Our On June 7, Commerce Secretary
As with non-commercial driver’s economy needs people to go to work Gina Raimondo admitted that there is
license testing, professional truck driv- and these drivers are ready and will- not much more the White House can
ers must pass both a written and a skills ing to do so, with the support of the do to lower record high gas prices for
test to obtain their CDL. Staffing issues Arkansas CDL examiners.” Americans, casting blame on Russia's
and a limited number of test sites have invasion of Ukraine.
sidelined CDL candidates who have INFLATION HIGHEST SINCE 1981 "Unfortunately, that is the brutal
been forced to wait weeks to complete The consumer price index rose reality," Raimondo said.
the skills test. 8.6% in May from a year ago, the high- The bleak assessment comes as the
“Our industry desperately needs est increase since December 1981. national average price for regular gaso-
more safe and qualified drivers to be Surging food, gas and energy prices all line has risen steadily over the past sev-
able to stock grocery shelves and deliver contributed to the gain, with fuel oil up eral weeks, reaching an all-time high of
all of life’s essentials,” said Arkansas 106.7% over the past year. $5 per gallon, according to AAA. Prices
Trucking Association President Shannon The Bureau of Labor Statistics won't go down, the commerce secretary
Newton. “With ongoing supply chain reported that energy prices broadly rose said, until the war in Ukraine is over.
and workforce issues, delaying the certi- 3.9% from the previous month, bring- However, on June 22, President Biden
fication of fully-trained drivers impacts ing the annual gain to 34.6%; shelter called on Congress to enact a three-
everyone — not just trucking.” costs rose 0.6% for the month, the fast- month gas tax holiday to provide relief
After being notified of drivers est one-month gain since March 2004; at the pump for consumers.
facing weeks-long delays between and finally, food costs climbed another
completing their CDL training and 1.2% in May, bringing the year-over- GROUND RULES FOR EV
being able to take the CDL skills year gain to 10.1%. GROUNDWORK
test, Arkansas Trucking Association Those escalating prices meant The U.S. Department of
President Shannon Newton approached workers took another pay cut during the Transportation’s Federal Highway
the Arkansas State Police to find a month. Real wages when accounting for Administration has proposed mini-
solution. Together, the ASP and ATA inflation fell 0.6% in April, even though mum standards and requirements for
came up with a multi-prong approach average hourly earnings rose 0.3%, projects funded under the National
to streamline the backlog, including according to a separate BLS release. On Electric Vehicle Infrastructure Formula
temporary overflow testing in Saline a 12-month basis, real average hourly Program, which provides nearly $5 bil-
County, approved overtime for CDL earnings were down 3%. lion over the next five years.
examiners, examiners dedicated to CDL The latest report dashed hopes that Transportation Secretary Pete
testing and aggressively working to inflation may have peaked and added Buttigieg said these ground rules will
fill examiner vacancies with qualified to fears that the U.S. economy may be help create a network of EV chargers
personnel. nearing a recession.
10 Issue 3 2022 | ARKANSAS TRUCKING REPORT
charging stations, type of chargers
WELCOME, capable of supporting fast charging,
payment methods and consistency
NEW ATA MEMBERS! regarding the installation, operation
and maintenance of NEVI Formula
Program projects to provide the travel-
ing public with a consistent charging
Together, We Are the Power of Association experience.
Additionally, the FHWA wants con-
We welcome the following new members. Each new member sistent communication to consumers
adds to the Arkansas trucking industry’s collective strength to on price and availability of each charg-
promote, protect and serve with a unified voice. ing station to help consumers make
informed decisions about trip planning
ALLIED MEMBERS SKF/CR and when and where to charge EVs.
ATRO ENGINEERED SYSTEMS Paola, Kan.
St. Claire, Mo. 800-533-6563 ATRI SELECTS 2022 TOP
615-604-9825 vehicleaftermarket.skf.com RESEARCH PRIORITIES
atrobushing.com System repair products and wheel end The American Transportation
Polyurethane truck part components supplier Research Institute Board of Directors
manufacturer SOLO ADVANCED VEHICLE has approved the 2022 Top Research
BENDIX CVS, LLC TECHNOLOGIES, INC. Priorities, as identified by ATRI’s
Fremont, Calif.
Avon, Ohio soloavt.com Research Advisory Committee. ATRI’s
440-329-9459 Battery-electric truck manufacturer RAC developed the list of recommended
bendix.com research topics at its meeting held in
Safety technology developer and TVC PRO-DRIVER Dallas, March 15–16, and the ATRI
supplier Oklahoma City, Okla. Board reviewed and approved a list of
HIGH DEFINITION VEHICLE 800-288-2889 recommended topics at a May meeting.
INSURANCE prodriver.com ATRI’s RAC selected research top-
Chicago, Ill. CDL legal protection provider ics that are focused on impacts on
919-274-1343 the industry’s workforce, operational
hdvi.com CARRIER MEMBERS impacts from predatory towing and
Vehicle insurance provider with DENALI WATER SOLUTIONS LLC expanding the driver population
focus on serving small-medium Russellville, Ark.
fleets denaliwater.com through international work permits.
The 2022 ATRI top research
RANDALL REILLY 479-498-0500 priorities include the following: Impacts
Tuscaloosa, Ala. Number of trucks: 388 of decriminalization of marijuana on
205-247-6154 ART TRANSPORT
randallreilly.com/talent-intelligence Van Buren, Ark. the trucking industry; quantifying
Driver Recruiter 479-474-5600 industry impacts from predatory
SBS TRUCK SPECIALISTS LLC arttrucking.com towing; efficacy of driver training on
Little Rock, Ark. Number of Trucks: 67 safety outcomes and driver retention;
501-812-3292 BIGTRUX TRANSPORTATION, LLC utilizing EB-3 work permits to help
License and permit provider Little Rock, Ark. mitigate the driver shortage and the SEC
501-358-2423 climate rule impacts on the trucking
bigtruxmoving.com industry.
For membership information, Number of Trucks: 1
visit arkansastrucking.com HOUSE TRANSPORTATION
LEADERS CALL FOR TRUCK
PARKING FUNDING
In a letter to Transportation
NEWS IN BRIEF, build a national charging network that Secretary Pete Buttigieg, Reps. Peter
Continued from page 10
makes finding a charge as easy as filling DeFazio (D-Ore.) and Sam Graves
that are convenient, affordable, reliable up at a gas station." (R-Mo.), the chairman and ranking
and accessible, saying, "to support the Among the list of standardized member of the Transportation and
transition to electric vehicles, we must requirements are a minimum number
12 Issue 3 2022 | ARKANSAS TRUCKING REPORT
TA-5494 - TA Fleet Universal Card Print Ad.indd 1 6/16/22 11:32 AM
CALENDAR OF EVENTS Smith, Ark. Founded in 1999, Propak
has 60 locations across the U.S. and
employs more than 1,700 people.
The acquisition of Propak brings
warehousing, transportation and freight
AUGUST SEPTEMBER 15 brokerage services to Pallet, the largest
ATA TRUCK DRIVER APPRECIATION
AUGUST 8 – 12 DAY EVENT pallet management services provider in
NATMI CSS & CDS FLEET SAFETY TA Petro the West.
CERTIFICATION Little Rock, Ark. "With a disrupt-
Virtual Course ed supply chain, the
SEPTEMBER 22 – 23
AUGUST 16 – 19 combined offering
AMERICAN TRUCKING ATA SAFETY SYMPOSIUM of the two companies
Statehouse Convention Center
ASSOCIATIONS’ NATIONAL TRUCK Little Rock, Ark. provides additional
DRIVING CHAMPIONSHIPS
AND STEP VAN DRIVING SEPTEMBER 24 product and service stability for our
CHAMPIONSHIPS TRUCK CONVOY FOR SPECIAL customers and allows us to grow into
Indianapolis, Ind. OLYMPICS new markets," Steve Clark, president
FedEx Freight,
AUGUST 23 – 24 Little Rock, Ark. and CEO of Propak, said in a news
NATMI MOTOR FLEET ACCIDENT release.
INVESTIGATION SEPTEMBER 25 – 29 Pallet handles more than 115
Virtual Course AMERICAN TRUCKING
ASSOCIATIONS’ TECHNOLOGY & million pallets per year for over 500
SEPTEMBER MAINTENANCE COUNCIL FALL customers.
SEPTEMBER 11 – 17 MEETING AND SUPERTECH
NATIONAL TRUCK DRIVER Cleveland, Ohio WALMART TESTS RENEWABLE
APPRECIATION WEEK SEPTEMBER 28 – 29 ENERGY FOR FLEET
NATMI SAFETY & DOT Walmart announced it is test-
For calendar information, COMPLIANCE ing three different kinds of renewable
visit arkansastrucking.com Virtual Course
energy to power its fleet, setting the
stage to transition its trucking fleet to
NEWS IN BRIEF, Infrastructure for Rebuilding America, 100% renewable energy by 2040. Test
Continued from page 13 Rebuilding American Infrastructure projects include using electric, hydrogen
with Sustainability and Equity and the and natural gas in the place of diesel for
national infrastructure project assis- long haul and other Class 8 deliveries
tance program. within Walmart’s supply chain.
The letter was sent shortly after “Our hope is that by
the National Highway Traffic Safety testing and learning, we can
Administration indicated an increase of find the right recipe
10.5% over traffic fatalities in 2020. to reduce green-
Earlier this year, Buttigieg told a house gas emis-
Senate panel his department was pur- sions and create a
suing strategies to increase access to less impactful trans-
parking for the country’s truck drivers. portation fleet, all
Infrastructure Committee, respectively, “This is a very important issue and as while still deliver-
called for an expansion of parking facil- you talk with any truck driver, it is not ing the freshest food and goods to our
ities for truck drivers. only an issue of convenience, it is an customers,” Fernando Cortez, senior vice
“We believe that focusing funding issue of safety,” the secretary said dur- president of transportation, said. “And
on truck parking will improve highway ing a hearing of the Senate committee while many of these technologies are still
safety for all road users and help to alle- on highway policy. in their early stage, through industry col-
viate longstanding supply chain ineffi- laboration, support from policymakers
ciencies,” the letter stated. PALLET COMPANY ACQUIRES and actively testing alternative fuel types
The Congressmen highlighted FORT SMITH LOGISTICS FIRM in our transportation fleet, we hope to
programs the DOT already has avail- PROPAK make a difference for Walmart and the
able, including grant programs Dallas-based Pallet Logistics of rest of the transportation industry.”
designed to expand regional freight America announced it has acquired Natural gas engines, Cortez said,
and infrastructure projects like the the logistics firm Propak Corp. of Fort have a comparable range to diesel
14 Issue 3 2022 | ARKANSAS TRUCKING REPORT
ADVERTISER
engines of around 700 miles, which The number of fully electric vehicles
makes them a potential fit for Walmart in Arkansas as of Jan. 1 was 2,094, with
sleeper cabs. And while hydrogen use 2,997 at the end of May. Between the RESOURCE INDEX
is still in early development, he said end of 2019 and the end of May 2022,
Walmart is among the first to adopt it. the number of fully electric vehicles reg- Aon ..................................Inside Front Cover
The advantage of hydrogen over battery- istered in Arkansas has risen 283.7%.
electric is a greater range — around 400 However, fully electric and hybrid ArcBest .......................................................37
miles, significantly less time to refuel vehicles only represent about 1% of all
and it weighs less. vehicles registered in the state. There Arkansas Trucking
Association ....................................26, 44, 59
Additionally, Walmart has also are 2.75 million vehicles (passenger
tested electric vehicles to see where vehicles like cars, trucks, SUVs) regis- Custard Insurance Adjusters .....................25
they may fit into the company’s fleet. tered in Arkansas. By county, the DFA
Given the weight and range capabilities reports Benton County has 660 reg- Drivers Legal Plan .....................................38
of electric-battery trucks, Cortez says istered fully electric vehicles, Pulaski
they’re a good for yard operations. County has 641 and Washington Great West Casualty Company .................17
County has 405 — which combined is
ELECTRIC VEHICLE 57% of the state total. InfoStream .................................................15
REGISTRATIONS UP ALMOST
300% SINCE 2019 A FREIGHT BROKER BY ANY McGriff .....................................................57
Electric vehicles registered in OTHER NAME
Arkansas are up 43% in the first five While ‘freight broker’ is currently MHC ............................................................8
months of 2022 from the end of 2021, defined on the FMCSA website as “a per-
according to the Arkansas Department son or an entity which arranges for the PrePass .......................................................35
of Finance and Administration. And if transportation of property by a motor
supply could match demand, that num- carrier for compensation; a broker does Rush Truck Centers .....................................4
ber would likely be even higher, accord- not transport the property and does not
ing to DFA spokesman Scott Hardin. assume responsibility for the property,” SBS Truck Specialists .................................36
Southern Tire Mart .....................................3
Stallion Transportation ...............Back Cover
Tenstreet LLC .............................................21
Triangle Transportation.............................32
TA Petro .....................................................13
UCA ...........................................................27
Utility Tri-State, Inc.....................................6
Wayne Smith Trucking .............................11
Whiting Systems .......................................34
This edition of Arkansas Trucking Report
was made possible with the support of these
corporate advertisers. They support the
trucking industry by enabling ATA to provide
this publication to its members, prospective
members, elected officials and the national
trucking and business community at large.
