Forest Resources Association, Inc. State of Trucking Today March 11 th, 2014

Transcription

1 Our business is moving yours. Forest Resources Association, Inc. State of Trucking Today March 11 th, 2014 SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED

2 Redefining J.B. Hunt That was then This is now Intermodal Dedicated Contract Services Integrated Capacity Solutions Truckload 2

3 Specialized Equipment 3

4 Customized Service Offerings 4

5 DCS Locations and JBHT Network JB Hunt DCS Locations JB Hunt IM Locations Maintenance Terminals Maintenance Vendors 5

6 Differentiating Technologies 6

7 Driver Market Perspective January 2015

8 Driver Landscape Stagnant wages Fewer qualified drivers Drivers are retiring/aging and are not being replaced at the same rate Alternative job market (construction, oil industry, ports, etc.) Higher requirements for career entry (regulations, hair testing, ELDs) Fierce driver recruiting competition Strong freight demand 8

9 Driver Shortage Worsening The industry needs to find roughly 96,000 new drivers annually to keep pace with demand. If freight demand grows as it is projected to, the driver shortage could balloon to nearly 240,000, according to ATA data. Source: ATA 9

10 Increasing Driver Demand Employment in transportation and warehousing Seasonally adjusted in thousands 10

11 $38,000 $38,000 $41,600 $47,200 $80,000 + Alternative Job Market $1,200 Weekly Compensation $1,000 $800 $600 $400 $200 $- Truck Drivers General Construction Construction Equipment Operators Plumbers Oil/Gas Field 11

12 Factors Reducing Driver Supply Generous unemployment benefits Alternative job demand increasing with improving economy Construction, oil field, drayage, etc. Stricter qualifications CSA, Hair Testing Technology ELD s Retirement Private fleets Sources: The Journal of Commerce; National Transportation Institute 12

13 Industry Turnover Increasing Quarterly Truck Driver Turnover Source: American Trucking Associations 13

14 Tough to Entice New Entrants Bloomberg Industries analyst Lee Klaskow says trucking outfits may need to fork out more money to attract and retain drivers. If you really want to find people to fill the seat, you ve got to make the industry much more attractive to the 21-year-old who doesn t know what he wants to do with his life, Klaskow says. Rates now - $45,0000 to $55,000 a year. Source: 14

15 Aging Driver Demographic 40% 35% 51% over 45 30% 25% 20% 15% 17% over 55 10% 5% 0% Source: National Transportation Institute 15

16 New Driver Deficit and Recruiting Retention vs. Recruiting Emphasis has to be on retention Driver regard and in-truck specifications Home every weekend and get consistent miles Annual Training School Graduates 66,500 Source: Commercial Driver Training Foundation; National Association of Publicly Funded Truck Driving Schools Annual Expected New Driving Jobs 115,000 Georgia Center of Innovation for Logistics GAP 48,500 drivers 16

17 JBHT Open Positions Heat Map Source: J.B. Hunt Corporate Driver Personnel 17

18 Freight Market Perspective January 2015

19 Supply Chain Landscape Increasing demand for capacity and drivers Supply is inelastic - velocity, demographic & regulatory constraints Order, shipment, mode optimization increasing Shippers managing budgets, risks, bottlenecks, service, tradeoffs Shippers seek comprehensive and value-added partnerships 19

20 Supply Chain Challenges (Over the next 2-5 Years) Driver recruiting and retention Government regulations CSA HOS CARB Omni-channel impact (multi-channel retailing) Turning Big Data into knowledge Capacity constraints and managing budgets What if we experience +2.5% GDP growth? 20

21 Market Demand Index Data Source: Trans4Cast.com 21

22 It Could Be Worse 22

23 Cost of Equipment January 2015

24 Price Increase Truck Price Increase $40,000 $35,000 $30,000 Increase In Tractor Price $25,000 $20,000 $15,000 $10,000 $5,000 $ Daycab Sleeper 24

25 Truck Price Increase Daycab Pricing Starting with 2005/2006 Century 2007 Century +$2,000 (2.8% increase from previous yr.) 2008 Century +$7,000 (9.5% increase from previous yr.) 2009 Cascadia +$5,000 (6.5% increase from previous yr.) 2010/2011 Cascadia +$2,000 (2.3% increase from previous yr.) 2011 Prostar +$9,000 (10% increase from previous yr.) 2012 Prostar +$2,000 (2.1% increase from previous yr.) 2013 Prostar +$2,000 (2% increase from previous yr.) 2014 Prostar +$4,000 (4% increase from previous yr.) 2015 Prostar +$2,000 (2% increase from previous yr.) 2016 Prostar +$1,000 (1% increase from previous yr.) Total (9) year increase = $29,500 (50% increase approx. over 9 yr. period) 25

26 Truck Price Increase Sleeper Pricing Starting with 2006 Century 2007 Century +$1,000 (1.2% increase from previous yr.) 2008 Cascadia (72 ) +$10,000 (11.5% increase from previous yr.) 2010 Cascadia (60 ) (-$1,000) (1% decrease from previous yr.) 2011 Prostar +$10,000 (10% increase from previous yr.) 2012 Prostar +$2,000 (2% increase from previous yr.) 2013 Prostar +$2,000 (2% increase from previous yr.) 2014 Prostar +$3,000 (3% increase from previous yr.) 2015 Prostar +$2,000 (2% increase from previous yr.) 2016 Prostar +$500 (<1% increase from previous yr.) Total (9) year increase = $29,500 (33% increase approx. over 9 yr. period) 26

27 Our business is moving yours. Thank You Presented by Jim Sebourn (P: , E: ) SINGLE SOURCE INTERMODAL DEDICATED FINAL MILE TRUCKLOAD LESS THAN TRUCKLOAD REFRIGERATED FLATBED EXPEDITED