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TECHNOLOGY IN TRUCKING Explore the trends that are here now, far away, and closer than you think

Issue 2, 2017


Values Drive Performance Shared Values Can Lead to Organizational Excellence

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Issue 2, 2017

THE TRUCKS OF TOMORROW

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From automated semis to augmented reality windshields and over-the-air software updates, the future of trucking is closer than we think.

SPECIAL SECTION: THE EXTRA MILE Get recaps from the Truck Driving Championships, the Truck PAC Iowa Golf Outing, and our annual trip to the nation’s capital.

FEATURES p2 p3 p5 p6 p9 p10 p14 p34 p38

Listening In Chairman's Message President's Message Up Close & Personal Ask The Members Members in the News IMTA Update ATRI Update IMTA Events

COLUMNS p12 Iowa's Business Environment p13 Economy Update p28 Finance p30 Next Generation Speaks p33 Maintenance p40 Final Thought

OUR STAFF BRENDA NEVILLE, CAE President & CEO

brenda@iowamotortruck.com

JORDAN BJERKE Membership Manager

jordan@iowamotortruck.com

DON EGLI, CDS Director of Safety & Security

don@iowamotortruck.com

JANELLE STEVENS Director of Communications, Education & Events janelle@iowamotortruck.com

JONNI LENZINI Administrative Assistant jonni@iowamotortruck.com SATURDAY MFG. Design & Cover Illustration

EMILY LUKE Assistant Office Manager

emily@iowamotortruck.com

IOWA MOTOR TRUCK ASSOCIATION 717 East Court Ave, Des Moines, IA 50309 515.244.5193 | iowamotortruck.com

SPONSORS IFC p4

Great West Casualty

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Central Trailer Service MHC Kenworth Quality Services Corp

p19  Thermo King Sales and Services

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IMTA Cornerstone Sponsors

Harrison Truck Centers

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Northland Insurance

p26

Thompson Truck and Trailer

p27

Renewable Energy Group

p37

p32

JJ Keller & Associates

p36

DKI Housby Mack Taylor & Martin

IBC  Truck Country Freightliner – Western Star

BC

HELP Inc.

Midwest Wheel Companies

ISSUE 2, 2017

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“I think Level 5 is decades out. I do see it in the foreseeable future. I think we are really talking about driver assist not driver- less. That would be Level 2, Level 3 and how we develop that in a way that generates the returns to safety, environment, congestion and lower fuel burn. These are the measurable things that we encourage carriers to invest. I think that’s certainly where startup and OEMs are collectively focusing their attention.”

“Freeways do not end at state lines, and the burdens of the system needs to be shared among the 50 states to have an integral national system” REPRESENTATIVE PETER DEFAZIO (D-OR) leading voice opposing President Trump’s Proposal to add tollbooths on interstate highways and streamline the environmental review process

ATA PRESIDENT CHRIS SPEAR comments made on a panel discussion entitled “Race To Automated Driving”.

“NAFTA trade has become an important source of business for the US trucking industry, directly supporting tens of thousands of jobs and generating billions of dollars in revenue annually.”

LISTENING IN

ATA CHIEF ECONOMIST BOB COSTELLO in remarks filed in support of keeping NAFTA as is. More than 12,000 responses were filed in the Office of the US Trade Representatives.

“Obamacare is collapsing. In Iowa, the two largest insurers have already announced their departure from the market, and the third and final insurer is on the verge of leaving as well. This could leave over 70,000 Iowans with zero options for health insurance – it's clear that something needs to be done.” CONGRESSMAN ROD BLUM (R‑IA)

“As long as Iowans are safe and sober while using these fireworks, they should have the freedom to celebrate America's freedom however they wish.” MEGAN SALO, IOWA STATE DAILY

“I do believe in the right to carry, and I believe in the right to defend myself and my family – whether it's from an intruder, or whether it's from a government, should they decide that my rights are no longer important.” US SENATOR JONI ERNST (R–IA)

“This is more work than in my previous life. I thought it would be easier.” PRESIDENT TRUMP reflecting on his first 100 days in office during an interview with Reuters

“The foundation of healthcare reform must be personalized, patient-centered healthcare that treats patients like human beings, not a number. That puts you and your doctor, and not politicians, in charge of your healthcare. This is achievable – we just are not yet there.” CONGRESSMAN DAVID YOUNG (R-IA)


CHAIRMAN'S MESSAGE We are living in very interesting, changing, and challenging times. While I continue to have tremendous faith in our ability as a nation to prevail, there are days that my faith is truly tested. I am tired of the media, I am frustrated with the communication methods used by our President and wonder when I will start to feel the effects of the so-called “robust” economy that everyone is talking about. Like many of you, I love the trucking industry. It has been an integral part of my personal life and a family entity for over 85 years. Keeping the trucks seated with professional drivers and safely delivering the products that everyone depends upon has been paramount to me. Our ability to do this is always tied to what is going on in Washington and with every ongoing struggle there, we are impacted here in Iowa. So, it is with great concern that I continue to hear that there are some conversations taking place in DC regarding ELDs and the possibility of pushing back the December mandate. While many people continue to assure me that the December date will stay in place, the fact that there are even conversations taking place on this subject is alarming. Fleets of all sizes have made sizeable investments in an effort to be in compliance with this upcoming mandate. Tremendous training efforts have also been implemented and the last thing that we need now is more uncertainty. So the mere fact that conversations of this nature have been reported, once again demonstrates the irresponsibility and lack of leadership that we have in DC. I know that there are many different opinions on this subject and as an industry we never appreciate being told what we have to do through a mandate. But say what you will, the ELD mandate is here to stay and while you may not like it, it is something that will hopefully have a positive impact on the industry in both the short and long term. In a recent poll of IMTA membership, over 60% of the carrier members have reported that they have made the investment in ELDs and surprisingly, many members of all sizes have reported that while the drivers didn’t like ELDs at the onset, they have, for the most part, come around and have discovered that they like having ELDs in the trucks. The number one reason drivers have accepted the logging devices is because it makes their job easier. And anything we can do to make the driver’s life easier is important. The elimination of paperwork has been embraced by drivers of all ages and years of experience. In that same poll, a number of IMTA members stated that they believed that the ELD mandate leveled the play-

ing field, enabled the operations that were running legal to eliminate paperwork and created added efficiencies that would have a positive impact on the bottom line. Additionally, the ELD mandate created healthy competition among providers. This resulted in many good products now on the market with a variety of price points. This has also enabled fleets of all sizes to move towards compliance without breaking the bank to do so. We are all the beneficiaries of healthy competition. While some have characterized this as a way that big carriers once again maintain an advantage, I disagree. Investing in safety and products that increase efficiency and productivity has nothing to do with the size of the fleet. Fleets of all sizes have weighed in on this issue and while IMTA did DON DECKER not have an official position on 2017 IMTA Chairman of the Board ELDs, there were many small carriers that came forward as soon as the mandate was announced and made the investment in ELDs … and continue to report positive results and positive attitudes. I know there is still a lot of heartburn over this mandate and like anything of this nature, there will be some hiccups along the way. Segments of the industry, like the livestock haulers are facing some tremendous challenges. Perhaps these “hiccups” will force the regulators to take another look at the HOS regulations? In my opinion, the HOS rules are what needs to be addressed not the ELDs. Once there are ELDS in all the trucks, our friends in DC may finally realize that “one size fits all” is unrealistic and irresponsible when it comes to HOS regulations. While I sometimes question the motives and objectives of our political leaders in D.C. I do continue to have great faith in the trucking industry. I believe that the trucking industry will once again show its ability to be a leader and come December, the ELD mandate will come and go with very little pomp and circumstance because when it comes to doing things the right way – the trucking industry will always prevail and will once again prove why it is the most efficient and reliable way to deliver the goods that we all depend upon.

ISSUE 2, 2017

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PRESIDENT'S MESSAGE Our mission at IMTA is to promote the success of trucking in Iowa and an important part of successfully carrying out that mission is to be actively engaged in the legislative process. Because of that, I have a very deep respect and appreciation of that process. My first introduction to the legislative process came on the third day of my job in 1987. I was introduced to Iowa legislators at IMTA’s annual legislative reception. While it was a cold, blustery January evening, the food, drink and lively conversation between members and lawmakers made for a warm and friendly atmosphere in the hotel ballroom where we were all gathered. Republicans and Democrats were in attendance and my first impression of the legislative process through the lens of a young association employee was very positive. The legislators were engaged, interested and happy to be there. Several issues were discussed with both Republicans and Democrats in an open and accepting environment. For many years thereafter, I worked with those same lawmakers and I continued to see the positive results of compromise, reaching across the aisle and working together, with Republicans and Democrats, to solve problems and find solutions that promoted the success of trucking in Iowa. Over time, campaign reform laws gutted the foundation of building legislative alliances and friendships over food and drink. Proponents of adding increasingly more restrictions on the interaction between special interest groups (Yes, IMTA is one) and legislators were convinced that special interest groups were somehow buying votes over these lunches and dinners. In my opinion, the only thing that transpires as you enjoy a meal or a cocktail with a lawmaker is a better understanding of who they are as a person and who we are as an organization. It is part of building a professional relationship and a long-tested tradition with a proven record of success. It’s as true in politics as it is in business; you are going to be more successful when you

BRENDA NEVILLE IMTA President & CEO

get to know the people with whom you are doing business. These reforms were the beginning of a downward spiral in how relationships are built in the legislative arena and today we have an environment that is so polarized and uncivil that it is frightening to think about the future. What individual would even consider running for public office? My parents did an amazing job in teaching me the basic parameters of respecting everyone regardless of our differences. Through IMTA, that education continued and I learned the importance of respecting the position of any elected official regardless of whether I personally shared their political philosophies. Respecting someone’s opinion is different from agreeing with that opinion. Sadly, today, the basic principle of respect is disappearing. Friendships and families are being torn apart because of the toxic political environment we are in. And it needs to stop. Recently an IMTA member told me that he lost several long-time friends on his Facebook page after he posted the story about President Trump meeting with trucking leaders and Road Team members at the White House. Really? Isn’t it paramount that we welcome the opportunity to sit down and promote this industry with any elected official? That event at

the White House was historic and monumental. A few weeks ago, I received a scathing email from an IMTA member who was threatening to drop out of IMTA because of comments I made regarding the positive working relationships we have with ALL of our lawmakers in DC which includes five Republicans and one Democrat. As a staunch Republican, he felt it was a waste of his membership dollars to be working with any politicians that don’t share his same political philosophies. Are you kidding me? I made the argument that it could be a bigger waste of time talking to people who already are on our side. It is those that may be against our position who need the education. I also offered to return his membership dues. A very distraught IMTA member called me after attending a town hall meeting for Senator Ernst. She was horrified at the atmosphere and the behavior of people at the meeting. She said the screaming, yelling and total lack of respect was appalling. Her plea was simple, “what can we do? something has to change, this is unacceptable.” It is unacceptable and it does need to stop. It is up to each one of us to make a conscious effort to be a part of this desperately needed change. We all have the responsibility to preserve, honor and respect this important process that was put in motion on September 17, 1787, when the US Constitution was signed. As a leader within your company and community, you can and must lead by example. How you conduct yourself is critically important in bringing decorum, civility, and respect back to the legislative process. Anyone, Democrat, or Republican that has made the decision to serve in this capacity deserves our respect. That doesn’t mean we can’t demand that they do their job and take the tough votes, by all means, we need to hold every legislator accountable. But our goal must be that we do this in a manner that truly promotes changes and makes a lasting difference. As an industry that clearly “delivers” on a daily basis, we now need to step up and deliver the leadership that is needed to ensure that we don't continue down a path that resembles a third world country.

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UP CLOSE & PERSONAL KIM REYNOLDS, Iowa Governor

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What motivates you to come to work every day for the State of Iowa?

Every day, I wake up thinking about what we can do to build a better Iowa. I’m never satisfied with the status quo. The desire to make a difference is what drives me. We have so much capacity as Iowans and as a state. Working together, we can make Iowa become more competitive and bring quality jobs to our families, neighbors, and communities. As Governor, I won’t stop working until every Iowan, no matter where they live, has the same opportunity to succeed. I believe Iowa’s best days are ahead.

2

 hat are the three biggest challenges W that our State faces at this current time?