They deserve your consideration and patronage
when making your corporate purchasing
decisions. Thank you!
ARKANSAS TRUCKING REPORT | Issue 3 2022 15
the Infrastructure Investment and Jobs to FMCSA’s credit, they let him do so. Cole Goodeaux graduated from
Act, passed late last year requires the He is really revolutionizing not only just Lakeside High School in Hot Springs,
FMCSA to issue new guidance on the their infrastructure on IT, but also their Ark. For the last two years, he has
definition of by Nov. 15, 2022. internal culture about working to make studied concurrently at the ASU Three
The law also requires the agency things better, not just for law enforce- Rivers Career Center in Malvern, Ark.,
to consider the impact of technology ment, but also for industry.” taking every automotive course the
and the role of dispatch services in the school offers. His junior and senior
freight transportation industry. THREE ARKANSAS SENIORS year, he won the “Golden Wrench”
The rise of load boards, dispatching RECEIVE ATA SCHOLARSHIPS award and placed first at Arkansas’
services and load-matching technology Three graduating seniors have been Skills USA 2021 state championship.
may be leading to confusion, and in selected to receive scholarships from the Will Wade, also from Lakeside
some cases leading to illegal double- Arkansas Trucking Association. Each of High School, is passionate about auto-
brokering and lawsuits regarding who’s the students will receive a $7,500 schol- motive repair and has taken concurrent
responsible in the case of a crash. arship from the Carl Tapp Memorial vocational college courses at National
Another question FMCSA wants Scholarship Fund to support their pur- Park College.
to address is the role of technology. For suit of careers in medium/heavy duty For more information about the
instance, electronic bulletin boards truck technology. The 2022 recipients Scholarship Fund and to see a full list
match shippers and carriers for a fee; are Colton Bell of Harrison, Ark.; Cole of donors, visit arkansastrucking.com/
the fee acts as a membership fee giving Goodeaux of Hot Springs, Ark. and Will tech-scholarship.
them access to the bulletin board infor- Wade of Sherwood, Ark. Bell plans to
mation. FMCSA asks whether those attend Northwest Technical Institute TWELVE ATA MEMBERS MAKE
electronic bulletin boards should be this fall while Goodeaux and Wade will TOP 100
considered brokers and require them to attend ASU-Beebe, Searcy campus. Twelve Arkansas Trucking
register with FMCSA. Association member companies,
including five companies headquar-
FMCSA’S IT MAKEOVER tered in Arkansas, are among the Top
FMCSA’s chief technology offi- 100 freight carriers in North America
cer, Pavan Pidugu, is on a mission to according to the annual ranking com-
revamp the agency’s outdated legacy piled by Transport Topics, an industry
systems by 2028. Pidugu, who joined trade newspaper. Companies on the Top
FMCSA in 2020 after stints at Walmart 100 For-Hire Carriers list are ranked
and Target, candidly said the system is based on overall revenue generated for
cumbersome, not user friendly, invites the most recent 12-month period.
processing errors and is decades behind Wade, Goodeaux and Bell UPS is the nation’s largest carrier,
the fast-moving world of technology. with consolidated revenues of $97.3 bil-
He has already successfully imple- “Americans have come to appreci- lion. FedEx Corporation is the nation’s
mented new user-friendly IT systems ate full shelves and all of our needs and second largest trucking firm on revenue
to streamline roadside inspections, the wants being delivered to our doorsteps. of $91.68 billion.
motor carrier registration process and Skilled technicians keep the trucks run- These carriers have a significant
the agency’s medical examiners registra- ning, the wheels turning, ensuring safe presence in Arkansas and support the
tion website. and timely delivery for all of us,” said association in effort to protect the
Pidugu also expects to revamp the Shannon Newton, Arkansas Trucking interests of the industry as a whole.
Compliance, Safety, Accountability’s Association president. “It’s my honor to ATA members making the list include
Safety Measurement System as well as welcome this year’s scholarship recipi- UPS Inc. (#1), FedEx Corp (#2), XPO
the way the agency collects and ana- ents into our industry. I’m excited about Logistics (#3), J.B. Hunt Transport
lyzes crash data associated with the their opportunity to access training and Services (#4), Old Dominion Freight
30-year old Motor Carrier Management pursue successful careers.” Line (#9), Yellow (#10), ArcBest
Information System. As a student at Harrison High Corporation (#14), AAA Cooper
“I’ve been highly critical of FMCSA School, Colton Bell has been an active Transportation (#54), USA Truck (#57),
data systems before I ever came to the participant of the FFA and team captain PAM Transport (#58), Maverick USA
Commercial Vehicle Safety Alliance,” said of the Electric CDE program. Since he (#79) and John Christner Trucking
Chris Turner, CVSA’s director of enforce- was 16, he has worked at Distribution (#87). ATR
ment data and judicial outreach. “Pavan Solutions, Inc. as a diesel mechanic
came in and really shook the boat. And assistant.
16 Issue 3 2022 | ARKANSAS TRUCKING REPORT
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Consumers Pivot:
Less Goods, More Services
Stephens analyst predicts a freight recession is ‘almost unavoidable’
By Steve Brawner
Contributing Writer
It’s been a good two years for
trucking, but a freight recession may
be “almost unavoidable” as the Federal
Reserve moves to slow the economy and
as consumers spend more on services
and less on goods.
Jack Atkins, senior research analyst
with Stephens who studies the trans-
portation sector, offered that assessment
of the coming months during a speech
at the Arkansas Trucking Association’s
Annual Business Conference & Vendor
Showcase in Hot Springs.
“We’re increasingly concerned about
the direction of the freight markets as
we look out into the back half of 2022,
but really into 2023,” he said. “You
know, it’s been an incredible couple of
years, but the reality is, in my mind, that
we’re going to have probably a little bit of
a tough slog as we get into 2023.”
Atkins said the Federal Reserve is
attempting to slow the economy by rais-
ing interest rates. (See Page 56 for more
on The Fed's strategy to raise interest “CAN THE FED WALK THE TIGHTROPE? HISTORY
rates before layoffs follow inflation.) WOULD SAY THAT THEY CANNOT. I DON’T THINK
Too many dollars are chasing too few
goods, causing inflation. The Fed will WE’VE EVER SEEN AN INSTANCE WHERE THE FEDERAL
succeed in its goal, but a recession could RESERVE HAS TRIED TO LOWER INFLATION BY
also be the result. THE AMOUNT THAT THEY’RE TRYING TO LOWER IT
“Can the Fed walk the tightrope?
History would say that they cannot,” he WITHOUT CAUSING A RECESSION.”
said. “I don’t think we’ve ever seen an
instance where the Federal Reserve has –JACK ATKINS, STEPHENS’ SENIOR RESEARCH ANALYST AND
tried to lower inflation by the amount MANAGING DIRECTOR OF TRANSPORTATION EQUITY RESEARCH
that they’re trying to lower it without
causing a recession.”
18 Issue 3 2022 | ARKANSAS TRUCKING REPORT
DISRUPTION AND A MORE
RATIONAL MARKET
The economy has had strong
growth the past couple of years during
the pandemic due to government stimu- “THINK ABOUT IT THIS WAY: UNLESS ANY OF US
lus spending. After falling in the first PLAN ON LIVING FOR 30,000 YEARS, WE’LL NEVER
part of 2020, gross domestic product
rebounded in the second half of that SEE AGAIN WHAT HAPPENED IN THE SECOND HALF
year and grew 6.9% in the fourth quar- OF 2021. SO THAT’S HOW DISRUPTIVE THINGS WERE.”
ter of 2021.
But in the first quarter of 2022, –JACK ATKINS, STEPHENS’ SENIOR RESEARCH ANALYST AND
it fell 1.4%. The economy currently is MANAGING DIRECTOR OF TRANSPORTATION EQUITY RESEARCH
expected to grow 3.3% in 2022, but
forecasts have been falling. In 2023,
growth is expected to be 2.3%, which
returns it to the trend line for roughly
the decade before the pandemic.
Atkins presented a chart show- going on vacation. We’re getting on contractual decreases in the second half
ing the level of disruption in both the planes. We’re getting on cruise ships. of 2022.
U.S. and global supply chains that Our dollar as a consumer is getting The national tender rejection index
has occurred during the pandemic. In spent differently this year and will be — the percentage of loads carriers are
December, the level of disruption was a spent differently next year than when rejecting — is falling. The week of the
“one-in-every-300,000-instance event.” the way it was spent in 2020 and 2021.” conference, May 9, 2022, the percent-
“Think about it this way: Unless With a freight recession marked age was just over 8%. Large shippers
any of us plan on living for 30,000 by negative rates and volume “almost are telling Stephens that their rejection
years, we’ll never see again what unavoidable,” Atkins advised motor car- rates are 2–5%. Rates were much higher
happened in the second half of 2021. riers to limit spot market exposure to earlier.
So that’s how disruptive things were,” the extent they can. Spot rates are lower “It feels like it’s coming quicker
he said. than they have been during the pan- than I would have anticipated in
“And so my point is, no one could demic and are underperforming normal January,” he said. “I would have thought
have anticipated what happened over seasonal patterns. 2023 would be a more challenging
the last 18 to 24 months, and as we “What’s going on here? The market freight market. It feels like it’s getting
come off of this and unwind from it, is becoming more rational. Freight is pulled forward by maybe three months
it’s going to be very difficult to predict moving back in its more normal pat- or so.”
what’s going to happen on the other terns. The supply chain is catching its
side of it. … Be prepared for the unex- breath,” he said. INVENTORY, E-COMMERCE AND
pected, I guess is the point.” Atkins displayed a chart showing HOUSING FORECASTS
Atkins said spending on goods the volatility of truckload rates, mostly Inventory restocking has been an
versus services is perhaps the biggest contractual. Since the financial crisis important source of freight activity
factor to watch. Goods spending is still that began in the late 2000s, volatility the last two years. Inventories are at
above trend line, but that will normal- has increased on the cycles’ upsides and decade-low levels, but there are pock-
ize over the next 12–18 months, creat- downsides. Historically over the long ets where they are beginning to build.
ing a headwind for the freight sector. term, rate per mile has followed cost Anecdotally, retailers are saying they
Consumers may have already made the per mile, excluding fuel. Over the last have obsolete inventory and will need to
purchases they were going to make. couple of years, rates have risen faster have sales this summer. U.S. total sales
“During 2020 and 2021, not a than costs. are up 25.5% above pre-COVID levels in
lot of us took vacations, but a lot of Rates were about at their peak December 2019, while inventories are
us bought outdoor furniture for our during the first quarter of 2022, but up 10.7% above that same time period.
houses,” he said. “So, one of those two Stephens expects them to begin falling The biggest reason inventories are
things move in a truck, and it’s not in the second quarter and has begun to so low is because so much stimulus has
going to Disney World. So we’re getting include a reduction in contractual rates been pumped into the economy, driving
back out there. We’re going to concerts. in its financial models. Shippers are
We’re going to football games. We’re saying they are planning to have modest
ARKANSAS TRUCKING REPORT | Issue 3 2022 19
just can’t build a lot of trucks. … But, as
we just talked about, that has not pre-
vented the industry from adding head
count, and it’s not prevented the indus-
“YOU’RE SEEING A LOT OF DIFFERENT WAYS FOLKS try from adding capacity,” he said.
