This isn't Shannon Newton's first road trip.
The president of the Arkansas Trucking Association has experienced many ups and downs during her career leading and working in the transportation industry.
Economists and trucking company executives are calling the current industry situation a “freight recession,” which is causing periodic adjustments for companies across the nation's supply chain.
“It's a lot like a recession and a recession,” Newton said of the freight downturn. “I think we defined it as a contraction in demand over some kind of measurable period of time. The industry numbers show that demand has contracted for two consecutive months. What's happening is essentially the freight economy driving a predicted recession that hasn't actually come.”
“You know, I think we were all a little surprised by the fact that the overall economy hasn't gone into recession this year. Consumers continue to be surprised by their spending on non-manufactured goods. “We're seeing a huge demand for discretionary spending on regular transportation, and our industry is bearing the brunt of it as consumers spend money on leisure, travel and restaurants.” she added.
Newton said it's a tough time for trucking companies as executives look for ways to manage expenses and adapt to slowing demand.
“I think we're going to see all kinds of cost-cutting measures, but it's kind of a certain amount of hold-up and tension. Our industry is very cyclical, so we expect demand to come back, but… What are we doing in the meantime? And certainly there are cost-cutting measures, like hiring freezes, and we're seeing some of that,” Newton said.
He also said that during economic downturns like this one, many trucking companies will delay investing in new equipment and technology.
Newton said the trucking industry is also dealing with long-standing workforce issues. As the workforce of drivers and technicians continues to age, appealing to younger workers has become a challenge.
“I think the big challenge for our industry is to bridge the gap from education to employment. As an industry, we are committed to providing easy 1, 2, 3 for young people entering this industry. It’s been a struggle,” Newton said.
He said efforts are being further intensified to transition to a new economy and new workforce trends. The state Legislature and Gov. Sarah Sanders have placed a new emphasis on worker training, and Newton hopes this will pay off.
“There's a lot of attention in Congress about this industry and how we can help young people realize the opportunities that exist beyond a four-year college degree. And really, everything that came out of the governor's package , as well as other separate legislative efforts in Arkansas to make scholarships more available, educate young people about those careers, and put people like counselors and aides in schools. “In rural areas, people often don't know that you can make $75 to $85,000 in this industry without a four-year degree, so I come with students and have that information,” she said. said.
“We're very excited about Mike Rogers.” [the new Chief Workforce Officer]. He comes from our industry or at least has experience that is relevant to some of the challenges that our industry has endured. We want him in that position, and also just the willingness to change the way we've been doing things a little bit, and we're really excited about the opportunities that bring us. I think so,” she said.
You can watch Newton's full interview in the video below.