1. Workforce: One of my top four priorities is training Iowans to meet the needs required by the jobs of today and tomorrow. We must ensure that Iowans, young and old alike, are educated and aware of the many tremendous opportunities that exist for them across the state. I want Iowans to have the unique skills that will allow them to build a successful life here in our state. Finally, we need to attract more people to our state to fill the open positions that are available now and in the future. 2. Competitive Business Environment: Another key priority is creating a competitive business environment. Iowa competes for jobs and investment on a global level. That’s why, we can never become complacent about the importance of KIM REYNOLDS Governor building an attractive business climate. That includes everything from a competitive tax structure to a fair regulatory system. Building a better Iowa also means connecting Iowa to the world by expanding high speed internet access, regardless of the size and location of the town. 3. Innovation/Economy: We also have the opportunity to build and sustain an innovation economy. Whether on our farms, in our traditional manufacturing facilities and warehouses, or in our startup companies, innovation must be our central focus. Iowa enjoys a strong, diverse economy. One

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IOWA TRUCKING LIFELINER

major contributing factor to our success has been innovation. It’s one of our core values, it’s in our DNA, it drives our mindset and fuels our dreams – and now even our cars and trucks! We must continue to encourage Iowans, business and community leaders, entrepreneurs and others to keep asking “what’s next” and not settle for the status quo. It is that kind of drive to seek a better solution that will help Iowa remain competitive in this global economy.

will your style of “governing” 3 How differ from Governor Branstad? My governing style is connective and collaborative. I learned that approach from my Grandfather who was an FDR Democrat. We saw things a little differently. Yet as we sat around the kitchen table, we would debate, even disagree. But, always with respect for each other’s view. Where I grew up, it’s about getting the job done through collaboration and compromise. As Governor, I will continue visiting all 99 counties to listen to Iowans and hear what we can be doing better to improve state government. I also will continue meeting with legislators from both parties. Working together, we can partner toward a common purpose of building a better Iowa.

4

 ow do you believe the trucking H industry will fare under your administration?

In Iowa, when we look at a map, we don’t just see highways, railways and river ports. We see a supply chain network. Iowa is a producer state – whether it’s commodity crops, biofuels, renewable chemicals or one of the many products manufactured around our state – we make things here. Those things are transported around the world – providing a meal for a family in China, powering a car in California, or automating a process in Indiana. None of that happens without the trucking industry. As we look to the future of transportation and logistics and product movement in Iowa, we are able to be more sophisticated. We’re using data to map product flow, which allows us to predict and plan a future system that best optimizes how goods are transported, saving transportation costs and creating additional opportunities for trucking companies like yours to grow their businesses even further. Using this unique, data-driven approach when looking at our transportation network, Iowa is poised to lead the nation – and the state’s trucking industry will certainly stand to benefit as well.


motivated you to get 5 What into politics? I didn’t set out to become a politician or elected official. But, when the Clarke County Treasurer decided to retire in 1994, I saw an opportunity to take my ideas and turn them into action. After 19 years in the Treasurer’s Office, I was honored to be elected to the State Senate. When I arrived in the Legislature, I was a freshman member of the minority party. I knew if I wanted to get anything done – I had to reach across the aisle Then, in the summer of 2010, I received a call that would forever change my life. It led to a whole new level of public service. The call was from Terry Branstad asking me to be his Lieutenant Governor. As Lieutenant Governor, I traveled the world representing Iowa. I’ve worked to expand our markets, while bringing investment and jobs to our state. I’ve also focused on pro-growth policies that attract, retain and expand companies while fostering growth across Iowa. Now, I am incredibly honored and humbled to serve as your 43rd governor and look forward to building on the success of the past six and a half years.

6

I n your opinion, what are the biggest barriers to profitability for any business today in the State of Iowa and what will you do to improve the business environment and eliminate some of those barriers?

We must reform Iowa’s tax structure. There is no doubt, we can do better. Our tax rates are some of the highest in the nation. In addition, our code books are filled with a patchwork of exemptions, deductions, and credits. Having a more competitive tax code makes it easier for business to grow and creates lasting careers for middle-class Iowans. Another opportunity to improve our business environment is to ensure Iowans are trained with the skills that they need for the jobs of the future. Our statewide initiative, Future Ready Iowa, encourages lifelong learning by connecting our efforts in education, workforce training, and economic development.

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 hat do you have in your W personal arsenal/toolbox that truly makes you an effective leader for the State of Iowa?

I have an extremely strong work ethic. Also, I’m resilient, a lifelong learner and encourage diversity of thought. But, no one does it alone. So, I’ve assembled a great team of talent to help me meet our goals for Iowa.

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Why do you think you were the best person for the job?

I’m a fifth-generation Iowan, who has been fortunate to serve as a county treasurer, state senator, lieutenant governor, and now Governor. Throughout my years in public service, I’ve traveled to all 99 counties, represented Iowa across the nation, and around the world. This local, yet global, perspective is valuable when governing our great state. As Iowans, we have an opportunity to pursue a bold vision of innovation, ingenuity and growth.

will Iowa look in 1 year? 9 How In 5 years?  ne year from now, more Iowans will be O employed and our tax system will evolve. We will have answers to the complex healthcare questions facing our families. A bipartisan approach will address Iowa’s water quality concerns. We will see continued emphasis on educating our children for the knowledge economy.

Progress will be made in training Iowans for the jobs of tomorrow. In the transportation field, within a year, Iowa’s reality could include a state of the art logistics park -- strategically located based on the data-driven freight optimization modeling that no other state can boast. This Cedar Rapids project will construct integrated facilities for a container intermodal terminal; a rail-to-truck transload facility for bulk commodities; and a cross-dock facility for consolidating and redistributing truck loads, as well as loading and unloading containers. It will provide Iowa and surrounding states with access to a high capacity, efficient, and costcompetitive facility to move goods from truck to rail and vice versa, generating significant mobility, reliability, and economic outcomes. Five years from now, we anticipate a highly automated society and interactive manufacturing. Iowa will remain a top global producer and experience more international trade. Iowans will be well-prepared for the ever-evolving careers of the day.

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I f you were granted three wishes for the State of Iowa, what would those three wishes be?

1. Healthy economy for healthy Iowans. 2. Quality jobs and opportunities for everyone. 3. Vibrant future for our children and grandchildren.

ISSUE 2, 2017

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CORNERSTONE SPONSORS THANK YOU TO OUR 2017 CORNERSTONE SPONSORS As of July 19, 2017 $25,000

PLATINUM

$12,000

SIGNATURE

$8,000

Harrison Truck Centers

MHC Kenworth

Des Moines Truck Brokers, Inc.

PATRON

Midwest Wheel Companies

Interstate PowerSystems

Thompson Truck & Trailer, Inc.

McGowen, Hurst, Clark & Smith, P.C.

Truck Country

O’Halloran International, Inc. Quality Services Corporation

$5,000

ASSOCIATE

$2,500

Cornhusker International Trucks

Allied Oil & Tire Company

Reynolds & Reynolds, Inc.

Gatr Truck Center

Bauer Built Tire

R SM

BMO Transportation Finance

Bridgestone Commercial Solutions

Renewable Energy Group

Housby

CliftonLarsonAllen, LLP

Thermo King Christensen

Lube-Tech & Partners, LLC

Dave Syverson Truck Centers

US Cargo Control

Mid-States Utility Trailer Sales, Inc.

Donaghy-Kempton Insurors

Thermo King Sales & Service

Hanifen Company, Inc.

U.S. Legal Services

Majestic Truck Services

Wilson Trailer Company

Midwest Peterbilt Group

COLLEAGUE

Want to see your company listed as an IMTA Cornerstone Sponsor? Contact the IMTA at 515-244-5193 or visit www.iowamotortruck.com


ASK THE MEMBERS

Q: What are your thoughts on autonomous vehicles in the trucking industry?

“I don’t think it will affect 100% of the trucks, especially in the LTL industry. Our drivers will still need to get the product in the stores.” DEAN KLOEWER Panama Transfer, Inc.

“The technology can help reduce accidents and improve safety. I am skeptical about a fully autonomous truck as I think a driver still needs to be present. The technology has improved substantially over the last couple of years, but there is still a long way to go.”

“With the driver shortage, it may be a viable option at some point. I think we are just in the beginning of what it could be.” MARVIN MCGINNIS Casey’s General Stores, Inc.

LISA GONNERMAN Ruan Transportation

“Autonomous trucks will be part of the growth of the trucking industry. The question is when. I think society is not ready for completely autonomous trucks on our highways. I do see platooning of trucks in the near future.”

“The driver will not be replaced in all situations and I think there are a lot of things to get worked out yet.”

“Eventually there will be a place for them going west. I would have to see it working going east before I would think it would work. With our current driver shortage, it could definitely have a place in the industry. I’m interested in seeing where this goes.”

DAVID OSMAN Green Products Co.

KEITH LYMAN Perishable Distributors of Iowa

DARRELL SHORT Hy-Vee, Inc.

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MEMBERS IN THE NEWS Decker Driver Invited on Vietnam War Honor Flight Dan Fitzgerald, a driver for Decker Truck Line, Inc., recently had the honor of attending the Brushy Creek Area Honor Flight to Washington, D.C. Dan served in the Vietnam War during 1969 – 1970, and was part of the 160 Veterans that embarked on D.C. in early May to visit the various memorials and monuments that pay tribute to those who have served this country. “I’m just looking forward to being with the

crowd,” Fitzgerald said prior to departure. “Spending time with all the guys and hearing the stories of other veterans.” Fitzgerald applied several times for this honor and was finally chosen to take part in the 14th Brushy Creek Area Honor Flight. Once awarded the opportunity Dan was excited beyond words. Dan has been with Decker Truck Line, Inc. since 2011, and has over 45 years of experience in the trucking industry. SOURCE: The Fort Dodge Messenger

Dan Fitzgerald, reminisces with a fellow Vietnam War veteran about their time serving this country.

Governor Reynolds Visits CRST Training Facility Prior to officially taking over the reins of Governor, Kim Reynolds visited with CRST International leaders and toured the North American Driver Training Academy (NADTA) in Cedar Rapids, Iowa. During her visit, Governor Reynolds met with CRST Chairman of the Board, John Smith, CRST Expedited President, Cameron Holzer, and General Manager of the North American Driver Training Academy, Marty Keppler.

Iowa Trucking Industry Well Represented at the White House Leaders of the American Trucking Associations and members of ATA's elite team of professional drivers, America's Road Team, met with President Donald Trump at the White House for a conversation about issues affecting the trucking industry, including health care.

In 2012, CRST International launched NADTA, a commercial driver’s license training school, near the company’s corporate headquarters. The goal of NADTA is to develop safe, professional drivers who value safety first and will become valuable assets to the transportation industry. CRST International trains up to 150 drivers each week at facilities in southwest Cedar Rapids and Riverside, Calif.

Iowa had two representatives on hand for this honor; John Smith, Chairman, CRST International, Inc., and Rhonda Hartman, driver, Old Dominion Freight Line and member of America’s Road Team. “It is an honor to be invited to the White House and to meet with the president,” said ATA President and CEO Chris Spear. “This was a tremendous opportunity for our members and drivers to talk about how the health care debate impacts them and their ability to move America's goods.” In addition, ATA was privileged to bring its Image Truck - Interstate One - and a trailer featuring a Trucking Moves America Forward wrap, hauled by ATA's Share the Road Truck.

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IOWA TRUCKING LIFELINER

FROM LEFT: Marty Keppler, North American Driver Training Academy, Governor Kim Reynolds, John Smith, CRST International, Iowa Motor Truck Association President Brenda Neville and Cameron Holzer, CRST Expedited.


MEMBERS IN THE NEWS Freightliner Names Des Moines a Hardest Working City Des Moines is filled with hard-working citizens who are committed to growth. The finance, insurance, and publishing industries are thriving in Des Moines, but the city also has a large trucking and construction presence. In addition, Des Moines offers its residents affordable housing and short commutes.

FROM LEFT: John Shireman, Uhl Truck Sales, John Cerni, Cerni Motors, Vince Cerni, Cerni Motors, and Jim O’Halloran, O’Halloran International

O’Halloran International Joins Forces to Form TriVista Cerni Motor Sales (Ohio), O’Halloran International (Iowa) and Uhl Truck Sales (Indiana and Kentucky) recently announced they have joined forces to better serve customers and employees as TriVista.