Atkins said there has been a lack
ARE ATTACKING [THE QUESTION], HOW DO WE HELP of investment among large and midsize
CONSOLIDATE THE TRUCKING INDUSTRY WITHOUT fleets in the long haul trucking sec-
INVESTING IN TRUCKS? AND THAT’S GOING TO BE A tor. Companies have been preferring
BIG THING OVER THE NEXT FIVE YEARS, WE THINK.” regional routes and dedicated contracts.
The trend has made the industry more
volatile and susceptible to swings in the
–JACK ATKINS, STEPHENS’ SENIOR RESEARCH ANALYST AND economy.
MANAGING DIRECTOR OF TRANSPORTATION EQUITY RESEARCH Looking ahead at “megatrends”
that will affect the industry, he said
freight platforms will grow in impor-
tance. More and more big carriers will
try to grow their logistics business so
they can pull more freight without
sales far above the trend. Americans are in 2022. That sector has seen steady hiring more drivers and buying more
still spending the stimulus, but sales growth over the past 12 years as it trucks.
could return to a normal level, leading recovered from the financial crisis of “You’re seeing a lot of different
to more balanced inventories. the late 2000s, but it probably will slow ways folks are attacking [the ques-
Among the risks to the freight because of higher interest rates and tion], how do we help consolidate the
economy in 2022 is that the inventory building costs. trucking industry without investing
restocking cycle will end. However, it’s On the other hand, auto produc- in trucks? And that’s going to be a
yet to be seen if there will be an over- tion could increase. Atkins recently was big thing over the next five years, we
stock phase followed by a clearance having his oil changed at a dealership, think,” he said.
phase like there was in 2019. and there were no new cars on the Other trends include Class 1 rail-
In December 2021, Stephens did lot. Historically, manufacturers have roads’ increasing preference to work
a survey of its shipper contacts to produced 16–18 million cars a year with asset-based providers for intermo-
determine how long this inventory since the financial crisis. This year, it’s dal shipments. E-commerce will con-
restocking cycle could continue. Forty- expected to be 15 million. If the supply tinue to impact the economy. The trailer
four percent expected a more balanced chain issues are resolved, there could be shortage will continue to be a major
inventory position within the next 30 an upside. Likewise, the industrial econ- concern, while autonomous vehicles
days, while 16% said it would occur in omy is enjoying a healthy expansion will become more common and will
1–3 months and 13% said it would hap- that likely will continue for some time. apply to certain routes over the next
pen in the next 4–6 months. Shippers five years.
are saying the same thing on public INDUSTRY TRENDS ESG — environmental, social and
conference calls. Truck employment has recovered corporate governance — will become
Atkins said e-commerce levels, from the pandemic and is now well increasingly important. Shippers feel
after spiking during the pandemic, are above January 2020. That number greater pressure to consider such issues.
normalizing to the trend. E-commerce includes everyone who works for truck- Larger shippers first will ask carriers to
was 13.6% of all retail sales in the ing companies. When truck employ- reduce carbon emissions because their
fourth quarter of 2020 and then was ment falls, it will signal that carriers are stakeholders are pushing them that
12.9% of all retail sales a year later. starting to cull capacity. direction.
Companies like UPS and FedEx are Capacity today is above where it Atkins also expects more near-
saying they are seeing a slowdown this was in 2019 at the prior peak. What’s shoring so shippers aren’t so vulner-
year, Atkins said. Amazon recently different is that it is difficult to pur- able to the fragile global supply chain.
said on its conference call that it has chase a new truck and a new trailer, They’ll bring more production to North
overbuilt capacity. and probably will be through 2023. America, probably Mexico, which means
Among the various sectors of the “One of the things that’s going to more freight will be coming north from
economy, Atkins said housing starts are keep a little bit of a lid on too much across the border. ATR
forecast to grow 2.6% year over year capacity flooding in is the fact that we
20 Issue 3 2022 | ARKANSAS TRUCKING REPORT
Tenstreet is proud to assist
Arkansas Trucking Association members with their
driver recruiting, onboarding, and safety needs.
We can help you get more complete applications, fill
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A T A M E M B E R S E L I G I B L E F O R A 1 5 %
D I S C O U N T B Y M E N T I O N I N G T H I S A D
( N E W C L I E N T S O N L Y )
Lead Generation: What the
Population Reveals About
Potential Job Candidates
Experts discuss strategies and solutions for addressing
workforce shortages at ATA conference
By David Monteith
Contributing Writer
For nearly two decades, accord-
ing to surveys by the American
Transportation Research Institute, a
shortage of drivers has been among the
top priorities and concerns of motor
carriers nationwide. Five years ago, the
shortage of diesel technicians in north-
west Arkansas was significant enough
to warrant outside consulting and stra-
tegic planning. Childers
Last year the technician shortage
made it onto ATRI’s national top ten
industry issues list for the first time.
Now, an overall labor shortage triggered
by the pandemic has created even more “ON A POSITIVE NOTE, WE ARE SEEING THAT
competition for workers, making those ARKANSAS IS HOLDING ITS OWN IN POPULATION
openings even harder to fill. GROWTH. WHILE A LOT OF STATES, AND SOME
Addressing these issues was a focal STATES AROUND US, HAVE HAD SIGNIFICANT DROPS
point at this year’s Annual Business
Conference and Vendor Showcase IN POPULATION, ARKANSAS HAS HELD ITS OWN AND
hosted by the Arkansas Trucking EVEN HAD INCREASES IN POPULATION THROUGH
Association in Hot Springs. A variety THE PANDEMIC.”
of speakers provided reasons for hope,
short- and long-term strategies, as well
as actionable suggestions and solutions —DR. CHARISSE CHILDERS,
for motor carriers. ARKANSAS DIVISION OF WORKFORCE SERVICES, DIRECTOR
THE POPULATION PICTURE
The speakers, like Dr. Charisse Arkansas’s current unemployment tries experiencing severe shortages, like
Childers, director of the Arkansas rate of 3.2% is a mixed blessing. It’s trucking and healthcare, there aren’t
Division of Workforce Services, gave good for the state’s overall economy to enough potential applicants.
perspectives on the shortage issue along have only 3,000 people drawing unem- “Those 3,000 people are not going
with examples of steps being taken at ployment benefits, because that means to fill all of your jobs,” Childers said.
the state and national levels. most people have jobs. But for indus- That’s the bad news. The good news
22 Issue 3 2022 | ARKANSAS TRUCKING REPORT
is that more people are moving to
Arkansas. Data from the U.S. Census
Bureau indicates more people have been • 78.2 million baby boomers were
moving into the state than moving out born between 1946 and 1964
for at least the past two years. • 69.6 million in Generation X were
“On a positive note, we are see- born between 1965 and 1985
ing that Arkansas is holding its own
in population growth,” Childers said. • 88 million in Generation Y, also
“While a lot of states, and some states known as millennials, were born
around us, have had significant drops in between 1985 and 2005
population, Arkansas has held its own
and even had increases in population
through the pandemic.”
Arkansas has gained around
10,000 people each year for the past
two years, and the transportation
industry apparently absorbed some of
the newcomers. Looking at year-over-
year growth, Childers said, “Trade,
transportation and utilities increased Gronbach
14,200 [jobs], so you’re on the right
track. There is movement. There are jobs
being filled.” That increase means the
sector is close to reaching pre-pandemic
levels of employment.
Childers wasn’t the only speaker “BABY BOOMERS HAVE YOUR INTELLECTUAL PROPERTY
to see hope and possibility in BETWEEN THEIR EARS. THE BABY BOOMERS THAT ARE
population numbers. Ken Gronbach, RETIRING HAVE BEEN WITH YOU THE LONGEST, WHICH
a demographer and author, provided MEANS THEY’RE PROBABLY THE BEST. YOU’VE GOT TO
analysis of national and international
population trends and implications GET THAT INTELLECTUAL PROPERTY OUT OF THEIR
for the trucking industry. General BRAINS AND INTO SOMEBODY ELSE, SO YOU’VE GOT TO
population numbers are important COME UP WITH A TRAINING PROGRAM TO DO THAT.”
because they determine the size of end-
user markets and talent pools.
Gronbach used data on births to —KEN GRONBACH, UPSIDE: PROFITING FROM THE PROFOUND
make the point that there were bound DEMOGRAPHIC SHIFTS AHEAD AUTHOR
to be labor shortages and drops in
sales simply because one generation,
Generation X, is significantly smaller
than the generation before it. gest, which means they’re probably the back to the [United] States. It’s coming
The good news, he said, is that best. You’ve got to get that intellectual back to where there’s labor. It’s coming
Generation Y, the millennials, is sig- property out of their brains and into back to where there are consumers.”
nificantly larger; therefore, there will somebody else, so you’ve got to come up These, of course, are long-term
be more consumers and more candi- with a training program to do that.” predictions that require patience, which
dates in the labor pool in the coming Gronbach’s analysis of population is more feasible for some motor carriers
years. It’s important for carriers to start trends wasn’t limited to the United than others. Gronbach offered short-
thinking about how to transfer com- States. China, in contrast to the U.S., term suggestions based not just on
pany knowledge from one generation to has a shrinking population, as do sev- the numbers but on the values held by
the next. eral other Asian countries. Russia has many members of Generation Y. Each
“Baby boomers have your intel- also seen a decline in births. generation has its own identity and
lectual property between their ears,” “And what does that mean to you?” defining traits.
Gronbach said. “The baby boomers that Gronbach asked the audience. “That
are retiring have been with you the lon- means that manufacturing is coming
ARKANSAS TRUCKING REPORT | Issue 3 2022 23
“TRANSPORTATION IS LOOKED AT DIFFERENTLY IN
NORTHWEST ARKANSAS. WHEN YOU SEE HIGH RISE
BUILDINGS SITTING OVER THERE AND THOSE ARE
TRUCKING COMPANIES, [IT MAKES AN IMPRESSION].”
—BUTCH RICE,
STALLION TRANSPORTATION GROUP, PRESIDENT AND CEO
Rice
Gronbach said it’s important to are other equally important tools that riers boosting the image of trucking
recognize that, “Generation Y millen- build a healthy and productive work in northwest Arkansas. Having large
nials won’t work for mean people.” He environment. Especially for the driver private fleets like Tyson Foods, J.B.
said, “Take human resources as seri- employees, it’s important to find ways Hunt, and Walmart is likely a reason
ous as you do your finances.” And he to show them how they make a differ- Arkansas is one of two states already
further recommended making it a top ence to the company, to focus on keep- in the early stages of piloting the Safe
priority to hire the highest quality mil- ing them safe and to provide quality Driver Apprenticeship Program (SDAP)
lennial available for HR, because high equipment to drive. approved by the Federal Motor Carrier
quality HR directors tend to hire higher Building a culture of professional- Safety Administration as part of the
quality employees and drivers. ism also helps attract quality employees Infrastructure Investment and Jobs Act
and draws young people to trucking. signed into law last year.
CARRIER PERSPECTIVES ON Rice pointed out the difference between Up to to 3,000 18- to 20-year-old
CULTURE, DRIVER APPRENTICES, community attitudes toward the drivers will undergo supervised train-
AND EX-OFFENDERS industry in different parts of the state. ing in vehicles equipped with advanced
Improving company culture and “Transportation is looked at differently safety technologies. This program will
adapting training and feedback for in northwest Arkansas. When you see make these trained younger drivers eli-
a millennial workforce is something high rise buildings sitting over there gible to operate as their older counter-
many carriers are already doing. Butch and those are trucking companies, [it parts with some additional training and
Rice, president and CEO of Stallion makes an impression].” technology until they turn 21.
