1 00:00:08,000 --> 00:00:11,640 Speaker 1: Welcome to Bloomberg Intelligence Talking Transports Podcast. I'm your host, 2 00:00:11,680 --> 00:00:15,840 Speaker 1: Lee Clascaw, senior freight transportation logistics Analysts at Bloomberg Intelligence, 3 00:00:16,040 --> 00:00:19,880 Speaker 1: Bloomberg's in house research arm of almost five hundred analysts 4 00:00:19,920 --> 00:00:23,320 Speaker 1: and strategists. Before diving in a little public service announcement, 5 00:00:23,520 --> 00:00:26,360 Speaker 1: your support is instrumental to keep bringing great guests onto 6 00:00:26,400 --> 00:00:28,600 Speaker 1: the podcast like the one we have today. If you 7 00:00:28,640 --> 00:00:31,040 Speaker 1: haven't already, please do take a moment to follow, rate 8 00:00:31,120 --> 00:00:34,760 Speaker 1: and share the Talking Transports podcast. We appreciate your support. 9 00:00:35,440 --> 00:00:38,360 Speaker 1: That being said, I'm very excited to have Robert Sanchez 10 00:00:38,400 --> 00:00:44,280 Speaker 1: Writer Systems, Chairman and CEO of the company. Writer trades 11 00:00:44,400 --> 00:00:46,960 Speaker 1: under the symbol R and has a market cap of 12 00:00:47,000 --> 00:00:50,760 Speaker 1: around five point three billion dollars. Over the course of 13 00:00:50,880 --> 00:00:54,240 Speaker 1: more than thirty years at Ryder, mister Sanchez has held 14 00:00:54,240 --> 00:01:00,200 Speaker 1: many senior executive leadership positions, including COO, CFO, President of 15 00:01:00,240 --> 00:01:05,600 Speaker 1: Fleet Management Solutions, Chief Information Officer, SVP of Transportation Management 16 00:01:05,640 --> 00:01:09,760 Speaker 1: within Supply Chain Solutions, and VP of Asset Management. He's 17 00:01:09,760 --> 00:01:12,440 Speaker 1: been a member of the company's executive leadership team since 18 00:01:12,440 --> 00:01:14,959 Speaker 1: two thousand and three. Robert is on the board of 19 00:01:15,000 --> 00:01:17,839 Speaker 1: Directors of Texas instruments. He also serves on the board 20 00:01:17,840 --> 00:01:21,800 Speaker 1: of directors of the United Way Miami Foundation for Human 21 00:01:21,880 --> 00:01:26,440 Speaker 1: Rights in Cuba and the Association of Cuban American Engineers. 22 00:01:26,480 --> 00:01:29,319 Speaker 1: He's also a member of the board of trustees of 23 00:01:29,360 --> 00:01:34,319 Speaker 1: the University of Miami and Saint Thomas University. Robert earned 24 00:01:34,319 --> 00:01:37,480 Speaker 1: an NBA from the Whartons School at the University of 25 00:01:37,520 --> 00:01:41,360 Speaker 1: Pennsylvania with a concentration in finance and Strategic management, and 26 00:01:41,400 --> 00:01:44,520 Speaker 1: a Bachelor's of Science degree in electrical engineering from the 27 00:01:44,640 --> 00:01:49,840 Speaker 1: University of Miami. So, Robert, welcome to the podcast High Late. 28 00:01:49,920 --> 00:01:50,800 Speaker 2: Thank you for having me. 29 00:01:51,520 --> 00:01:54,560 Speaker 1: So are you a Hurricanes fan or a Dolphins fan 30 00:01:54,600 --> 00:01:55,320 Speaker 1: or a little both? 31 00:01:55,800 --> 00:01:59,000 Speaker 2: Yes to all, I'm a big, big Hurricanes fan and 32 00:01:59,040 --> 00:02:02,240 Speaker 2: a big Dolphins fan. But I was at the University 33 00:02:02,280 --> 00:02:05,640 Speaker 2: of Miami during the heyday of the football program when 34 00:02:06,840 --> 00:02:08,360 Speaker 2: I was there for four years, and they won two 35 00:02:08,440 --> 00:02:11,000 Speaker 2: national championships during that time, so as you might imagine, 36 00:02:11,000 --> 00:02:12,079 Speaker 2: I became an instant fan. 37 00:02:13,000 --> 00:02:15,080 Speaker 1: Yeah, that's uh, that must have been a lot of fun. 38 00:02:15,120 --> 00:02:17,200 Speaker 1: I went to a small Division III school and uh, 39 00:02:17,480 --> 00:02:19,480 Speaker 1: they were good at football, but you know, they didn't 40 00:02:19,480 --> 00:02:21,960 Speaker 1: play on the on the big stage like uh, like 41 00:02:21,960 --> 00:02:25,760 Speaker 1: like the Division one and you know the Dolphins. I 42 00:02:25,960 --> 00:02:28,639 Speaker 1: was had the opportunity to go to hard Rock Stadium 43 00:02:29,040 --> 00:02:31,880 Speaker 1: last season to see the Giants lose, but that was 44 00:02:31,880 --> 00:02:34,600 Speaker 1: a great stadium, really nice place to see a football game. 45 00:02:35,080 --> 00:02:37,720 Speaker 2: We're excited. We're always excited at the beginning of the season, 46 00:02:37,760 --> 00:02:40,600 Speaker 2: so we're excited again for the season. We think we've 47 00:02:40,600 --> 00:02:42,880 Speaker 2: got the right coach and we got the right team. 48 00:02:42,720 --> 00:02:42,880 Speaker 3: So. 49 00:02:44,480 --> 00:02:47,760 Speaker 1: Well, good luck. Just uh, you know, the main reason 50 00:02:47,760 --> 00:02:49,400 Speaker 1: you're here not to stock football. You know, we want 51 00:02:49,440 --> 00:02:52,239 Speaker 1: to talk transports, uh, and we want to talk Rider. 52 00:02:52,360 --> 00:02:55,120 Speaker 1: So Ryder is a company that I think everyone knows, 53 00:02:55,600 --> 00:02:58,640 Speaker 1: but everyone might not know exactly what you do. So 54 00:02:58,720 --> 00:03:01,400 Speaker 1: could you give people a lot taste of what Rider does? 55 00:03:01,880 --> 00:03:05,600 Speaker 2: Sure? So, yeah, everybody knows Rider. Typically they know us 56 00:03:05,680 --> 00:03:08,560 Speaker 2: because of our iconic rental trucks that you see on 57 00:03:08,600 --> 00:03:11,000 Speaker 2: the road that say Rider ever better on them. If 58 00:03:11,000 --> 00:03:13,960 Speaker 2: you're old enough, you might remember the old Rider yellow 59 00:03:14,880 --> 00:03:16,560 Speaker 2: moving trucks that you used to see a lot of 60 00:03:16,560 --> 00:03:19,360 Speaker 2: those on the road. I do, but that's only a 61 00:03:19,400 --> 00:03:21,400 Speaker 2: small part of what we do. About ten percent of 62 00:03:21,400 --> 00:03:24,320 Speaker 2: our business is this truck rental business. The rest of 63 00:03:24,320 --> 00:03:28,000 Speaker 2: our business is more of an outsourcing of transportation and logistics, 64 00:03:28,080 --> 00:03:30,720 Speaker 2: so it could be the leasing of an entire fleet 65 00:03:30,720 --> 00:03:34,639 Speaker 2: of trucks. So we have about one hundred and thirty 66 00:03:34,720 --> 00:03:38,840 Speaker 2: thousand commercial trucks that we lease to customers. Those vehicles 67 00:03:38,880 --> 00:03:42,280 Speaker 2: will not have the Rider logo prominently displayed, but it 68 00:03:42,320 --> 00:03:45,560 Speaker 2: will have our customers logos and information, and we'll have 69 00:03:45,600 --> 00:03:47,720 Speaker 2: a little a small sticker on the front that might 70 00:03:47,760 --> 00:03:51,480 Speaker 2: say Rider. But all those vehicles are also owned and 71 00:03:51,600 --> 00:03:56,960 Speaker 2: maintained by Rider. And also we also provide trucks and drivers, 72 00:03:57,400 --> 00:04:01,040 Speaker 2: so we have thirteen thousand professions truck drivers who work 73 00:04:01,080 --> 00:04:04,480 Speaker 2: for Rider and they do delivery of product for our customers. 