Tiki Loves DCS

The Tiki visited the DCS building in Lowell, AR and received a lukewarm welcome.  False idols are not always welcome in these parts. 

Tiki Loves NY

The Tiki's first stop was to visit the greatest city on earth....that is New York City.  In the background is the Empire State Building.

Intigral Tiki

The Hawaiian Tiki God of Money is thought to bring money and good fortune to whoever has it in their possession.  The Tiki has resided at Intigral in Walton Hills, OH for a good amount of time.  Rich Schwartz, our Account Manager, begrudgingly gave up the tiki for a 30 day tour around the region. 

We will start sending out updates on the travels of the Intigral Tiki as it makes it way across the Central region and back to Ohio.

Driver Pay Hikes

I found an interesting article in Transport Topics that I wanted to share about compensation for drivers.  Here are the high/low points:

• Most carriers believe there are very few quality drivers out there to hire.
• Most carriers don't believe raising pay will bring the number of drivers they would like to have.
• 3.7% of the 300 fleets that were measured raised pay in the past quarter.

Bill Graves, president of the ATA, said, "The fact is that driver pay, in terms of real wages, hasn't risen appreciably in 20 years. The pay-by-mile model will continue to grow more and more challenging due to declines in average length of haul and congestion."

Graves offered several options.  Incentives such as on-time delivery or meeting safety targets will have to be created, or the basis of our pay will have to shift to hourly.

Here are some opinions from competitors:

US Express---Our strategy is not necessarily raising pay for drivers as a whole.  Instead, we reward drivers for the the right behaviors such as safety and utilization.

NFI-------------Pay is based on specific accounts and geography.  100% of their jobs are dedicated.  Pay is adjusted based on services (unloading, etc) performed and seniority.

Here is an opinion from a consultant in the industry:

Fleets are buying capacity.  If you are going to grow as a fleet, you will have to take new CDL holders and do finishing training or a lease purchase program.

All interesting concepts in the ever changing world of driver compensation.    

Paint the town PPG

PPG Industries is keeping the Pittsburgh in its paint business, and that's good news locally.
The business that got its start as Pittsburgh Plate Glass has been de-emphasizing its glass and chemical units and expanding its coatings units, which include applications for industrial, automotive, aerospace and packaging uses. The architectural paints division will have its North American headquarters in Cranberry.
In selecting that setting, PPG is committing to real growth in southwestern Pennsylvania. In addition to 200 employees now assigned to offices Downtown and in the North Hills who will move there, 300 workers will relocate from facilities in Ohio, Kentucky and Delaware. They previously worked for the Dutch paints maker AkzoNobel, whose North American decorative paints unit was acquired by PPG earlier this year for $1.05 billion -- the second-largest acquisition ever for the Pittsburgh firm.
PPG has deep roots here, but Pennsylvania's gain was not based on history alone. Gov. Tom Corbett said that PPG is the beneficiary of a package of financial enticements from the state that includes a $1.25 million grant, $618,000 in tax credits for job creation, a $42,750 workforce training grant and a $2 million loan from the Pennsylvania Industrial Development Authority.
Critics who complain that such deals are a form of corporate welfare miss the new reality that these incentives have become essential tools in the tight competition for jobs. Fortunately, the region is the winner this time.

Trucking tonnage a record in August

Trucking tonnage reached a record-high 126.9 in August, according to seasonally adjusted data compiled by the American Trucking Association.
The association reported a 1.4 % increase over the previous month and a 6.9% jump from August 2012.  Tonnage, as figured by the association, is up 5% for the year, an increase primarily attributed to an uptick in manufacturing nationwide.  The automotive, energy, and construction industries were primary contributors to the increase. 

Increased trucking activity is generally viewed as a positive sign for the overall state of the U.S. economy.

ECF in the News

 

At Ellwood City Forge, General Manager Bill Nardone said the company has plowed nearly a half-billion dollars in funding back into upgrading and replacing obsolete equipment over the last five years, which means capital isn't a problem. The greater issue, Barensfeld said, is regulation.
Barensfeld, Nardone and Vice President Jeff Nystrom said that hydraulic fracture natural gas drilling has been a large part of Ellwood City Forge's business -- the company makes manifold parts for hydraulic fracturing pumps. Over the past year, orders for those steel fixtures have declined, largely because falling natural gas prices have made companies less willing to start drilling new wells.
Those drillers ordered more drill parts than they needed and are now working through their inventory, Barensfeld said.
Nystrom called on state -- and, by extension, federal -- authorities to create conditions conducive to mining and drilling.
"So much of our business is tied to energy," he said. "I think there are ways to use carbon-based energy effectively."