After an exhaustive review of more than 400 metropolitan census areas, Des Moines was selected to receive this award for being a North American leader in employment, particularly in heavy and tractor trailer truck drivers and light truck and delivery, and for being a top city for average hours worked, construction employment, growth in total employment rate, and contribution to GDP. Celebrations kicked off with the Harrison Truck Centers team visiting IMTA members Keystone Trucking & Johnsrud Transport, Inc. and bringing along Hardest Working Cities safety vests, koozies, hats and free food to keep these hard workers fueled for the day. SOURCE: Freightliner Trucks

Each dealership currently sells and services International® Trucks, Navistar’s flagship brand, offers maintenance services for International Buses, leases and rents trucks as affiliates of Idealease, Inc., and offers a number of other complimentary commercial truck products and services. With three multi-generational companies coming together, from day one there has been a focus on company history, culture, customer and employee relationships, and keeping a strong sense of community. The merger allows each company access to more cost-effective opportunities to benefit customers, such as volume purchasing, the ability to redistribute large fleet trade-ins for faster inventory turnover rates and more. In addition, employees will have opportunities for advancement throughout the company and will be able to apply to any location as positions become available.

ABOVE: Employees with Johnsrud Transport, Inc. proudly display their Hardest Working Cities award. BELOW: Up before dawn, employees at Keystone Trucking enjoy an early celebration.

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IOWA'S BUSINESS ENVIRONMENT

Legislative Action to Improve Iowa Business Environment Dominates Session This year's legislative session came to a robust close for the small business community in Iowa. Several key actions were taken by bold lawmakers intent on empowering the economy and improving interstate competition with our neighbors. Thankfully, legislators are looking to capitalize on this year's success and are already beginning to lay the groundwork for another more substantive dive into Iowa’s tax structure next session. Reforming our tax structure coupled with an overall reduction of labor mandates will result in a resoundingly positive growth environment for our small businesses. By decreasing the fiscal burden placed on those that employ our hard-working Iowans, our economy will progress, and additional jobs will be created. Changes to various labor laws dominated this year's session. Not only do they reflect a legislature focused on ensuring that employing people in Iowa is less of a liability, but REFORMING OUR they managed to create TAX STRUCTURE incentives to hire addiCOUPLED WITH tional people without AN OVERALL fear of lawsuits or out REDUCTION OF of control labor costs. LABOR MANDATES Thanks to a bill passed this year and WILL RESULT IN A signed by Governor RESOUNDINGLY POSITIVE GROWTH Branstad; small businesses now have the ENVIRONMENT peace of mind that FOR OUR SMALL drastic labor cost disBUSINESSES. parities will cease to exist throughout our state. The preemption legislation that was passed prevents cities and counties from unilaterally implementing minimum wage increases and other employment mandates that are

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IOWA TRUCKING LIFELINER

inconsistent with the rest of the state. The measure prevents the possibility of hundreds of regulatory regimes cropping up throughout the state that would have created an unpredictable and unsustainable landscape for Iowa’s small business community.  Ensuring that an employee’s need for medical care if injured on the job is balanced with an employer’s desire to have predictable and cost effective insurance has been a priority for small business owners for years. By finally passing workers comp reform, the legislature put in place reasonable parameters including requiring that an injury is reported within 90 days of the incident taking place as well as shifting the burden away from an employer if a person’s injury is due to intoxication.  Perhaps the most controversial of the labor bills this year MATT EVERSON was reforming collective barNFIB State Director, Iowa gaining for non-public safety public employees. Compared to other states, relative to our population, Iowa has an incredibly high number of public employees. The changes that enacted this year will have a substantive impact on the state budget for years to come thanks in part to the fact that wages, health care and other benefits for public employees can no longer be collectively bargained.  The small business community is grateful to leadership in both the House and Senate as well as the support of the Governor for tackling these onerous labor mandates. As State Director, Matt Everson oversees the National Federation of Independent Business (NFIB) public policy activities in Iowa. Everson joined NFIB in February of 2017 after spending three years as a consultant with Next Generation Public Affairs, in Des Moines, Iowa. Prior to that, Matt spent over 16 years in Washington D.C., working in various positions with lawmakers and President George W. Bush.


ECONOMY UPDATE

New Lease Standard – Beyond the Financials The Financial Accounting Standards Board’s (FASB) new standard on leases will have a significant impact on businesses, and the transportation industry is no exception. The transportation industry utilizes a significant variety of leases in its daily operations, such as leases for tractors, trailers, terminals and information technology equipment. With implementation dates for the new FASB standard (ASC 842) approaching, now is the time to review the standards and determine the impact on financial statements, operations and taxes. The new standard is effective for fiscal years beginning after December 15, 2018 (and interim periods therein) for public entities, and years beginning after December 15, 2019 (and interim periods beginning after December 15, 2020) for all other entities. Early adoption is permitted for all entities and a modified retrospective transition approach is required. Two of the FASB’s goals in issuing the new standard are increased comparability across industries and increased financial statement transparency. The most significant change in the new standard requires lessees to record a right-of-use asset and lease liabilities for almost all leases. A lease liability will be recorded equal to the present value of future lease payments and a rightof-use asset will be recorded based on the liability, adjusted for any lease payments already made (net of any lease incentives received) on or before the lease’s commencement date and any initial direct costs incurred by the lessee. For example, the company may no longer be able to comply with a lender’s debt–to-equity

CHAD WERNIMONT RSM US LLP

ratio, or it may have a reduced borrowing base. Therefore, it is critical to think about the potential impact of the new standard and have discussions with lenders prior to implementation. In addition to financing considerations, these changes may impact financial metrics that are used to determine employee performance, bonus pools and peer group analyses. Implementing the new standard will require making changes to lease accounting policies, lease management modules in the ERP system and internal controls over financial reporting. The new standard will also have an impact from a tax perspective. Due to the changes on the financial statements as discussed above, the measurement of deferred taxes associated with leases will also change upon adopting the new accounting standard. Because the financial statement accounting is changing, and U.S. federal tax law is not, a change in accounting for deferred taxes is necessary. Due to changes in the individual balance sheet components, it

will be critical to not overlook these items as in most cases the resulting deferred tax asset and deferred tax liability will net to zero for lease matters. In addition to deferred taxes, the new standard may impact state franchise and income taxes. Transportation companies are generally subject to numerous state franchise and income taxes because they provide services in multiple taxing jurisdictions. Recording almost all leases on the balance sheet for financial statement purposes may impact the computation of a company’s franchise tax as these are commonly based on net worth with various adjustments required for liabilities, reserves and intercompany balances to arrive at the taxable base. A thorough understanding of how each state requires lease inclusion in the tax base and apportionment factor will be critical for taxpayers adopting these new financial accounting standards. Since many state apportionment factors for both franchise and income taxes utilize a property component, the adoption of the new standard may not only impact the tax ultimately paid, but also the information gathering process for property factor computations. Chad Wernimont is a tax partner in RSM US LLP’s Dubuque, IA, office where he provides tax and general business advice to the firm’s clients. His expertise also includes federal and state income and franchise tax compliance, business operations, and tax strategic planning and examination support services. A certified public accountant, Chad is a graduate of Loras College in Dubuque. This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. RSM US LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person.

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IMTA UPDATE 2017 Iowa Legislative Session Some positive action for Iowa’s Trucking Industry. Although the 2017 legislature adjourned eight days ahead of their scheduled 110-day session, lawmakers worked for 24 straight hours to finally bring it to an end. As the session wound down, the Iowa House worked all night trying to compromise on the use of cannabis oil for medical purposes and a funding formula to address Iowa’s water quality. They were successful in coming up with a medical marijuana compromise, but failed to find money for any kind of a water quality initiative. Regardless of some of the issues that failed to pass or get to the forefront, the 2017 legislative session was historical because of the variety and gravity of legislative issues that

were addressed and in many cases changed through legislative action that was led by the Senate Republicans who had vowed to make changes in their campaign efforts. Many of the major issues of the 2017 legislative session focused on changes to Iowa’s business climate and Iowa’s trucking industry is always supportive of pro-business, pro-trucking legislation.

David Scott has been a lobbyist in Iowa for the past 25 years, representing a number of business clients and organizations. He is also the owner and president of an association management company. Scott enjoys an excellent reputation at the Capitol among legislators, as well as lobbyists, and is not perceived as being too closely affiliated with either party. With the changes in the majority party control in Iowa, Scott’s bi-partisan reputation is a valuable asset.

DAVE SCOTT IMTA Lobbyist

What Do the WC Legislative Changes Mean to You? We are very excited about the passing of the workers compensation legislation in Iowa. Here is how the process works. The National Council on Compensation Insurance (NCCI), based in Boca Raton, Florida has been chosen by the state of Iowa, along with more than 35 other states, to gather pertinent workers compensation data from insurers, analyze legislative changes and provide workers compensation rate recommendations to state insurance departments based on their findings. When workers compensation legislation is passed, which materially affects workers compensation costs, NCCI will do an analysis to estimate the cost impact of the legislative change. NCCI will then present their findings and rate recommendations to that state’s insurance department, for Iowa it is to the Iowa Insurance Division (IID). Iowa workers compensation rates are typically adjusted only once per year on January 1st. However, when significant legislation is passed, the IID may choose to adjust rates mid-year to account

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IMTA Worker's Compensation Task Force Chris Puetz Cottingham & Butler Tim Burns Decker Truck Line, Inc. Brian Kohlwes Hirschbach Motor Lines Jerry Bender Midwest Wheel Companies Terry Keime Great West Casualty Lisa Stephenson CRST International Jerry Suther Heartland Express

for the immediate impact on workers compensation costs. Shortly after the Iowa legislation was passed, NCCI began working on their analysis of the changes and preparing their recommendation to the IID. Once their analysis was completed, they made their recommendation to the IID. We are pleased to announce that NCCI has recommended, effective July 1st, an overall average rate level decrease of 3.9%, and the IID has approved NCCI’s recommendation as is. Therefore, Iowa businesses whose policies renew after July 1st and who are insured through an insurance carrier that has chosen

to adopt the NCCI rates as approved, should expect to see their base workers compensation rates come down by around 3.9% at renewal . Longer term, this new legislation might impact an Iowa business’s workers compensation costs in other ways as well. For example, it is estimated that the average cost for a shoulder injury will be markedly reduced as a result of this legislation. If a business is in an industry where shoulder injuries are prevalent (example: trucking or construction), they should see larger savings in their workers compensation costs than employers in an industry where shoulder injuries are infrequent (example: dentist or realtor). These differences in cost savings will be reflected in future rates and possibly their workers compensation experience modification factor. We are thankful for all the IMTA members who got involved with this effort. We believe this is some of the best work that was done to have a positive impact on every IMTA member.


IMTA UPDATE Legislative Priorities Passed During The 2017 Session Workers Compensation Reform: IMTA representatives proudly attended the bill signing of legislation that called for major reform in worker’s compensation. This sweeping reform was a huge victory for IMTA members. IMTA had been working with a coalition of several other trade associations and major manufacturers on reform for the last 10 years. Collective Bargaining Reform Signed into Law: For the first time in 40 years the legislature made sweeping changes in Iowa’s collective bargaining laws. Under the legislation most public-sector contract negotiations will be limited to only base wages. Unions will be banned from negotiating over such issues as health insurance, staff reductions and leaves of absence for political purposes. All unions will be barred from having union dues deducted from public employee paychecks and unions must recertify prior to every contract negotiation. The bill also caps how much an arbitrator can raise wages. Drug Testing Using Hair Samples: Legislation was signed into law allowing the use of hair samples for pre-employment screening for drugs. Hair samples can show drug use as far back as three months. Road Fund Swap Signed into Law: Under this legislation the DOT will keep federal road funds which normally would go to cities and counties and replace it with state money. By turning these federal dollars into state dollars, the cities and counties would be exempt from many of the federal “strings” that come with the money; such as, paying Davis-Bacon wages. The cities and counties argued these “strings” drive up construction cost by over 15%. The state would still be required to follow all federal requirements when using the federal dollars. Red Light Turns Signed into Law: Under this legislation vehicles making a turn on red will no longer be required to be in the furthest right lane for a right turn or furthest left lane for a left turn. Vehicles may now make these turns from any designated turning lane.