Transportation Group, a for-hire car- “We’re at the phase where we have
rier based in Beebe, said he adopted PILOTING YOUNGER DRIVERS the approval to start hiring, so now the
some of the same practices of Maverick Patrick Simmons is vice presi- next phase is figuring out how we go
Transportation, like eliminating the dis- dent of transportation for Tyson recruit, pay and retain those drivers,”
tinction between employees and drivers, Foods, one of those large private car- Simmons said.
to create a positive work environment. In March, Tyson began the pro-
“They’re all employees,” Rice said. cess of the applying for SDAP approval,
“When you separate them, you’re put- which requires audits of safety records
ting them in a caste. At our company, and evidence of the capacity to imple-
we don’t separate.” ment the mentoring of younger drivers
Rice said culture isn’t something by older, experienced drivers.
that improves quickly. “It’s nothing Simmons said, “It’s got the poten-
you’re going to gain in four or five tial to pay dividends, but the key is what
years.” Butch [Rice] said—how do we attract
Raising wages is one of the most them?”
obvious ways to boost morale. It’s a
strategy many carriers have used during
the pandemic, but Rice believes there Simmons
24 Issue 3 2022 | ARKANSAS TRUCKING REPORT
Programs like Be Pro Be Proud “Some of the people I’ve talked to Reymer
which has operated in Arkansas since say, ‘We do it, but I don’t want people
2016 are promoting a new image for the knowing about it,’ because they’re con-
trucking industry among young people. cerned how that looks. It’s taboo to
But changing attitudes is like chang- some extent.”
ing a company’s culture — it takes time Butch Rice gave an informal history
and constant investment. And, as Rice of hiring ex-offenders from his perspec-
pointed out, even if young drivers can be tive. “Twenty years ago, everybody in
hired, the insurance costs will be prohib- this room that has a trucking company
itive to most small carriers. He thanked didn’t hire felons,” he said. “Ten years
Tyson Foods for taking the lead on the ago, you could see ads that would say, ‘If
program. “Bring ‘em in. Train ‘em up. At you haven’t had a felony in the last five
28 we’ll hire them,” Rice joked. years.’ And now it’s, ‘Come on in and
let’s talk about how bad it was.’”
EX-OFFENDERS Insuring ex-offenders can be dif-
In addition to calculating the ficult. Hiring them presents potential tion rates in the world, and Arkansas
costs, risks, and benefits of hiring public relations issues and can cause is among the top five states in rates of
younger drivers, motor carriers are also difficulties if an accident goes to court. imprisonment in the country. Gronbach
considering if and how to add people And working with ex-offenders who estimates there 20 million men in the
convicted of criminal offenses to the still have parole officers makes schedul- country between 25 and 55—what he
labor pool. ing long hauls nearly impossible, but calls prime working age—that are ex-
Jeremy Reymer, founder and CEO demographer Ken Gronbach says find- offenders. Those 3,000 people drawing
of DriverReach, a CDL driver recruiting ing ways to overcome those obstacles is unemployment benefits in Arkansas
and compliance program, said he’s seen necessary from a numbers standpoint. mentioned earlier might not fill all the
changes in the willingness of some car- The United States has one of the trucking openings, but the state’s share
riers to hire ex-offenders. highest, if not the highest incarcera- of those 20 million probably could.
Since 1997, Arkansas Trucking Association has endorsed the legal
services of Drivers Legal Plan and offered savings to members.
26 Issue 3 2022 | ARKANSAS TRUCKING REPORT
There are resources for those will-
ing to explore the possibility. Funding
for training specific to employers willing
to work with ex-offenders is available
through the Department of Workforce
Services, according to Childers. (Read
more on Page 58 about how the
Arkansas Department of Corrections is
working to prepare ex-offenders for the
workplace.)
Workforce Services also provides
direct training for CDL licensing and
diesel technician certification, but it
takes more than job-specific training to
increase the odds of successfully assimi-
lating an ex-offender. Many of them
have not developed the habit of regularly
showing up to work or experienced the
benefits of receiving a paycheck. BUSINESS FOUNDATION FOR A
“We can pay tuition and training
costs for eligible individuals,” Childers SUCCESSFUL CAREER
said. “Housing and transportation and
childcare and utilities and rent. We can
help them with career planning. We can UNDERGRADUATE & GRADUATE | ONLINE OR IN PERSON
identify providers that can provide them
with training that leads to a license.”
Childers says the department also Since its inception in 1969, the UCA College of Business has
works with adult education services to educated the business leaders of tomorrow. Our students
offer tutoring in the math and literacy receive a high-quality education from knowledgeable, nationally
skills needed to pass a driving test, for recognized faculty. Our hands-on learning opportunities and
example. They can also teach employers rigorous curriculum prepare graduates to navigate the changing
how to be the type of mentor an ex- business world.
offender often needs.
MORE GOOD NEWS The UCA College of Business is among the top business schools
During the conference, Childers in the country and is continuously accredited by the Association
announced the opening of a new CDL to Advance Collegiate Schools of Business (AACSB).
driver testing site in Saline County.
“The state police are aware of the Go here. Go anywhere.
concerns and the backlog. They are
working to open this site and hopefully
new sites in the future.”
It may not happen as soon as
most carriers would like, but there are
plenty of reasons to believe the work-
force shortages that have dogged the
trucking industry for decades are not
insurmountable. In the meantime, car-
riers can focus on creating a productive
work environment, finding ways to help
Arkansas attract new residents and tak-
ing advantage of the training resources uca.edu/business
offered by the state. ATR
ARKANSAS TRUCKING REPORT | Issue 3 2022 UCA_COB_LSCM_Trucking_Ad2/3.indd 1 4/5/22 4:00 PM 27
COUNCIL QUARTERLY
.
.
Networking Professional Development Service
ATA members have the opportunity to be represented in a variety of industry councils that address issues specific to
safety, maintenance/technology, accounting/finance and industry leadership. Each council holds quarterly meetings,
hosts speakers and panels on relevant industry topics, serves as a forum for interchanging ideas and best practices, and
discusses new strategies and implementation practices.
40 UNDER 40 COUNCIL MEETING American Trucking Associations. He ONE DAY, THREE MEETINGS
May 11 encouraged council members to engage June 7
The second quarter meeting of in trucking associations both at the The SMC, MTC and AFC gathered
the 40 Under 40 Council was held in state and national levels so they can at the Rogers Convention Center on
conjunction with the 2022 Arkansas have a voice in the laws and policies June 7 for a day of networking, educa-
Trucking Association Annual Business that impact our businesses. tion and preparation for the return of
Conference & Vendor Showcase in Hot The annual conference marks the the Arkansas Trucking Championship.
Springs. start of a new year for the 40 Under 40 Each council provided updates on
Guest speaker Harold Sumerford, Council wherein members graduate and industry regulations, best practices
Jr. discussed his role as chairman of the new officers take the helm. and trends, then the groups lunched
together before championship commit-
tee meetings convened to walk through
volunteer, equipment, course/station
layouts and the schedule for Arkansas's
biggest trucking competition, returning
for the first time since 2019.
SAFETY MANAGEMENT
COUNCIL MEETING
Sponsored by J.J. Keller & Associates
The SMC invited back FMCSA rep-
resentatives, Kevin Breedlove and Gary
Grigg, to share live demonstrations of
electronic recording devices (ERODs)
and ETHOS, the educational tool for
hours of service. They answered ques-
tions about hours-of-service violations,
audits carriers should conduct, how the
34-hour reset can be used with sleeper
berth time, unassigned drive time on
and off the yard and personal convey-
ance. They also provided updates on
oral fluid testing, the drug and alcohol
clearinghouse, apprenticeship program
and more.
Baxter Mays (USA Truck), Heath
Arnold (ABF Freight) and Jason Ahten
(Walmart Transportation)
28 Issue 3 2022 | ARKANSAS TRUCKING REPORT
Craig Harper presents to MTC
In session two, Cottingham & barriers to entry and the alternative
Andrew Muller
Butler executives Jamie Bishop and Jill opportunities companies can take to
Lange presented the findings of their reduce carbon emissions. ATR
annual benefits and compensation
survey for the trucking industry. They
shared the employer trends on changing
driver compensation, bonus structures,
non-driver compensation and benefits
packages.
Because Arkansas Trucking
Association is registered with the
National Association of State Boards of
Accountancy (NASBA) as a sponsor of
continuing professional education on
the National Registry of CPE Sponsors,
AFC attendees received two CPE credits
for these sessions.
ACCOUNTING & FINANCE MAINTENANCE & TECHNOLOGY
COUNCIL MEETING COUNCIL MEETING
Sponsored by Academy Bank Special guest Craig Harper
Andrew Muller, associate general MTC attendees received a first-
counsel of Academy Bank, provided hand account of one Arkansas carrier’s
an overview of the challenges involved path to electric vehicles. Craig Harper, IF YOU ARE INTERESTED IN
in having claims against bankrupt chief sustainability officer and executive SPONSORING A FUTURE ATA
individuals or entities. Muller provided vice president at J.B. Hunt Transport COUNCIL MEETING,
strategies and answered questions for Services, shared the company’s CONTACT KATIE THOMASON AT
businesses to recognize red flags when approach to sustainability and the KATIETHOMASON@
a customer may be in financial distress timeline for adopting EV technology in
and at risk of bankruptcy and how to the J.B. Hunt fleet. Harper discussed ARKANSASTRUCKING.COM
avoid losses. the infrastructure, policy and cost
ARKANSAS TRUCKING REPORT | Issue 3 2022 29
Cowboy
Wisdom
Michael Barr, president of
JM Bozeman Enterprises,
talks ranching and reputation
By Deana Nall Barr attributes the company’s success to JMB’s team and their
Contributing Writer commitment to service.
“Good people and good service mean good growth,” he
The offices of JM Bozeman Enterprises sit tucked away said.
down a tree-shaded lane between Arkansas highways 270 and Ten years ago, Barr joined JMB to lead the company in a
51 in Hot Spring County. For Michael Barr, JMB president, partnership with CEO James Bozeman. Their business rela-
this is home — part of the time. He divides his time between tionship and resulting friendship serve as a testament to the
this office and his other office at home in Clarksville. Also a power of networking in professional organizations such as
husband, father and cattleman, Barr has watched JMB grow the Arkansas Trucking Association. Recently, Barr bought out
since joining the company. A believer in the power of “we,”
30 Issue 3 2022 | ARKANSAS TRUCKING REPORT
WORRYING IS LIKE PAYING ON A DEBT
THAT WILL NEVER COME DUE.
IT’S A COWBOY QUOTE.
—MICHAEL BARR,
JM BOZEMAN ENTERPRISES PRESIDENT
PHOTOGRAPHY BY JOHN DAVID PITTMAN
ARKANSAS TRUCKING REPORT | Issue 3 2022 31
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Bozeman’s part of JMB, but he still con-
siders it “our” company.
“James is still a close advisor to
JMB,” Barr said. “I still meet with him
regularly, and he’s very much involved.
His name is still on it, and as long as WE’RE ALL COMPETITORS, BUT THERE’S NO
I’m here, that won’t change. We have a
lot of pride in the JMB name.” COMPETITION WHEN IT COMES TO SAFETY. SO
Barr and Bozeman formed a part- ANYTHING THAT CAN HELP IN THE AREA OF SAFETY
nership in 2012, after Barr found IS SOMETHING WE SHARE WITH EACH OTHER.
himself at the end of the line with the
company he had been leading when ANYTHING WE CAN DO TO IMPROVE SAFETY IS A
it was purchased by another carrier. NOBLE ACT FOR TRUCKING.