Christmas Creep for Retailers

Is it too early to be thinking about Christmas?

The answer is a resounded "no" for many national retailers, such as Kmart, which aired its first holiday ad in early September, and Walmart and Toys 'R Us, which have both begun to publicize its holiday layaway programs, according to the L.A.Times.

Retailers are planning to start the Christmas push even earlier this year with the hopes of drawing in better sales during the holiday shopping season, which accounts for 20 percent of total sales for the entire year, according to the L.A. Times.

Some forecasts call for an increase in holiday sales this year while others predict dismal growth. Deloitte LLP, a New York-based consulting firm, forecasts holiday sales to rise by 4.5 percent this year, which is similar to last year's gains, as joblessness decreases and home prices rise.

Reuters reports holiday sales in November and December are only expected to increase by 2.4 percent, which would be the lowest rate increase since 2009, according to a forecast by ShopperTrak.

Another reason for the earlier push, according to ShopperTrak, is the fact that there is one fewer weekend this year for holiday shopping — and six fewer days between Thanksgiving and Christmas, according to the Reuters article.

In addition, many retailers have had holiday decorations and wrapping paper on display for several weeks

Champions of Driver Appreciation

 

Here is what took place at Champion Windows in Cincinnati, OH:

 

Goody bags going out to the drivers throughout the week as they stop in. Thank you cards are also being mailed to their house.

J.B. Hunt vs. Werner

A new competition has begun in Morehead, KY.  Werner and J.B. Hunt will compete on Collision and Injury Free streaks.  That is a competition we can all support.

Driver Appreciation Week-The Toyota Way

With winter coming, Toyota Owensboro and Toyota Hebron teamed up to get the drivers fleece vests with the DCS logo on the chest. Also for driver appreciation week, the drivers are being treated to donuts for breakfast each morning and TY is cooking out Thursday for them to have lunch.
Bob Pratt is pictured above.

Driver Appreciation Week-A Picture Tells a Thousand Words

Here is a picture that tells you the type of attitude that Traci Kilger has at Niagara Sheets in North Tonowanda, NY.  Very, very impressive!

Driver Appreciation Week--Meuten is the Barber of Seville!

Drivers all were sent a handwritten thank you note to their home. Donuts and coffee were provided Tuesday 9/17. Wednesday 9/18 drivers were given a quality pen, air freshener, and a choice between a tool kit, aluminum clipboard, or an LED light equipped ball cap. Tony Lanning chose the ball cap, Debbie Meldon- tool kit and Todd Rivers chose the clipboard. Thursday 9/19 drivers will have pizza and wings at the account.. More pics to follow as events unfold.

 

 

Driver Appreciation Week - Depot to the rescue!

 

 

Day 1-

THD provided donuts, bagels and muffins along with a cooler of morning drinks for the drivers. Pictured above is Jack Newnam and below is Larry Blakley.

 

Driver Appreciation Week - Southern States Style!

This is a note from Jonathon Brand, our Account Manager for Southern States in Park City, KY

I thought I would share some driver appreciation week activities that took place today in Park City. The whole fleet was able to meet at Cracker Barrel this morning to enjoy a great breakfast. After the meal, each driver received a pair of vise grips and a screw driver set from Sears!

In addition, thank you cards were mailed out Monday morning and they should be receiving those today or tomorrow.

Attached is a group picture in front of the entrance to Cracker Barrel...

