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AMSA and Industry Update
Linda Bauer Darr, President & CEO
American Moving & Storage Association
CPPC 2010 Spring Workshop
Oakbrook, IL
April 30, 2010
1
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:
–
–
–
–
Creating our Future
Government Challenges & Response
Litigation
“ProMover-izing” our Industry Image
Stretching and Strengthening the Canvass
• Conclusion
2
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
3
Today
Times have Changed
• Only 11.9% of Americans moved in 2008 (versus
14% in 2006), a record low, down 3.5 million
households
4
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
5
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
6
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
7
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.
8
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%
9
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%
10
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
11
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
12
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
13
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
14
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
15
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
16
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
17
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
18
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
19
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
20
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
21
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:
•
No applicable felony convictions by company officers
•
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
22
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
23
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
24
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
–
–
–
–
–
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
25
AMSA and the Industry: Creating our Future
Stretching and Strengthening our Canvass
Crisis = Change=Rejuvenation
26
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
27
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.)
•
Litigation Challenge Continues
•
Environmental and Labor Challenges
•
Military implementation of DP3, BRAC
•
COD customers looking for more and different methods of DIY
•
Corporations moving to lump sum and hire local policies
28
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
29
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
30