Move Over Law Expanded: This legislation expands Iowa’s move over or slow down law to include utility vehicles with flashing lights sitting on the shoulder. Minimum Wage Increases Nullified: Legislation was signed into law nullifying the city and county increases. The legislation makes it clear the state legislature is responsible for setting a state-wide minimum wage, thus providing employers with predictability. The same legislation preempted local ordinances which could conflict with state law, such as paid family leave, local taxes on soft drinks or candy or the banning of plastic bags. Straight Truck Length Increase: Straight trucks in Iowa can now be 45 feet in length, a four-foot increase. There is no increase in weight. Except for Nebraska, all states surrounding Iowa are at the 45-foot requirement. Increase Weight for Trucks Using Natural Gas: Trucks using natural gas may now have an additional 2000 pounds on the tractor to allow for the increase weight in fuel tanks. Full Police Authority for MVE Officers: Legislation was passed this session clarifying MVE officers do have full police authority; however, the legislation sunsets in one year. Why the sunset? The legislature wants a report from the DOT showing enforcement activities by MVE officers so the legislature can be assured the MVE officers are fulfilling their primary mission of regulating

commercial vehicles. Some legislators want to discuss next year the merits of merging the MVE officers with the Iowa State Troopers under the Department of Public Safety. IMTA has long opposed such a merger. Texting as A Primary Offense: Under Iowa’s new law, anyone observed texting may be ticketed and receive a $30 fine. IMTA worked to assure that a hand-held device did not cover CB radios or a device connected to a dispatch service or anything that was specific to commercial vehicles. Using A Cell Phone While Driving: Penalties for using a cell phone when involved in a fatal accident have been increased. The penalty is now a class C felony punishable by up to 10 years in prison. 24/7 Sobriety: Drivers receiving an OWI are facing some tough new penalties. Signed into law is a provision where an individual if arrested or convicted of driving while impaired must participate in a 24/7 sobriety program. The requirement is for those individuals testing 0.15 or who were involved in an accident. It includes first time offenders. Twice daily these individuals are required to show up for alcohol monitoring at a determined location. Individuals testing positive for use of alcohol will be jailed for 24 hours. A court may rule an individual is not required to participate in the monitoring. CDL Learners Permit: Permits may be authorized for 360 days without retaking the test.

ISSUE 2, 2017

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envisioning the trucks of STORY: BRENDA NEVILLE

The trucking industry is vitally important, as the primary way that products are moved, the trucking industry touches the lives of everyone. As the physical backbone of the ever-growing e-commerce business model and aggressive goals outlines by the by FMCSA to reduce and eventually eliminate fatalities, a relentless push towards innovation has been a priority in the trucking industry. With over 1.7 businesses specializing in manufacturing, wholesale, and retail, they are demanding 400 million class 8 shipments per year. The technology community has taken notice of the tremendous opportunity that exists in helping the trucking industry become even more efficient and the result is the emergence of technology unlike anything we have seen. Since 2013, there has been a 90% increase in venture capital, totaling over $400 million specific to technology advancements in the trucking industry and hopefully all of this technology will help trucking companies of all sizes be even more efficient and profitable. For many in the general public, they correlate truck technology with self-driving trucks whereas the reality is that the number of different applications and products on the market is growing rapidly. Fleets of every size are investing in technology that provides braking assistance, collision mitigation and avoidance, lane departure warnings, interior and exterior cameras, blind spot warnings, interior, exterior cameras, side monitors and sensors, engine diagnostics, and the list continues to grow. The trucking industry has seen more advancements in technology in the last 5 to 10 years than any other industry. The motivation lies squarely in a mindset to improve statistics related to accidents, despite that fact that every year those numbers are improving, especially when you factor in the number of miles being covered by trucks. In his last State of the Union address,

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President Obama signaled his intent to invest in a 21st century transportation system. Shortly after that speech, U.S. Transportation Secretary Anthony Foxx revealed part of the president’s proposal: a 10-year, nearly $4 billion investment to accelerate the development and adoption of safe vehicle automation through real-world pilot projects. In the same presentation, Secretary Foxx also announced that the U.S. Department of Transportation is removing potential roadblocks to the integration of innovative, transformational automotive technology that can significantly improve safety, mobility, and sustainability. “We are on the cusp of a new era in automotive technology with enormous potential to save lives, reduce greenhouse gas emissions, and transform mobility for the American people,” said Secretary Foxx. “Today’s actions and those we will pursue in the coming months will provide the foundation and the path forward for manufacturers, state officials, and consumers to use new technologies and achieve their full safety potential.” Secretary Foxx also unveiled policy guidance that updates the National Highway Traffic Safety Administration’s (NHTSA) 2013 preliminary policy statement on autonomous vehicles. The new guidance, reflects the reality that the widespread deployment of fully autonomous vehicles is now feasible. “NHTSA is using all of its available tools to accelerate the deployment of technologies that can eliminate 94 percent of fatal crashes


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involving human error,” said NHTSA Administrator Mark Rosekind. “We will work with state partners toward creating a consistent national policy on these innovations, provide options now and into the future for manufacturers seeking to deploy autonomous vehicles, and keep our safety mission paramount at every stage.” NHTSA continues to work with the trucking industry and other stakeholders to develop guidance on the safe deployment and operation of autonomous vehicles, providing a common understanding of the performance characteristics necessary for fully autonomous vehicles and the testing and analysis methods needed to assess them. Another priority of NHTSA is its work with state partners, the American Association of Motor Vehicle Administrators, and “We began implementing collision mitigaother stakeholders to develop tion and rollover stability control in 2011. a model state policy on autoSince that time, and based on the positive mated vehicles that offers a path results we experienced, we have purto consistent national policy. chased this safety technology on every We are now seeing any new truck added to our fleet. As the number of companies moving technology has become more advanced, forward to in an effort to harso have we experienced measurable ness innovation and technolimprovements in our safety performance. ogy to transform that truckWhile our drivers’ actions are still a critical ing industry. contributor to overall safety, these sys“We have an unprecedented tems have proven to be very beneficial as opportunity for a safety an added layer of protection in mitigating impact,” Sandra Larson, direcaccidents. They have produced measurtor of the systems operations able and verifiable ROI.” bureau at the Iowa Department MURRY FITZER of Transportation, said earlier Owner and CEO of Florilli Transportation in West Liberty this spring at a presentation she made at a Transportation Research Board meeting. “NHTSA has estimated 94 percent of crashes are due in some measure to human error and choice. Eighty percent of crashes could be mitigated or eliminated with autonomous vehicles.” “I used to believe we’d see this stuff in 15 to 20 years, that it would get out slowly,” Dan Murray, vice president of the American Transportation Research Institute, said at the same Transportation Research Board’s conference. Then Dan attended Otto’s test of an autonomous truck last

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October in Colorado as an independent observer. In what may be the most pivotal moment for autonomous trucks, the Uber subsidiary ran a tractor-trailer equipped with its technology 120 miles on “auto-pilot,” hauling Budweiser beer. “I drank the Kool-Aid,” Murray said. “Is the technology ready? Mostly, yes. It’s mostly financial, institutional challenges we face. But I’m moving my 15 to 20 years forecast up to maybe five.” The trucking industry as always, is equally supportive of doing whatever is necessary to underscore its commitment to safety. “Most company owners and drivers assume tremendous responsibility and make very sizeable investments for the safe operation of their trucks. While I do not believe that more regulations necessarily mean safer highways, I do believe that a lot of this new technology could be extremely helpful in making our industry safer, provided it doesn’t become too costly,” responded an IMTA member in a recent survey of safety technology. Regardless of your opinion on all the technology that has flooded the market, the technology evolution is very real. Truck manufacturers and suppliers are playing an equally important role in this evolution as they work to educate and inform current and potential customers on the value of this technology. Lane-changing warning systems, forward-looking radar and cameras, automated braking systems, automated manual transmissions and interconnected systems are now common in truck specs. “We began implementing collision mitigation and rollover stability control in 2011. Since that time, and based on the positive results we experienced, we have purchased this safety technology on every new truck added to our fleet,” said Murry Fitzer, Owner and CEO of Florilli Transportation in West Liberty. “As the technology has become more advanced, so have we experienced measurable improvements in our safety performance. While our drivers’ actions are still a critical contributor to overall safety, these systems have proven to be very beneficial as an added layer of protection in mitigating accidents. They have produced measurable and verifiable ROI.” Many within the trucking industry believe that the adoption and integration of various safety-related systems over the next few years will continue to strengthen the foundation for autonomous trucks and cars. These same folks believe that autonomous vehicle technology, in conjunction with other technologies, especially vehicle-to-vehicle communications could reshape the business of shipping in the near future as well. The possible implications for supply chains, shipping costs, distribution and fulfillment will


look very different much more quickly than anticipated. “As technology continues to evolve, our thinking must also evolve. We have to look at the way we are doing business today and question how that will continue to change in the very near future. I think the current business model is going to continue to be challenged and how we meet those challenges on all levels, is going to be extremely important,” said IMTA Chairman of the Board Don Decker. “Now more than ever, it is important that we as an industry and as an association stay abreast of the technology advancements. We can’t put our head in the sand, technology is going to continue to play an important and vital role in how we do business and run our companies.” Technology leaders have already posed questions relative to public policy issues and technology. For example, if all vehicles on a highway are wirelessly, electronically connected, are speed limits still necessary? While the possibility of an interconnected network of cars and trucks may be years away, with the rate in which technology is evolving, it may be here sooner than we think and ongoing conversations relative to public policy, the regulatory environment and acceptance by the average motorist are conversations that need to continue to be in the forefront as well. At the core of the technology explosion is “telematics”. Telematics is what enables all the other technologies to come together and work together. This vehicle-to-vehicle communication will enable platooning, increase safety and act as a platform for intelligent transportation systems. Digital Short Range Communication will feature roadside receivers/transmitters to relay data from moving vehicles. Software-over-the-air will allow OEMs to update vehicle software remotely. Telematics development is exploding and OEMs are working as quickly as possible to get a handle on how to supply embedded hardware on new trucks. The one challenge in this equation is that many fleets have different brand of trucks in their fleets. Some industry leaders have indicated that advancements in telematics will be the

“game changer” in the future of trucking. Embedded software is another concept you will be hearing a lot about. Some industry experts believe that the positive impact of embedded software technology will be even bigger than telematics. Embedded software will enable components to be constantly updated and vehicle subsystems will be even more interrelated because of this software connection. The manner in which parts are sold and vehicles are serviced will be changed dramatically through embedded software technology. “Our fleet of 1000 trucks spends roughly $4.1 million “Our fleet of 1000 trucks spends roughly per year on safety hardware, $4.1 million per year on safety hardware, service fees and staffing,” service fees and staffing. Our team of said Brian Kohlwes, General safety coaches utilize the most cutCounsel and Vice President ting-edge technology available to identify of Safety for Hirschbach and coach the behaviors of its drivers Trucking in Dubuque. “Our through proactive coaching practices. team of safety coaches utilize This technology, coupled with our safety the most cutting-edge techculture, is leading us on our journey to nology available to identify become best-in-class in safety.” and coach the behaviors of BRIAN KOHLWES its drivers through proacGeneral Counsel and Vice President of Safety tive coaching practices. This for Hirschbach Trucking in Dubuque. technology, coupled with our safety culture, is leading us on our journey to become best-in-class in safety.” Because 80% of truck accidents are caused by passenger car drivers, use of forward-facing video cameras will help fleets capture evidence to use in their own legal defense following an accident. This safety technology is widely

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THE TRUCKING INDUSTRY HAS BEEN BUILT ON DATA AND THE COMPANIES THAT STRATEGIZE AROUND THEIR DATA HAVE ALWAYS SEEN SUCCESS FOLLOW

used by IMTA members and the ROI is almost immediate. While autonomous trucks have been in the forefront because of the infamous Colorado experiment, some industry experts believe that truck platooning will be here much sooner and will be more widely accepted. The University of Iowa tried to pass legislation this year that would have allowed truck platooning in an experimental setting, but Iowa lawmakers didn’t have an appetite for this type of technology and it didn’t “As part of our MegaSafe culture, pass. However, it certainly laid Ruan has been an early and significant the groundwork for discussion. investor in such safety technology as There is a great deal of intrigue advanced driver assistance systems, in the concept of two-truck dashboard cameras, electronic logging platoon especially when some devices and stability and collision statistics show a savings of up to mitigation systems. Overall, the results 10% for the rear truck, while the we have experienced with these front truck has seen an equally investments have been impressive. impressive gain of over 4%.