From left to right: Donnie Smith, Marcus Morgan, Wilson King, Lloyd Wilhoite, Charlie Short, and Tom Arthur

TRU-Ready for Holiday Season Surge

Toys“R”Us, Inc. today unveiled select key holiday initiatives at a special preview event in New York City with retail business reporters. Key takeaways include:

• The company has made a significant investment in Reinventing the Toy Box by generating a new and enhanced shopping experience in Toys“R”Us stores, expanding product categories that have experienced sales growth over the past few years, while reducing the space dedicated to those areas that have underperformed over time. Beginning this holiday season, Toys“R”Us will:
o Serve as THE Education Destination for kids, parents and teachers alike, offering exclusive learning products not widely sold by mass retailers.
o Capitalize on Construction by instating a “Shop within a Store” in approximately 300 of its locations, showcasing major construction brands, such as LEGO and Mega Bloks.
o Create an Experiential Tablet Destination in-store for kids and families, showcasing 25 tablets, including tabeo e2, which can be tested and engaged with.
• Its robust omnichannel capabilities will continue to enable customers to shop with “R”Us wherever, whenever and however they choose. This holiday season, shoppers will enjoy an improved wait time for “Buy Online, Pickup In Store” orders on Toysrus.com, expedited fulfillment time for “Ship to Store” purchases, secondary in-store pickup locations, and more.
• The company will roll out an aggressive marketing program this holiday, inclusive of personalized e-mail communications, as well as exceptional values and deals every day from now until Christmas. Its loyalty incentives will be enhanced throughout the holiday season, inclusive of a Friends & Family 20% coupon and an extra 25% bonus for “R”Us credit cardholders, among other programs.
The company is offering customers a number of compelling reasons to shop early this holiday season with a comprehensive package of valuable incentives designed to alleviate the stress of the last-minute hunt for gifts, including:
• Approximately 35 million Rewards“R”Us loyalty program members have the opportunity to earn 10% back, up to $100, on qualifying toy purchases through October 31. Better yet, these earnings will be delivered via an e-gift card with no exclusions in November – in time to complete their holiday shopping. Rewards“R”Us members who take advantage of layaway can also participate.
• Back by popular demand, FREE layaway will be offered through December 15 with no upfront service fee and no minimum purchase requirement. New this year, after an order is created in-store, subsequent payments can be made online at Toysrus.com.
• A series of new pricing initiatives, including the recently announced expansion of Price Match Guarantee, showcases the values we offer our customers daily on key items, removing any doubt that they’re getting a great deal.
• A new extended return policy allows customers to shop with even more confidence now for their holiday purchases, knowing they can make returns through January 25

National Truck Driver Appreciation-It is Upon Us

National Truck Driver Appreciation Week is when America takes the time to honor all professional truck drivers for their hard work and commitment in tackling one of our economy’s most demanding and important jobs. These 3.1 million professional men and women not only deliver our goods safely, securely and on time, they also keep our highways safe. They log close to 398 billion miles each year and in 2012 delivered 68.5 percent of the U.S. freight tonnage – or over 9.4 billion tons of freight.

L Brands up 2%

L Brands Inc.,formerly known as Limited Brands, reported a 2 percent rise in August 2013 comparable-store sales, compared with last year, with net sales advancing year-over-year to $704.7 million, from $665.6 million.
For the 30-week period, the firm recorded net sales of $5.49 billion, up 5 percent from the prior-year figure of $5.22 billion, with a comparable-store sales growth of 2 percent.

Central Region Promotion

This announcement went to the corporate personnel today.  I thought it was appropriate that our team would also get to congratulate our friend:


Please welcome Anthony Papio, our new P&G On Site Client Manager, to our P&G team. Anthony started training with me at P&G in Cincinnati this week, and he will be in our office to train starting mid next week.

Anthony joined JB Hunt in July of 2010 after graduating from Wright State University with a degree in Marketing.
Anthony has a wealth of experience to bring to our team as he has worked on site with Dedicated in several roles over the past three years at Home Depot as well as other key customers.

Anthony is looking forward to relocating to Cincinnati, OH for his new role of Client Manager for Procter and Gamble. I am confident that he will be a great addition to our team as we are looking to grow with P&G as one of our top accounts.

Frank Says.....................

Frank Blake, CEO of Atlanta-based retail giant Home Depot (NYSE: HD) predicted rising home prices would increase renovation spending Bloomberg reported Friday.
“As home prices go up, people start going, ‘OK, my house is now back to being a significant source of value for me,’” said Blake.
Although rising mortgage rates may potentially squeeze home sales, Blake said the company would benefit from a surge in private equity investment firms and investors renovating properties for rental.
On August 20, the company announced its second-quarter profit for 2013 had jumped 17 percent.