Having always dreamed of owning a
trucking company, Barr considered —MICHAEL BARR, JM BOZEMAN ENTERPRISES PRESIDENT
starting his own from scratch. But
getting a new business off the ground
takes time, and Barr knew his custom-
ers couldn’t wait. Meanwhile, Bozeman
was in the tough position of having to
make changes at JMB, a Malvern-based do it and it was just a matter of trusting Although he’s improved at this over
company he had meticulously built each other.” the past ten years, Barr admits to hav-
from the ground up. The mid-sized car- Barr and Bozeman knew their ing a history of putting a lot of pressure
rier had outgrown the size of its small strengths and assumed responsibili- on himself.
management team, but it still wasn’t ties accordingly: Bozeman focused on “Before I come up with the good
big enough to effectively negotiate with day-to-day operations while Barr took scenarios, my mind comes up with the
suppliers, and for Bozeman to diversify on business development. Their plan bad scenarios first,” he said. “I do love
his customer base, he needed more worked. Starting with 55 trucks in the business, and I love being with the
trucks. They seemed stuck. 2012, JMB grew to a fleet of more than people and the drivers. I need to learn
So the two men began to talk. 200 by 2022. And the competitors that to enjoy the day more—the whole day
They had initially been competitors, had become acquaintances had now and not just parts of it.”
but through the Arkansas Trucking become business partners—and friends. Barr keeps a quote in mind that
Association, they had become acquain- After leading the company together for improves his perspective: “Worrying
tances over time. ten years, Barr and Bozeman transi- is like paying on a debt that will never
“We wouldn’t have gotten to know tioned into what had always been part come due.”
each other if it hadn’t been for the ATA of their long-term plan: for Bozeman “It’s a cowboy quote,” he said.
meetings,” Barr said. to move out of the partnership while Barr has always identified with the
Both at a crossroad in their own continuing to work closely with Barr as cowboy persona. He’s a successful cattle
careers, they began to discover what an advisor. Having originally worked in farmer, and the fact that Bozeman is
they had in common and what each the excavation and construction sector also a cattleman—as well as an avid
of them could potentially bring to the of the trucking industry, Bozeman has wearer of cowboy hats—helped bring the
table were they to join forces. Even returned to his roots by starting his two together as business partners. In
though Barr had always envisioned own dump truck company. fact, as Barr was agonizing over whether
owning his own company, becoming he should join Bozeman at JMB in 2012,
partners with Bozeman at JMB felt WORRYING AND OLD WEST he was hauling cattle one day when he
right. After some conversations, a lot WISDOM pulled up behind a JMB truck bearing
of thought, a handshake and a toast of Looking back at his choice to join the company’s iconic logo: a cowboy on
Maker’s Mark bourbon, Barr bought JMB, Barr thinks about what he could the back of a reared-up horse. That’s
into JMB as a full partner. tell himself a decade ago when he was when Barr made his decision.
“When we first got together, James making that decision. “I took it as a sign,” he said.
laid out a plan,” Barr said. “The goal “I would say, ‘Don’t be so ner- Naturally, the cowboy logo remains
was for both of us, and we committed vous,’” he said. “You should have had part of the company, and Barr has even
to the plan. It was pretty much a hand- more confidence and enjoyed yourself added more.
shake deal, too — how we were going to more.”
ARKANSAS TRUCKING REPORT | Issue 3 2022 33
“Our newest trailers have cowboys year, Barr was honored to find himself Clarksville. As a kid, he wanted to be a
along the back doors,” he said. among a vibrant mix of business lead- farmer, but watching Smokey and the
Over the years, JMB built a reputa- ers. Bandit as a child turned his attention
tion as a company that takes care of its “I enjoy being on the board, and I toward the trucking life. As he told the
people and always puts safety first. No especially enjoy the camaraderie of the Arkansas Trucking Report in 2008, he
one has any business working in the board members,” he said. “When you’re would ride his bike down a country road
trucking industry without the No. 1 in a room with that many smart people to I-40 just to watch the trucks drive by.
priority of safety, Barr said. who are as passionate about trucking as In his teen years, Barr developed a defi-
“You have to be safe in order to be you are, it’s an honor. We don’t always nite interest in the truck driving indus-
in this business,” he said. “Our primary agree, but we always respect each oth- try, but he figured he could be happy
responsibility as a motor carrier is shar- ers’ opinions greatly. We’re competitors, with either farming or truck driving. He
ing the highways with the public.” but we work together well.” ended up choosing both. After graduat-
Barr and Bozeman have woven ing with a degree in business manage-
CIRCLING THE WAGONS a strong work ethic into the fabric of ment from Arkansas Tech University in
The commitment to safety is some- JMB. Over the years, both men have led 1992, Barr went to work for American
thing that unites every member of the by the principle that hard work is not Freightways and then Transco Lines
ATA board, which Barr joined in 2021. enough. before partnering with Bozeman at
“The ATA’s mission is to make the “You have to work smart, too, and JMB. He also owns Five Barr Farms,
industry safer,” he said. “Of course, you have to work together,” Barr said. LLC. As owner of this cattle farm in
we’re all competitors, but there’s no “If we’re not working together, success his hometown of Clarksville, Barr was
competition when it comes to safety. So will be very difficult. Trucking compa- named a county winner in the Arkansas
anything that can help in the area of nies can become so compartmentalized. Farm Bureau’s Farm Families of the Year
safety is something we share with each It’s always difficult to get everyone on program for 2018.
other. Anything we can do to improve the same page.” Barr and his wife of 30 years,
safety is a noble act for trucking.” Barr’s work ethic and values began Liz, raised their three children in
After joining the ATA board last taking shape while growing up in Clarksville, and now the next genera-
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34 Issue 3 2022 | ARKANSAS TRUCKING REPORT
tion of the Barr family has joined both
businesses. Son Casey runs the cattle
farm and keeps in close contact with
Barr about the daily operations in
Clarksville. Daughter Madison, who “WE DON’T HAVE A CHOICE. YOU’VE JUST GOT TO
Barr and Liz call “Maddie,” works as HAVE COURAGE. YOU HAVE TO SADDLE UP EVEN
marketing manager for JMB, but she WHEN YOU DON’T WANT TO. AS AN OWNER, YOU
didn’t start out looking for a career in
her dad’s company or even the truck- WANT TO SET THAT EXAMPLE. IF WE GOT NEGATIVE
ing industry. Initially a physical therapy AND PESSIMISTIC, EMPLOYEES WOULD SENSE IT.
major at the University of Arkansas THEY WOULD SEE IT IN MY FACE AND HEAR IT IN MY
in Fayetteville, Maddie switched to
education, but then told Barr she was VOICE. SO WE HAVE TO STAY POSITIVE.”
interested in the trucking business—a
revelation Barr described as a “shock.” —MICHAEL BARR, JM BOZEMAN ENTERPRISES PRESIDENT
She graduated from UA in December
2016 and went to work for JMB two
months later. At first, Barr moved her
around to different positions to help her trucking and not just put her in some- social media. We hadn’t adapted very
get a feel for how different aspects of thing easy.” well until she came, so she’s been very
the company worked. In her current position as mar- valuable. We had been dabbling in the
“Her first two years, I felt like I keting manager, Maddie focuses on new recruiting technology, but we had
needed to give her a real perspective recruiting drivers into the company. a long way to go. She just sat in front
of trucking instead of just putting her “Recruiting really started changing of the computer and connected with a
where she wanted to be,” Barr said. “I about the time she was in school,” Barr third-party company she learned from,
wanted to expose her to the real side of said. “It’s a science now, especially with
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ARKANSAS TRUCKING REPORT | Issue 3 2022 35
and then she took off with it.” down began in March 2020, business transportation supply chain. Worldwide,
Barr said Maddie has made great significantly dropped off for JMB. trucking companies have especially
relationships throughout the company “We had three horrible months for felt this in the shortage of truck parts.
and has learned a lot of difficult jobs. revenue and miles,” Barr said. According to trucking industry news
“And she still likes it,” he said. Then business picked up again, and source Transport Dive, some carriers
“She’s been committed 100% the whole the company came back strong. are resorting to scouring eBay, Craig’s
time. She’s got her sights set on doing “About the only thing out there List or remote supply shops for parts
more in the future as far as getting into trucking for a while was food and neces- that are currently unavailable through
administration.” sities,” Barr said. “When that consumer their regular suppliers. The USDOT has
Son Jack is carving out his own demand hit and people started ordering enacted a number of initiatives to speed
path as a filmmaker and recently gradu- everything, it got busy in a hurry.” up the movement of goods, but for the
ated from the University of Central Barr said he and Bozeman felt for- trucking industry, improvement cannot
Arkansas. While still a student, he tunate that not many of the company’s happen quickly enough.
began establishing himself as a Central drivers got sick, but because many of “It hasn’t gotten any better, and it
Arkansas filmmaker and served as an the office employees preferred to stay doesn’t seem like it has an end,” Barr
intern for the Arkansas Cinema Society. in the office rather than work at home, said. “Every time you turn around,
The Barrs are proud of all three of their the company experienced a number of there’s something else you can’t get.”
children for finding careers they are COVID cases in the office. This is especially bad for drivers
passionate about. More than two years later, sup- when it comes to breakdowns, he said.
ply chain shortages remain an issue Because there are not enough techni-
SADDLING UP THROUGH for JMB and the trucking industry cians and road response crews, drivers
HARD TIMES as a whole. In April 2022, the U.S. can be stuck on the dangerous side of
Throughout the trucking industry, Department of Transportation reported the road for extended periods of time.
companies continue to feel the effects signs of progress in the supply chain, When they do get to a shop, parts for
of the COVID-19 pandemic, and JMB is but it also pinpointed one continued repair are often in short supply with
no exception. About a month after lock- problem area: trucking capacity in the long wait times. As a result, drivers
36 Issue 3 2022 | ARKANSAS TRUCKING REPORT
know what we’re facing. High fuel
prices add pressure to everything. And
it doesn’t look like it’s going to get any
better. High fuel affects everybody. Not
“I HAVE A LOT OF just business owners. All Americans
PEOPLE DEPENDING have to be concerned about where this
may lead us.”
ON ME, SO WHATEVER I Along with shortages and rising
HAVE TO DO THAT DAY, fuel prices, operating and maintenance Innovative
I WANT TO DO MY BEST costs have also experienced unprec- Logistics
AT IT. I DON’T WANT edented increases in the industry. Solutions That
“I’ve never seen operating costs
TO BE IN A SITUATION escalate at the rate they have this
THAT I’M NOT PUTTING year than ever in the past,” he said. Keep Supply
OUT ALL THE EFFORT “Maintenance costs have skyrocketed. Chains Moving
There’s no way to budget for it.”
THAT I CAN.” And these astronomical cost
increases are sending shockwaves We’re a trusted
—MICHAEL BARR, JM throughout the industry. FleetNet advisor, and we see
BOZEMAN ENTERPRISES America reported a 20.4 percent repair-
PRESIDENT cost increase from 2020 to 2022. It’s the world through
enough for any business owner to your eyes. We’re
become discouraged and negative. But fueled by the simple
Barr said he and Bozeman have worked
hard to keep a positive outlook. notion of finding a
sometimes have to be transported to “We don’t have a choice,” Barr said. way to get the job
another truck, or their families have to “You’ve just got to have courage. You done, no matter what.
pick them up. This continues to be an have to saddle up even when you don’t We leverage our full
industry-wide problem, he said. want to. As an owner, you want to set
Another issue affecting the truck- that example. If we got negative and suite of shipping and
ing industry is rising fuel costs. JMB is pessimistic, employees would sense it. logistics solutions to
primarily a contract carrier, so the fuel They would see it in my face and hear meet your most
surcharge takes a lot of the burden of it in my voice. So we have to stay posi- critical needs, each
increased costs away from the company, tive.”
