Trucking Industry Leader Says Private Companies Offer Best Barometer

The transportation and trucking sector continues to be a bright spot for the Arkansas and national economy, and one industry leader says that trend will continue.

Lane Kidd, president of the Arkansas Trucking Association, said his industry has benefitted from the downsizing that took place in the 2008-9 recession.

“2013 was a good time to be in the trucking industry, it was a good time to invest in trucking company stocks. It was even good to work in the trucking industry,” Kidd said on this week’s edition of Talk Business.

Trucking saw closures and consolidations in the aftermath of the hard times brought by the economic setback, but a number of state and national indicators highlight higher freight volumes and improving commerce. Kidd said with fewer trucking firms in the mix, the ones that survived are “reaping the benefits.”

Kidd is optimistic that 2014 will be a healthy one for the industry. In a recent Talk Business interview with Judy McReynolds, CEO of Fort Smith-based publicly-traded Arkansas Best Corp., she said that she “anticipates slow growth in general.”

“I’m a little more upbeat than that,” said Kidd. “The best barometer on where the industry is is to ask the owner of a privately-owned company. If he doesn’t say much, then you know it’s great.. . We see for 2014 solid growth – maybe a little higher than some of my more conservative colleagues would like to say because expectations are always better if they can be exceeded.”

Last year, tonnage nearly doubled, according to national statistics. It’s a trend that Kidd says underscores his optimism for 2014.

“It tells you that every sector of the economy is doing better,” he noted. “People say that trucking is first up and first down. We’re a leading indicator of where the rest of the industries are simply because we’re hauling more freight.”

Kidd also addressed looming workforce shortages in the trucking and transportation sector.

Nearly one in 12 jobs in Arkansas are tied to transportation and nearly two-thirds of the workforce with trucking companies are trucking driving jobs. With baby boomers retiring and the average age of a truck driver in the mid-50’s, Kidd says that companies must adapt to changing lifestyle requirements.

“I think you’re going to see in the next 10 years the industry in that long-haul segment will start opening more terminals, you’ll have what’s called ‘relay freight.’ It will make the lifestyle for the truck driver a little bit better so he can actually get home every other day,” he said.

You can watch his full interview below.