AMSA and Industry Update
Linda Bauer Darr, President & CEO
American Moving & Storage Association
CPPC 2010 Spring Workshop
Oakbrook, IL
April 30, 2010
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AMSA And Industry Update
• The Past: The “Golden” Years
• Today
– The influencers: Housing and the Economy
– The Market: How We are Responding as an Industry
• AMSA and the Industry:
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Creating our Future
Government Challenges & Response
Litigation
“ProMover-izing” our Industry Image
Stretching and Strengthening the Canvass
• Conclusion
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The Past – “The Golden Years”
Size and Shape of the Industry
• 8,100 companies doing 16.5 billion annually at 17,000
locations (2007)
• 96% of businesses are small local businesses that earn less
than $10 million annually and account for 72% of all industry
jobs.
• 84% are micro-businesses – less than $1million
• In 2006 nearly 40 million people (14% of the U.S. population)
moved
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Today
Times have Changed
• Only 11.9% of Americans moved in 2008 (versus
14% in 2006), a record low, down 3.5 million
households
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Today
The Influencers: Housing and the Economy
• Housing, housing, housing
• Mortgage crisis
• Economic meltdown
• Stubborn unemployment
Data from Industry Trends, AMSA’s quarterly data publication
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Today
The Influencers: Housing and the Economy
A Mixed Bag
• The housing market continues to fluctuate
Difficulty in obtaining financing has
scared off some buyers
Low prices, tax credits and low interest
incentives not attracting as many
buyers as predicted
• New home sales are still down, used home
sales are up slightly, inventory (currently) down
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Today
The Influencers: Housing and the Economy
Mixed Economic News
(as of April 8, 2010)
• The economy is growing: GDP rose 5.6% in 4th
quarter (up from 2.2% in 3rd qtr)
• Fastest pace of economic growth in 6 years
• But still….overall GDP shrank 2.4% in 2009, worst
drop since 1946
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Today
The Influencers: Housing and the Economy
The Obama Factor
• New focus = small business and middle class
(response to anger over Wall Street bailout)
• Offer of $33 billion plan to boost small business
during SOTU speech
• How it works: $5,000 tax credit for each new hire
this year; capped at $500,000 per company.
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Today
The Market: How are we Responding
Shipment Volume ‘09 vs.‘08
Traffic Type
Corporate Acct.
COD
GSA
Military
Total
-26.5%
-10.7%
+ 0.3%
- 2.0
-14.8%
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Today
The Market: How are we Responding
Shipment Volume since 2009
Traffic Type
Jan-Mar 2010 vs. Jan-Mar 2009
Corporate Account - NAC
- 13.6%
Private Transferee - COD
+ 1.6%
GSA
- 18.9%
Military
+ 6.9%
Total
- 3.5%
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AMSA and the Industry: Creating Our Future
Government Challenges and Responses
AMSA Federal Legislative and Regulatory Update
• The current Environment and Plan for Progress
– Despite health care reform win, most major legislation
stymied
– Need for AMSA to pursue both legislative and regulatory
victories
– Strong relationship with new FMCSA leadership
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Impact of Health Care Reform on Business
– Employers with 50+ employees must provide minimum
coverage
– Employers must cover 60% of cost of minimum coverage
– State-based health care exchanges created to obtain
affordable coverage; subsidies and credits also available
to small businesses
– Penalty of $2,000 per employee for non-compliance
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AMSA and the Industry: Creating Our Future
Government Challenges and Responses
AMSA Federal Legislative and Regulatory Update
• Surface Transportation Reauthorization
– Highway and bridge programs extended until end of
2010
– Additional revenue is needed to fund programs and
support Federal Highway Trust Fund
– Increase in federal gas and diesel taxes probably
required; unlikely to be supported by Obama and
Congress prior to November 2010 elections
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AMSA and the Industry: Creating Our Future
Government Challenges an Response
AMSA Federal Legislative and Regulatory Update
• AMSA Consumer Protection Proposals
– To deal with rogue mover problem, AMSA is proposing
strengthening federal entry, enforcement and consumer education
– Members of House and Senate showing strong support
– Held up by delay in Surface Transportation Reauthorization
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Pursuing FMCA regulatory solutions to parts of consumers protection
proposals
– Strong and cooperative relationship with FMCSA leadership
– FMCSA Moving and Storage industry briefing at AMSA
– Administrator Ferro keynote speech and meetings at AMSA
Conference
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Hours of Service
– FMCSA reviewing current hours-of-service requirements
– Tightening of HOS rule likely
– AMSA supports current rules
• EOBR Mandate
– Electronic-on-board recorders required for carriers with pattern of hours-ofservice violations
– Possible EOBR mandate may expand to include all commercial motor vehicles
– AMSA considering policy position and comments to FMCSA
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Distracted Drivers
– FMCSA proposed rule would ban use of electronic texting by
commercial truck and bus drivers
– AMSA developing supporting comments
– Ban likely to extend to other electronic devices….cell phones, etc
• Immigration Reform Legislation
– Uncertain if Congress will debate this issue in 2010…too controversial
– AMSA supports H-2B VISA Reform
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Climate Change
– Controversy with greenhouse gas emissions reduction
proposals
– House-passed bill - bad news for trucking …increased costs,
fees and operating restrictions
– Senate considering approach that would impose new tax
on fossil fuels (gasoline & diesel)
– Fossil fuel taxes make it difficult to also raise revenue to
fund highways and bridges
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AMSA and the Industry: Creating Our Future
Government Challenges and Response
AMSA Federal Legislative and Regulatory Update
• Card Check Legislation
– Not likely to be tackled by Congress in 2010…too controversial
• Independent Contractor Classification
– Legislation introduced in both Senate and House, but unlikely to
advance in 2010
– IRS launched nationwide crackdown on misclassification of
independent contractors
– Crackdown may show widespread abuse
– May see a difficult legislative fight in 2011
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AMSA and the Industry: Creating Our Future
Litigation
MoveDef
•
Class Action Lawsuit Alleging Antitrust Violations
– Strong Defense needed to protect the Industry’s future
– $426,780 Spent on legal expenses through February
•
What is MoveDef?
