NEWS

May 29, 2016

LOWER REVENUES CREATE OPPORTUNITY

LOWER REVENUES CREATE OPPORTUNITY

As this economy gets rough, it is still possible to increase your profit margin by 12%.  If your business is anything like that of most carriers:      -     Fuel accounts for 40% of your total operating costs,     -     Hyliion’s ‘Electric Slide’ eliminates 31% of your fuel usage,     -     Net total you’ve INCREASED your overall bottom line by 12% by using the ‘Electric Slide’. You could use that 12% increase in profit to hire more people, buy more equipment, or under-cut the competition’s prices by 10% and still have some cash left...

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April 27, 2016

NEW STANDARD-BEARERS

NEW STANDARD-BEARERS

Two weeks ago, Princeton Consulting’s Steve Sashihara discussed some of the major technology disruptors that came to light after surveying 267 trucking firms. He detailed some of the innovations as follows: Freight Uberization is the ‘Total or Partial disintermediation of freight brokers.’  Either: Existing transportation companies will automate one function after another in their existing business and freight flows, Or one or more technology companies will emerge with a system that will reduce the human capital requirements at legacy operating companies. While there is no question that a ground shipment has many nuances, the establishment of broad definitions and standards...

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April 27, 2016

TRIAL BY FIRE

TRIAL BY FIRE

Daimler just released this quarter’s financial statements and profits were down 32% this year over last. Volvo reported that North American orders were down 54% and deliveries had fallen 33% year over year.  Despite these omens of the transportation sector’s worrisome condition, the Obama administration, the Department of Transportation (DOT), and the Environmental Protection Agency (EPA) are proceeding as planned with the new Green-house Gas Emissions statute.  The regulations apply to tractor-trailers, large pickup trucks, vans, and all sizes of bus and work truck, and the EPA estimates improvements required to meet these standards will cost up to $12,000 for...

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April 27, 2016

SEEING IS BELIEVING

SEEING IS BELIEVING

Sometimes, the truth can be hard to believe. Would you believe that 30% of fuel costs could be avoided with one purchase? That this purchase could cost less than the fuel saved, and generate monthly cash-flow? That this could become a source of profit for the entire trucking industry? Nobody believed us when we said it only required a trailer suspension and a regenerative braking system. Or when we said the entire technology weighed less than 500 lbs. even while doubling as an APU. Or when we proclaimed that it lowered maintenance costs, reducing use of the truck’s friction brakes...

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April 11, 2016

CHARGING & COASTING

CHARGING & COASTING

Rumors are floating about that non-compliance with President Obama’s most recent GHG (Green House Gas) Emissions rules will be $28,000 per day per truck-trailer out of compliance. The timing is unlucky as just last week, orders for large trucks plunged 37% to the lowest level since 2007, while at the same time, the U.S. Government reduced its estimates for GDP growth from 1.6% to 0.1%, a slim margin removed from recession levels.  Wholesale inventories fell 0.5%, sales fell 0.2%, and people across the nation are looking for the "Dip Ahead" sign. $28,000 per day is a steep price to pay in a bear market,...

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