|| Print ||
|Articles - April 2011|
|Wednesday, March 23, 2011|
A new gas tax and soaring crude prices are prompting Oregon truckers to innovate to protect their bottom lines while passing on as much cost as they can to consumers.
“Everybody’s doing this,” says Scott Smith, a VP at Salem-based May Trucking, which operates nationwide. “This is a game you have to play to continue to be efficient and be a player.”
For May Trucking, that means adjusting routes for fuel efficiency and limiting trucks’ idle time — and tracking both by satellite. It also means surcharging customers to compensate for fuel increases.
May Trucking employs about 500 Oregon truckers — the most in the state. Its size allows it to afford to use satellites, receive about a 10% discount from wholesale fuel vendors and apply a surcharge.
Not so for many of the little guys, says Debra Dunn, head of the Oregon Trucking Association (OTA). Many of them have to eat the rising fuel prices to be competitive. But they can still save through innovation, such as using onboard computers, to monitor fuel efficiency. Or they can resort to usual tactics: efficient rerouting, choosing the most profitable loads and avoiding mountains and snow.
When Oregon legislators voted to increased the gas tax by 6 cents in 2009, hopes were that the economy would have recovered more substantially since the tax went into effect in January 2010. And no one foresaw a series of revolutions in the Middle East that have threatened to push crude prices to $150 a barrel.
“It hurts,” says Marie Dodds, spokeswoman for AAA of Oregon and Idaho. “When the price of diesel shoots up 18 cents in one week as it did [in March] that’s a pretty steep increase to your bottom line.”
Yet, the OTA supports the gas tax, saying the $300 million a year in road projects funded by the tax are important.
May Trucking estimates it will pay $300,000 in new gas taxes. While the company supports the infrastructure repair, it calls the tax unfair because trucks that haul logs are exempt. “This just makes it harder to do business in Oregon,” Smith says.
If fuel prices keep rising more quickly than trucking companies can absorb, they’ll continue to pass on what costs they can to to customers, says University of Oregon economist Tim Duy. “If it’s none," he says, "then the pain will tend to center in the truckers.”
For some in the industry, that could become a fight for survival.
Thursday, September 25, 2014
BY JESSICA RIDGWAY
I'm not very interesting,” says a modest Ray Di Carlo, CEO and executive producer of Bent Image Labs, an animation and visual effects studio.
Thursday, September 25, 2014
BY VIVIAN MCINERNY
Travis Knight wants to release a movie a year. Can he pull it off?
Thursday, August 28, 2014
OB Research Editor Kim Moore shares some pointers about the 100 Best Companies to Work For survey.
Tuesday, August 26, 2014
BY DEBRA RINGOLD | OP-ED CONTRIBUTOR
Why has six years become an acceptable investment in public undergraduate education that over-promises and underperforms?
Friday, September 12, 2014
BY TOM COX | OB BLOGGER
I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?
Wednesday, October 15, 2014
BY DIANE BUISMAN
Some common misconceptions employers have about marijuana.
Thursday, October 02, 2014
More than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.
|The 100 Best Nonprofits to Work for in Oregon 2014|
|A Recipe for Success|
|Uber considers flu shot delivery service|
|P&G plans to exit Duracell|
|Target to offer free holiday shipping|
|Caterpillar gains after raising forecast|
|Dow Chemical profit up 44%|
|Boeing profit jumps 18%|
|Verizon posts higher Q3 revenue|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
Finding a health insurance plan that makes both financial sense for the bottom line and provides choice for plan participants is a huge challenge for employers.
The right financing at the right time is critical for small businesses to succeed.
Among Oregon universities, Oregon Tech is special in the way it incorporates applied research into the curricula of every department.
More than 400 "Change Makers" will gather to invest in a socially sustainable community.