74 00:04:05,080 --> 00:04:08,920 Speaker 2: So you might have a company, I'll give you an 75 00:04:08,920 --> 00:04:11,120 Speaker 2: example True Value as a customer of ours. So when 76 00:04:11,120 --> 00:04:14,160 Speaker 2: you see a true Value truck pulling into a True 77 00:04:14,200 --> 00:04:17,400 Speaker 2: Value store, the truck says true Value on it. The customer, 78 00:04:18,720 --> 00:04:23,280 Speaker 2: not the customer. The truck driver has a logo of 79 00:04:23,320 --> 00:04:25,960 Speaker 2: true Value on their uniform with one of Rider. Also 80 00:04:26,040 --> 00:04:28,960 Speaker 2: that is a Rider truck and a Rider driver making 81 00:04:29,000 --> 00:04:32,920 Speaker 2: those deliveries. So we do that for numerous customers around 82 00:04:33,200 --> 00:04:36,640 Speaker 2: North America. And then we have a broader supply chain 83 00:04:36,720 --> 00:04:41,080 Speaker 2: logistics business where we run big distribution centers for customers. 84 00:04:41,120 --> 00:04:44,520 Speaker 2: So we have over three hundred distribution centers that we 85 00:04:44,600 --> 00:04:48,800 Speaker 2: run for mostly large companies, and it could be a 86 00:04:48,800 --> 00:04:53,800 Speaker 2: distribution of consumer packaged goods. Think about things that may 87 00:04:53,800 --> 00:04:59,839 Speaker 2: be at your kitchen cabinets. So we also provide broader 88 00:05:00,160 --> 00:05:04,840 Speaker 2: logistics services, such as running distribution centers for large companies, 89 00:05:05,360 --> 00:05:09,400 Speaker 2: and it could be anything from the delivery of Think 90 00:05:09,440 --> 00:05:11,279 Speaker 2: about snacks and food that you might eat might be 91 00:05:11,320 --> 00:05:13,760 Speaker 2: going through one of our distribution centers. It could also 92 00:05:13,800 --> 00:05:17,719 Speaker 2: be a center where we consolidate parts that are going 93 00:05:17,800 --> 00:05:20,720 Speaker 2: to go to an automotive assembly plant. So we run 94 00:05:20,760 --> 00:05:22,800 Speaker 2: these large facilities. We're very good at doing that. We 95 00:05:22,839 --> 00:05:25,600 Speaker 2: have the technology and the engineers to do that. We 96 00:05:25,680 --> 00:05:30,680 Speaker 2: also run transportation networks for customers where we've got ten 97 00:05:30,720 --> 00:05:33,080 Speaker 2: billion dollars a freight, most of which does not run 98 00:05:33,080 --> 00:05:35,080 Speaker 2: on a rider truck but on a third PARTI struck, 99 00:05:35,120 --> 00:05:38,400 Speaker 2: and we act as a traffic department for those companies. 100 00:05:39,040 --> 00:05:41,920 Speaker 2: We have an e commerce fulfillment business where we deliver 101 00:05:42,040 --> 00:05:44,960 Speaker 2: e commerce products to your home and we manage that, 102 00:05:45,440 --> 00:05:48,400 Speaker 2: and also a last mile delivery service where we also 103 00:05:48,480 --> 00:05:50,920 Speaker 2: deliver big and bulky products to your homes. We think 104 00:05:50,920 --> 00:05:54,120 Speaker 2: about furniture and appliances, so we like to say port 105 00:05:54,160 --> 00:05:58,280 Speaker 2: to door type services. We provide it Writer across the board. 106 00:05:58,320 --> 00:06:00,919 Speaker 2: A lot of it is outsourced behind the scenes, so 107 00:06:00,920 --> 00:06:03,960 Speaker 2: you wouldn't necessarily see our logo, but we provide those 108 00:06:04,000 --> 00:06:06,480 Speaker 2: services to many businesses. Yeah. 109 00:06:06,520 --> 00:06:09,440 Speaker 1: So the other day I had the opportunity to attend 110 00:06:09,680 --> 00:06:12,599 Speaker 1: Writers Analyst and I got to learn a lot about 111 00:06:12,600 --> 00:06:15,039 Speaker 1: the company and the markets that it served. You know, 112 00:06:15,080 --> 00:06:17,640 Speaker 1: one of the things that I came away with pretty 113 00:06:17,640 --> 00:06:22,240 Speaker 1: surprised is the untapped market that's left to outsource that 114 00:06:22,279 --> 00:06:25,560 Speaker 1: you guys highlighted in your supply chain solutions and dedicated 115 00:06:25,600 --> 00:06:28,840 Speaker 1: and fleet management solution businesses. Can you talk a little 116 00:06:28,880 --> 00:06:32,480 Speaker 1: bit about, you know, those those market sizes and the 117 00:06:32,520 --> 00:06:37,719 Speaker 1: opportunities that could lie ahead for Writer and your competitors 118 00:06:37,760 --> 00:06:38,359 Speaker 1: for that matter. 119 00:06:39,240 --> 00:06:42,159 Speaker 2: Sure. So we're in the outsourcing business, so everything we do, 120 00:06:42,760 --> 00:06:45,240 Speaker 2: a customer could potentially do it on their own. You 121 00:06:45,240 --> 00:06:47,000 Speaker 2: think about a truck, they could buy their own truck, 122 00:06:47,480 --> 00:06:49,159 Speaker 2: do their own maintenance, or they can come to Writer 123 00:06:49,240 --> 00:06:50,839 Speaker 2: and we do all that for them. They can hire 124 00:06:50,880 --> 00:06:52,720 Speaker 2: their own truck drivers, or they can come to us 125 00:06:52,760 --> 00:06:54,840 Speaker 2: and we'll do that for them, or they can run 126 00:06:54,880 --> 00:06:57,839 Speaker 2: their supply chain and distribution networks, so we can do 127 00:06:57,880 --> 00:07:00,440 Speaker 2: that for them. So in each of those markets, it's 128 00:07:00,800 --> 00:07:04,200 Speaker 2: less than twenty five percent of the market is outsourced, 129 00:07:04,279 --> 00:07:06,919 Speaker 2: so you still got a large percentage of companies that 130 00:07:06,960 --> 00:07:09,760 Speaker 2: do this on their own. So our focus is chipping 131 00:07:09,800 --> 00:07:13,120 Speaker 2: away at those folks that are doing it themselves and 132 00:07:13,160 --> 00:07:15,640 Speaker 2: do it yourselfers and getting them to outsource and outsource. 133 00:07:15,680 --> 00:07:19,840 Speaker 2: The writer. The positive thing going on for us in 134 00:07:19,920 --> 00:07:22,560 Speaker 2: terms of the trends in the marketplace so that all 135 00:07:22,600 --> 00:07:27,000 Speaker 2: those things related to transportation logistics have gotten more difficult 136 00:07:27,200 --> 00:07:29,840 Speaker 2: for companies to do on their own and therefore more 137 00:07:29,920 --> 00:07:33,040 Speaker 2: likely to be outsourced. So whether it's the hiring of 138 00:07:33,480 --> 00:07:36,920 Speaker 2: a truck driver, a professional truck driver, or a technician, there's 139 00:07:36,920 --> 00:07:40,360 Speaker 2: a shortage of them and the ability to hire and 140 00:07:40,400 --> 00:07:44,239 Speaker 2: retain those has become much more challenging. The complexity around 141 00:07:46,040 --> 00:07:50,520 Speaker 2: commercial vehicles and all the EPA mandated changes that have 142 00:07:50,600 --> 00:07:53,400 Speaker 2: made those vehicles more complex, it's making it a lot 143 00:07:53,480 --> 00:07:55,840 Speaker 2: harder to buy them and then to maintain them. So 144 00:07:55,880 --> 00:07:59,040 Speaker 2: we help out customers with that, and then if you're recall. 145 00:07:59,120 --> 00:08:03,280 Speaker 2: During all the challenges around supply chain, I've really had 146 00:08:03,520 --> 00:08:08,920 Speaker 2: companies rethink how they design their supply chains where they're from. 147 00:08:08,960 --> 00:08:12,040 Speaker 2: They try to shrink them near shoring. All of that 148 00:08:12,160 --> 00:08:15,560 Speaker 2: is giving us opportunities to sell more of our services 149 00:08:15,600 --> 00:08:20,000 Speaker 2: to these companies as they reconsider some of these strategies. 