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."