21 st Century Transportation & Logistics If you bought it a truck brought it
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1 21 st Century Transportation & Logistics If you bought it a truck brought it Presentation to Adams County Economic Development Houg Special Services, Inc. Jenyce Houg, CEO CMCA Greg Fulton, President July, 2012
2 Good Stuff - Trucks Bring It From diapers to satellite dishes, virtually everything we own, everything we eat, everything we wear, every material that goes into building our homes and offices all of it comes to us thanks to trucks and truck drivers. Last year, trucks transported more than 7.7 billion tons of freight.
3 90% of the manufactured freight commodities are transported by truck 79% of the communities in the Colorado are exclusively served by truck Trucking has a multiplier effect of three to four times
4 Trucking employed almost 90,000 people in out of 20 workers work in trucking related businesses Trucking pays almost $4.2 billion in wages There are 17,330 trucking companies located in Colorado, most of them small, locally owned businesses. (most have less than 10 employees)
5 Avg. salary for trucking jobs in Colorado was $46,730 in This is significantly higher than the state average. Wages are rising due to a shortage of qualified drivers, drivers earn wages of $50,000 to $100,000 annually Trucking Companies generate substantial tax revenues $$$ for local communities and state - not only directly but through their purchases from companies that support them Most trucking companies provide good benefits for their employees including health insurance, disability, and retirement options Trucking companies can significantly benefit economically disadvantaged areas (Many small towns in Utah, Nebraska, and Kansas are homes to some of the nation s largest trucking companies Trucking is a base industry that helps to mitigate economic swings Unlike some industries, trucking can t be moved off-shore or out of the country
6 Facts About Trucking and Warehousing in Adams County Two of the top 10 employers in Adams County and 14 of the top 25 are CMCA member companies involved in some form of transportation or distribution Transportation & Warehousing directly employs 9.5% of all the jobs in Adams County when support jobs and associated businesses are added, this easily translates to twice that number
7 Benefits Associated with Logistics Industry to Adams County Trucking company suppliers and vendors represent some of the greatest generators of sales tax to the communities and county Trucking companies in the county pay and provide benefits that exceed those of many other industries Creates opportunities for students and others to remain in the community and have a position in a stable and growing industry career young people in the county Creates growth by Business creates business Business creates employees Employees and business generate revenue
8 Sample of Vendors and Businesses that Support Trucking in Adams County Cumins RM Transwest Trucks Volvo Trucks of CO. Stewart and Stevenson TDS Tires Wagner Equipment McCandeless Int. Penske Truckstops of America CT Power Complete Fleet Center for Transp. Safety HUB Insurance GCR Tires Concentra Sapp Brothers CDL Companies Utility Trailers Beal Trailers
9 Sample of Trucking Companies in Adams County (also members of CMCA) UPS Houg Spec. Svcs. Navajo Express HVH Transportation RAC Transport American Furniture FedEx Western Distributing Graebel Relocation Westco Groendyke ABF US Transport YRC CAST Transportation Apex Transportation Acme Delivery Direct Transport UPS Waste Management Old Dominion Con-Way
10 Houg Special Services, Inc. Started Small Local Drayage Company, 5 trucks 100% Woman Owned & Family Operated Today, specialize in Over-the-road and Local Transportation, Container, Intermodal, Warehousing, Freight Consolidation, Cross-dock, Brokerage, Remote Agents, and specialized freight 100 Drivers, Owner Operators, Dedicated Carriers, 30 Office Personnel Office in Adams County for eight-years
11 Transportation & Logistics Employment Challenge - Awareness If you bought it a truck brought it Lack of awareness and education College often first introduction and offered as an elective Society has pushed college degrees vs. vocational trade Thus the result in the transportation industry 400,000 Driver Shortage and Expected to increase to 500,000 by 2014, per industry economist Noel Perry Fleet Managers Diesel Mechanics Safety Managers Driver Recruiters Brokers
12 Success Through Partnership Building Jobs for the Future in Adams County in Logisitics Work together on: Recruiting Job fairs Internships High school programs- Provide some vocational opportunities relating to the industry at the high school as well as fundamental business and work ethics Vocational schools Military Veteran Programs/ The Right Way! Changing Work Ethic Mentality
13 2009 was the best year in recorded history regarding the truck fatality rate with an truck safety with the lowest fatality of 1.17 in recorded history. This is a 74% decrease from 4.58 in 1975, the first year the USDOT began keeping records. Since 1982, alcohol involvement for large truck drivers in fatal crashes has declined by 85 percent. A recent study by Virginia Tech conducted for the USDOT found that 78% of crashes involving trucks were caused by passenger car drivers.