150 00:08:21,160 --> 00:08:24,040 Speaker 1: Is there one business that you guys operate in where 151 00:08:24,080 --> 00:08:28,720 Speaker 1: a customer comes in typically and then there's cross selling 152 00:08:28,760 --> 00:08:31,600 Speaker 1: opportunities in the other two business Like do they start 153 00:08:31,600 --> 00:08:34,920 Speaker 1: in fleet management solutions and become a dedicated customer? 154 00:08:36,040 --> 00:08:38,920 Speaker 2: Sure? I mean most of our customer, especially on the 155 00:08:39,000 --> 00:08:42,920 Speaker 2: leasing and dedicated start side, start with renting a truck, 156 00:08:43,760 --> 00:08:47,720 Speaker 2: so they need a truck for a surgeon in demand 157 00:08:49,040 --> 00:08:50,839 Speaker 2: or a truck of theirs down and they come in 158 00:08:50,880 --> 00:08:54,040 Speaker 2: they run a truck from rider. That's where the relationship begins. 159 00:08:54,559 --> 00:08:57,319 Speaker 2: That over time can lead to the leasing of multiple 160 00:08:57,360 --> 00:08:59,840 Speaker 2: trucks and leasing of a fleet. And then over time, 161 00:09:00,000 --> 00:09:02,440 Speaker 2: if it's the right, if it adds value to the 162 00:09:02,480 --> 00:09:04,640 Speaker 2: customer and we can help them, then we could also 163 00:09:04,960 --> 00:09:08,040 Speaker 2: bring in the dedicated transportation and then run the whole 164 00:09:08,080 --> 00:09:12,080 Speaker 2: operation for them. So typically that's how folks come into 165 00:09:12,960 --> 00:09:15,520 Speaker 2: those parts of the business. On the supply chain side, 166 00:09:15,520 --> 00:09:17,920 Speaker 2: it's probably a little different because sometimes that just starts 167 00:09:17,960 --> 00:09:22,440 Speaker 2: with us responding to a customer that's looking for help 168 00:09:22,480 --> 00:09:25,640 Speaker 2: around one of these supply chain challenges, and we'll come 169 00:09:25,679 --> 00:09:27,960 Speaker 2: in with our engineers and help them with some designs 170 00:09:27,960 --> 00:09:30,880 Speaker 2: and then look for opportunities to help them actually with 171 00:09:30,920 --> 00:09:31,520 Speaker 2: the operation. 172 00:09:32,800 --> 00:09:34,640 Speaker 1: So from my vantage point, it seems like you guys 173 00:09:34,679 --> 00:09:37,360 Speaker 1: have a lot of organic growth opportunities, but you also 174 00:09:37,440 --> 00:09:39,440 Speaker 1: have been augmenting that growth with M and A cold. 175 00:09:39,440 --> 00:09:42,400 Speaker 1: You talk about writers, M and A strategy, and maybe 176 00:09:42,520 --> 00:09:45,040 Speaker 1: you know some of the deals that you recently have done. 177 00:09:45,800 --> 00:09:50,160 Speaker 2: Sure, we're always looking for ways of bringing in new 178 00:09:50,200 --> 00:09:53,360 Speaker 2: capabilities to the company, especially in our supply chain business, 179 00:09:54,640 --> 00:09:58,040 Speaker 2: and then also where we can enhance our scale in 180 00:09:58,600 --> 00:10:02,800 Speaker 2: certain areas, we'll do that. So recently we purchased a 181 00:10:02,800 --> 00:10:06,920 Speaker 2: company called IFS, which is a co manufacturing co packing 182 00:10:08,080 --> 00:10:11,560 Speaker 2: business that fits really nicely with our supply chain business 183 00:10:11,600 --> 00:10:15,960 Speaker 2: where we could be running distribution centers for some consumer 184 00:10:16,000 --> 00:10:19,079 Speaker 2: package goods companies and now we can also offer them 185 00:10:19,120 --> 00:10:23,360 Speaker 2: copacking and co manufacturing as an additional service. So had 186 00:10:23,400 --> 00:10:27,080 Speaker 2: a nice fit in with that business. Another acquisition we 187 00:10:27,160 --> 00:10:31,280 Speaker 2: recently did was Cardinal Logistics, which is a dedicated transportation 188 00:10:31,440 --> 00:10:34,120 Speaker 2: business that really was a nice shot in the arm 189 00:10:34,200 --> 00:10:36,600 Speaker 2: for our dedicated business kind of allows us to grow 190 00:10:36,640 --> 00:10:40,040 Speaker 2: that business grew up at about fifty percent five zero, 191 00:10:40,160 --> 00:10:43,360 Speaker 2: So we've been able to through that be able to 192 00:10:43,520 --> 00:10:46,800 Speaker 2: really take advantage of a lot more scale and density 193 00:10:46,840 --> 00:10:52,679 Speaker 2: in certain regions to bring us more capability for our 194 00:10:52,679 --> 00:10:56,800 Speaker 2: customers and for rioters. So those types of things we've done. 195 00:10:57,080 --> 00:10:59,880 Speaker 2: I think it's been seven acquisitions in the last five years. 196 00:11:00,880 --> 00:11:04,319 Speaker 2: We're not usually doing a bet the farm time acquisition, 197 00:11:04,440 --> 00:11:08,400 Speaker 2: but they're nice add on acquisitions for the organic growth 198 00:11:08,400 --> 00:11:09,319 Speaker 2: that we're seeing. 199 00:11:10,360 --> 00:11:13,600 Speaker 1: Right and you know, through the acquisitions and through you know, 200 00:11:13,960 --> 00:11:18,560 Speaker 1: before the transformation that you guys started, I guess three 201 00:11:18,640 --> 00:11:23,000 Speaker 1: years ago, you've become more of a diversified company. Can 202 00:11:23,040 --> 00:11:26,520 Speaker 1: you talk about that diversification and what has changed so 203 00:11:26,640 --> 00:11:30,880 Speaker 1: much this year versus you know, back maybe in twenty eighteen. 204 00:11:31,920 --> 00:11:35,200 Speaker 2: Yeah, the big shift has really been around the balance 205 00:11:35,280 --> 00:11:38,880 Speaker 2: between our fleet management business, where it is the truck 206 00:11:38,960 --> 00:11:43,480 Speaker 2: leasing and rental side, and the less acid intensive dedicated 207 00:11:43,559 --> 00:11:46,720 Speaker 2: and supply chain business. So if you go back to 208 00:11:46,800 --> 00:11:49,440 Speaker 2: twenty eighteen, it was more of a sixty forty, so 209 00:11:49,520 --> 00:11:54,080 Speaker 2: sixty percent fleet management forty percent supply chain dedicated that 210 00:11:54,200 --> 00:11:57,400 Speaker 2: is now flipped or it's sixty percent supply chain dedicated 211 00:11:57,440 --> 00:12:02,080 Speaker 2: and forty percent fleet management. We like that because it 212 00:12:02,240 --> 00:12:05,600 Speaker 2: still allows us to be a significant player in the 213 00:12:05,600 --> 00:12:09,360 Speaker 2: fleet management business, but also enhance it with these other 214 00:12:09,480 --> 00:12:14,040 Speaker 2: value added type businesses that not only allow us to grow, 215 00:12:14,160 --> 00:12:19,000 Speaker 2: but do it in a more asset light type manner. 216 00:12:20,040 --> 00:12:22,400 Speaker 1: And can you talk about some of the volatility that 217 00:12:22,480 --> 00:12:29,080 Speaker 1: you've experienced in the fleet management segment as it relates 218 00:12:29,160 --> 00:12:32,240 Speaker 1: to you know, once you get a truck back from 219 00:12:32,240 --> 00:12:34,559 Speaker 1: a lease, you're going to sell it in the aftermarket, 220 00:12:34,640 --> 00:12:38,080 Speaker 1: and talk about maybe use prices and kind of how 221 00:12:38,559 --> 00:12:42,439 Speaker 1: Rider has changed the pricing of those contracts. 