Skin in the game
8 Commercial Carrier Journal October 2008 Jeff Mason is VP/Group Publisher, Randall-Reilly Publishing. e-mail jmason@rrpub.com. Skin in the game Owner-operator's demise greatly exaggerated By Jeff Mason October 2008 Vol. 165 No. 10 Editorial/Production Staff Avery Vise Jack Roberts Aaron Huff Dean Smallwood John Baxter Carolyn Mason, Henry Seaton Matt Watson Brad Kelley Timothy Smith Mary Springer Diane Klischer Business Staff Jeff Mason Stacy McCants Tim Burke, Jon Espey, Geoffrey Love, Matt McGuire, Jason Rhoads, Tommy Smith, Billy Vines, Butch Worley Bonnie Gable, Ginger Love Terry Browning Amber Hinton Julie Puckett, Ron Moyer Rob Hoffman Mike Reilly David Wright Shane Elmore Brent Reilly Linda Longton Tony Brock 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406 (800) 633-5953 / Editorial Fax (205) 750-8070 Sales Fax (205) 248-1021 Online: www.ccjmagazine.com In perspective I recently had the opportunity to talk about best business practices with owner-operators attending the annual Great American Trucking Show in Dallas. The popular Partners in Business program, produced by sister publication magazine and ATBS, was jam-packed with business knowledge-seeking owner-operators, and attendance exceeded expectations surprising in the face of the conventional wisdom that independent contractors are a vanishing breed of driver. I'm always puzzled when I hear the doom-and-gloom scenarios that sprout up every time there's a downturn in the indus-try. Over the years, the threats of fuel prices, deregulation, insurance costs, govern-ment regulations and other predictors for failure have been blamed for putting owner-operators on the endangered species list. Somehow, this tough, stubborn breed of driver manages to adapt, survive and even thrive. While it's certainly a survival of the strongest business with little margin for error, the successful owner-operator is an alluring driver resource for fleets. There's no doubt we've recently lost some owner-operators to high fuel prices, but this is more indicative of the cyclical nature of the industry, and today we have 25,500 more owner-operators than we did 10 years ago. The survivors remain a dependable, business-savvy service-oriented source of capacity for carriers. With predictions that the industry will be hauling 31 percent more freight by 2017, C.R. England and other carriers have focused on greatly increasing their owner-operator fleet. Josh England, vice president the company's independent contractor division, says owner-operators make up 62 percent of C.R. England's fleet, with 2,100 owner-operators now versus fewer than 1,000 five years ago. Our numbers consistently show that they are the safest on-time driving resource, he says. They are invested in the business, act more responsibly, run more miles and offer the most professional customer service. By offering good pay, steady miles and plenty of business and tax counseling, England feels it's in the company's best interest to help its owner-operators succeed. These guys have skin in the game, England says. They care about their equipment, and that translates into the ideal driving resource for us. One great thing about living through a few down market cycles is the ability to ignore histrionics and get down to the business of running a good business. I predict that long after I'm gone from the indus-try, owner-operators will still be hauling freight across the coun-try. I don't know many long-timers who'd bet against it. n Commercial Carrier Journal (ISSN 1533-7502) is published monthly by Randall-Reilly Publishing Co. LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Single copy price U.S., $6; Canada/ Mexico, $9; Foreign, $12. Subscription rates, payable in U.S. dollars, $48 per year (in Canada $78 U.S. currency). For subscriptions, call (800) 517-4979 in the U.S., or (847) 763-9610 outside the U.S. Periodicals Postage-Paid at Tuscaloosa, AL, and at additional mailing offices. Send address corrections to Commercial Carrier Journal, P.O. Box 2186, Skokie, IL 60076-9919. Unsolicited letters, manuscripts, stories, materials or photographs cannot be returned except where the sender provides a postage-paid, addressed, stamped envelope. Address all mail to Commercial Carrier Journal Editorial Dept., P.O. Box 3187, Tuscaloosa, AL 35403. All advertisers for Commercial Carrier Journal are accepted and pub-lished by Randall-Reilly Publishing Co. LLC on the representation that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly Publishing Co. LLC harmless from and against any loss, expenses or other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark, infringement and any other claims or suits that may arise out of publication of such advertisement. Copyright 2008, Randall-Reilly Publishing Co. LLC All rights reserved. Reproduction in whole or in part without written permission is prohibited. Commercial Carrier Journal. is a registered trademark of Randall-Reilly Publishing Co. LLC. Randall-Reilly Publishing Co. LLC neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein. This tough, stubborn breed adapts, survives and thrives.