14 Trucking Pays Its Fair Share and Then Some 40% 35% 30% 25% 20% 15% 10% 5% 0% Truck VMT Trucking Taxes and Fees Trucking industry paid $402 million or 36% of Colorado s federal and state roadway taxes and fees in 2009 Trucking only represents 8% of vehicle miles traveled in Colorado.
15 Trucking and the Environment An Impressive Record of Improvement
16 SmartWay encourages carriers and shippers to adopt or implement actions to make ground freight more efficient and cleaner for the environment. Some Participants in Adams County Houg Spec Svcs. Waste Mgmt. Fed Ex Westco American Furniture CAST HVH UPS American Armor Wal-Mart Denney Transport Direct Transport Domenico Transport. Navajo
17 SmartWay Tractors and Trailers SmartWay Tractors: Model Year 2010 or later engine Integrated cab-high roof fairing Tractor-mounted side fairing gap reducers Tractor fuel-tank side fairings No idling Low-rolling resistance tires (single wide or dual) SmartWay Trailers: Side skirts; Weight-saving technologies; Gap reducer on the front or trailer tails (extenders Low-rolling resistance tires (singe wide or dual)
18 Colorado Trucking Industry Employment Trucking industry has seen a steady decline in jobs over the last several years. Since 2001 Colo. has seen a loss of over 42,000 jobs through Initial data shows an additional loss of 8,000 jobs in 2010 translating into 50,000 lost jobs in nine years a 28% reduction in trucking employment in Colorado since 2001.
19 Colorado Taxes and Fees Compared to Surrounding States Colo. Wyo. Utah Kansas Neb. Ariz. New Mex. State Fuel Tax 20,870 Gallons - ann.) $4,278 $2,922 $5,113 $5,246 $5,238 $5,246 $4,775 Registration Fees $2,350 $2,637 $1,821 $1,770 $1,286 $3,960 $190 State Sales Tax $2, $3000 Property Tax (SOT) $2, $ Wgt. Distance $3,502 Highway Surcharge Fee $ Bridge Fee $ Total $11,749 $5,559 $6,934 $7,102 $6,524 $9,206 $11,467
20 Present tax environment discourages many transportation-oriented companies from considering Colorado. Many such companies have chosen adjoining states. Of the top 100 trucking firms within the country not one is registered or based within the State of Colorado. Colorado has lost over 50,000 trucking-related jobs since These jobs did not go overseas or to Mexico or Canada but merely to surrounding states. The loss in jobs alone translates into over $40 million in estimated personal income taxes lost to the state annually. Since 2000, Colorado s interstate truck registrations have decreased by 57%. At the same time registrations have increased in several surrounding states. Colorado-based companies are at a major cost disadvantage due to our tax structure. The increased costs associated with taxes and fees is passed on to shippers Colo. products become less competitive.
21 Key Issues and Concerns for Colorado Trucking Companies Colorado s tax and regulatory environment for goods movement Regulatory Overreach independent contractor/owner-operator issue, variety of overlapping regulations with various agencies. Driver and Mechanic Shortage major shortfall today and worse in the future Transportation System Concerns relating to maintenance of current infrastructure, capacity and access Freight Access greater challenges due to community restrictions Safety need for prequalification safety standards for trucking operators on public projects Truck Productivity need to allow more productive vehicles along with uniformity and consistency with surrounding states
22 Actions that Would Improve the Business Environment for Trucking Operations Assist trucking industry in development of programs to recruit and train individuals to be truckdrivers and technicians Modify tax and fee structure so that Colorado companies may be more competitive with surrounding states and the nation Better incorporate freight into transportation planning and project selection process. Work with freight industry to identify transportation improvements that will enhance freight movement and increase safety Streamline and simplify regulatory procedures at the state and local level Modify state and local laws, rules, and regulations to improve productivity for freight movement
23
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