222 00:12:43,360 --> 00:12:48,160 Speaker 2: Sure, So on the fleet management side of the business, 223 00:12:48,200 --> 00:12:50,679 Speaker 2: our largest product is a full service lease. So think 224 00:12:50,720 --> 00:12:54,160 Speaker 2: about that's a six year lease with a customer for 225 00:12:54,200 --> 00:12:58,559 Speaker 2: a truck that includes all the maintenance on that vehicle, 226 00:12:59,080 --> 00:13:01,280 Speaker 2: and then we obviously at the end of that least 227 00:13:01,280 --> 00:13:03,480 Speaker 2: take it back and in some cases we'll redeployed to 228 00:13:03,520 --> 00:13:05,960 Speaker 2: another application a lot in most cases will resell it 229 00:13:06,000 --> 00:13:08,680 Speaker 2: to we'll sell it in the secondary market. So one 230 00:13:08,720 --> 00:13:12,520 Speaker 2: of the largest resellers of US trucks in the country. 231 00:13:13,640 --> 00:13:16,280 Speaker 2: So the least part, so the part where the customer 232 00:13:16,400 --> 00:13:18,520 Speaker 2: leases the vehicle and pays us over the six years, 233 00:13:18,559 --> 00:13:21,640 Speaker 2: and we maintained that truck and keep it running for 234 00:13:21,679 --> 00:13:25,120 Speaker 2: them and with high uptime, is a pretty steady business 235 00:13:25,160 --> 00:13:29,400 Speaker 2: as you might imagine their commitments to make these payments 236 00:13:29,559 --> 00:13:33,280 Speaker 2: each month, and we get that. The volatility really comes 237 00:13:33,320 --> 00:13:36,000 Speaker 2: from the used truck side at the end, and the 238 00:13:36,080 --> 00:13:39,000 Speaker 2: used truck market, similar to the used car market. Use 239 00:13:39,040 --> 00:13:44,439 Speaker 2: auto market has been somewhat volatile and cyclical. So we were, 240 00:13:44,679 --> 00:13:47,880 Speaker 2: you know, historically we were in certain markets doing really 241 00:13:47,880 --> 00:13:50,920 Speaker 2: well on the resale and then in other markets we 242 00:13:50,960 --> 00:13:54,679 Speaker 2: would really take a loss sometimes on the sale of 243 00:13:54,720 --> 00:13:57,200 Speaker 2: these vehicles at the end. So we could have run 244 00:13:57,200 --> 00:13:58,920 Speaker 2: this lease for six years and at the end of 245 00:13:58,920 --> 00:14:01,240 Speaker 2: the use truck market was better, had the whole lease 246 00:14:01,559 --> 00:14:04,400 Speaker 2: didn't have the economics that we expected. So we made 247 00:14:04,440 --> 00:14:06,800 Speaker 2: a change back in twenty nineteen to really lower those 248 00:14:06,840 --> 00:14:10,400 Speaker 2: residual assumptions on our lease on our leases in order 249 00:14:10,440 --> 00:14:12,920 Speaker 2: to make sure that even in a difficult market, we 250 00:14:12,960 --> 00:14:15,480 Speaker 2: would still at least get the returns that we had 251 00:14:15,520 --> 00:14:18,680 Speaker 2: originally expected on these leases, given all the work it 252 00:14:18,720 --> 00:14:21,920 Speaker 2: takes to keep those trucks up and running, and that's 253 00:14:21,920 --> 00:14:25,160 Speaker 2: really changed the profile of our lease portfolio that we 254 00:14:25,240 --> 00:14:29,200 Speaker 2: now have. It's about fifteen percent of those leases expiring year, 255 00:14:29,280 --> 00:14:31,400 Speaker 2: so it takes us, you know, about six years to 256 00:14:31,440 --> 00:14:33,720 Speaker 2: get through it, which we're getting to the tail end 257 00:14:33,760 --> 00:14:39,520 Speaker 2: of that now, and that's really changed the overall returns profile, 258 00:14:39,560 --> 00:14:41,800 Speaker 2: if you will, of our business and has put us 259 00:14:42,000 --> 00:14:43,880 Speaker 2: in a pretty good position that we're in today. 260 00:14:44,640 --> 00:14:47,520 Speaker 1: Yeah, you know, and the residuals you know, not to 261 00:14:47,600 --> 00:14:51,000 Speaker 1: get to ahead of ourselves. But like in twenty twenty seven, 262 00:14:51,040 --> 00:14:52,600 Speaker 1: the EPA is going to come out with the new 263 00:14:53,600 --> 00:14:57,640 Speaker 1: there's a new rule for stricter emission standards on trucks. 264 00:14:58,520 --> 00:15:01,120 Speaker 1: Could you talk about, you know, how that might impact 265 00:15:01,160 --> 00:15:05,120 Speaker 1: residual values and what you're doing and what your customers 266 00:15:05,120 --> 00:15:07,400 Speaker 1: are requesting you to do ahead of that mandate. 267 00:15:08,520 --> 00:15:12,840 Speaker 2: Right, So two things typically happened before a significant change 268 00:15:12,880 --> 00:15:17,520 Speaker 2: in engine technology, where it may have, even though it's 269 00:15:17,520 --> 00:15:21,600 Speaker 2: a technology that will certainly be better for the environment economically, 270 00:15:21,640 --> 00:15:24,320 Speaker 2: may be more challenging for businesses. So if you go 271 00:15:24,440 --> 00:15:27,400 Speaker 2: back to the last big change that we saw like 272 00:15:27,440 --> 00:15:31,880 Speaker 2: that was in two thousand and seven, back when EPA 273 00:15:32,000 --> 00:15:38,360 Speaker 2: mandated after treatment systems that had not existed before. And 274 00:15:38,440 --> 00:15:40,600 Speaker 2: what you saw was in two thousand and six, the 275 00:15:40,680 --> 00:15:43,000 Speaker 2: year before that change, there was what we call a 276 00:15:43,000 --> 00:15:45,480 Speaker 2: pre buy, so a lot of fleets tried to buy 277 00:15:45,560 --> 00:15:47,560 Speaker 2: right before that change where the vehicles were going to 278 00:15:47,600 --> 00:15:51,880 Speaker 2: be less expensive and more cost effective, if you will. 279 00:15:53,160 --> 00:15:56,200 Speaker 2: And then in that first year, the first generation of 280 00:15:56,240 --> 00:15:59,440 Speaker 2: that new technology, there was a lot less buying in 281 00:15:59,520 --> 00:16:03,600 Speaker 2: that year, and then beyond that, the sale of the 282 00:16:03,720 --> 00:16:08,560 Speaker 2: used equipment with the older technology tended to be held 283 00:16:08,640 --> 00:16:11,520 Speaker 2: up pretty well, right because customers saw that as a 284 00:16:11,520 --> 00:16:15,280 Speaker 2: more attractive option than buying the new technology, which was 285 00:16:15,320 --> 00:16:18,640 Speaker 2: more expensive and less cost effective. So as we go 286 00:16:18,680 --> 00:16:20,240 Speaker 2: to twenty twenty seven, I think it's going to be 287 00:16:20,240 --> 00:16:25,160 Speaker 2: a we expect that could be a similar profile of 288 00:16:25,200 --> 00:16:28,160 Speaker 2: how customers will behave as you'll see customers really want 289 00:16:28,200 --> 00:16:32,200 Speaker 2: to buy ahead of the twenty twenty seven engine technology change, 290 00:16:32,560 --> 00:16:34,640 Speaker 2: and then post twenty twenty seven, you may see a 291 00:16:34,680 --> 00:16:38,200 Speaker 2: slowdown in the purchase of the new equipment until customers 292 00:16:38,240 --> 00:16:41,160 Speaker 2: really begin to see how it plays out, and it 293 00:16:41,200 --> 00:16:46,120 Speaker 2: will typically should held up the prices of the used 294 00:16:46,160 --> 00:16:51,080 Speaker 2: equipment post twenty twenty seven because the used equipment that 295 00:16:51,640 --> 00:16:53,760 Speaker 2: is going to be sold out is all the older technology, 296 00:16:53,760 --> 00:16:58,960 Speaker 2: which has the more cost effective engine technology. So we're 297 00:16:59,000 --> 00:17:01,280 Speaker 2: assuming there's going to be a similar play here. Not 298 00:17:01,320 --> 00:17:04,320 Speaker 2: sure it will, but that's probably based on what we 299 00:17:04,400 --> 00:17:08,439 Speaker 2: know of the technology change that's coming at us in 300 00:17:08,440 --> 00:17:11,000 Speaker 2: twenty twenty seven. There's a good chance that we're going 301 00:17:11,080 --> 00:17:15,480 Speaker 2: to see a similar customer reaction. 