1,000 Days Injury Free

Aurora Parts did not just celebrate 1,000 days injury free. We did it in style. To show injury prevention does not just affect the business, but affects home life als,o this celebration was a family event. Account manager Tim Wilhelm had two goals in mind with putting this event together. First, he wanted to thank the drivers for there hard work and making this 1,000 days injury free. Second, Tim wanted to remind them why having 1,000 more day injury free means so much to each of them. Their families depend on each of them to achieve this new goal.

 

Fun was had by all as can be seen from the group picture of the drivers. Tim cooked up hamburgers and provided games and the opportunity to just unwind with family and friends.

A big thank you to all of the Aurora Parts team for setting and obtaining this goal of 1,000 days injury free. We can not wait for the 2,000 day injury free celebration.

Kudo's from our Clients

It is always rewarding to receive these notes from our clients.  This one is next level.  Our client sent us an e-mail on a fine job done by Mark Passantino, our Account Manager at Len-Co Lumber in Buffalo, NY.  Enjoy!

Mark always does a fine job of tactfully handling difficult customers, but today, he went way above and beyond the call of duty.

We had to switch out some incorrect product on a job-site, and, the driver ran into a very hostile (this is putting it very mildly) customer. I spoke with the customer via phone, the salesperson spoke to him via phone, and it just looked like the whole situation was headed for disaster. Mark sensed that his driver was in a bad situation, and that the entire "switch out" on-site was going to fail...instead of taking the easy way out and telling his driver to pack-up and come home, Mark started the process of speaking to the customer via phone, and eventually meeting the driver at the job-site to sort things out and successfully complete the delivery/pick-up.

This brief description hardly does justice to what Mark had to go through to satisfy OUR customer, and in the end, us at Len-Co (by successfully completing the switch out). He understood the importance of completing the delivery/pick-up, and was willing to go to great lengths to get the job done.

This was worth writing about, and making you aware of. Fantastic job on his part.

Take care, and talk soon,

Steve Coppola Jr.
Len-Co Lumber Corporation
1445 Seneca Street

Central Region New Employee Profile

 

Grant Dunivan began his career in transportation with J.B. Hunt at age 19, back in 1995 as a Night Automotive Dispatcher.  He moved to days a year later as the Chrysler Account Representative.  Grant has also served as the JC Penney project manager, Wal-Mart Account Representative Manager and then moved to the “LCG” division as Target Project Manager.

He left the company in 2002 to work in the refrigerated transportation sector ,but came back to JB Hunt in January of 2011 in the PCS division.

Born and raised in Northwest Arkansas, he and his family decided to move this past month when he accepted the role of Operations Supervisor for the Toyota account in Owensboro, KY.  He is now on site at Metalsa facility in Owensboro.

Grant is excited about this new opportunity with a top-notch account!

Value Delivery Activity - Intigral

Intigral came to Rich Schwartz-DCS Management and wanted us to get them a quote for an oversized machine from MN to OH. We were able to obtain a quote for $3600 cheaper then they were quoted.

 

Nice job saving our client considerable $$!

What is causing our Driver Shortage?

The ATA has long bemoaned the “driver shortage” that has left many rigs at major trucking companies sitting empty in a lot rather than hauling freight. According to the ATA in less than a decade the industry will be short approximately 300,000 drivers. While they acknowledge that this may be due in part to issues like CSA changes and Hours of Service regulation, they claim that two-thirds of the shortage will be caused by new industry growth and retirement.
“On average, trucking will need to recruit nearly 100,000 new drivers every year to keep up with demand for drivers, with nearly two-thirds of the need coming from industry growth and retirements,” said Bob Costello, the chief economist at the ATA.

Despite the ATA’s assertions that factors outside of their control are what’s causing a shortage of drivers, other experts seem to disagree. According to them, pay, equipment quality, and benefits like health services – all of which are controlled by carriers – would go a long way towards keeping drivers in their seats.
Dave Ross, managing director of the global transportation and logistics research group Stifel Nicolaus & Co, said that it is a question of pure economics. “If you pay them more money, you will get more drivers,” he said. “Our contention is that the driver pay right now for the industry is so far below market that a drastic increase is needed in order to attract anybody new. Increasing pay 5% is not going to solve anything. We think that driver pay needs to go up 40%-50% from where it is today to really attract anybody new into the industry.”
On top of the fact that better equipment quality is necessary for maintaining the safety of the driver on the road, Tyler LaBarge also points out that “trucks are in essence [truckers’] home on the road and so the better accommodations they have, the better they will feel.”