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by BARBARA CLEMENTS After three years of an uphill struggle, the nation's trucking industry might finally be heading into a level stretch of road. Since 2000, this industry - a leading indicator of how the economy is faring - found itself in a slump, even before the dot-com bust, Sept. 11 and the massive layoffs began. But 2003 gave this sector some welcome news. Shipping orders are up. Some of the struggling companies are finding themselves in the black again. The job market has begun to perk. The U.S. Department of Labor reported earlier this month that the national unemployment rate held steady at 6.1 percent in September, and employment rose by 57,000 the same month, the first increase this year. Orders for new trucks are beginning to shift into high gear and are expected to exceed the 180,000 sold last year. Typically, a big rig lasts five years, or 1 million miles, before it becomes cost-prohibitive to keep it on the road. There is also a push by many fleet managers to buy new trucks before 2007, when new emission standards go into effect, according to a report on the SmartMoney Web site. Monthly tonnage on the nation's highways - the weight of freight shipped - also is coming back. Tonnage started to decline in 1999 and bottomed out just after the Sept. 11, 2001, attacks. Trucks carried 8.9 billion tons of goods around the nation last year, according to the American Trucking Associations' Web site. Scott Creek, the new president of the Washington Trucking Associations and president of Crown Moving Co. Inc. in Tukwila, talked to The News Tribune about the outlook for the industry, both regionally and nationally. Q: Is the trucking industry - nationally as well as regionally - truly on an upswing? A: Obviously, we're heavily dependent on the economy. And unless a product fell out of the sky, almost every (consumer item) is brought in on a truck. There has definitely been an increase, and we see people buying more product. Generally, our company transports new technology, photo processing machines and copying machines, as well as household goods. We are really seeing these areas pick up. Generally, volumes are improving, crews are working more frequently and layoffs seem to have slowed down. Businesses also seem to be spending on investment capital. Q: How long will it be before the industry fully recovers? A: We're having a good year, compared to what we've seen before. But I think it will take another 12 to 18 months to get back to where we were before, in terms of the fleet and the level of tonnage. Q: Are you seeing trucking firms starting to spend more on their fleets again? A: They are starting to purchase trucks, in part to avoid the emissions testing standards, where the new engines will add at least $5,000 to the cost of a new truck. These new emission standards really don't do much, though. They are not making an improvement to the movement of the truck, or its mileage. Q: Given the huge numbers of layoffs this region experienced in the last two years, have you seen more job applicants? A: We haven't seen a huge number of people coming in. It's not like lines of people are wanting to become truck drivers. But in the last couple of years, I've seen an uptick in the level of education from these applicants. Many of the people aren't qualified to run a truck, but they might have a master's degree. That's been an indicator of the general job shortage in the economy. Q: Have the homeland security measures that kicked in after Sept. 11 affected the trucking industry around Puget Sound? A: Surprisingly, there hasn't been a huge effect. We are still highly scrutinized, especially on (military) bases, since we do a lot of hauling for military families. And obviously, when you make a delivery to the airport, or a Boeing plant, there is a high level of security and strict check-in procedures. But what is surprising to me is that you can still pull into a loading dock in Rainier Square and leave your truck there. Q: What about the U.S. border crossing into Canada? After Sept. 11, the wait stretched into hours, if not days, for truckers. How is it now? A: It still takes a very long time to cross the border. It's easier to cross the Mexican border than to go into Canada. It seems to be a problem of more manpower than security. There have been some improvements at the border, but we're not there yet. Trucking industry revenue in the United States
SOURCE: American Trucking Associations Supplied by HD America
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