Barr explained. But rising fuel costs This is why Barr keeps that piece and every day.
still affect everything. Deadhead miles, of cowboy wisdom close to his heart: Welcome to ArcBest.
also known as the “empty” miles trucks “Worrying is like paying on a debt that
drive after delivering a shipment or will never come due.” arcb.com
when the driver is returning home, can Like anyone leading a company in
add up quickly for a company like JMB, a tough economic climate, Barr takes
which primarily operates in the south- each day as it comes. His business is
east and southwest U.S. with routes philosophy is simple: He tries to do his
stretching from the Rocky Mountains best every day.
in the west to the Carolinas in the east.
In 2021, Express Freight Finance found PRIDE AND GRATITUDE
that deadhead miles can amount to “I have a lot of people depending
15–30% of rolling miles annually per on me, so whatever I have to do that
truck. day, I want to do my best at it,” he said.
“There’s no surcharge for deadhead “I don’t want to be in a situation that
miles,” Barr said. I’m not putting out all the effort that I
“Drivers look out for the can.”
companies’ fuel in a lot of ways,” Barr While focusing on each day, Barr
said. “They see those huge numbers also keeps an eye on the future. In
when they fill those trucks up, so they
ARKANSAS TRUCKING REPORT | Issue 3 2022 37
terms of company growth, he doesn’t
really think about a specific fleet size.
Instead, he thinks about growing the AT A GLANCE:
company to what his employees and
customers need. FAMILY: Liz (wife of 30
“We’ve got a lot of great people years), Madison (27), Jack
who have been with us most of the time (24) and Casey (24)
that I’ve been here at JMB,” he said.
“They deserve opportunities for growth. FAVORITE OUT-OF-
We want to be able to grow enough that OFFICE ACTIVITY:
those opportunities present themselves. Being on the ranch
If we can help them reach their goals, FAVORITE MOVIE:
other growth in the company will take Smokey and the Bandit. That
care of itself.” movie helped me realize how
Most of all, Barr is proud. He’s passionate I was about the
proud of JMB, proud of his 30-year beauty of trucks and truck
driving.
marriage and proud of his children
and their accomplishments. Whether FAVORITE MUSIC:
Barr is in the office in Clarksville or Country, but I like a lot of
Malvern, checking on his cattle or variety.
interacting with his company’s drivers, FAVORITE VACATION
he’s grateful. SPOT: The beach
“I just try to do my best,” he said.
“I try to live every day to the fullest, FAVORITE FOOD: Mexican
and I’m thankful for every day.” ATR
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38 Issue 3 2022 | ARKANSAS TRUCKING REPORT
DIY Supply
How two companies are building their own workforce
and equipment supply to address industry shortages
“IT REALLY SERVES TWO PURPOSES. FIRST, THE
INITIATIVE INCREASES OUR APPLICANT POOL AS
IT RELATES TO GENERATING THE NUMBER OF
APPLICANTS WE WILL NEED TO SOURCE OUR FLEET
FOR THE YEARS TO COME.
—JEFF HAMMONDS, WALMART TRANSPORTATION, VICE
PRESIDENT OF FLEET OPERATIONS
XPO worker in Searcy manufacturing
plant And as attention-grabbing as that chain associates in Delaware and
is, the company’s other initiative is even Texas. Instructors have been recruited
By Dwain Hebda more intriguing. The firm launched an from the company’s driver ranks and
Contributing Writer internal CDL driver training program, trained specifically for the classroom.
the first in its history. Hammonds said this helps ensure not
In the midst of worsening truck “It really serves two purposes,” only job skills, but also that the com-
driver and equipment shortages, truck- said Jeff Hammonds, Walmart’s vice pany’s safety culture is engrained in
ing companies have had to think president of fleet operations. “First, the each student.
creatively as never before about how initiative increases our applicant pool “With our Walmart drivers, safety
to keep the doors open and trucks roll- as it relates to generating the number has always been top of mind,” he said.
ing to deliver the 75% of the nation’s of applicants we will need to source our “As recently as May, the Arkansas
goods the industry now handles. fleet for the years to come. Trucking Association recognized our
Two companies with deep ties to “Second, it provides career path- Arkansas drivers for their work in safe-
Arkansas — Walmart and XPO — are ing for associates who want to grow. ty, and one of our drivers, Wyatt Jepsen,
standouts in this effort. Most of our store managers started as was recognized as Arkansas’s Driver
hourly associates. Many of our manag- of the Year. So far this year, six other
INNOVATION FROM A ers working in our distribution centers Walmart drivers across the nation have
GLOBAL GIANT started on the floor as hourly associ- received the same Driver of the Year
Walmart announced this spring ates. The introduction of our Associate designation in their respective states.
two initiatives to increase the number to Driver initiative provides our people “In addition, we are a multiple-
of drivers in its fleet. The Bentonville- with a path to the Walmart driver posi- time winner of the American Trucking
based global retailer raised driver pay in tion, one of the best driving jobs in the Associations’ Safest Fleet award and
April, announcing first-year drivers can industry.” all of that is a credit to our drivers and
now make up to $110,000 while more The new Private Fleet Development their commitment to safety.”
seasoned drivers can earn even more Program is a 12-week course, ini-
depending on location. tially targeting Walmart’s supply
ARKANSAS TRUCKING REPORT | Issue 3 2022 39
ment and parts. But on one measure-
ment — trailers — the company has a
secret weapon that helps it stay clear of
long wait times and accelerated cost of
new models. It manufactures and refur-
bishes its own trailers in-house, at its
facility in Searcy.
“The pandemic had a tremendous
impact on labor and the availability of
raw materials, which has limited the
number of trailers added to the indus-
try,” said Kevin Sterling, senior market
strategist for the Connecticut-based
company. “The equipment manufactur-
ers are still constrained, even though so
far this year has been better than last
XPO worker in Searcy manufacturing plant
year. Specifically for trailers, we have a
competitive edge, because we produce
Hammonds said the program not We are proud of the driving jobs them right in Searcy.”
only focuses on the current need for we offer, and it’s helped us attract and While that decision stands out as
drivers — which he said numbers about retain drivers”. innovative for most in the industry, it's
5,000 positions — but helps the company “Understanding that the industry actually business as usual for XPO, in
plan for future growth in freight vol- faces pressure and that that’s probably a manner of speaking. The Searcy facil-
ume, training locations and even truck- been part of the industry’s environ- ity was operated for years by Con-way,
ing routes. ment for a very long time, we are taking which during its history built not only
“Most of our drivers are on a five- these steps to make sure we are creating its own trailers but its own trucks under
day schedule and they move within a a driving job that’s compensating our the Freightliner brand, sold to Daimler
region of a few distribution centers,” drivers well and doing the things that AG in 1981.
he said. “And most of that is delivering build the kind of pipeline that we need When XPO acquired Con-way in
freight to our stores and then picking to source our fleet.” 2015, it was an asset-light company,
up backhauls back to the distribution Hammonds said producing new more focused on hauling than
center. Optimizing that work is very drivers is only part of the picture. The equipment. But company leadership
important to us. other is retaining them as career work- quickly recognized the Searcy facility as
“That said, we are also developing ers, something he says goes well beyond an asset.
capacities that will allow us to do more mere pay. “We came to understand pretty
long-haul work in the team driver space “I would tell you the thing that is quickly after the acquisition that being
to support the flow of grocery merchan- constant year to year is drivers just want able to make our own trailers gave
dise from the West Coast to the East to be listened to,” he said. “They want us a competitive advantage, thanks
Coast. That body of work serves as an to know somebody is working on their to a great process and great people,”
example of the expansion of our mis- behalf and advocating for them. That Sterling said. “Our team in Searcy
sion.” is really it. It is about creating a driv- has helped XPO win the Safest Trailer
Just unveiled this spring, the pro- ing job that includes a culture that is Manufacturer award from the Truck
gram has received a strong response, attractive. We like to think when we are Trailer Manufacturers Association six
Hammonds said. He added Walmart hiring a driver, we’re hiring him or her times since 2004. It’s a true testament
has always been a preferred employer for life. Once you have a good profes- to our employees, our commitment to
among drivers, and this program will sional in a position and they grow and each other and our focus on safety.”
help the company maintain that reputa- develop in that position, their perfor- In 2022, the news surrounding
tion going forward. mance and commitment are just going trailer manufacturing has become more
“We’ve been successful this past to get better and better.” grim by the month. In February, ACT
year; we added approximately 4,500 Research reported, U.S. trailer orders
drivers last year and we’re up to 12,500 BUILT FROM THE GROUND UP were 26,500, on the heels of 26,595
drivers overall,” he said. “We want to Like all trucking companies, XPO net orders in January and 26,382 in
position ourselves as being a preferred Logistics has faced stiff headwinds December. Meanwhile, backlog volume
job in the industry. when it comes to securing new equip- hit the high 190,000s with build rates
40 Issue 3 2022 | ARKANSAS TRUCKING REPORT
Walmart’s Private Fleet Development
Program prepares potential employees
from warehouse or store positions for
road-ready roles
help grow our fleet by doubling trailer
production versus 2021. By doubling
production from last year, we'll be
inserting approximately 4,800 new
units into our network in 2022.”
The 210,000-square-foot Searcy
plant, which turns out 28-foot pups up
to 57-foot city vans as well as straight
trucks and converter dollies, has made
other adjustments beyond just expand-
ing its production capacity.
“This is the first year we're not sell-
ing trailers to third parties, even though
beat-up, used trailers are going for
elevated prices because of production
“THE PANDEMIC HAD A TREMENDOUS IMPACT ON delays with the equipment manufactur-
LABOR AND THE AVAILABILITY OF RAW MATERIALS, ers,” Sterling said. “We’re putting all
WHICH HAS LIMITED THE NUMBER OF TRAILERS our units into our own network.”
In addition to reduced build times,
ADDED TO THE INDUSTRY. THE EQUIPMENT Sterling listed other benefits of build-
MANUFACTURERS ARE STILL CONSTRAINED, EVEN ing in-house. Recycling and refurbish-
THOUGH SO FAR THIS YEAR HAS BEEN BETTER THAN ment of parts save half the cost over
LAST YEAR. SPECIFICALLY FOR TRAILERS, WE HAVE new while allowing for tighter quality
control (trailers are spec’d for a 14-year
A COMPETITIVE EDGE, BECAUSE WE PRODUCE THEM lifespan) and the ability change specs
RIGHT IN SEARCY.” on a dime.
It also allows XPO to maintain
—KEVIN STERLING, more control over wildly fluctuating
XPO LOGISTICS, SENIOR MARKET STRATEGIST raw material availability and cost.
“No company is immune from
those raw materials issues; we’d like to
think we’re managing it better than
at that time taking more than eight 2015 could have predicted how well the most,” Sterling said. “While our suppli-
months. decision to keep Searcy open and run- ers are experiencing delays due to these
The situation has grown so dire ning would pay off in 2020, today the shortages, we’ve been able to forecast
that manufacturers have steadily facility is one-of-a-kind among XPO’s our production a year in advance. This
increased their grip on controlling how peers. is a real advantage for suppliers to
many orders they will even accept this “In January 2022, we added a sec- source and secure raw materials.”
year. By April, Transport Topics reported, ond production line to work evenings. The plant employs about 150 with
orders placed for 2023 were largely on Prior to adding the additional capacity, the company aggressively looking for
hold over supply chain uncertainties we processed an average of 3,300 trail- additional manufacturing talent. XPO
and labor scarcity. ers per year. It’s a combination of trail- has held multiple job fairs seeking weld-
Given all of that, it doesn’t take a ers built from scratch and refurbished,” ers and technicians to help bolster the
rocket scientist to see the value of an Sterling said. workforce and continues to do so.
operation like the Searcy plant, XPO’s “The additional trailers flowing “We’re not aware of any other LTL
only trailer manufacturing facility into the network have allowed us to carrier with its own trailer production
which is supported by a growing num- retire old or damaged trailers faster capabilities,” Sterling said. “It really sets
ber of company-owned maintenance and keep our fleet in top condition. us apart. Our trailer production capac-
shops nationwide. And while no one in This investment in our equipment will ity is a big competitive advantage. ATR
ARKANSAS TRUCKING REPORT | Issue 3 2022 41
ATRI Study: Actually, Electric
Trucks Not ‘Zero Emission’
New research reveals today’s electric vehicles bring
a lot more challenges for only a little less carbon
By Steve Brawner
Contributing Writer
There’s no such thing as a zero-
emission truck. In fact, electric
trucks only reduce carbon dioxide
emissions by 30% over diesel once the
amounts produced during the truck
manufacturing and disposal processes
are included.