302 00:17:15,960 --> 00:17:17,840 Speaker 1: Right, And we don't really know what the what the 303 00:17:17,880 --> 00:17:19,960 Speaker 1: new trucks are going to cost in twenty twenty seven, 304 00:17:20,000 --> 00:17:22,000 Speaker 1: but you know, I've heard estimate it's anywhere between twenty 305 00:17:22,000 --> 00:17:24,520 Speaker 1: and thirty thousand dollars more per truck, So that's a 306 00:17:24,560 --> 00:17:26,040 Speaker 1: significant increase. 307 00:17:26,400 --> 00:17:29,200 Speaker 2: Correct, yep Sour. 308 00:17:29,480 --> 00:17:35,040 Speaker 1: During the analyst day, you guys provided some longer term targets. 309 00:17:35,119 --> 00:17:39,119 Speaker 1: You know, you changed your ROE expectations that return on 310 00:17:39,160 --> 00:17:42,600 Speaker 1: equity from the high teens to the load twenties. How 311 00:17:42,720 --> 00:17:45,760 Speaker 1: is is righter going to planning on getting to that 312 00:17:46,080 --> 00:17:48,600 Speaker 1: new target, right, So. 313 00:17:48,640 --> 00:17:50,880 Speaker 2: You know, we're really proud of the progress that we've 314 00:17:50,880 --> 00:17:54,840 Speaker 2: made on turns for the company. We had historically we 315 00:17:54,880 --> 00:17:58,000 Speaker 2: had delivered return on equity, which, by the way, return 316 00:17:58,000 --> 00:17:59,720 Speaker 2: on equity for our business we feel is probably the 317 00:17:59,720 --> 00:18:04,480 Speaker 2: best measure of shareholder values. So we had delivered historically 318 00:18:04,680 --> 00:18:09,840 Speaker 2: in the call it load of mid teens return on equity, 319 00:18:10,600 --> 00:18:13,479 Speaker 2: and we set a target for ourselves of mid teens 320 00:18:13,560 --> 00:18:18,480 Speaker 2: back in the twenty nineteen time period. We raised that 321 00:18:18,520 --> 00:18:22,120 Speaker 2: to the high teens back in twenty twenty two, and 322 00:18:22,160 --> 00:18:26,399 Speaker 2: now again are raising that to the low twenties as 323 00:18:26,440 --> 00:18:31,840 Speaker 2: a return on equity target we're currently at this year, 324 00:18:31,840 --> 00:18:36,000 Speaker 2: we're expecting to deliver about sixteen seventeen percent. The pickup 325 00:18:36,040 --> 00:18:37,960 Speaker 2: to the low twenties we expect is going to come 326 00:18:38,000 --> 00:18:41,080 Speaker 2: from the initiatives that we laid out at our investor 327 00:18:41,119 --> 00:18:45,080 Speaker 2: day yesterday around continuing to drive efficiencies and our maintenance network. 328 00:18:46,440 --> 00:18:50,600 Speaker 2: Also in our supply chain business, we've acquired the see 329 00:18:50,640 --> 00:18:53,840 Speaker 2: commerce fulfillment business and a last mile business that is 330 00:18:53,880 --> 00:18:57,359 Speaker 2: more of a multi client network and really continuing to 331 00:18:57,400 --> 00:19:00,760 Speaker 2: expand and leverage that is a big opportunity for us 332 00:19:01,200 --> 00:19:05,119 Speaker 2: as is as is being able to realize some of 333 00:19:05,119 --> 00:19:07,680 Speaker 2: the synergies from these recent acquisitions that we've done, and 334 00:19:07,720 --> 00:19:09,199 Speaker 2: we've got a pretty good line of site for that. 335 00:19:09,359 --> 00:19:12,600 Speaker 2: So we feel coming out of that over this next cycle, 336 00:19:13,119 --> 00:19:15,000 Speaker 2: we've got a pretty good line of sight to getting 337 00:19:15,000 --> 00:19:17,560 Speaker 2: our returns now up to a new target of as 338 00:19:17,560 --> 00:19:20,000 Speaker 2: I mentioned low twenties. That's over the cycle. So in 339 00:19:20,760 --> 00:19:22,800 Speaker 2: the peak of the cycle we expect to be in 340 00:19:22,840 --> 00:19:25,920 Speaker 2: the mid twenties and then in the trough next trough 341 00:19:26,000 --> 00:19:28,840 Speaker 2: for the cycle probably in the in the high teens. 342 00:19:29,320 --> 00:19:33,159 Speaker 1: So twenty twenty two mark to peak for writers earnings 343 00:19:33,560 --> 00:19:36,520 Speaker 1: obviously the heart of the pandemic. You know, things were 344 00:19:36,720 --> 00:19:40,359 Speaker 1: really really working for people in transportation. I believe you 345 00:19:40,359 --> 00:19:44,879 Speaker 1: guys earned sixteen dollars and thirty seven cents this year. 346 00:19:45,119 --> 00:19:48,320 Speaker 1: You guys guided around eleven dollars and seventy five cents 347 00:19:48,320 --> 00:19:51,479 Speaker 1: to twelve fifty. Consensus right now is at eleven ninety two, 348 00:19:51,680 --> 00:19:56,600 Speaker 1: so you know, consensus is there with you, so that 349 00:19:56,760 --> 00:19:59,320 Speaker 1: the next you could you guys do higher peaks or 350 00:19:59,480 --> 00:20:02,520 Speaker 1: was the peak twenty two going to take a while? 351 00:20:03,160 --> 00:20:05,399 Speaker 1: You might it might not be the next cycle, It 352 00:20:05,480 --> 00:20:07,320 Speaker 1: might be the cycle after that till you get that 353 00:20:07,840 --> 00:20:14,280 Speaker 1: to that level, just given the unprecedented environment that was 354 00:20:14,280 --> 00:20:16,600 Speaker 1: there for transports in twenty twenty two. 355 00:20:17,400 --> 00:20:19,520 Speaker 2: Yeah, that's a great question because if you would have 356 00:20:19,520 --> 00:20:21,440 Speaker 2: asked me in twenty twenty two, I would have told 357 00:20:21,480 --> 00:20:23,960 Speaker 2: you it's a long time before we can achieve the 358 00:20:24,000 --> 00:20:26,080 Speaker 2: earnings that we had in twenty twenty two, so there 359 00:20:26,119 --> 00:20:29,479 Speaker 2: was a there was a big post COVID bump that 360 00:20:29,560 --> 00:20:32,480 Speaker 2: came from the used truck market and rental. Everything was 361 00:20:32,520 --> 00:20:35,760 Speaker 2: really hot. We had to give you as an example, 362 00:20:35,800 --> 00:20:38,359 Speaker 2: we had about four hundred million dollars in gains on 363 00:20:38,480 --> 00:20:42,160 Speaker 2: used trucks, which normalized level there is like seventy five 364 00:20:42,200 --> 00:20:45,320 Speaker 2: to one hundred. So yeah, I figured it was gonna 365 00:20:45,320 --> 00:20:46,960 Speaker 2: be a long time before we ever got back to 366 00:20:47,000 --> 00:20:50,560 Speaker 2: that number. But as we have relooked at our numbers now, 367 00:20:50,600 --> 00:20:52,920 Speaker 2: with the new business model and the performance that we're 368 00:20:52,920 --> 00:20:57,919 Speaker 2: seeing in the business, we would expect to certainly exceed 369 00:20:58,000 --> 00:21:00,680 Speaker 2: or i'd say, well exceed the sixteen thirty seven during 370 00:21:00,680 --> 00:21:03,240 Speaker 2: our next peak, and that next peak could be as 371 00:21:03,280 --> 00:21:05,760 Speaker 2: early as twenty twenty six. Again depends on how the 372 00:21:05,800 --> 00:21:11,320 Speaker 2: economy behaves and how freight market behaves. But given the 373 00:21:12,320 --> 00:21:15,199 Speaker 2: growth that we're seeing in our contractual business, some of 374 00:21:15,240 --> 00:21:19,080 Speaker 2: these initiatives that I just mentioned around continue to drive 375 00:21:19,160 --> 00:21:26,680 Speaker 2: maintenance costs, improvements, continuing to leverage our e commerce and 376 00:21:26,800 --> 00:21:31,040 Speaker 2: last mile businesses, and the acquisitions that we've recently done, 377 00:21:32,080 --> 00:21:34,800 Speaker 2: along with obviously the tailwinds that come from just a 378 00:21:34,920 --> 00:21:39,639 Speaker 2: normal used truck market improvement and rental truck market improvement. 