OUTLOOK FOR 2005
The year ahead is “looking good” for the trucking industry. For most of 2004 we have been in a unique environment in our industry. For the first time, possibly since deregulation, customer demand for moving freight has greatly exceeded total truck capacity. This trend is expected to continue in 2005. The U.S. economy is expecting a period of stable long-term interest rates and rising short-term interest rates. Industry and business will be the leading “economic engines” for 2005. Manufacturing is expected to strengthen and orders for durable goods will remain strong. All of these will create a continued demand for transportation.
Energy prices are expected to stabilize and fall during the year. Raw materials such as steel, aluminum, copper, and lumber will continue in short supply causing an increased material cost and a resulting in increased finished product cost. This will be most evident to us in the increased cost of tractor and trailer equipment.
We are continuing to deal with the engine emission issues that will be effective on January 1, 2007. Our strategy is to pre-buy tractors for that period of time, therefore buying very few tractors during 2007.
Safety regulations are expected to tighten as the Department of Transportation continues down a path of increased hours of service regulation. A new rule making is expected to come out in 2005. At this time we are not sure of what changes this will bring, but we will stay in communication and adjust as the details are announced.
2005 will be the 50’th year in business for Anderson Trucking Service. We are anticipating our anniversary year with heightened excitement because of the planned construction of our new corporate offices in St Cloud. We expect to move into this building in late 2005 or early 2006.
It is important for a business to grow. We are always looking for acquisition and market opportunities that are a “fit” with our type of business and our traffic lanes. An example of this is our recent market leadership in wind tower transportation.
As a company we will continue to promote career paths for drivers to become owner-operators, lease operators,or move up to various load classifications. Our drivers take pride in serving the customer, taking care of equipment and traveling safely. Owner operators are considered “business partners” at ATS. If the driver and owner operator do well, so does ATS.
The transportation industry has changed drastically during these fifty years of business, providing many opportunities and challenges to ATS. In spite of the challenges and trials ATS has grown, prospered and remained a stable leader in our industry. I am very grateful for my father’s devotion to his business and family. Without his guidance and leadership ATS would not be what it is today.
There is a lot of optimism for 2005. ATS will continue to be aware of trends in the marketplace and the economy, and will do everything in our power to take advantage of opportunities that present themselves in our ever changing business environment.
Best regards.
Rollie Anderson, President/CEO, Anderson Trucking Service, Inc.
"Rolling Along" presents thoughts from a member of the ATS Management Team.