Importantly, we are extremely pleased with the adoption and the engagement from our drivers. The new technology in the cabs gives us the peace of mind that we are helping to prepare our professional drivers for the critical work they do, and to ensure they are returning home to their families every day.”

WHAT DOES THE FUTURE HOLD FOR TECHNOLOGY?

“We are seeing automated vehicle technology develop at a rapid pace. Government policies should encourage innovation and flexibility so truckDAN VAN ALSTINE ing companies can choose the President & COO of Ruan Transportation technology that works best for their business, said Mike Cammisa, ATA Vice President of Safety Policy, Connectivity & Technology. The insurgence and continued focus on technology applications in the trucking industry is here to stay. Every day, information is emerging about a new application and

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one that is getting a lot of interest is “Augmented Reality.” What is augmented reality? This new reality is formed by augmenting a transportation vehicle operator's physical view of the world with contextually relevant digital images and information. With this technology, a driver’s windshield would be able to display warnings about out-of-lane drifts, excessive speed, or roadway obstacles; provide recommendations on nearby dining options; or enable connection with a Facebook account. These features and many more are being enabled by augmented reality (AR) technologies, wireless and cloud-based applications, mobile devices, and supporting networks and databases. At its core, the main advantage of AR in transportation is safety—enabling goods or people to be transported more safely and efficiently. Corollary benefits include reducing transportation costs (especially for commercial transport) and the ability to gather insightful operating data, which in turn enables analytics to be used to improve the efficiency of travel and transport. Artificial Intelligence (AI) and machine learning (ML) will be able to deliver forward-looking analysis of data with powerful and accurate predictive analytics. This will have a huge impact on a variety of applications specific to the trucking industry. Given the astronomical costs of congestion, some technology leaders have suggested that a very positive impact could be made by having a system that uses data collected by drones to regulate speed and select optimal routes. It has been further suggested that this technology could also be extremely helpful in predicting demand and optimizing logistics even further by simplifying distribution networks. Having powerful predictive algorithms that are constantly mining data would impact the financial function of the industry as well, especially in the areas of risk management and pricing. The trucking industry has been built on data and the companies that strategize around their data have always seen success follow, so the excitement for AI continues to grow. These are just a few examples of the technology “explsion” that is impacting the trucking industry in ways


that weren’t even imagined just a few short years ago. And anyone that is trucking today, whether you have 5 trucks or 5000 trucks is always looking for ways to minimize their liability, create efficiencies and see a positive impact on their bottom line. Regardless of whether you like all this technology or not, the successful trucking companies of the 21st century will have to embrace innovation and technology. The future CEOs will have to have an understanding or at least an appreciation that technology is going to continue emerge and in order to stay competitive, their thinking and the culture of their operation is going to have to evolve as well. Data-driven models and decisions will rule the day and while all of this technology can be frightening and may even seem to be a little “out there”. The one thing that won’t change is the ability of the trucking industry to adapt and be nimble to whatever changes await them. That always has been and always will be the strength of this industry and technology will never replace courage, reliability, perseverance, and leadership….very real attributes of any trucking CEO today.

“We are seeing automated vehicle technology develop at a rapid pace. Government policies should encourage innovation and flexibility so trucking companies can choose the technology that works best for their business.” MIKE CAMMISA ATA Vice President, Safety Policy, Connectivity & Technology

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Northland is a proud member and supporter of the Iowa Motor Truck Association.

ISSUE 2, 2017

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FINANCE

What is Your Trucking Company Worth?

28

Valuation is always a topic of great interest to transportation company owners. Many companies today are successful because they made the difficult decisions necessary to operate through the Great Recession.

as driver quality, customer relationships and management experience, alsxo affect value and cannot easily be measured. These qualitative factors often separate the most valuable companies from the pack. Three general methods of valuation are most commonly used to translate these quantitative and qualitative factors into a company’s overall value:

While demand has increased in recent years, challenges persist due to regulation, driver shortage and excess industry capacity. How has a company’s value been impacted by the up-and-down movements of the economy? More importantly to business owners: what’s the most effective way to build a higher company value? Buyers and sellers of trucking companies must consider a long list of factors when determining value. Some of these factors take into account the financial condition of the company – think of these as the “quantitative” factors. But several important “qualitative” factors, such

1. INCOME METHOD

IOWA TRUCKING LIFELINER

Buyers need to estimate the future cash f low that can be generated by a trucking company. Understanding the company’s historical cash flow performance provides the basis for developing a meaningful forecast. Is it possible to have a perfect ‘crystal ball’ when forecasting? Of course not. But analyzing the potential cash flow capacity of the company can help buyers (and sellers) understand the opportunities and risks ahead.


THERE ARE MANY TRANSPORTATION COMPANIES THAT ARE PRIVATELY HELD AND NOT PUBLICLY TRADED. TRANSACTION DATA ON THE SALE PRICES FOR PRIVATELY HELD TRUCKING COMPANIES CAN PROVIDE A GUIDEPOST FOR “VALUATION MULTIPLES.”

2. MARKET METHOD The value of publicly traded transportation companies is determined every day in the stock market. Real-time market information also has an impact on the value of smaller, privately held trucking companies. However, these stock market valuations are not perfect guides for the value of privately held companies due to the larger size and diversified operations of public companies. There are many transportation companies that are privately held and not publicly traded. Transaction data on the sale prices for privately held trucking companies can provide a guidepost for “valuation multiples.” These multiples may be calculated based on a number of factors such as revenues, earnings, cash flow or book value. Transactions occur at a broad range of valuation multiples, however, so proceed with caution when using a valuation multiple as anything more than an approximate indication of value. As an example, data from Pratt’s Stats, a leading private company transaction database, is highlighted in the accompanying chart. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is a common measure of a company’s profits. What was the range of EBITDA valuation multiples observed by Pratt’s Stats over the past five years? The lowest valuation multiple was 1.0 times EBITDA, and the highest valuation multiple was 27.7 times EBITDA. As the saying goes: results may vary!

3. ASSET METHOD Do not forget the most fundamental way of looking at the company’s value: the net value of assets minus liabilities. When

Trucking Company Valuation Multiples 6.48

4.64

Multiple of Invested Capital / EBITDA

4.32

4.07 3.13

ANDY MANCHIR Katz, Sapper & Miller

Value Drivers: How Does an Owner Grow Company Value? 2012

2013

2014

2015

2016

Median multiple for trucking company SIC codes 4212, 4213, 4214. EBITDA: earnings before interest, taxes, depreciation and amortization. Source: Pratt’s Stats.

looking at value in this manner, be sure to consider the market value of transportation equipment, and the costs associated with selling equipment. This net total is called “Adjusted Book Value.” Owners desire to sell their companies for a value at least as much as this Adjusted Book Value, making this amount a potential “floor” value, or the lower-end of your valuation range. The value premium paid for a company above the Adjusted Book Value is commonly referred to as “Intangible Value,” or “Goodwill.”

Positive Cash Flow: Profits are good, but cash flow pays the bills. Efficient operations will convert net income (as shown on the profit & loss statement) to cash flow. Converting receivables to cash, and efficiently managing the level of capital equipment, are keys to positive cash flow. Develop Tangible and Intangible Assets: While it is easy to focus on tangible assets such as cash, working capital and equipment, the development of intangible assets cannot be overlooked. Any acquirer of the company will care about issues such as driver quality, long-standing customer relationships and the ‘know-how’ that comes from an experienced management team. Manage Debt: The valuation ‘multiples’ discussed in this article relate to the “debt-free” value of a business. Trucking companies often must use financing to purchase equipment, and in today’s low-interest rate environment, the cost of capital for this debt financing can be attractive. But beware of using too much debt to finance the company. A balance between debt and equity must be maintained for a healthy balance sheet.

Andy Manchir is a director in Katz, Sapper & Miller’s Valuation and ESOP Services Groups. Andy provides valuation and business advisory services for various purposes, with a particular emphasis on ESOP services. Connect with him on LinkedIn. As one of the top 60 CPA firms in the nation, Katz, Sapper & Miller has earned a reputation as a leader in the areas of accounting, tax and consulting services. We have been named one of the “Best of the Best” accounting firms in the nation by INSIDE Public Accounting magazine.

ISSUE 2, 2017

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FRONT ROW, FROM LEFT: James Hofer, Warren Transport, Inc; Cliff Chapman, Solar Transport; Bret Smith, Johnsrud Transport, Inc.; Jordan Bjerke, Iowa Motor Truck Association; Lindsey Hermanson, Ruan Transportation; Dustin Moeller, Perishable Distributors of Iowa MIDDLE ROW: Corrine Kimm, Manatt’s, Inc.; Brandon Kohlwes, Decker Truck Line, Inc.; Jen Helton, Niece Trucking, Inc.; Justin Schwarz, Hanifen Co., Inc.; Dave Riggan, TanTara Transportation Corp. BACK ROW: Josh Weihs, Panama Transfer, Inc.; Nathan Lease, O’Halloran International, Inc.; Mark Fogt, Panama Transfer, Inc.; Alex Stein, Midwest Wheel Companies; Bryon Rowland, Ruan Transportation; Jason Van Hoozer, Cummins Sales & Service; Marc Newman, Capital City Fruit; Zach DeCarlo, Housby Mack, Inc.

NEXT GENERATION SPEAKS

2017 IMTA Leadership Class Convenes IMTA has always been committed to investing in the future leaders of the industry and the association. In 1993, IMTA leaders determined that IMTA needed to offer some sort of program that would allow future leaders to become better acquainted with IMTA and its efforts. Now, 24 years later, the leadership program is still in place and over 200 people have participated in the 24-year history of the program. In fact, IMTA has the longest running leadership program among state trucking associations. The program has evolved and changed dramatically since its inauguration but there are still some important elements of the program that have remained untouched. For example, the class size is always limited to no more than 20 with a 3 to 1 ratio of carriers to vendors in the class. Attendance is required at all 4 sessions and there is no age limit to attend. “Our program has always been very “inclusive”. Our main objective is to use this program as an opportunity to provide

30

IOWA TRUCKING LIFELINER

ABOVE: Leadership class participants work together on communication skills to blindly create a square from a large circle of rope LEFT: Nathan Lease, Corrine Kimm and Zach DeCarlo look to see what personality trait cards best describe them.


personal and professional development for any IMTA member regardless of where they are in the company or in their career,” said IMTA President Brenda Neville. The class meets four days over a twomonth period. The sessions are geared for professional development, with a focus on IMTA as an organization and advocate for trucking, and personal development is accomplished through sessions dedicated to communications and public speaking, team building, ethical decision making and a host of other innovative sessions. “The leadership program is one of my most favorite programs in the IMTA playbook because we get such a diverse group of members to participate and it is rewarding to provide a quality program that truly makes a lasting impact. It is extremely gratifying to see the leadership graduates stay involved and engaged in the association long after they

have graduated from the program. That is the heart and soul of this program,” said Brenda. Many of the folks that have participated in the leadership program have continued to be involved with the association through committee work, serving on the board and getting involved with leadership opportunities within their own companies and communities. “The IMTA leadership program is truly very special. I enjoyed it tremendously and was extremely impressed with the caliber of every session. I encourage members that haven’t participated in the leadership program to get enrolled in the 2018 class. It is well worth your time and energy,” said Corrine Kimm, Transportation Manager with Manatt’s. The 2017 Leadership class will be recognized at the IMTA Management Conference on Thursday, September 21st at the annual Awards Luncheon.