379 00:21:40,480 --> 00:21:43,760 Speaker 2: We see a line of sight to getting us certainly 380 00:21:43,760 --> 00:21:46,359 Speaker 2: well above that sixteen thirty seven, So we're pretty excited 381 00:21:46,359 --> 00:21:46,840 Speaker 2: about that. 382 00:21:47,440 --> 00:21:50,000 Speaker 1: Oh wow, great, is there is there one of your 383 00:21:50,000 --> 00:21:53,840 Speaker 1: businesses that are just poised to outgrow the others in 384 00:21:53,880 --> 00:21:58,240 Speaker 1: what's driving that outperformance from a top line standpoint? Not 385 00:21:58,280 --> 00:22:00,520 Speaker 1: necessarily from marginal profitabilities standpoint. 386 00:22:01,080 --> 00:22:03,639 Speaker 2: Yeah, from a top line standpoint, we're really expecting the 387 00:22:04,720 --> 00:22:08,639 Speaker 2: dedic I'm sorry, our supply chain business to really grow 388 00:22:08,680 --> 00:22:11,639 Speaker 2: at that low double digit level. So that's we expect 389 00:22:11,680 --> 00:22:16,080 Speaker 2: that to be the fastest growing business simply because we 390 00:22:16,160 --> 00:22:19,400 Speaker 2: just see, especially a post COVID world, we're seeing more 391 00:22:19,440 --> 00:22:23,800 Speaker 2: companies out there looking for help and looking for opportunities 392 00:22:24,119 --> 00:22:27,320 Speaker 2: to where more of our acquisitions are coming in also, 393 00:22:27,920 --> 00:22:31,840 Speaker 2: which will push that number. But then we expect dedicated 394 00:22:31,880 --> 00:22:34,920 Speaker 2: to be high single digit, So think about that eight 395 00:22:35,040 --> 00:22:38,159 Speaker 2: nine percent versus supply chain at ten eleven. And then 396 00:22:38,160 --> 00:22:41,199 Speaker 2: our fleet management business, the more acid intensive business, we 397 00:22:41,240 --> 00:22:43,320 Speaker 2: think that business will be growing over the cycle at 398 00:22:43,440 --> 00:22:47,280 Speaker 2: medium at mid single digit, so think about that about 399 00:22:47,280 --> 00:22:50,440 Speaker 2: five percent growth. So fastest growing would be supply chain, 400 00:22:50,800 --> 00:22:54,120 Speaker 2: slowest growing would be fleet managed but all of them 401 00:22:54,160 --> 00:22:55,840 Speaker 2: growing at a reasonable clip. 402 00:22:56,640 --> 00:23:01,080 Speaker 1: And when you're growing dedicated, is there one subsector of 403 00:23:01,880 --> 00:23:05,040 Speaker 1: your market that's growing more, you know, is it more retail, 404 00:23:05,160 --> 00:23:09,439 Speaker 1: is it more CpG like what's. 405 00:23:08,600 --> 00:23:10,159 Speaker 3: Growing or it's just broad based. 406 00:23:10,760 --> 00:23:13,960 Speaker 2: Yeah, it's pretty broad based. What we specialize is more 407 00:23:14,000 --> 00:23:17,000 Speaker 2: of the customized, dedicated so where the driver has to 408 00:23:17,040 --> 00:23:20,320 Speaker 2: do more than just drive the truck and pull into 409 00:23:20,359 --> 00:23:22,159 Speaker 2: a doctor that they have to get out of the 410 00:23:22,200 --> 00:23:24,800 Speaker 2: truck and maybe deliver product into a store, or they 411 00:23:24,880 --> 00:23:28,480 Speaker 2: might have to think about hauling metals and steel where 412 00:23:28,520 --> 00:23:32,480 Speaker 2: the you've got flatbeds, that driver has to do more 413 00:23:32,520 --> 00:23:35,760 Speaker 2: work around that. So we look for dedicated operations that 414 00:23:35,840 --> 00:23:39,520 Speaker 2: really require more specialized handling. Companies just really struggle with 415 00:23:39,640 --> 00:23:43,439 Speaker 2: finding qualified drivers who want to do that type of 416 00:23:43,480 --> 00:23:46,440 Speaker 2: work and finding ways to motivate and retain them. 417 00:23:47,200 --> 00:23:50,720 Speaker 1: How do you guys go about finding those good drivers 418 00:23:50,760 --> 00:23:53,159 Speaker 1: and keeping those good drivers? Obviously, you know there's a 419 00:23:53,200 --> 00:23:55,400 Speaker 1: lot of slack capacity in the spot market right now, 420 00:23:55,440 --> 00:23:57,600 Speaker 1: so it might be a little easier today than it 421 00:23:57,680 --> 00:23:59,720 Speaker 1: was a couple of years ago to attract and retain 422 00:23:59,800 --> 00:24:03,000 Speaker 1: dr But you know, how do you guys go about 423 00:24:03,359 --> 00:24:06,679 Speaker 1: doing that? And are is a job at Rider driving 424 00:24:06,720 --> 00:24:09,080 Speaker 1: a truck. Is it more attractive than doing in over 425 00:24:09,119 --> 00:24:12,359 Speaker 1: the road type of movement in a truck. 426 00:24:13,240 --> 00:24:15,800 Speaker 2: Yeah. That's the first point is that most of our 427 00:24:16,320 --> 00:24:18,560 Speaker 2: i think it's eighty five to ninety percent of our 428 00:24:19,040 --> 00:24:22,760 Speaker 2: routes are home every night, right, So these are more 429 00:24:22,800 --> 00:24:28,119 Speaker 2: private fleet type routes, so more attractive for your professional 430 00:24:28,160 --> 00:24:31,960 Speaker 2: drivers've been in the mar in the business for a bit. Also, 431 00:24:32,000 --> 00:24:35,679 Speaker 2: we have a very extensive driver recruiting network. We have, 432 00:24:35,880 --> 00:24:38,639 Speaker 2: depending on where we are in the cycle, anywhere from 433 00:24:38,880 --> 00:24:44,240 Speaker 2: sixty to one hundred recruiters who just specialize in recruiting drivers. Wow, 434 00:24:44,280 --> 00:24:47,560 Speaker 2: so they are are honed in on what does it 435 00:24:47,600 --> 00:24:50,600 Speaker 2: take to bring a driver into Rider. We spend a 436 00:24:50,640 --> 00:24:54,199 Speaker 2: lot of time and have a very close we have 437 00:24:54,240 --> 00:24:59,199 Speaker 2: our finger on the pulse of the wages required for 438 00:24:59,280 --> 00:25:01,960 Speaker 2: drivers in each market. So we make sure we're paying 439 00:25:02,000 --> 00:25:06,600 Speaker 2: our drivers a fair wage to keep them engaged and motivated, 440 00:25:06,960 --> 00:25:10,960 Speaker 2: and really making sure drivers that ride or realize how 441 00:25:10,960 --> 00:25:12,960 Speaker 2: important they are to the business and how important what 442 00:25:13,000 --> 00:25:14,679 Speaker 2: they do is not just a rider, but to the 443 00:25:14,680 --> 00:25:19,280 Speaker 2: whole economy. So we do a lot to celebrate our drivers, 444 00:25:19,320 --> 00:25:22,080 Speaker 2: and we have a lot of recognition and award program, 445 00:25:22,400 --> 00:25:24,960 Speaker 2: our biggest being our Driver of the Year program, which 446 00:25:24,960 --> 00:25:28,720 Speaker 2: I'm heading out to Waco, Texas next week to recognize 447 00:25:28,720 --> 00:25:31,200 Speaker 2: one of our Drivers of the year. These are folks 448 00:25:31,240 --> 00:25:37,160 Speaker 2: who have had many years of safe driving experience and 449 00:25:37,440 --> 00:25:40,280 Speaker 2: in addition to that, do amazing things in their community 450 00:25:40,359 --> 00:25:43,919 Speaker 2: and our really role models for all of us. So 451 00:25:44,280 --> 00:25:46,760 Speaker 2: we do a lot of things around that to make 452 00:25:46,760 --> 00:25:49,399 Speaker 2: sure we're staying engaged with our drivers. But if you 453 00:25:49,440 --> 00:25:51,960 Speaker 2: think about a typical private fleet, the person hiring the 454 00:25:52,000 --> 00:25:54,359 Speaker 2: truck driver is the same person that's usually hiring the 455 00:25:54,400 --> 00:25:58,560 Speaker 2: accountant and the salesperson and doesn't have that specialty if 456 00:25:58,600 --> 00:26:02,760 Speaker 2: you will, around driver recruiting. We also make sure that 457 00:26:02,760 --> 00:26:07,480 Speaker 2: they've got high quality equipment with the latest technologies in 458 00:26:08,680 --> 00:26:12,440 Speaker 2: safety technology and technology in driver comforts. 