Summary
The referenced Rasmussen Reports national telephone survey indicated that Mexican trucks are not welcome here in the US by a two-thirds margin. Over 70% of people against it are over 40 years old - and men way more so than women. Sixty-eight percent of investors agree! There is more to this undercurrent, so here are some thoughts.
Analysis
The subject poll follows the recent meeting with US, Canadian and Mexican leaders. The current “ban” on Mexican “program” trucks was implemented shortly after the current administration took power was discussed, but information on either the reimplementation of the program or Mexican tariffs on US products was not released. Interestingly, Democrats want it to resume it more than Republicans (by 2-1 margin) driven by strong Hispanic sentiment (our polls) - versus Democrat labor folks being strongly against it.
First of all for us involved in (and doing) cross-border transport, it’s definitely a more tedious process than running in the US. When I see the photo in the referenced Mexico-crossing article, it’s actually the Canadian-to-US crossing from Windsor-to-Detroit. Small screw-up, but it reminds us that 250,000 Canadian drivers run down here today without much being said. Granted it’s a different safety question, but not a labor one. Our Colorado-based trucks have been hauling beef to Canada and other products back for 20-years.
Polls regarding Mexican trucks running in the US however follow other polls regarding ALL trucks. It’s a form of NIMBY (Not In My Back Yard). In May 2009, Lake Research Partners found that 66 percent oppose changing laws to allow larger trucks carrying heavier loads (transcending political party, gender, age and region). That’s better than a Lou Harris poll a dozen years where almost 90% were opposed to larger / heavier trucks. This has been the sentiment for a long time fomented in part by the Teamsters, Railroads and citizen safety organizations.
Then there are other polls showing that US motorists don’t want trucks in the left lanes in cities. Other polls show that people don’t want trucks around in rush hours. We know that truck accidents are sensationalized, as the outcome inversely mirrors vehicle size. Interestingly, polls regarding slower truck speeds are pretty even - as we don’t want them slowing us down. The bottom line is that most polls regarding trucks and truckers are not positive. We need to do a lot of PR along these lines.
This is also underscored by images today portrayed by Hollywood of shower-challenged rednecks, unlike that portrayed in the ‘70’s like Smokey and the Bandit and Movin’ On. At least TV shows like Trick My Truck and Ice Road Truckers show the positive people-side of the business. Still when you see someone having trouble on the side of the road, truckers stop to help more often than autos. Many good truck companies also honor their drivers for safe and helpful activities.
Statistics show that truck drivers earn more than our national average pay, 90%+ have high school degrees and half have attended college (some have advanced degrees). Women drivers are a small percentage but a very positive group. Many doctors, nurses, lawyers, law-enforcement and other successful folks have truck driving experience. US citizens of Hispanic descent make up a growing good pool of drivers.
While I have driving in my background, a good friend Tim Krauskopf (co-founder of Spyglass Mosiac - forerunner to Microsoft’s Internet Explorer browser) took up trucking to gain 1st hand experience. Our ex-Colorado Senator Ben Nighthorse Campbell was a truck driver, while other famous former truck drivers included Elvis Presley, Chevy Chase, Charles Bronson and Sean Connery. The list of successful truck drivers include many of the names we see on the road today: JB Hunt, Clarence Werner, Roger & Randy Marten and mostly less known others. Some of the best managers come from truck driver ranks.
Regardless, the negative trucking sentiment just adds to a negative opinion regarding many things Mexico. Of note of course are autos / pickups built by Ford, General Motors and Chrysler and then the big trucks by Daimler Freightliner and Navistar - all with operations in Mexico There are also negative tones regarding Mexican produce (including recent scare), electronics and clothing. Throw in the Swine Flu issues - and we get the drift.
As noted in previous GLG Articles, let’s don’t let facts get in the way of a good story. Mexican trucks have been running in the US for a long time and are pretty safe. For reference, US-domiciled trucking fleets have safety violations at 7% for drivers and 23% for vehicles. There are 850+ Mexican carriers operating 1,700 trucks in the US that were grandfathered in from the 1984-1992 time period that have violations that are half that for drivers at 3% and on par for equipment at 23%. Even the 7,000 carriers with trucks operating in the commercial zones had low number for driver violations at 1% and on par for equipment at 22%.