2017 IMTA Leadership Class Marc Newman Transportation Manager, Capital City Fruit Jason Van Hoozer Service Supervisor, Cummins Sales & Service Brandon Kohlwes VP of Operations – Flatbed Division Decker Truck Line, Inc. Justin Schwarz Light Duty Manager, Hanifen Co., Inc. Zach DeCarlo Truck Sales, Housby Mack, Inc. Jordan Bjerke Marketing Manager, Iowa Motor Truck Association Bret Smith Safety Manager, Johnsrud Transport, Inc. Corrine Kimm Transportation Manager, Manatt’s Inc. Alex Stein Director of Accessories, Midwest Wheel Companies Jen Helton Office Manager, Niece Trucking, Inc. Nathan Lease Warehouse Supervisor, O’Halloran International, Inc. Mark Fogt Manager, Panama Transfer, Inc. Josh Weihs Router/Dispatcher, Panama Transfer, Inc. Dustin Moeller Director of Transportation Logistics, Perishable Distributors of Iowa Lindsey Hermanson National Account Manager, Ruan Transportation Bryon Rowland Accounting Supervisor, Ruan Transportation Cliff Chapman Director, Fleet Management & Planning, Solar Transport David Riggan Safety Director, TanTara Transportation Corp. James Hofer Specialized Logistics Manager, Warren Transport, Inc.

Nominations for next year will open on November 1, 2017.

ABOVE: Leadership class participants break into small groups to discuss real life situations and how they would handle them. BELOW: It is always a special privilege for the Leadership Class to meet with Iowa Governor Kim Reynolds.

ISSUE 2, 2017

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MAINTENANCE

Let Higher Biodiesel Blends Elevate Your Fleet’s Performance and Your Bottom Line Biodiesel is well-known to most trucking companies that operate in Iowa. The state is in many ways the home of the advanced biofuel, given the amount of feedstock that comes from Iowa farms and the biodiesel production that occurs here, as well as how common biodiesel is at retail and private fueling locations. What’s not as familiar is the benefits fleets can realize by running on higher blends, particularly those ranging from B10 to B20, which means they have between 10 and 20 percent biodiesel blended with petroleum diesel. Let’s start with the benefit you probably care about most: money. Biodiesel often has positive economics over petroleum diesel — and when it does, the more biodiesel you’re blending into your fuel, the more you’re saving. To give an example from recent months, there was a point when the price of a gallon of biodiesel from REG was approximately $1.35 after factoring in the value from Renewable Identification Numbers (RINs). The price for No. 2 ULSD was approximately $1.60 per gallon, giving biodiesel a 25-cents-per-gallon advantage. That doesn’t even factor in the federal biodiesel tax credit, if it is reinstated, or state of Iowa incentives for retailers that add up to 7.5 cents per gallon for selling B11 and above — savings that can be passed on to consumers in the form of lower prices. Then there are the performance benefits. This is where we run into myths surrounding biodiesel. Some people believe that it doesn’t work well in the cold, that it hurts engines or that using biodiesel will void warranties

JON SCHARINGSON

Renewable Energy Group, Inc.

because OEMs don’t support it. None of that is true. Here are the facts. Cold Weather: Biodiesel is like traditional diesel: With proper additive use and storage and blending methods, the fuel works just fine in cold weather. We’re seeing more fleets use B20 year-round in Iowa and throughout the northern states. Performance: Not only does biodiesel not hurt performance, it’s actually better than petroleum diesel in some areas. The ASTM specification for biodiesel requires a minimum Cetane number of 47. That’s higher than the ASTM diesel spec of 40. Higher Cetane equals a shorter ignition time and better performance. Also, adding as little as 2 percent biodiesel — a B2 blend — can double the amount of lubricity in fuel, which is important because ULSD lacks lubricity. Low lubricity can cause more wear and scarring, whereas high lubricity can lead to longer component life. OEM Support: Nearly 90 percent for

medium and heavy-duty truck OEMs support B20 blends, according to the National Biodiesel Board. Why? OEMs have carefully studied biodiesel’s impact on their products and have found that it performs. They are also pleased with the stringent ASTM specifications met by today’s biodiesel. REG strongly encourages fleets to use biodiesel from a BQ-9000® accredited producer and, if they are not supplied directly by a producer, from a BQ-9000 accredited marketer. This is a voluntary program that combines ASTM standards with a quality systems program that includes storage, sampling, testing, blending, shipping, distribution, and fuel management practices. Ease of Use: Want to start running your vehicles on B20? Just pump it into their tanks. Biodiesel blends don’t require vehicle or fuel infrastructure upgrades. Lower Carbon intensity: Biodiesel is a cleaner-burning fuel with significantly lower emissions than ULSD. Many public and private organizations have adopted sustainability plans in recent years, so whether it’s a goal of your business or your customers, being environmentally friendly is growing in importance in the transportation sector. The higher the biodiesel blend, the greater the emissions reductions compared with straight diesel. At REG, we’re seeing growing acceptance of higher blends nationwide, including in our home state of Iowa. If you’re ready to make that move, or if you have any questions you’d like answered, contact me at (515) 239-8042 or Jon.Scharingson@regi.com. Jon Scharingson is Executive Director, Sales & Marketing, at REG. Headquartered in Ames, Iowa, REG is North America’s largest producer of advanced biofuel. The company has 14 active biorefineries with a total nameplate capacity of 502 million gallons annually. For more information, visit regi.com.

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ATRI UPDATE Operational Costs of Trucking Since 2008 the American Transportation Research Institute (ATRI) has annually published the report, “An Analysis of the Operational Cost of Trucking”, to provide more accurate marginal cost data on motor carrier operations.

REBECCA BREWSTER ATRI President & COO

Want to get more involved with ATRI? There are a number of ways you can be part of this vital industry organization: »» P  articipate in ATRI’s research. When ATRI puts out a call for carrier data or asks for responses to an industry survey, take the time to participate. More is always better when it comes to research and we encourage you to join the growing number of motor carriers, professional drivers and industry suppliers who all regularly take part in ATRI’s studies.

Since its launch in 2008, ATRI’s annual operational costs research has quantified motor carriers’ key operational costs, stratified by fleet size, sector, and region of the country. The goal of the study was to accurately identify and promulgate current operational costs based on realworld data provided directly from motor carriers. The final product is an analysis that is used by both motor carriers as a high-level benchmarking tool and by public sector agencies for various transportation impact assessments.

ATRI recently put out the data call for the 2017 Operational Costs of Trucking. ATRI is seeking for-hire motor carrier cost data from 2016 associated with operating a truck. The final report, which will be made available in early Fall, will support studies related to industry productivity, driver issues and fuel efficiency. Survey responses are kept completely confidential. Personal, organizational, or financial information is never released to the public under any circumstances. Please take a moment to access this survey at www.atri-online.org, or contact the IMTA office to receive the link directly.

Since its original publication in 2008, ATRI has received over 10,000 requests for this report and because of the continual high demand for this research, ATRI updates the “ops cost” data on an annual basis. IMTA distributes the report to the membership annually and

Here is a snapshot of some of the information that is included in the report:

»» C  ontribute to ATRI. Join your peers in the industry and STEP UP with a charitable contribution to support ATRI’s research. Giving is easy and can be done online at www.atri-online.org.

Average Costs Per Mile, 2008–2015

»» S uggest a research topic. ATRI is always looking for new research ideas for the RAC to evaluate.

Fuel Costs

$0.633 $0.405 $0.486 $0.590 $0.641 $0.645 $0.583 $0.403

»» J oin the RAC. Want to be involved in setting the trucking industry’s research agenda? Send us an email letting us know you want to be considered for a nomination to serve on the RAC.

Truck/Trailer Lease or Purchase Payments

$0.213 $0.257

$0.184

$0.189

$0.174

$0.163

$0.215 $0.230

Repair & Maintenance

$0.103

$0.124

$0.152

$0.138

$0.148

$0.158

$0.156

Truck Insurance Premiums $0.055 $0.054

$0.059

$0.067

$0.063

$0.064

$0.071

$0.092

Permits & Licenses

$0.016

$0.029

$0.040

$0.038

$0.022

$0.026

$0.019

$0.019

Tires

$0.030

$0.029

$0.035 $0.042

$0.044

$0.041

$0.044 $0.043

Tolls

$0.024

$0.024

$0.012

$0.017

$0.019

$0.019

$0.023

$0.020

$0.435 $0.403

$0.446 $0.460

$0.417

$0.440

$0.462

$0.499

Driver Benefits

$0.144 $0.128

$0.162

$0.116

$0.129

$0.129 $0.131

TOTAL

$1.653 $1.451 $1.548 $1.706 $1.633 $1.676 $1.703 $1.593

»» S pread the news. When ATRI releases research results, please Tweet, Facebook and otherwise share the findings with your colleagues and peer network so that everyone benefits from our work on behalf of the trucking industry.

Please access the 2016 cost data survey at www.atri-online.org, or contact the IMTA office for a direct link.

34

it is also included in all the membership recruitment materials as well.

IOWA TRUCKING LIFELINER

Motor Carrier Costs

2008

2009

2010

2011

2012

2013

2014

2015

Vehicle Based

$0.123

Driver-Based Driver Wages

$0.151


ATRI Takes Innovative Approach to Learning About Parking Issues Safe, legal truck parking has historically been a major issue for motor carriers and commercial drivers, but the problem is now reaching a critical juncture. State budget woes have led to the elimination of hundreds of public truck parking spaces. Evolving supply chains and truck operational changes have moved the truck parking “sweet spot” for many urban areas. In 2015, ATRI’s Research Advisory Committee (RAC) ranked “Managing Critical Truck Parking” as the most important research topic for the year. ATRI’s 2015 RAC-directed truck parking research was conducted through an innovative effort that allowed drivers to document their experiences in finding suitable truck parking. The “Truck Parking Diaries” proved to be extremely valuable in learning more about this complex issue. Driver participants were solicited with announcements posted in major trucking industry trade press, on SiriusXM’s Road Dog Trucking channel and through in-person contact at the MidAmerica Trucking Show. Over 650 driver submitted qualifying surveys with a total of 587 selected for participation. In total, 148 completed diaries were returned to ATRI between June and September 2016, representing a total of 2,035 days of truck

Unauthorized/Undesignated Parking Frequency 10.8%

9.5%

5.4%

12.2%

25.7%

36.5%

Daily

5–7 times per week

3–4 times per week

1–2 times per week

Twice per month

Never

parking activity and 4,763 unique stops. Among the findings, drivers looking for parking between the hours of 4:00 p.m. and midnight face a confluence of challenges including increased search times, and truck parking spaces clogged by non-commercial vehicles, which results in drivers parking in undesignated or unauthorized locations such as roadway shoulders or ramps during those same times. The frequency of being forced to park in unauthorized or undesignated truck parking locations because there was no

other available parking was as much as 3-7 times per week for nearly 50 percent of the drivers in ATRI’s diary research. ATRI’s diary research also documented the amount of lost revenue time that drivers experience by parking earlier than they otherwise needed to, just to find parking. With an average of 56 minutes of revenue drive time sacrificed by drivers per day, the parking shortage effectively reduces an individual driver’s productivity by 9,300 revenue-earning miles a year, which equates to lost wages of $4,600 annually. The ATRI truck parking diaries also quantified the negative impact that the Electronic Logging Device mandate will likely have on the parking issue. Drivers utilizing ELDs were more likely to spend over 30 minutes looking for available parking than did drivers without an ELD. The results from the truck parking diaries provide insight to potential solutions that various industry stakeholders could employ to improve truck parking issues and public safety. To read the full report, simply go to the www.atri-online.org ATRI makes all its research available, free of charge, to all interested parties. ATRI reports can be ordered online through the website above.

ISSUE 2, 2017

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36


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IMTA EVENTS Allied Division Makes $15,000 Donation to IMTA Show Trailer Efforts IMTA’s Allied Division leaders were present at the May IMTA Board of Director’s meeting to present a $15,000 check to go towards a new IMTA show trailer. Late last year, a committee chaired by Mark Olson, 2016 IMTA Chairman of the board, made the decision to purchase a different show trailer. IMTA’s previous show trailer was starting to show its age and the cost to upgrade and renovate was too excessive. The new show trailer will be renovated in three stages over the next several years. Currently, in the first stage, a generator was installed and minor exterior repair work is being done. The second phase will be finalizing the design for the exterior wrap and the final stage will be the interior upgrade. “We understand and appreciate the value of having an IMTA show trailer to help convey the positive message of trucking. We are more than happy to provide financial support to such an important project and enjoy being valued partners to IMTA’s ongoing public relations efforts,” said Rory Triplett, Chairman of the Allied Steering Committee.