459 00:26:12,840 --> 00:26:15,000 Speaker 1: I don't know if you have this stat but roughly 460 00:26:15,240 --> 00:26:18,439 Speaker 1: how large is your dedicated fleet in terms of number 461 00:26:18,480 --> 00:26:20,960 Speaker 1: of trucks. 462 00:26:20,680 --> 00:26:23,320 Speaker 2: So we have In terms of total vehicles, we're over 463 00:26:23,359 --> 00:26:26,600 Speaker 2: twenty thousand, but if you look at power, we're about 464 00:26:26,640 --> 00:26:30,920 Speaker 2: thirteen thousand power units that we run in I would 465 00:26:30,960 --> 00:26:35,359 Speaker 2: say in dedicated and including some dedicated routes that we 466 00:26:35,480 --> 00:26:38,480 Speaker 2: run for in our supply chain business. Primarily and automotives. 467 00:26:38,480 --> 00:26:40,119 Speaker 2: It's about thirteen thousand total. 468 00:26:40,560 --> 00:26:43,040 Speaker 1: Right, and that makes you are you the second largest 469 00:26:43,040 --> 00:26:44,120 Speaker 1: dedicated player. 470 00:26:43,920 --> 00:26:47,840 Speaker 2: In second largest We're closing in, but we're second largest. 471 00:26:47,560 --> 00:26:50,800 Speaker 1: Yes, okay, And then you know, I think what you 472 00:26:50,800 --> 00:26:53,280 Speaker 1: know one of the stats that you guys provided the 473 00:26:53,320 --> 00:26:55,399 Speaker 1: other day at your analyst day that I thought was 474 00:26:55,440 --> 00:26:59,439 Speaker 1: pretty crazy, just because again like you're a company that 475 00:27:00,040 --> 00:27:02,160 Speaker 1: everyone's heard of but maybe not knowing. 476 00:27:01,880 --> 00:27:04,000 Speaker 3: Exactly what you guys do. 477 00:27:04,359 --> 00:27:06,120 Speaker 1: You know, you almost have two hundred and forty nine 478 00:27:06,200 --> 00:27:08,640 Speaker 1: thousand vehicles that you manage. 479 00:27:10,119 --> 00:27:11,280 Speaker 3: So that's part of. 480 00:27:11,880 --> 00:27:16,760 Speaker 1: The business where you're providing you know, the maintenance on it. 481 00:27:17,520 --> 00:27:21,240 Speaker 1: Or is that just all the trucks that you're providing 482 00:27:21,280 --> 00:27:22,520 Speaker 1: maintenance on and leasing? 483 00:27:23,200 --> 00:27:25,760 Speaker 2: Correct? That's total. So that's all the vehicles that we 484 00:27:26,359 --> 00:27:28,679 Speaker 2: lease and maintain, the ones that we rent, and the 485 00:27:28,680 --> 00:27:31,720 Speaker 2: ones that we operate ourselves in our supply chain and 486 00:27:31,760 --> 00:27:34,800 Speaker 2: dedicated businesses. So yeah, just under two hundred and fifty 487 00:27:34,840 --> 00:27:39,359 Speaker 2: thousand vehicles. We have just over fifty thousand employees that 488 00:27:39,440 --> 00:27:42,520 Speaker 2: work for Rider and over one hundred million square feet 489 00:27:42,520 --> 00:27:44,920 Speaker 2: of warehouse space that we run. We are, by the way, 490 00:27:45,040 --> 00:27:49,520 Speaker 2: just North America focus, So Rider's been around for ninety years, 491 00:27:49,520 --> 00:27:52,280 Speaker 2: and as most companies, we've had all types of different 492 00:27:52,320 --> 00:27:56,720 Speaker 2: strategies and periods and chapters in our company. We at 493 00:27:56,760 --> 00:27:59,880 Speaker 2: one time were more global. We were in all over 494 00:28:00,040 --> 00:28:02,800 Speaker 2: We were in Latin America, we were in Europe, we 495 00:28:02,800 --> 00:28:05,680 Speaker 2: were in parts of Asia. But over the last couple 496 00:28:05,800 --> 00:28:08,720 Speaker 2: decades have really narrowed our focus to just North America. 497 00:28:08,760 --> 00:28:11,679 Speaker 2: We feel that this there's a great market here of 498 00:28:11,760 --> 00:28:17,000 Speaker 2: non outsourced companies that we can tap into and really 499 00:28:17,240 --> 00:28:19,760 Speaker 2: be the best in North America as opposed to being 500 00:28:19,800 --> 00:28:21,520 Speaker 2: spread out all over the world and trying to be 501 00:28:21,560 --> 00:28:23,320 Speaker 2: the best everywhere, right. 502 00:28:23,560 --> 00:28:26,639 Speaker 1: I know, sustainability is important to Rider, as it is 503 00:28:26,680 --> 00:28:29,280 Speaker 1: to most companies. You know, there's been a lot of 504 00:28:29,280 --> 00:28:33,840 Speaker 1: talk about electric trucks. Could you talk about writers experience 505 00:28:33,960 --> 00:28:37,560 Speaker 1: with electric trucks and you know how successful that has 506 00:28:37,600 --> 00:28:40,040 Speaker 1: been in terms of people adopting them, you know, your 507 00:28:40,040 --> 00:28:43,800 Speaker 1: customers adopting them because you have to buy electric trucks 508 00:28:43,800 --> 00:28:46,680 Speaker 1: that your customers want to operate correct. 509 00:28:46,760 --> 00:28:51,000 Speaker 2: So we think that's a great opportunity for Rider here 510 00:28:51,040 --> 00:28:55,280 Speaker 2: in the future. So we have been preparing, if you will, 511 00:28:55,440 --> 00:28:59,960 Speaker 2: for being able to provide electric vehicles to our customer 512 00:29:00,120 --> 00:29:03,280 Speaker 2: and not just electric but really alternative fuel vehicles, whatever 513 00:29:03,320 --> 00:29:08,160 Speaker 2: the transition is. We were early adopters in natural gas 514 00:29:08,280 --> 00:29:12,240 Speaker 2: vehicles about six or seven years ago, actually times flying 515 00:29:12,320 --> 00:29:17,360 Speaker 2: probably more like eight or nine years ago when natural 516 00:29:17,400 --> 00:29:20,240 Speaker 2: gas vehicles began to have some interest and that kind 517 00:29:20,280 --> 00:29:24,240 Speaker 2: of faded away. So now we've got a product called 518 00:29:24,320 --> 00:29:29,760 Speaker 2: Rider Electric Plus where we provide turnkey solution for companies 519 00:29:29,760 --> 00:29:33,640 Speaker 2: that want to transition to electric, which will include not 520 00:29:33,920 --> 00:29:37,240 Speaker 2: just the vehicle, but the charging infrastructure, the engineering, everything 521 00:29:37,280 --> 00:29:44,280 Speaker 2: goes into managing a private an electric fleet. So it's 522 00:29:44,280 --> 00:29:48,160 Speaker 2: been primarily around light duty vehicles. Light duty delivery vans 523 00:29:48,200 --> 00:29:51,080 Speaker 2: are the ones where our customers are seeing more of 524 00:29:51,120 --> 00:29:55,080 Speaker 2: the value. Right now. On the heavier duty equipment, whether 525 00:29:55,120 --> 00:29:59,640 Speaker 2: it's the tractor trailers or the straight trucks that are bigger, 526 00:30:00,320 --> 00:30:03,680 Speaker 2: the economics are much more challenging. It's just the value 527 00:30:03,720 --> 00:30:07,800 Speaker 2: prop and the business case for most operations it's just 528 00:30:07,840 --> 00:30:12,440 Speaker 2: not there. It's actually cost significantly more money to run 529 00:30:12,520 --> 00:30:15,120 Speaker 2: an electric fleet than a diesel, so we're not seeing 530 00:30:15,560 --> 00:30:20,840 Speaker 2: too many takers in those classes unless there's significant subsidies 531 00:30:21,240 --> 00:30:23,400 Speaker 2: to make that happen. So we're but we're in the 532 00:30:23,400 --> 00:30:25,880 Speaker 2: middle of it, we're working with the OEMs to try 533 00:30:25,920 --> 00:30:32,160 Speaker 2: to help quantify some of these economic gaps that exist 534 00:30:32,320 --> 00:30:36,520 Speaker 2: and then looking to find which are the applications where 535 00:30:37,280 --> 00:30:41,240 Speaker 2: the economics may work. We're working alongside with the OEMs 536 00:30:41,280 --> 00:30:45,200 Speaker 2: on that and really look for implementing those at those customers. 