STEPHEN LASKOWSKI. Ontario Trucking Association 2017
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1 STEPHEN LASKOWSKI Ontario Trucking Association 2017
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5 MOLTEN ROCK OF MODERN TRUCKING WAS FORMED AFTER DEREGULATION THOSE WHO ENDURED NOT ONLY SURVIVED, BUT FLOURISHED, BECOMING STRONGER, SMARTER AND MORE EFFICIENT CANADA FOLLOWED SUIT IN 1989 ALL HELL BROKE LOOSE. (RATE WARS, RECESSION, SKYROCKETING INTEREST RATES.)
6 To understand trucking is to know unique regions, commodities Long trade patterns bring us together to resolve regulatory differences, increase efficiency, reduce friction between enforcement. Industry is a reflection of wide economic diversity BC: Wood 22% MAN: Oilseeds 11% PQ: Aircraft parts 13% NFLD: Mineral fuel & oils 75% PEI: Preserved foods 19% ALB: Mineral fuel & oils 76% SASK: Mineral fuel & oils 39% ONT: motor vehicle parts 30% NB: Mineral fuel & oils 67% NS: Fish 22%
7 After NAFTA, cross-border traffic growth outpaced the economy as the percentage of exports doubled from 25% to 50% in the first 10 years Trucking firmly entrenched as the lead indicator of the North American economy. Just-in-time inventory system, built around the truck. NAFTA is emblematic of what is now an extremely sophisticated supply chain.
8 CTA optimistic; continues to work with Cnd-US officials to seek clarity Recognition radical overhaul towards protectionism will hurt U.S. businesses and economy as much as our own Opportunity knocks? NAFTA not perfect, can we make it better?
9 LONG SUPPLY CHAINS: COST? Long supply chains led to monumental growth, but not without some sacrifice Hyper competition - trucking passed most of its productivity gains to customer via lower pricing Pricing keeping up with costs? WHAT THEY
10 EQUIPMENT Long supply chains increased wear & tear Enviro mandates led to reliability issues US dollar a double whammy COST?
11 FUEL PRICES Market increases and taxes weren t enough? Enter carbon pricing Long Fuel prices typical point one way up Little, if any, of this revenue flows back into infrastructure. That must change
12 RULES OF THE GAME Costs of safety, enviro reg compliance unprecedented: EPA, anti-lock, safety ratings, HoS, ELDs etc ROI improved productivity, efficiency, driver health, reduced risks, but bulk of savings typically trickle through supply chain Great for trucking marketshare; not always translates into bigger margins
13 CHOKE POINTS Congestion, gridlock in every NA city GTA congestion costs $11B/year Issues, plus dock delay, heightened in ELD world Truckers asked to pay more for less (taxes, parking/delivery fees, tolls) What s the plan? Customers need to take ownership for peak scheduling
14 LONG SUPPLY CHAINS Drivers Bear the Load Long supply chains built on the back of drivers; good living Rates better, but not kept up with costs and burdens (scheduling, traffic health, shipper delays, lack of respect) Demographic tsunami, could bring upon the mother of all capacity shortages Shortage of 34,000 drivers predicted by 2024, perhaps rising to 48,000
15 Where will future drivers come from? Millennial issues: (work culture, expectations, attitude drug legalization?) Echo gen (25-34) rep largest share of the workforce but less than15% of the drivers and falling Can t make that demographic math work
16 Immigrants only make up 20% of driver force Stiff competition from other trades Need professional drivers, not seat holders Must change NOC MELT should help
17 Industry needs millennial strategy & targeted approach to immigrant drivers (partner with those communities) Rethink scheduling logistics and how HR recruits and incentivize Pay drivers for ancillary work and lost time price for shipper behavior
18 LONG SUPPLY CHAINS New Technology & Automation Real or sci-fi? (Self-driving trucks; drones; Uber freight?) Predictions galore, but who knows?
19 Autonomous trucks won t replace drivers anytime soon; oversight required Role will likely evolve (like an airline pilot?). What else can it include? Challenge: cool factor vs robot replacement myth
20 Opportunity to leverage technology/melt to promote high tech industry Help solve distracted driving & cycling/pedestrian safety issues Industry needs, new proactive responses to gov t
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