FROM LEFT: Mark Olson, Olson Explosives, Jerry Bender, Midwest Wheel Companies, Don Decker, Decker Truck Line, Inc., Rory Triplett, Insurance Associates, Delwin Van Wyk, Harrison Truck Centers, Travis Thompson, Thompson Truck & Trailer and Scott Jones, Cummins Sales & Service.

Safety Professionals Gain Knowledge at Conference The 2017 Safety Professionals Conference was a success. The conference was held in Des Moines recently and attendees’ response to the speakers and topics was very good. The event was held over two days, with the first morning being devoted to a regulatory compliance seminar. In the afternoon an experienced attorney discussed how to be prepared in the event that you would have to go through a deposition. He also did a hands-on role play demonstration on questions that can be asked during a deposition.

(ABOVE) FROM LEFT: Bret Smith, Johnsrud Transport, Dennis Kent, Hy-Vee, Inc., Kenny Bauman, JMT Trucking, Jesse Gutierres, Allied Oil & Tire Company, Jen Wilson, Sully Transport, and Keith Lamfers, Schuster Company FROM LEFT: Amanda Hopkins, Allison Meiners and Lexi Smith, Ruan Transportation

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IOWA TRUCKING LIFELINER

Second day speakers included a regulatory update by Sean Garney, of the American Trucking Associations; Diffusing an Active Shooter, by Nick Lloyd of the Des Moines Police Department; OSHA Preparedness, with Frank Weber of Ruan Transportation; and E-Log Implementation & Best Practices, presented by Dave Durr and Jason Rudolph, of PeopleNet. This is one of our best conferences of the year, and is always anticipated by our safety professionals. We will be holding the event again next spring and would love to have your safety staff included as well.


IMTA EVENTS IMTA Major Sponsor for American Truck Historical Show Over 1600 antique trucks were on display at the Iowa State Fair Grounds when the American Truck Historical Society held its annual exposition in Des Moines. IMTA was a major sponsor for the event and had hundreds of people stop at the IMTA booth. Additionally, many IMTA members attended the show and had trucks on display. Iowa Road Team Member Rose Swallow, Schuster Company, and IMTA Safety Director Don Egli manning the booths at the ATHS Show.

IMTA Board Holds Spring Meeting ISU Football Coach Matt Campbell & IMTA Chairman Don Decker TOP RIGHT: Iowa Governor Kim Reynolds BOTTOM RIGHT: Iowa Senate President Jack Whitver

The IMTA Board of Directors met in May for their annual Spring Board meeting. Over 60 people were in attendance and enjoyed a full agenda of speakers including Governor Kim Reynolds, Mark Lowe, Iowa DOT, Rebecca Brewster, President & COO, ATRI, Senate President Jack Whitver, Mark Sundstrom, Wellmark Blue Cross/ Blue Shield and ISU Football Coach Matt Campbell. “We have a great group of folks that volunteer their time and energy to serve on the board and our meetings are always extremely valuable. The participation and support by the board is exceptional and a testament to the fine trucking and vendor leaders we have here in Iowa,” said IMTA Chairman of the Board Don Decker.

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FINAL THOUGHT Iowa Motor Carriers Foundation Awards 2017 Scholarships Since 1989, the Iowa Motor Carriers Foundation has been proudly investing in Iowa students. Since that first awards ceremony, Iowa’s trucking industry has impacted nearly 250 students with over $180,000 in scholarship dollars. The Iowa Motor Carriers Foundation (IMCF) was formed in 1986 by long-time supporter Verne Simpson with Mid-Seven Transportation. Verne’s vision of establishing a scholarship program to assist students in the state of Iowa pursue educational opportunities beyond high school came to reality when he awarded the first scholarship check in 1989 to Kristine Edwards, thanks to generous contributions by Cummins and Caterpillar. Verne’s legacy continues today as the scholarship program continues to thrive and grow. “We are always very excited to see the quality of candidates that apply for the scholarships. This year the vast majority of the applicants had a direct connection with IMTA and the trucking industry. We are hopeful that all of these winners may end up in the trucking industry once they obtain their respective degrees, that would really be a home run for the Foundation,” said Murry Fitzer, Foundation Chairman.

SYDNEY JOHNSON

LOGAN WENZEL

Sydney was awarded the Bob Bannister Memorial Scholarship. She currently attends Grand View University.

Logan was awarded the Cummins Central Power Scholarship. He plans to attend Northwest Iowa Community College.

ZACKARY CONGER

MIKIEL GONNERMAN Mikiel was awarded the Darryl Mason Memorial Scholarship. He currently attends the University of Iowa.

ALYSSA NOE

OLIVIA ANDERSON

Zackary was awarded the Harold Dickey Memorial Scholarship. He plans to attend Hawkeye Community College.

Alyssa was awarded the Iowa Council of Safety Management Scholarship. She plans to attend the University of Northern Iowa.

Olivia was awarded the L.W. “Verne” Simpson Memorial Scholarship. She plans to attend the University of Northern Iowa.

CHLOE BENDER

MARIA ANDERSON

RYAN FEAUTO

Chloe Bender was awarded the Midwest Wheel Companies Scholarship. She plans to attend Iowa State University.

Maria was awarded the Motor-Ways, Inc. Scholarship. She plans to attend the University of Iowa.

Ryan was awarded the Paul Crouse Memorial Scholarship. He plans to attend Dordt College.

2017 Selection Committee Members Adrian Dickey Dickey Transport Kevin Gass Perishable Distributors of Iowa John Minor Midwest Wheel Companies Mark Olson Olson Explosives Julie Pruitt Crouse Transportation Services Jack Sawyer Des Moines Transportation Co. Pat Storey Motor-Ways, Inc. Mike Sullivan MHC Kenworth (Retired) Doc Wilson Cummins Sales and Service

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IOWA TRUCKING LIFELINER


Lifeliner Special Section

The

EXTRA MILE

ISSUE 2, 2017


2017 Iowa Truck Driving Championships

2017 IOWA TRUCK

S2

IOWA TRUCKING LIFELINER


XXXXX XXXX XXX

DRIVING CHAMPIONSHIPS Since the origination of the IMTA 75 years ago, the State of Iowa has honored and celebrated the important role that the professional truck driver plays to the economy of this state and to this nation. The 2017 Iowa Truck Driving Championships (TDC) continued this tradition throughout the entire two-day event that once again took place at Prairie Meadows Hotel and Conference Center, in Altoona, Iowa. This year, 113 professional drivers competed in the annual TDC, which included a written exam, personal interview, driving skills test and a pre-trip inspection test. Prior to the start of these events, drivers participated in the annual team building activity that let their creativity shine and allowed them to take their minds off the upcoming competition. Drivers were split up into small groups and were provided a bag of miscellaneous ‘junk’ to construct a truck and trailer out of. It was no surprise that these 113 drivers had creativity through the roof as every model truck was completely different even with using the same supplies to build it. The models that survived overnight were used as centerpieces at the Banquet of Champions the following evening. In addition, several special events were planned for the drivers that included a walk on the red carpet, champagne toast and numerous opportunities for every driver to walk up on stage and receive the recognition they deserve for the job they do every single day. Not only do the drivers get the well-deserved recognition, but their support system is as well as they are the individuals that make sure things at home get handled properly so the driver can focus on doing his or her job and not have to worry so much about things at home.

“If there is nothing else that you take away from this event, I hope you leave with a renewed sense of pride in who you are and what you do; because we certainly recognize the respect, stature and appreciation you deserve. And I believe we have illustrated that appreciation over the course of the last two days,” said IMTA Chairman of the Board, Don Decker. The Banquet of Champions concluded the event where not only the winners are announced, but once again, every single driver is brought up on stage and recognized for their success and their achievement, and walk away with a great sense of accomplishment and pride. “To me, the trucking industry is the best industry in the world, and each of us that work in the industry are proud of the job that we do to keep the nation supplied with goods and services,” said 2017 TDC Chairman Dave Riggan. “I am privileged to be a small part of the trucking industry. Not because it is something that I wanted to do for myself, but because it is something that I wanted to do for YOU. It is the one way I can give back to you; those of you who have done so much for every single person in this room.” The Iowa Truck Driving Championships wouldn’t be possible without the help and support by the committee, the volunteers, the sponsors, but most importantly the drivers and their families. Everyone involved in the TDC is committed and dedicated to making it a first-class event and it shows from start to finish. It is surely a tradition that will continue to celebrate the professional truck driver for years to come.

ISSUE 2, 2017

S3


Truck Driving Championships Event Photos

S4

IOWA TRUCKING LIFELINER


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ISSUE 2, 2017

S5


2017 Truck Driving Champions

Overall Champions

2ND PLACE TEAM: WALMART TRANSPORTATION

3RD PLACE TEAM: XPO LOGISTICS

1ST PLACE TEAM: CASEY’S GENERAL STORES

Champions by Division

3 AXLE VAN DIVISION FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 3rd Place Randy DeWitt, Walmart Transportation; 1st Place Steven Iburg, XPO Logistics; 2nd Place Jason Grave, Ruan Transportation; IMTA Chairman of the Board, Don Decker, Dec ker Truck Line, Inc.

5 AXLE VAN DIVISION FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 2nd Place Brad Heying, Walmart Transportation; 1st Place Scott Delaney, Casey’s General Stores; 3rd Place Josh Klemesrud, Martin-Brower; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

S6

IOWA TRUCKING LIFELINER

4 AXLE VAN DIVISION FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 2nd Place Mark Brown, Walmart Transportation; 1st Place Ben Ulery, Old Dominion Freight Line; 3rd Place Howard Key, Ruan Transportation; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

STRAIGHT TRUCK DIVISION FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 2nd Place Don Vos, Casey’s General Stores; 1st Place Erik McFarland, Walmart Transportation; 3rd Place Steven Knight, Walmart Transportation; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.


TWIN TRAILERS DIVISION

SLEEPER BERTH DIVISION

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 3rd Place Allen Sohn, FedEx Freight; 1st Place Darwin Plett, FedEx Freight; 2nd Jim Stinemates, Walmart Transportation; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

5 AXLE TANK TRUCK DIVISION

5 AXLE FLATBED DIVISION

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 2nd Chris Dougherty, Solar Transport; 1st Place Michael Lundberg, Walmart Transportation; 3rd Place George Foster, Casey’s General Stores; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

HIGHEST OVERALL SCORE

HIGHEST PRE-TRIP SCORE

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 3rd Place Aaron Imhoff, Ruan Transportation; 1st Place Rich Meimann, Casey’s General Stores; 2nd Jason Kremer, Fed Ex Freight; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

HIGHEST FIRST YEAR PARTICIPANT SCORE

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; Steven Iburg, XPO Logistics; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; Rich Meimann, Casey’s General Stores; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; 3rd Place Rich Eckhardt, Ruan Transportation; 1st Place Dave Towne, Walmart Transportation; 2nd Dean Filmer, Decker Truck Line; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; Howard Key, Ruan Transportation; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

INDIVIDUAL SPORTSMANSHIP AWARD FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; Scott Tredwell, West Side Transport; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

TEAM SPORTSMANSHIP AWARD FROM LEFT: TDC Chairman Dave Riggan, TanTara Transportation Corp.; Casey’s General Stores; IMTA Chairman of the Board, Don Decker, Decker Truck Line, Inc.

ISSUE 2, 2017

S7


2017 Truck Driving Championships Teams

S8

ABF FREIGHT

ARGEE TRANSPORT

CASEY'S GENERAL STORES, INC.

CROUSE TRANSPORTATION SERVICES

DECKER TRUCK LINE, INC.

ENNIS CORP.

FEDEX EXPRESS

FEDEX FREIGHT

FOODLINER

GREEN PRODUCTS CO.

HIRSCHBACH MOTOR LINES

HY-VEE, INC.

JOHNSRUD TRANSPORT, INC.

MAD J REPAIR & TOWING, INC.

MARTIN-BROWER CO.

IOWA TRUCKING LIFELINER


O'HALLORAN INTERNATIONAL, INC.

OLD DOMINION FREIGHT LINE, INC.

PANAMA TRANSFER

PERISHABLE DISTRIBUTORS OF IOWA

QUEST LINER, INC.

RUAN TRANSPORTATION

SCHUSTER CO.