Meanwhile, expanded use of pure
biodiesel and renewable diesel would
result in larger near-term emissions
reductions and wouldn’t require such
radical changes in carriers’ business
models. truck into account — including truck ATRI projected that the production
Those were some of the findings production, electricity production, and of battery electric trucks would
of a new report released in May by the disposal and recycling — battery electric produce 2.065 million pounds of
American Transportation Research vehicles would reduce carbon dioxide carbon dioxide over the lifetime of the
Institute titled, “Understanding the emissions by only 30% compared vehicle. That’s caused in part by the fact
CO2 Impacts of Zero-Emission Trucks.” to diesel trucks. Fuel cell electric that two batteries, the original and a
vehicles, which power the truck using replacement, would be required to travel
LIFE CYCLE OF AN ELECTRIC hydrogen stored onboard in large tanks 1 million miles. Almost as much carbon
TRUCK FROM MINERAL MINE TO to produce electricity, would reduce dioxide — 1.932 million pounds — would
RECYCLING PLANT emissions by 44.6%. be emitted in the production of a fuel
Neither electric nor hydrogen fuel Over the truck’s entire life cycle, cell electric vehicle. Those numbers
cell electric trucks emit carbon dioxide diesel trucks produce an average of would be roughly four times the 511,655
from the tailpipe, which is why they are 3.7 million pounds of carbon dioxide. pounds emitted during the production
called “zero-emission trucks,” or ZETs. Battery electric vehicles would produce of a diesel truck
In contrast, the average diesel Class 8 2.594 million pounds. Hydrogen fuel Another 48,255 pounds of
sleeper cab emits more than 3.1 million cell vehicles would produce 2.051 greenhouse gases would be emitted
pounds over 1 million miles. That’s million pounds. when lithium-ion batteries are recycled.
what the report assumed was the usable Emissions of greenhouse gases Mining for raw materials
life of a truck. such as carbon dioxide trap heat in the causes much of the emissions in the
But ATRI found that, when taking atmosphere, resulting in changes to the production of electric trucks, and also
the entire life-cycle of an electric climate. has other downsides. Lithium-ion
42 Issue 3 2022 | ARKANSAS TRUCKING REPORT
maximum allowable weight would have
to use more trucks, increasing emissions.
A small number of electric heavy-
“IT SEEMS AS THOUGH POLICIES ARE BEING CREATED duty trucks are on the road today, while
TO CHECK A BOX OR APPEASE A CERTAIN PORTION hydrogen fuel cell trucks will not be
commercially available for two or three
OF THE POPULATION WHO PERCEIVES SOMETHING years. Much remains unknown about
THAT MAY OR MAY NOT BE TRUE AS FAR AS THE their actual performance once used in
ACTUAL IMPACT OF FORCING THE INDUSTRY TO mass quantities.
MOVE TO ELECTRIC TRUCKS.” BETTER OPTIONS AND POLICIES
TO REDUCE EMISSIONS
—SHANNON NEWTON, The report notes that improvements
ARKANSAS TRUCKING ASSOCIATION PRESIDENT can be made to electric trucks that
would allow batteries to store more
energy, weigh less and last longer –
reducing their life-cycle emissions. As
batteries can require lithium, graphite, The report notes that a move to U.S. electricity producers lessen their
cobalt, manganese and nickel, almost ZETs would come at a significant cost to emissions per kilowatt-hour, the total
none of which are currently produced trucking companies. While diesel trucks amount of carbon associated with
in the United States. cost $135,000 to $150,000, battery electric trucks should fall as well.
Instead, 82% of the world’s graphite electric Class 8 trucks can cost as much Likewise, the technologies for
and 14% of the world’s lithium are as $450,000, and fuel cell trucks cost producing hydrogen used in fuel cell
produced in China. The United States $200,000 to $600,000. Moreover, vehicles could improve so that less
does have significant lithium reserves hydrogen isn’t cheap. carbon dioxide is emitted. In particular,
but has only one large mine. It instead But the sticker price isn’t the a process that is being researched
relies on Latin America or Australia only source of increased costs. ZETs known as solar-based high-temperature
for the raw material and China and will require a new fueling approach steam electrolysis theoretically could
other Asian countries for battery cell and changes to trucking’s operational reduce carbon dioxide emissions by
production. China is the world’s lithium structure because of decreased range. more than 91%.
battery production leader, with more ATRI is preparing another report about Meanwhile, biodiesel and
than 90 battery cell manufacturing the infrastructure needed to charge renewable diesel vehicles are already in
facilities compared to four in the United trucks nationwide and about the use and could greatly reduce emissions
States. Likewise, 70.5% of the world’s electricity sector’s capability to meet the without requiring an entirely new
cobalt is produced in the Democratic trucking industry’s needs. fueling infrastructure or radically
Republic of Congo, which like China There are other challenges changing the way trucking companies
has serious human rights concerns. associated with electric trucks. Batteries do business.
take longer to charge and have less Biodiesel is manufactured from
THE COST, DOWN TIME, WEIGHT range in cold weather, and they degrade feedstock such as vegetable oils and
The move to zero-emission trucks faster at higher temperatures. Use of an animal fats that are either blended
is being both incentivized and required air-conditioner or heater by the driver with petroleum-based diesel or used in
by government agencies. The California reduces their driving range considerably. pure form. Biodiesel is already used in
Air Resources Board’s (CARB) Advanced The batteries would have to weigh more the United States. In 2019, 1.8 billion
Clean Trucks rule requires medium- than 17,000 pounds to ensure the truck gallons were consumed in the United
and heavy-duty manufacturers to could travel 500 miles on a charge, States, a not-insignificant percentage
sell increasing percentages of ZETs. reducing available cargo weight. At the of the 36.5 billion gallons of diesel
Seventeen states have signed a moment, no known Class 8 electric fuel consumed overall. Pure biodiesel
memorandum of understanding that trucks reach more than 300 miles per over its life cycle produces 72.4% lower
likewise would set ZET quotas for charge. The report says a long-haul diesel emissions than petroleum-based diesel,
manufacturers starting in 2030. CARB tractor weighs 18,216 pounds, while the downsides being that it doesn’t
has also drafted an Advanced Clean a battery electric truck would weigh perform well in cold weather, and it
Fleets rule requiring motor carriers to 32,016, with some savings achieved affects truck warranties. Most biodiesel
begin buying an increasing percentage through the lack of a powertrain. is consumed as part of a blend.
of ZETs starting in 2025. Carriers operating closer to the
ARKANSAS TRUCKING REPORT | Issue 3 2022 43
Arkansas Trucking Association is awarding for graduating high school
seniors who will be attending a truck technician medium and heavy duty program at an Arkansas
institution.
Technicians are responsible for ensuring the equipment that moves our economy are safe, efficient
and dependable. Truck technicians inspect, diagnose and perform routine maintenance and repair
of any equipment with a hybrid, electric, LNG, CNG or diesel engine. The industry is facing a short-
age of technicians, and unlike some careers, this is not a job that can be exported overseas.
Learn more about investing in technical careers to maintain the trucks and trailers of the future.
You can be part of funding scholarships for the next generation of technicians.
Visit www.arkansastrucking.com/tech-scholarship for more information.
In an appearance on Fox Business
March 12, American Trucking
“THAT TRANSITION’S GOING TO HAPPEN. IT’S Associations President and CEO Chris
JUST NOT GOING TO HAPPEN TOMORROW. THIS Spear said electric vehicles will not
IS NOT ABOUT RAINBOWS AND UNICORNS. THE solve America’s rising inflation and
AVAILABILITY OF ELECTRIC CARS, IF YOU WANTED increasing supply chain problems. He
called for a “realistic domestic policy”
ONE, YOU’D BE WAITING MONTHS. WE’VE GOT A that includes increasing oil leases,
BACKLOG ON BATTERIES, AND A SHEER LACK OF THE exploration and production.
ABILITY TO CHARGE THIS EQUIPMENT, NOT JUST “That transition’s going to happen.
CARS BUT TRUCKS.” It’s just not going to happen tomorrow,”
he said. “This is not about rainbows
and unicorns. The availability of electric
—CHRIS SPEAR, AMERICAN TRUCKING ASSOCIATIONS cars, if you wanted one, you’d be
PRESIDENT AND CEO waiting months. We’ve got a backlog on
batteries, and a sheer lack of the ability
to charge this equipment, not just cars
Another alternative is renewable build them into their freight networks. but trucks.”
diesel, which also is made from Newton said the study shows that Even if a truck fueling technology
vegetable oil and animal fat sources. policies incentivizing biofuels and greatly reduced emissions in a cost-
Almost 1 billion gallons are consumed other power sources could be at least effective manner, it wouldn’t be enough
annually in the United States, but that as good as electrification. There aren’t to protect the environment by itself.
number could increase to 5.1 billion enough electric trucks on the market to Medium- and heavy-duty trucks were
gallons by the end of 2024. It produces replace diesels, and there’s not enough responsible for only 7% of the country’s
68.7% lower emissions than diesel electricity currently being produced to greenhouse gas emissions in 2019.
consumed in an internal combustion power the trucks. Overall, the transportation sector was
engine. “It seems as though policies are responsible for 29% of greenhouse
Finally, there’s natural gas. There being created to check a box or appease gases, with electricity generation second
are already 175,000 natural gas vehicles a certain portion of the population who at 25% followed by industrial (23%),
in the United States, most of them perceives something that may or may residential/commercial (13%) and
commercial motor vehicles. These not be true as far as the actual impact agriculture (10%).
produce 27.8% lower carbon dioxide of forcing the industry to move to Medium- and heavy-duty trucks
emissions over the lifetime of the truck electric trucks,” she said. were responsible for 24% of greenhouse
than diesel engines, or 1 million fewer Newton noted that past government gas emissions in the United States
pounds of carbon dioxide. regulations forced truck manufacturers produced by the transportation
To produce its report, ATRI used to transition to new equipment before industry. Light-duty vehicles were
data from the GREET (Greenhouse the technology was ready. Trucking responsible for 58%, and they were
gases, Regulated Emissions, and Energy companies paid a heavy price by having responsible for 17% of the country’s
use in Technologies) model developed by to buy more expensive engines that overall emissions.
the U.S. Department of Energy Argonne didn’t always work. Motor carriers are Newton noted that trucking is
National Laboratory, and other data willing to move to cleaner-burning agnostic about what kind of fuel it uses.
sources. engines, but it must make sense. “The industry is going to find
Arkansas Trucking Association “Historically, the industry the most cost-effective and efficient
President Shannon Newton said for has proven that we intend to be mechanism to fuel their fleet,” she said.
ATA’s members, a switch to electric good partners when it comes to “And if that turns out to be biofuels or
trucks for over-the-road, irregular the environment, and that it is our if it turns out to be electrification or
routes “still feels like it’s really far ambition to be able to deploy equipment if it turns out to be some combination
away.” Larger carriers are experimenting that is environmentally friendly,” she of all three across different service
with the technology, but it’s not cost- said. “But there is a balance between networks, the industry has a vested
effective for many mid-size fleets. Even what is environmentally friendly and interest in finding that solution.
if the infrastructure and charging what is economically viable. Sometimes “And those that do it well will be
stations were available — which they’re the regulators get a little bit out in front rewarded with success, and those that
not — carriers can’t acquire electric of themselves, a little bit over their don’t will fall by the wayside.” ATR
trucks at their current high cost and skis.”
