Editorial: Technology or Bust

For any remaining Doubting Thomases, last week’s annual get-together of the American Trucking Associations should have provided sufficient evidence that trucking and technology are now inextricably linked.

A stroll through the exhibition hall in New Orleans showed that more and more booths are occupied by companies looking to sell hardware and software designed to help executives run their businesses more efficiently, and keep track of their trucks and freight.

Long gone are the days when trucks, trailers, tires and the like ruled the hall, and when hardware meant a shiny metal medallion mounted on the radiator. There were still some spiffy new trucks, and related gear in evidence last week, but the computer programmers and tracking system hardware have taken center stage.

Also, the first panel discussion at the ATA’s annual conference was on integrating shipper and carrier technology, a session that should have made any non-believers in the audience more than a little nervous.

During that panel, U.S. Xpress’ Max Fuller, and Werner Enterprises’ Bob Synowicki warned a large audience that adopting advanced technology is no longer optional for companies that intend to survive. They both agreed that shippers are increasingly expecting their carriers to be able to provide them with the type of updated information that can only come from modern information and communication systems. And to have systems that are compatible with those that the shippers use internally.

Companies that don’t adapt are likely to end up in one of two places: bought up by growing trucking companies that have the appropriate technological systems in place, or becoming subcontractors to make deliveries arranged by those trucking firms.

Several members of the audience from small and medium-sized companies said they wanted to be part of the new age of trucking, but were having trouble finding ways to finance the new systems.

iscussions with several technology vendors during the conference indicated that the high-tech sector understands that its real growth opportunities are now with those smaller companies. It may mean taking off some of the bells and whistles that are on the systems they sell to the largest carriers, but the tech companies swear they’re going to offer lower-cost versions for the smaller truckers.

This is good news, because it is clear that the technology revolution is far from over. Shippers are demanding that their carriers help them cut costs and reduce delays as they fight to keep their customers and improve their results. And it’s the shippers, after all, who rule the trucking industry’s roost.