SOLAR TRANSPORT

TANTARA TRANSPORTATION CORP.

UNFI

UPS FREIGHT

WALMART TRANSPORTATION, LLC

WEST SIDE TRANSPORT

XPO LOGISTICS

YRC FREIGHT

ISSUE 2, 2017

S9


Round of Applause

Meet the Committee DAVE RIGGAN TDC Chairman

TanTara Transportation Corp.

KENNY BAUMAN TDC Co-Chairman

JMT Trucking Company

KEVIN GASS

KEITH LAMFERS

JACKSON SAWYER

LISA GONNERMAN

JEFF MARTIN

JEN WILSON

GARY HANDLEY

MARVIN MCGINNIS

DEAN KLOEWER

MARK OLSON

Perishable Distributors of Iowa Ruan Transportation

BTI Special Commodities, Inc. Panama Transfer, Inc.

Schuster Company

Green Products Company

Des Moines Transportation Co. Sully Transport, Inc.

Casey’s General Stores, Inc. Olson Explosives, Inc.

Thank you to our Sponsors TROPHY SPONSORS Acuity Insurance All Seasons Trucking, Inc. Casey’s General Stores, Inc. Cedar Rapids Truck Center/Quad Cities Peterbilt Continental Western Insurance Company Cummins Sales & Service Decker Truck Line, Inc. Des Moines Transportation Co. FedEx Freight Green Products Company Heil Trailer Hy-Vee, Inc. Iowa Council of Safety Management Jim Hawk Truck-Trailers, Inc. Joe Morten and Son, Inc. d.b.a. MotorWays, Inc. Johnsrud Transport, Inc. Mid Seven Transportation Co. Midwest Wheel Companies Niece Trucking, Inc. Old Dominion Freight Line, Inc. Panama Transfer, Inc. Perishable Distributors of Iowa Reynolds & Reynolds, Inc. Ruan Transportation Schneider Graphics, Inc. Solar Transport Sully Transport, Inc.

S10

IOWA TRUCKING LIFELINER

TanTara Transportation Corp Truck Country Freightliner-Western Star Walmart Transportation, LLC West Side Transport, Inc. Wilson Trailer Company EVENT SPONSORS Argee Transport Central Trailer Service Crouse Transportation Services, LLC Dickey Transport Great West Casualty Company Holmes Murphy & Associates Joe Morten and Son, Inc. d.b.a. MotorWays, Inc. Walmart Transportation, LLC PLATINUM SPONSORS Harrison Truck Centers Midwest Wheel Companies Thompson Truck & Trailer, Inc. Truck Country Freightliner-Western Star GOLD SPONSORS Des Moines Truck Brokers, Inc. DMACC Interstate PowerSystems J.J. Keller & Associates, Inc. Johnsrud Transport, Inc. Kwik Trip, Inc. McGowen, Hurst, Clark & Smith, P.C. MHC Kenworth

North Central Utility O’Halloran International, Inc. / Quality Services Corp. Ruan Transportation Sully Transport, Inc. United Natural Foods United Trailer Leasing SILVER SPONSORS BMO Transportation Finance Bradshaw, Fowler, Proctor & Fairgrave, P.C. Cornhusker International Trucks Diamond Detailing Pros Gatr Truck Center Housby Lube-Tech & Partners, LLC Mid-States Utility Trailer Sales, Inc. Pilot Flying J Schuster Company Stoughton Lease TanTara Transportation Corp Thermo King Sales & Service TrueNorth Companies U.S. Legal Services Warren Transport, Inc. BRONZE SPONSORS Aero Industries Allied Oil & Tire Company Bauer Built Tire Bridgestone Commercial Solutions

Clean Energy Fuels CliftonLarsonAllen, LLP Dave Syverson Truck Centers Donaghy - Kempton Insurors Great Dane Hanifen Company, Inc. JMT Trucking Company Lockton Companies, LLC Majestic Truck Center Midwest Peterbilt Group North Iowa Area Community College Pocket Card Networks, LLC Pomp’s Tire Renewable Energy Group RSM Ryder System Inc. Thermo King Christensen US Cargo Control Whitfield & Eddy, PLC FRIEND OF THE TDC Eastern Iowa Tire Ennis Corp. Growmark, Inc. Inland Truck Parts & Service Ten D, Inc Triple J. Enterprises Corp. Weinrich Truck Line, Inc.


XXXXX XXXX XXX

TRUCK PAC GOLF OUTING

A total of 157 registered golfers raised well over $25,000 during the annual Truck PAC Iowa golf outing, taking place at the Legacy Golf Course in Norwalk, Iowa. The outstanding weather for the event certainly helped bring out golfers and volunteers all in support of this fundraiser. This annual golf outing attracts IMTA members from across the state, both carriers and vendors, and shows the dedication that members have to this association. Since 1970, this event proves to be the largest fundraiser for IMTA’s political action committee. This long-standing tradition not only included golf, but several additional fun activities during the day to make the event

yet another unique outing, and success. IMTA leaders and officers get involved with the effort by having a special fundraising event on hole 10. IMTA Chairman of the Board Don Decker provided refreshments and snacks at the hole as he personally thanked each golfer for their support. “This PAC outing continues to be an event that the IMTA membership support and participate in year after year. It was a pleasure to meet and thank each golfer throughout the day. Raising money for our

PAC is always a top priority and we are fortunate for participants that realize this and support the cause,” said IMTA Chairman of the Board Don Decker. A special thank you goes to the PAC Committee for all the hard work in organizing this event and making it successful. And thank you to the volunteers who took the time to help throughout the event as well.

ISSUE 2, 2017

S11


2017 Golf Outing Photos

S12

IOWA TRUCKING LIFELINER


Champions by Flight

CHAMPIONSHIP FLIGHT, 2ND PLACE

CHAMPIONSHIP FLIGHT, 3RD PLACE

CHAMPIONSHIP FLIGHT 1ST PLACE FROM LEFT: BJ Thompson, Siouxland Trailer Sales; Andy Vering, Taylor & Martin, Inc.; Travis Buchman, Siouxland Trailer Sales 2ND PLACE FROM LEFT: Denis Kadic, Solar Transport; Clarence Hudson, Solar Transport; Brian Wilson, Stoughton Lease; Alan Stillmunkes, Stoughton Trailers 3RD PLACE FROM LEFT: Jason Ross, Cross Dillon Tire; Kip Strickland, Cross Dillon Tire; John Buettner, Cross Dillon Tire; Chad Gould, Yokohama Tire

CHAMPIONSHIP FLIGHT, 1ST PLACE

FIRST FLIGHT, 1ST PLACE FROM LEFT: Don Stoeckel, Bauer Built Tire; Stavros Printopoulos, Bauer Built Tire; Todd Weber, Bauer Built Tire; Mike Weber, Bauer Built Tire

SECOND FLIGHT, 1ST PLACE FROM LEFT: Stu Betsworth, Cornhusker International Trucks; John Plagman, Cornhusker International Trucks; Steve Schuster, Schuster Co.; Jeff Arens, Schuster Co

FIRST FLIGHT, 2ND PLACE FROM LEFT: Mark Gallagher, Truckers Insurance Associates; Jim Jansen, Prins Insurance; Nick Marsh, Truckers Insurance Associates; Calvin Griffith, Truckers Insurance Associates

SECOND FLIGHT, 2ND PLACE FROM LEFT: James Twedt, Motor-Ways; Doug Adams, Johnsrud Transport; Joel Donagy, Donaghy-Kempton Insurors; Sid Carroll, Great West Casualty Company

FIRST FLIGHT, 3RD PLACE FROM LEFT: Dick Dearborn, Cummins Sales & Service; Ed Vaske, Casey’s General Stores; Trent Rezabek, Cummins Sales & Service; Bill Brauer, Casey’s General Stores

SECOND FLIGHT, 3RD PLACE FROM LEFT: Chris Anderson, RSM; Casey Cason, Wells Fargo; Nick Pirotte, RSM; Tim Burns, Decker Truck Line

ISSUE 2, 2017

S13


2017 Truck PAC Golf Outing

Meet the Committee MIKE BAGG

DAVE NEUWOHNER

BRENDA DITTMER

MARK OLSON

FRED GRASK

MIKE RIGGAN

BRAD KOHLWES

STEVE SCHUSTER

KENNY NIECE

NICK THUMMEL

DAVE NELSEN

JEFF WANGSNESS

Central Trailer Service Weinrich Truck Line, Inc. Cedar Rapids Truck Center Argee Transport Niece Trucking

Harrison Truck Centers

All Seasons Trucking Olson Explosives

TanTara Transportation Corp Schuster Company

Keane Thummel Trucking JMT Trucking Company

Thank you to our Sponsors EVENT SPONSORS Allied Oil & Tire Company Bauer Built Tire BMO Transportation Finance Bridgestone Commercial Solutions CliftonLarsonAllen, LLP Cornhusker International Trucks Dave Syverson Truck Centers Des Moines Truck Brokers, Inc. Donaghy - Kempton Insurors Gatr Truck Center Hanifen Company, Inc. Harrison Truck Center Housby Interstate PowerSystems Lube-Tech & Partners, LLC Majestic Truck Center McGowen, Hurst, Clark & Smith, P.C. MHC Kenworth Mid-States Utility Trailer Sales, Inc. Midwest Peterbilt Group O’Halloran International, Inc. / Quality Services Corp. Renewable Energy Group RSM Thermo King Christensen Thermo King Sales & Service Thompson Truck & Trailer, Inc. Truck Country Freightliner-Western Star TrueNorth Companies U.S. Legal Services US Cargo Control Wilson Trailer Company

S14

IOWA TRUCKING LIFELINER

HOLE SPONSORS Bauer Built Tire Cross-Dillon / Yokohama Tire Cummins Sales & Service Decker Truck Line, Inc. Diamond Detailing Pros Engles, Ketcham, Olson & Keith, P.C. Iowa Council of Safety Management Iowa Motor Carriers Foundation Jim Hawk Truck-Trailers, Inc. Joe Morten and Son, Inc. d.b.a. MotorWays, Inc. Keck Energy Kingsgate Insurance LEAD IMTA Council Niece Trucking, Inc. Sioux City Truck & Trailer, Inc. Stoughton Lease Tarbell & Co., P.L.C Taylor & Martin, Inc. --- Auctioneers BEVERAGE SPONSORS Engles, Ketcham, Olson & Keith, P.C. Reynolds & Reynolds, Inc. Truckers Insurance Associates GOLF CARTS SPONSOR Central Trailer Service Putting Contest Sponsor J.J. Keller & Associates, Inc. SCORECARDS SPONSOR Midwest Wheel Companies STEAK FRY SPONSORS Warren Transport, Inc. Wilson Trailer Company


XXXXX XXXX XXX

STRENGTHENING TIES IMTA members once again made the annual trip to Washington DC and had meetings with all of the Iowa legislators in DC. In addition to meeting with Senators Grassley and Ernst, the group met with Congressman Young, Blum, King, and Loebsack. The group also met with members of ATA's legislative staff and ATA President and CEO Chris Spear. The first night of the DC trip, IMTA hosted a dinner that was attended by Senator Joni Ernst as well as Ambassador Terry Branstad, his wife Chris Branstad, and their son Eric Branstad. On the second evening, Congressman Young joined the group. "Having dinner with our legislators in DC is always a highlight, it allows for valuable one on one conversations and further strengthens our relationship with them," said Steve Schuster, a long-time participant on the DC trip. The focus of the trip was to talk with lawmakers about the pending F4A legislation, infrastructure funding, and also highlight the activities and priorities of the Iowa Motor Truck Association.

ISSUE 2, 2017

S15


Call on Washington

A special thanks to the following IMTA members for making the trip to DC: BRENDA DITTMER & RANAE ALLEN Weinrich Truck Line

ADRIAN DICKEY Dickey Transport

COREY MURPHY MHC Kenworth

STEVE SCHUSTER Schuster Co.

S16

IOWA TRUCKING LIFELINER

BILL ROTH

Truck Country

DAN VAN ALSTINE Ruan Transportation

DELWIN VAN WYK

Harrison Truck Centers


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2017 Lifeliner Magazine (Issue 2)  
2017 Lifeliner Magazine (Issue 2)  

Cover Story: Technology in Trucking