ARKANSAS TRUCKING REPORT | Issue 3 2022 45
Game Plan for Success
Recap of the 2022 ATA Annual Conference & Vendor Showcase
Arkansas Trucking Association
celebrated 90 years of trucking in the
state at its annual business conference
and vendor showcase in Hot Springs on
May 11-13. This year’s schedule included
six forums, the election of new board
members, two luncheons with special
guests, networking opportunities and
featured speaker Gus Malzahn, the
championship-winning college football Guest Speaker Gov. Asa Hutchinson Gov. Asa Hutchinson, ATA’s 2022
coach. The event attracted 298 attend- recounted the wins he has claimed for Driver of the Year Wyatt Jepsen (Walmart
ees, representing 128 companies to the infrastructure and the business com- Transportation) and Shannon Newton
(ATA)
Hot Springs Convention Center. munity in Arkansas throughout the
Wednesday morning began last 8 years he served as governor and
with the opening of the 2022 vendor he congratulated the ATA membership
showcase and networking opportu- and the winners of the safety awards
nity — Lattes with Law Enforcement. for also serving the state safely and reli-
Attendees were invited to meet new ably and delivering wins to communi-
Arkansas Highway Police Chief Jeff ties throughout the hardships of the
Holmes along with other law enforce- pandemic, supply chain challenges and
ment and compliance representa- rising fuel costs.
tives from Arkansas Highway Police After lunch, ATA Chairman
and the Federal Motor Carrier Safety Mark Morris, president of Morris
Administration. Transportation Services, and Newton
The official kickoff began with ATA delivered reports on the state of the
president Shannon Newton welcom- association’s finances, membership,
ing attendees to the awards luncheon workers’ compensation, governmental
to recognize the winners of the 2021 affairs and councils. The business meet-
Corporate Fleet Safety Awards. Winners ing concluded when Morris announced
included Driver of the Year, Wyatt Jeff Loggins, president of Jonesboro-
Jepsen of Walmart Transportation, LLC based Loggins Logistics, as the next
and Safety Professional of the Year, chairman. Other new Board members
Russ Curbo of Lew Thompson & Son were also ratified: Neil Corder, presi-
Trucking. FedEx Express received the dent of Wayne Smith Trucking, filled
overall grand champion award with the vacant at-large position, and Todd Coach Gus Malzahn (University of
over 9 million miles on Arkansas high- Venable, branch manager of MHC Central Florida)
ways and no DOT accidents all year.
46 Issue 3 2022 | ARKANSAS TRUCKING REPORT
AWARD RECIPIENTS
2021 DRIVER OF THE YEAR GENERAL COMMODITIES–
WYATT JEPSEN LTL DIVISION
Walmart Transportation, LLC Intermediate Carrier:
AAA COOPER TRANSPORTATION
2021 SAFETY PROFESSIONAL Dothan, Ala.
OF THE YEAR Large Carrier:
RUSS CURBO
Lew Thompson & Son Trucking OLD DOMINION FREIGHT LINE, INC.
Thomasville, N.C.
CORPORATE FLEET SAFETY AWARDS
Grand Champion PRIVATE CARRIER DIVISION
Large Carrier:
FEDEX EXPRESS
Little Rock, Ark. WALMART TRANSPORTATION LLC
Bentonville, Ark.
Billy Joe Arie (Bill Davis Trucking,
Inc.) with Corporate Fleet Safety Award TRUCKLOAD– TANK TRUCK DIVISION
FLATBED DIVISION Small Carrier:
Small Carrier: SOLAR TRANSPORT COMPANY
NEW SOUTH EXPRESS West Des Moines, Ill.
Myrtle Beach, S.C.
Intermediate Carrier:
Intermediate Carrier: GROENDYKE TRANSPORT, INC.
WAYNE SMITH TRUCKING Enid, Okla.
Morrilton, Ark.
Large Carrier: SMALL PACKAGE DIVISION
MAVERICK TRANSPORTATION LLC Large Carrier:
North Little Rock, Ark. FEDEX EXPRESS
Little Rock, Ark.
TRUCKLOAD–
VAN & REEFER DIVISION
Small Carrier:
Mark Morris (Morris Transportation BILL DAVIS TRUCKING, INC.
Services) thanks Ross Hoover (Rush Truck Batesville, Ark.
Centers) for his service as the 21-22
Maintenance & Technology Council Chair Intermediate Carrier:
BOWERMAN TRUCKING, INC.
Searcy, Ark.
Large Carrier:
USA TRUCK, INC.
Van Buren, Ark.
Steve Baker (FedEx Express) with the Grand
Champion Corporate Fleet Safety Award and the
Small Package Division award
Safety Professional of the Year Russ Sergeant Robert Johnson (Arkansas
Curbo (Lew Thompson & Son Trucking) Highway Police), First Lt. Brad Perkins
with Shannon Newton (ATA) (Arkansas Highway Police) and Ray
Reynolds (RBFT, Inc.)
ARKANSAS TRUCKING REPORT | Issue 3 2022 47
Kenworth in Little Rock, Ark., will fill
one of two 2-year allied positions. Brad
Hicks will replace Craig Harper, who
has represented J.B. Hunt Transport
Services on the ATA board of directors
since 2009.
American Trucking Associations’
Chairman Harold Sumerford, CEO of
J&M Tank Lines, took the stage for the
first forum sharing his experience as
“Trucking’s Team Captain.” Sumerford
talked about the issues on trucking’s
radar and which ones the national
trucking group has prioritized during Author Ken Gronbach (KGC Direct LLC)
his tenure. Sumerford also talked about
his personal experience with grow-
ing cybersecurity threats. In 2019, his
company was attacked twice. After get-
ting his main systems back online and
working with the FBI, his cybersecurity ATA’s Shannon Newton
budget went from $0 to $85,000 annu- welcomes attendees to the 2022
ally. The attacks cost him $325,000 in Annual Business Conference &
downtime and other complications. He Vendor Showcase
now encourages carriers to invest in
securing their operations.
Then, demographer Ken Gronbach
presented insights from his most recent
book Upside: Profiting from the Profound American Trucking Associations’
Demographic Shifts Ahead about the Chairman Harold Sumerford (J&M Tank
populations around the world, why the Lines)
U.S. is positioned for cultural and eco- Dr. Alex Leslie (American
nomic excellence and how workforces Transportation Research Institute)
are changing. At the conclusion of his
presentation, Gronbach met attendees
for the Happy Hour Huddle to answer Tyler Majors (PAM Transport), Mike
questions and autograph books. McNutt (Distribution Solutions, Inc.), Al
This year’s event was made possible Heringer IV (Star Transportation), Mark
Morris (Morris Transportation Services),
by 16 gold sponsors and 20 silver spon- Joe Vitiritto (PAM Transport) and Alan
sors. An exclusive Gold Sponsor recep- Riels (Dedicated Logistics)
tion was held Wednesday night at The
Reserve — once the iconic W.C. Brown
House, a former private mansion and
national heritage landmark, that has
been restored and operates as a bou-
tique hotel overlooking Oaklawn.
Silver sponsors hosted Thursday
morning’s Breakfast of Champions,
where attendees fueled up before the
Day 2 forums.
In the first three forums of the day,
the stage was set for calculations from a
roster of expert speakers.
48 Issue 3 2022 | ARKANSAS TRUCKING REPORT
THANK YOU,
ATA CONFERENCE SPONSORS!
GOLD SPONSORS SILVER SPONSORS
ABF Freight
Aon
Bruckner’s Truck & Equipment
Bowerman Trucking, Inc. Carman, Inc.
Dedicated Logistics, LLC
CCMSI
Doggett Freightliner of ARkansas
Cummins Sales and Service Drivers Legal Plan
Fletcher, Farley, Shipman & Salinas, LLP
Dobbs Peterbilt of Little Rock Great West Casualty Company
FedEx Freight Kelly Anderson Group
McGriff
ISAAC Instruments Morris Transportation Services, LLC
J.B. Hunt Transport, Inc. Rich Logistics
Star Transportation, LLC
MHC Tenstreet
PAM Transport, Inc. TLG Peterbilt
TravelCenters of America
PrePass Tri-State Truck Center, Inc.
UCA College of Business
Rush Truck Centers
Wells Fargo Equipment Finance
Stallion Transportation Group ZF CVS North America LLC
Trimble Transportation
THANK YOU TO OUR 2022 VENDORS
Utility Tri-State, Inc. Bruckner’s Truck & Equipment
Walmart Transportation LLC Corporate Medical Services
Drivers Legal Plan
Drivewyze
Intellistop
Netradyne
Shannon Newton (ATA) moderates Governmental Affairs Luncheon Panel with NoCell Technologies, LLC
J.R. Davis (Gilmore Davis Strategy Group) and Blake Eddins (Eddins & Associates)
ORBCOMM
People. Data. Analytics.
PrePass
Purple Wave Auction
Ritchie Bros. Auctioneers
Taylor & Martin, Inc.
Thompson DOT Safety & Compliance
TravelCenters of America
Trimble Transportation
TVC Pro-Driver
Utility Tri-State, Inc.
ARKANSAS TRUCKING REPORT | Issue 3 2022 49
First, in Electrification Playbook, described the state’s efforts to address
Arkansas Secretary of Energy and labor concerns. Rice and Simmons
Environment Becky Keogh reported on both shared their personal experiences
the state’s investment in infrastructure training and hiring drivers in the worst
that will allow for greater adoption of driver shortage on record. Rice spoke
electric vehicles. Then Dr. Alex Leslie, about opening a driving school to cre-
American Transportation Research ate prepared professionals for his own
Institute, delivered the data from the fleet, and Simmons talked about Tyson’s
latest studies on insurance costs in participation in FMCSA’s Safe Driver
trucking and how carriers are reacting Apprentice Program. (Read more on
to exponentially rising costs. And Jack page 22).
Atkins, Stephens’ senior research ana- Finally, Gus Malzahn recounted
lyst and managing director of transpor- his path from Fort Smith, Ark., to
tation equity research, ran the numbers Arkansas High School Sports Hall of
on the greater economic landscape in Fame, recording five consecutive top-10
Wins and Losses: The 2022 Economic nationally ranked recruiting classes, Grady Phillips (Corporate Medical
Stat Sheet. (Read more about Atkins’ and coaching the Heisman Trophy win- Services) meets author Ken Gronbach
predictions on page 18). ner Cam Newton throughout his career (KGC Direct LLC)
At Thursday’s governmental affairs as a championship-winning college
luncheon, Blake Eddins, principal of football coach.
Eddins & Associates, and J.R. Davis, Mark Morris invited everyone to
partner of Gilmore Davis Strategy his final Chairman’s Tailgate, next door
Group and former communications to the convention center at Inside Track.
director for Gov. Asa Hutchinson, Coach Malzahn held a meet and greet
invited attendees to “Pregame the with guest and signed footballs to mark
Primaries”. They discussed the most the end of 2022’s official conference
competitive races, made predictions activities.
on which candidates would progress Sixty-two (62) players from 29
to the general election in November companies met Friday morning for
and talked about how the new district breakfast and the Spring Golf Classic
maps, drawn after the 2020 census, at the Hot Springs Country Club.
could shake up the Arkansas legislative Adam Kampbell (MHC), Clint Crossno Austin Godwin, Noah Bowerman
makeup. (Crossno Corp.), Joe France (Roadside (Bowerman Trucking) and Tim Green (TAB
After lunch, Jeremy Reymer, Properties) and Scott Barrett (Alpine Bank)
founder of DriverReach, moderated Electric) came in first
the Tackling Workforce Worries Panel place on the greens.
with Dr. Charisse Childers, director
of the Arkansas Division of Workforce
Services; Butch Rice, president of
Stallion Transportation and Patrick
Simmons, vice president
of transportation at
Tyson Foods. Childers
Terry Burnett,
Vicki Burnett (Twin
City Transportation)
and Danny Burnett John Dietze (BMO Transportation Finance),
(Cottingham & Butler) Daniel Smith (Utility Tri-State), Cody Mills (BMO
with Butch Rice (Stallion Transportation Finance) and John Paul Hart
Transportation Group)
(Utility Tri-State)
50 Issue 3 2022 | ARKANSAS TRUCKING REPORT
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