Despite all this, Swift Transportation (TransMex), Celadon (Jaguar), Con-way, Schneider National, Landstar System, Werner Enterprises, FedEx, UPS are all successfully working the problems to the South. Shippers we work with South of the border are trying to address the supply-chain directly.
Why don’t investors want Mexican trucks in the US? I guess it depends on what they invest in, but it has to do with not knowing the program to come. Neither do those to the South, so don’t expect much to change regardless.
First of all for us involved in (and doing) cross-border transport, it’s definitely a more tedious process than running in the US. When I see the photo in the referenced Mexico-crossing article, it’s actually the Canadian-to-US crossing from Windsor-to-Detroit. Small screw-up, but it reminds us that 250,000 Canadian drivers run down here today without much being said. Granted it’s a different safety question, but not a labor one. Our Colorado-based trucks have been hauling beef to Canada and other products back for 20-years.
Polls regarding Mexican trucks running in the US however follow other polls regarding ALL trucks. It’s a form of NIMBY (Not In My Back Yard). In May 2009, Lake Research Partners found that 66 percent oppose changing laws to allow larger trucks carrying heavier loads (transcending political party, gender, age and region). That’s better than a Lou Harris poll a dozen years where almost 90% were opposed to larger / heavier trucks. This has been the sentiment for a long time fomented in part by the Teamsters, Railroads and citizen safety organizations.
Then there are other polls showing that US motorists don’t want trucks in the left lanes in cities. Other polls show that people don’t want trucks around in rush hours. We know that truck accidents are sensationalized, as the outcome inversely mirrors vehicle size. Interestingly, polls regarding slower truck speeds are pretty even - as we don’t want them slowing us down. The bottom line is that most polls regarding trucks and truckers are not positive. We need to do a lot of PR along these lines.
This is also underscored by images today portrayed by Hollywood of shower-challenged rednecks, unlike that portrayed in the ‘70’s like Smokey and the Bandit and Movin’ On. At least TV shows like Trick My Truck and Ice Road Truckers show the positive people-side of the business. Still when you see someone having trouble on the side of the road, truckers stop to help more often than autos. Many good truck companies also honor their drivers for safe and helpful activities.
Statistics show that truck drivers earn more than our national average pay, 90%+ have high school degrees and half have attended college (some have advanced degrees). Women drivers are a small percentage but a very positive group. Many doctors, nurses, lawyers, law-enforcement and other successful folks have truck driving experience. US citizens of Hispanic descent make up a growing good pool of drivers.
While I have driving in my background, a good friend Tim Krauskopf (co-founder of Spyglass Mosiac - forerunner to Microsoft’s Internet Explorer browser) took up trucking to gain 1st hand experience. Our ex-Colorado Senator Ben Nighthorse Campbell was a truck driver, while other famous former truck drivers included Elvis Presley, Chevy Chase, Charles Bronson and Sean Connery. The list of successful truck drivers include many of the names we see on the road today: JB Hunt, Clarence Werner, Roger & Randy Marten and mostly less known others. Some of the best managers come from truck driver ranks.
Regardless, the negative trucking sentiment just adds to a negative opinion regarding many things Mexico. Of note of course are autos / pickups built by Ford, General Motors and Chrysler and then the big trucks by Daimler Freightliner and Navistar - all with operations in Mexico There are also negative tones regarding Mexican produce (including recent scare), electronics and clothing. Throw in the Swine Flu issues - and we get the drift.
As noted in previous GLG Articles, let’s don’t let facts get in the way of a good story. Mexican trucks have been running in the US for a long time and are pretty safe. For reference, US-domiciled trucking fleets have safety violations at 7% for drivers and 23% for vehicles. There are 850+ Mexican carriers operating 1,700 trucks in the US that were grandfathered in from the 1984-1992 time period that have violations that are half that for drivers at 3% and on par for equipment at 23%. Even the 7,000 carriers with trucks operating in the commercial zones had low number for driver violations at 1% and on par for equipment at 22%.
Despite all this, Swift Transportation (TransMex), Celadon (Jaguar), Con-way, Schneider National, Landstar System, Werner Enterprises, FedEx, UPS are all successfully working the problems to the South. Shippers we work with South of the border are trying to address the supply-chain directly.
Why don’t investors want Mexican trucks in the US? I guess it depends on what they invest in, but it has to do with not knowing the program to come. Neither do those to the South, so don’t expect much to change regardless.
Jay Thompson consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
