Page 21 - ATR 3 2016 web

Industry Victories and

Lingering Labor Woes

Amidst challenges, truckers enjoy success in D.C., safety

By Steve Brawner Pat Thomas, chairman PHOTO: Jon D. Kennedy
Contributing Writer of the American Trucking
Associations, speaks at
the Arkansas Trucking
The economy is sluggish and the Association Annual
driver shortage will only get worse, Conference in May
but motor carriers have enjoyed recent
successes in Washington and in their
safety efforts.
Those were some of the high-
lights of a presentation by Pat Thomas,
chairman of the American Trucking
Associations and senior vice president
for state government affairs for UPS, at
the 2016 Arkansas Trucking Association
Annual Business Conference & Vendor
Showcase in Little Rock in May.
Thomas said the motor carrier
industry faces a large inventory correc-
tion caused by overproduction, which
will slow future production until the
excess inventory is cleared out. Freight
volumes weakened in the latter part
of 2015. For contract freight, revenue
per mile grew in 2015. However, it also
weakened later in the year, and the spot outlook is good for U.S. factories over by saying, “The 30,000-foot level is that
market is very soft. Carriers are using the long term, manufacturing is soft at we’re growing at a disappointingly slow
fuel cost savings to increase driver pay the moment. The gross domestic prod- rate, and there’s nothing to signal that
and to replace their fleets. The indus- uct, which grew at 2.4 percent in both the near-term future, you know the 90
try has not reached its capacity that it 2014 and 2015, grew only .5 percent in days or 180 days, that that’s going to
had prior to the recession in 2008-09. the first quarter of 2016 but is expected change.”
Instead, capacity is increasing due to to grow 1.7 percent for the year and As discouraging as most of that
slower demand. 2.7 percent in 2017. The probability of news is, the motor carrier industry has
Overall, the economy is struggling a recession occurring during the next enjoyed a pretty good run recently in
to get out of second gear. The good news six months has increased by 25 percent, Washington. The biggest success was
is that job growth is solid, wages are though it’s still unlikely. the passage of the Fixing America’s
modestly increasing and low gas prices Surface Transportation Act, or FAST Act,
will encourage consumers to spend. But TRACKING SUCCESSES a five-year, $305 billion federal trans-
the economy is in the midst of a signifi- In an interview with Arkansas portation law that includes $225 billion
cant inventory correction, and while the Trucking Report, Thomas summed it up 

ARKANSAS TRUCKING REPORT | Issue 3 2016 21