Roemer Report – July 2007

RISKY BUSINESS: Some automobile drivers are doing anything they can to increase their fuel mileage—regardless of how dangerous or irresponsible it is. The American Trucking Associations (ATA) is advising fleet safety directors to tell their drivers about the dangerous practice of “drafting.” Drafting involves driving a car closely behind a truck in order to take advantage of the reduced wind resistance so the car propels forward with less energy. “Few driving behaviors are more dangerous on our highways than drafting,” said ATA president and CEO Bill Graves. “Drivers who practice this unsafe behavior are often out of the field of vision of the truck and are unable to see around the truck.” Graves went on to say that drafting is “unsafe, illegal, and significantly increases the chances of injury and death.” This dangerous practice puts everyone at risk and “must not be considered a viable means of extending fuel mileage,” Graves said. Due to high fuel prices, drafting as well as other dangerous practices, such as over-inflating tires and coasting with the engine off, have been promoted on several Web sites. The Federal Motor Carrier Safety Administration says all motorists must condemn these unsafe behaviors.

INFRASTRUCTURE IN CRISIS? The lack of investment in the U.S. infrastructure results in more than traffic backups and delays. The neglected infrastructure is an “emerging crisis” that will hinder the country’s ability to compete globally, according to a new report co-published by the Urban Land Institute and Ernst & Young. Compared to other nations, the United States invests relatively little in all aspects of infrastructure, including roads and bridges, airports, public transit, and rail systems. The report, titled “Infrastructure 2007: A Global Perspective,” examines existing and future infrastructure investment in the United States, China, Japan, India, and Europe. “America is more of a follower and no longer a world leader when it comes to infrastructure,” the report states. “Other countries marshal vanguard strategies and provide the contemporary lessons for developing best practices in public/private finance, intermodal transport, congestion pricing and high-speed rail.” The report notes that the United States tends to focus more on maintaining its existing infrastructure than on preparing for future needs. By comparison, Japan, which is about the size of California, has 2,000 km of high-speed rail and plans to build about 300 more km by 2020; the United States has about 300 km of high-speed rail and no plans to build more.

REAL ID OR REAL HEADACHE? In an effort to tighten U.S. security, Congress passed the Real ID Act of 2005, which sets a national standard for driver’s licenses and identification cards. The act requires states to reissue all driver’s licenses by 2013. The new license would be required to travel on an airplane, open a bank account, collect Social Security payments, take advantage of any government services, or enter a federal facility. Although it’s rare for states to reject an act of Congress, 26 states have either introduced a resolution or bill stopping their states from participating in the program or criticizing Congress for mandating the act. New Hampshire, Oklahoma, Montana, and Maine have all passed statutes this year refusing to comply with Real ID. The American Trucking Associations (ATA) recently submitted comments on the Department of Homeland Security’s Real ID draft, saying that implementing such an act would have “extreme consequences” for many truck drivers. The ATA says that states simply cannot meet the act’s requirements, given the deadline and the financial burden. The cost for states to implement the act is estimated at between $11 billion and $24 billion. The ACLU has argued that Real ID will actually hinder national security instead of improve it, as intended. “By placing personally identifiable information in databases accessible across the country, Real ID makes the information more vulnerable to identity theft and misuse,” the group said.

NO TIME TO IDLE: Idling truck engines may soon become a thing of the past. The EPA estimates that idling trucks consume 960 million gallons of diesel fuel annually in the United States and burn about 0.8 gallons per hour, and the toll on the environment is enormous. Consequently, a number of companies are devising products, including batteries, control systems, and auxiliary power units, which are meant to save money on fuel and help clean up the environment. For a complete rundown of idling technologies and their costs, visit the EPA’s website at www.epa.gov/otaq/smartway/idlingtechnologies.htm. Here’s a sampling of a few products: (1) Mack Trucks Inc. is the first manufacturer to offer the Idle Free Hybrid System, which relies on batteries that provide stored electrical power for heating, air conditioning, TV, microwave, and other amenities. The high-efficiency batteries have a long life and can be recharged in three ways. (2) IDLE SMART is a programmable, electronic control system that monitors temperatures inside and outside the truck. It automatically starts the engine, increases engine speed for maximum efficiency, monitors system, heats or cools the cab, and shuts the engine off.  (3) The RigMaster Power is a stand-alone device that provides heat and air conditioning to the cab, heat to the engine, and electrical current for appliances. The bunk heater/air conditioning unit mounts inside the bunk with two 110-volt receptacles. The main unit mounts on the trailer’s rail and consumes about 0.2 gallons per hour.

TRENDS IN TRUCKING: In its annual survey, PHH FirstFleet, a provider of asset management to private truck fleets, identified new issues and trends that fleet managers are facing. Not surprisingly, the top concerns are fuel prices, safety, and the driver shortage, but the other concerns emerging from the survey include the new 2007 engines and lowering operational costs. Sixty-three percent of fleet managers said they are postponing buying the 2007 engines. About 79 percent of fleet managers surveyed said they were stocking up on 2006 engines in order to avoid the newer models. In fact, 2006 engines represent slightly more than half of the orders for this year. When it came to the overall impact of ultra-low sulfur diesel (ULSD), 75 percent of  managers felt that it was too early to know what kinds of issues fleets would face as a result of using ULSD. Nearly 24 percent of fleet managers said they are relying on technology to make up for any loss in fuel economy they may experience when using ULSD. In order to lower operational costs, fleet managers surveyed were overwhelmingly interested in hiring outside consultants; almost 52 percent said they have considered outsourcing maintenance and safety compliance. Other issues of concern include: government compliance, emissions controls, and hours of service.

BACK IN THE SADDLE: Successful return-to-work programs help both employers and their injured workers. Employees are able to stay connected to the workplace, and employers can close workers’ compensation claims more quickly and contain medical costs. Employees who participate in a back-to-work program gain confidence, and they focus on returning to work instead of on their pain and recovery. A Georgia-based staffing company finds that these elements work well in its return-to-work program: (1) Setting goals. Good programs establish timeframes and goals for each worker. An important aspect includes providing transitional work duties to ease employees back gently. (2) Communicating with doctors. The Georgia-based company developed a job database that doctors can use to help determine an appropriate transitional job for an employee. About 72 percent of doctors believed the database helped get injured employees back to work in a timely way. (3) Securing acceptance. Getting approval from employees and the union is complicated but critical. Employees are naturally suspicious of these programs, but when they realize employers have their interests at heart, they will be more likely to buy into the program. Since 1999, when the Georgia-based company established its return-to-work program, the organization has reduced lost-time days by 85 percent and workers’ comp costs by 60 percent.

SONGS OF PRAISE: Perhaps nothing motivates people like praise. Positive reinforcement produces an inner desire to live up to certain expectations. When people are not recognized for their achievements, they feel unappreciated or ignored. Dave Anderson, business author and consultant, offers these basic principles of positive reinforcement: (1) Deliver it immediately. If you wait too long to praise someone for a job well done, the compliment seems like an afterthought. (2) Make it mean something to the employee. In order for you message to hit home, you need to know what appeals to each person. (3) Be specific. Instead of simply saying, “Good job,” be specific, such as “You did a great job increasing your demonstration ratio last month!” This shows that you are involved and interested. (4) Think small. Compliment the small successes too. Don’t wait for something big to happen. (5) Start a chain of reinforcement. As a leader, you set the tone. When you compliment someone, that person is more likely to pat someone else on the back. (6) Say it in person. Positive reinforcement is done best in person. However, if that’s not possible, call, e-mail, write a letter—anything is better than nothing!

Act as if it were impossible to fail.—Dorothea Brande, U.S. author