1. State of Trucking Industry Shaping Forces
Reggie Dupré, CEO
Dupré Logistics, LLC

2. US Industrial Production Index
SOURCE: ITR Economics Trends Report, August 2018

3. US Industrial Production Index
SOURCE: ITR Economics Trends Report, August 2018

4. US Industrial Production Index
SOURCE: ITR Economics Trends Report, August 2018

5. Chemical Volume Projections
NTTC Tank Truck Market Analysis estimates
CAGR of 2.9% for chemicals
Chemical Week projects 2018 chemical growth
(excluding Pharma) of 3.8% growth
Reshoring of manufacturing in U.S. should drive sustainable chemicals volume growth
Momentum is building
Growth is at highest rate since 2004
200,000 jobs added in 2017
400,000 jobs added since Presidential election

6. FTR Truck Loadings Index (Y/Y %)
SOURCE: FTR; Index: = 100

7. Active Truck Utilization (%)
SOURCE: FTR; Historical Average = 90%

8. Truck Loadings: Tank (Y/Y %)
SOURCE: FTR; Index: = 100

9. Private Sector Employment
Highlights
Employment was up 1.8% from the year-ago level
Employment will rise through at least 2020
Temporary Services Employment signals that the pace of growth for overall Employment will slow in early 2019
Forecast
12/12 12MMA
% 126.6
% 128.7
% 130.4
US Private Sector Employment in the 12 months through June was up 1.8% on a year-over-year basis. Employment will grow through at least The rate of rise will increase into early next year. The pace of growth will then slow through the rest of 2019 and 2020.
The US Temporary Services Employment 3/12, which typically leads overall Employment by about three to four quarters, is declining from a tentative April peak. Further decline in this indicator would suggest that Private Sector Employment will transition to a slowing growth trend in early 2019, consistent with our forecast. However, do not plan on Employment contracting during this time. The labor supply will likely remain tight through the length of this forecast, making employee retention increasingly important, as qualified applicants will be harder to find.
SOURCE: ITR Economics Trends Report, August 2018

10. Construction & Manufacturing
SOURCE: BLS: (

11. Truck Transportation
SOURCE: BLS: (

12. Shaping
Forces

13. Drivers Average Age of Truck Driver 50 Dupré Driver 47
American Worker 42
Women in
Overall Workforce 47%
Trucking 5 – 6%
Percentage of Drivers 35 Years & Younger %
We aren’t raising our children to be truck drivers
We lose our pipeline of younger drivers due to 21-year-old minimum age for interstate driving

14. Drivers More Job Alternatives Available
Unemployment At or Below 4%
Construction Jobs Added in Last 5 Years million
Quality vs Quantity – the Shortage “Feels” Worse
Seasoned Drivers are Retiring
Applicants Who Cannot Pass Background/Drug Tests %

15. Driver Shortage Trend Forecast
SOURCE: ATA’s Truck Driver Shortage Analysis 2017

16. Total Number of Drivers Needed Through 2026
SOURCE: ATA’s Truck Driver Shortage Analysis 2017

17. Share of Drivers Needed Through 2026
Drivers Leaving Before Retirement 7%
Drivers Pushed Out of the Industry
16%
Retirements 49%
Industry Growth 28%
SOURCE: ATA’s Truck Driver Shortage Analysis 2017

18. What are the Best Companies Doing?
Take a Strategic Position
What’s Your Vision of the Future?
Is this a Blip… or here to stay?

19. What are the Best Companies Doing?
Make it through this Short-Term Crisis, then… Business as Usual
Act
on your Decision
Blip --

20. What are the Best Companies Doing?
Driver Shortage is Real and Here to Stay
Help Improve Lives of Drivers
Move to Collaborative Relationships with Transportation Partners
We can Solve this Together
Respect/
Significance
Safe
Operation
Pay/
Benefits
Quality of Life
-- Schedules
-- Length of Haul

21. What are the Best Companies Doing?
Driver Shortage is Real and Here to Stay
“Take Some Balls out of the Air”
Move a Percentage of your Needs to Dedicated Fleet
Guaranteed Capacity
Guaranteed Pricing
Align Workforces
Collaborate to Improve Execution
Create Better Driver Jobs
Utilize 3PL Expertise for Design & Execution
Utilize Intermodal as Much as Possible

22. Equipment Technology Facilitate Safe Operation
ELD’s
Speed Limiters
Automatic Emergency Braking Systems
Anti-Rollover Systems
Cameras Back-up
-- Driver Facing
-- Forward Facing
-- Side Mirror Replace
Forward Collision Warning System
Lane/ Departure Warning
Blind
Spot Detection
Adaptive Lighting

23. Platform Technology TMS Predictive Analytics Execution Visibility
Analysis for Improvement
Predictive Analytics
Demand
Safe Operation
Equipment Uptime
Turnover

24. OLD NEW Relationships ABUNDANT SCARCE Truck Capacity ADVERSARIAL
COLLABORATIVE

25. Driver Jobs – Lower or Last Choice
Preference for Manufacturing or Construction Over Driver Job
Even if Driver Job Pays More
Why?

26. Causes of Driver Turnover
SOURCE: Driver iQ Recruitment & Retention Survey, Q1 2018

27. Safest Drivers are Compliant & Steady
Lack of Communication
Unpredictability of Paycheck Each Week
Issues Resolving Problems
Unpredictability of Home Time
Problems with Supervisors
Lack of Steady Miles

28. Compensation Needed to Reduce Turnover by Size of Carrier
SOURCE: Driver iQ Recruitment & Retention Survey, Q1 2018

29. Q&A