Going against the grain

Rick G,

Do you mean to tell me that James Hebe, vice president of sales for Navistar, doesn't know cost per mile and profitability numbers? Are you going to suggest that the man who probably stood proudly at the end of the assembly line when the International Prostar was rolling off and thought to himself "Someone is actually going to buy that piece of crap. I'd get the extended warranty and a lot of gorilla glue if I were them", you are telling me he doesn't know what he is talking about? See, Mr. Hebe was looking at it from a different perspective. He was thinking "if someone buys one of our new trucks, with our garbage Maxxforce engine, with all of its breakdowns and downtime on top of payments, there is no way they can run legal to stay afloat." I applaud his vision. (Sarcasm)

 

Now this is a great thread. I think Bill is on to something good here, as well as several others. Rick did a good job also in lending some perspective. I have watched a lot of economic downturns and upswings happen over the years, and the ones that usually manage to do well are those that can read these trends and get in when everyone else is bailing out and vice versa. When everyone was losing their shirts and getting out or downsizing in the beginnings of this recession, I bought another truck. Did pretty well overall.

We do have to learn to adapt. That is the nature of business. The comment made about being a business man who happens to drive a truck as opposed to a truck driver trying to be a business man is spot on. How a person approaches things makes a difference on how they perceive them and how they will adjust to them. And change is one sure constant in the universe. And insanity is best defined as attempting to do the same thing and expecting a different result.

For those that can "think outside the box" they will generally succeed in most any endeavor. I knew that James Hebe of Navistar, when he made these comments, was heading down a wrong path, and was living in a "Smokey and the Bandit" kind of era, mentally. As has been stated earlier here, the small owner has a flexibility to adapt to conditions far easier than a large fleet does. It is a lot easier to turn a fishing boat than an aircraft carrier. An individual owner or small carrier can afford to take certain risks in changing that a fleet cannot grasp until much later. I have been convinced for a while now, that most fleets would be far better off partnering with small owners. The fleets can concentrate on what they do best, while the small owners or individual O/O can concentrate on what they do best. There will always be a place for the large fleet model, but the percentage of the market will also shrink for them overall.

Thanks to the mental pygmies in government, things will not be easy. But for those that can be creative and adapt, they will move forward while everyone else stagnates.

 

Hey Bill, With regards to Big company/small company relationships.....are the big companies putting a threshold(Max score) on a small carriers CSA scores in order to be able to haul their freight? If so......Then a couple bad inspections could really hurt the small carrier.

 

OK, I'm not a O/O. I'm a company driver. So please excuse me for kinda floating in here.

I think the larger companies do understand the benefit of finding a smaller fleet to handle some of their needs. What I've seen though through 2 different companies I've been with is requiring the smaller guy to tow the same line as their big fleet. (IE) company speed and E-logs.

For a smaller guy with a couple of trucks the trick is to find a larger company, wade through all the corporate types to find the 1 Guy ( or Gal) who has the understanding of why they ( the smaller ) are there to begin with. Not saddle them with all the same things that "work" for their large fleet.

I love the statement about being a businessman that just happens to drive a truck. I believe that a smart person can really be successful in these economic times.

 

Another way to look at all this, is that most major corporations that manufacture stuff will use smaller companies that specialize in individual components. Why try and reinvent the wheel? Lear can do a more efficient job at making seats than Ford can, and they can adapt to any change quicker than Ford. Smaller carriers or individual owners have more flexibility to get the freight moved more efficiently, and can adjust their operation quicker than a 5000 truck outfit. The other side of the coin, is that the large carrier has the ability to line up contracts easier with major customers, negotiate fuel and insurance discounts, etc. Why not capitalize on the strengths of each side of the coin, join forces, and both parties benefit? Of course, not every business model can do this in each and every situation. Many do a similar thing on a smaller scale. Many will use a lube place to service the truck. They could do it themselves, but the lube place is set up to do it more efficiently, it saves the owner time (which is money), and can do it at a competitive cost compared to what it would cost to do it yourself.

I, as an individual, can operate a truck more efficiently than any carrier can by putting drivers in theirs. I have a personal vested interest in keeping my equipment up and operating it so that I minimize cost, maximize mpg, keep cost down by doing minor repairs myself, etc. Very few fleets will step outside the box and buy equipment that is not what the other companies are buying. Whereas, I have no problem buying a glider truck at a substantial savings in cost and operation compared to an emission laden truck. Fleets are loath to think outside the box and be flexible. it is in the big company's best interest to contract people like me in letting me handle the equipment end and they concentrate more on the logistics end.

 

Bill, I think it's easy for you to be a bull since you've only had your authority for a year and a half. You missed rock bottom and have been enjoying the rebound. The PIIGS are going to be slaughtered soon, and no one can predict the results post-Euro. Our banks and corporations are so tied up in them, that it could easily trigger another global recession. Remember bulls get turned into ground beef, or worse, pink slime, on a daily basis.

 

Well Bill's been talking about transportation spot market.

When you see the trending, and look at history over a few years, what we have beenan experiencing really isn't a surprise. I got out of construction because i saw a collapse coming. Should have realized that manufacturing would follow it. If i had, would have adjusted a lot quicker than what i did.

It's not about driving the truck. It's about reading the economy and sensing the direction to go.

Small (25 or less) fleets will be able to do that much easier than a bigger fleet.