– Legal Defense Fund established to fight costly litigation
– Under leadership of Morrie Stevens, Sr. MoveDef Chairman
– Need to raise $2 million
•
•
•
110 Commitments from members and nonmembers
$229,231 Committed to date (over the next three years)
$117,622 Collected to date
Need everyone’s help to protect the industry and AMSA against current
and future litigants
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AMSA and the Industry: Creating our Future
“ProMover-izing” our Industry Image
Where We Are Headed –
What is a ProMover?
A carrier which:
• Is accepted and recognized by AMSA as having quality, professional
and ethical standards
• Meets all our business standards, and has signed
an agreement to uphold our Code of Ethics
• Pledges to work to improve the image of the moving industry and put
an end to unethical practices
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AMSA and the Industry: Creating our Future
“ProMover-izing” our Industry Image
What does it take to become a ProMover?
All members are screened annually against a seven-point standard:
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No applicable felony convictions by company officers
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Verification of ownership with state corporation commission
•
Compliance with federal licensing and insurance regulations
•
Acceptable Better Business Bureau rating
•
Clearance by state moving or trucking association where available
•
Web site reviewed for improper advertising or claims
•
Past performance checked against AMSA and other databases
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AMSA and the Industry: Creating our Future
“ProMover-izing” our Industry Image
ProMover: AMSA’s Focus and Future
• 200 members expelled in 2008, 24 expelled in 2009,
7 to date in 2010
• Expansion to include intrastate movers under development
• Follow-on “Star Program” under development
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AMSA and the Industry: Creating our Future
“ProMover-izing” our Industry Image
Promoting ProMover
AMSA has been receiving earned media coverage…
…but has been successful with paid media, as well:
May 2009
USA Today ad
series
Congress Daily
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AMSA and the Industry: Creating our Future
“ProMover-izing” our Industry Image
2010 Marketing Campaign Underway
• Use National Moving Month (May) to launch efforts
• Two full-page USA today ads running in May – focus on
“Trusting” Your Move to a “ProMover”
• Toolkit for movers to promote ProMovers status
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Ads and public service announcements
Op-eds for local placement
Flyers to distribute to prospective customers in sales packets
PowerPoint to educate consumers on how to avoid rogues
More to come over summer
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AMSA and the Industry: Creating our Future
Stretching and Strengthening our Canvass
Crisis = Change=Rejuvenation
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AMSA and the Industry: Creating our Future
Stretching and Strengthening our Canvass
• A New Strategic Direction = Strong AMSA/Strong Industry
• Strong Advocacy
• A Respected Credible Brand
• Inclusiveness to Serve an Increasingly Diverse Industry
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AMSA and the Industry: Creating our Future
Stretching and Strengthening our Canvass
Change
•
Van-lines investing more heavily in container business – Unigroup and PODs, Atlas and
SmartWay
•
New strategies for containerization - My Move Option (ProMovers, Fedex, etc.)
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Litigation Challenge Continues
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Environmental and Labor Challenges
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Military implementation of DP3, BRAC
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COD customers looking for more and different methods of DIY
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Corporations moving to lump sum and hire local policies
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Conclusion
ProMover is our focus and ProMover is our future
• Separate the wheat from the chaffe
• Build quality service customers expect AND pay for
• Regain lost market share to DIY resulting from rogues
• No more beatings in courts, state houses, or capitol hill
because they understand we are the solution, not the
problem
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Thank you
• AMSA thanks you for the opportunity to be here with
CPPC members and for all your hard work and
dedication.
• Check us out at www.promover.org
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