537 00:30:45,200 --> 00:30:47,920 Speaker 2: But right now it's primarily like duty delivery vans. We've 538 00:30:47,920 --> 00:30:50,880 Speaker 2: got about sixty of them in our fleet, which is 539 00:30:50,920 --> 00:30:52,680 Speaker 2: not a lot for a fleet of two hundred and 540 00:30:52,680 --> 00:30:55,600 Speaker 2: fifty thousand, but we've got a whole team focused on 541 00:30:57,960 --> 00:31:01,440 Speaker 2: developing that product and get it to the customers where 542 00:31:01,480 --> 00:31:02,160 Speaker 2: it makes sense. 543 00:31:03,320 --> 00:31:09,680 Speaker 1: So your fleet management solutions business, amongst other things leasing 544 00:31:09,720 --> 00:31:13,560 Speaker 1: out trucks, Do interest rates matter because you know we're 545 00:31:13,600 --> 00:31:16,520 Speaker 1: in we're in this period where you know, expectations our 546 00:31:16,560 --> 00:31:19,840 Speaker 1: interest rates might be coming down after you know, the 547 00:31:19,880 --> 00:31:24,080 Speaker 1: increase from the FED. Will lower interest rates help you guys? 548 00:31:24,160 --> 00:31:26,480 Speaker 1: Or you're kind of agnostic to that. 549 00:31:27,200 --> 00:31:31,560 Speaker 2: We're somewhat agnostic because it really we're always competing about 550 00:31:31,600 --> 00:31:34,000 Speaker 2: against what it costs a customer to go buy the 551 00:31:34,080 --> 00:31:37,080 Speaker 2: vehicle themselves. Okay, hey, they buy it themselves, they have 552 00:31:37,120 --> 00:31:38,920 Speaker 2: to finance it somehow, so they're going to pay the 553 00:31:38,960 --> 00:31:41,000 Speaker 2: higher interest rates that way, or they're going to pay 554 00:31:41,000 --> 00:31:43,520 Speaker 2: it in the lease. I think it impacts us more 555 00:31:44,200 --> 00:31:49,440 Speaker 2: just in terms of the economic environment that it creates. Right, So, 556 00:31:50,120 --> 00:31:54,080 Speaker 2: when there's uncertainty in the economy, customers are more hesitant 557 00:31:54,120 --> 00:31:58,160 Speaker 2: to make any decisions, so they wait, and that usually 558 00:31:58,160 --> 00:32:00,640 Speaker 2: slows things down in terms of customers signing up to 559 00:32:00,960 --> 00:32:02,960 Speaker 2: whether it's a new lease or a new agreement on 560 00:32:03,000 --> 00:32:05,800 Speaker 2: any type of service. We're kind of in that mode. 561 00:32:05,800 --> 00:32:08,360 Speaker 2: I think right now we see a lot of commercial 562 00:32:08,360 --> 00:32:11,840 Speaker 2: customers just slowing down decisions and waiting to see what 563 00:32:11,880 --> 00:32:15,480 Speaker 2: happens with interest rates, what happens with the election. But yeah, 564 00:32:15,520 --> 00:32:17,440 Speaker 2: I think interest rates only to the extent they slow 565 00:32:17,480 --> 00:32:20,880 Speaker 2: down the economy, are less impactful. 566 00:32:21,480 --> 00:32:24,200 Speaker 1: Yet, So you're just switching gears a little bit. Talk 567 00:32:24,200 --> 00:32:28,000 Speaker 1: a little about technology, you know. I know Writer is 568 00:32:28,480 --> 00:32:30,960 Speaker 1: a little forward looking when it comes to technology. You've 569 00:32:30,960 --> 00:32:34,320 Speaker 1: made some investments, You've built some stuff internally. 570 00:32:34,600 --> 00:32:35,960 Speaker 3: Can you talk about. 571 00:32:36,240 --> 00:32:39,800 Speaker 1: Your technology platforms and how it benefits not only Writer 572 00:32:39,960 --> 00:32:40,840 Speaker 1: but your customers. 573 00:32:41,640 --> 00:32:45,120 Speaker 2: Yeah, we got several depending on the segment that we're in. 574 00:32:45,280 --> 00:32:48,040 Speaker 2: I'll talk to one in particular called Writer's Share, which 575 00:32:48,080 --> 00:32:51,080 Speaker 2: is primarily used in our supply chain and dedicated businesses, 576 00:32:51,480 --> 00:32:54,920 Speaker 2: and it's really a visibility tool for our customers to 577 00:32:55,000 --> 00:32:58,360 Speaker 2: see where they're freight is at any time, whether it's 578 00:32:58,400 --> 00:33:01,120 Speaker 2: on a writer truck, a third party truck, or in 579 00:33:01,240 --> 00:33:04,320 Speaker 2: one of our warehouses. So you think about you have 580 00:33:04,480 --> 00:33:08,560 Speaker 2: it's the capability that people have today when they call 581 00:33:08,600 --> 00:33:12,400 Speaker 2: an uber or or they're monitoring a delivery to their 582 00:33:12,400 --> 00:33:14,800 Speaker 2: home that they're able to see where the vehicle is. Well, 583 00:33:15,440 --> 00:33:17,240 Speaker 2: you know, when you go to work, you want to 584 00:33:17,280 --> 00:33:20,120 Speaker 2: have that same capability, and really it hasn't existed in 585 00:33:20,120 --> 00:33:23,520 Speaker 2: our industry in a way where you could see it 586 00:33:23,560 --> 00:33:29,240 Speaker 2: across multiple fleets. So we developed that capability. I guess 587 00:33:29,240 --> 00:33:31,200 Speaker 2: it was two or three years ago. Now we've rolled 588 00:33:31,200 --> 00:33:33,920 Speaker 2: it out to most of our supply chain dedicated accounts. 589 00:33:34,720 --> 00:33:38,480 Speaker 2: We've had great feedback on that. It's been a significant 590 00:33:38,520 --> 00:33:42,560 Speaker 2: player or significant contributor to our new sales as companies 591 00:33:42,560 --> 00:33:47,200 Speaker 2: have seen that and it's contributed to us signing new business, 592 00:33:47,280 --> 00:33:52,560 Speaker 2: so we're excited about that. We also acquired a company 593 00:33:53,600 --> 00:33:57,440 Speaker 2: in California about a year and a half ago called Baton, 594 00:33:57,560 --> 00:34:03,920 Speaker 2: which was working on a transportation optimization tool for truckload 595 00:34:03,920 --> 00:34:07,480 Speaker 2: carriers and these are just a group of really smart 596 00:34:07,480 --> 00:34:13,120 Speaker 2: folks who who were looking at optimizing the industry, and 597 00:34:13,200 --> 00:34:15,799 Speaker 2: we felt that they did. We invested them through our 598 00:34:15,880 --> 00:34:19,320 Speaker 2: venture capital fund, and then as we got to know 599 00:34:19,400 --> 00:34:21,359 Speaker 2: them a little better, realized they could really help us 600 00:34:21,520 --> 00:34:24,319 Speaker 2: with all the great that we see at Rider. We 601 00:34:24,360 --> 00:34:28,080 Speaker 2: do business with forty thousand companies and we do you know, 602 00:34:28,160 --> 00:34:31,920 Speaker 2: millions of miles that we run with our vehicles and 603 00:34:32,360 --> 00:34:35,080 Speaker 2: the many routes that we run in supply chain. How 604 00:34:35,080 --> 00:34:37,720 Speaker 2: do we optimize all that? So we got them working 605 00:34:37,800 --> 00:34:40,120 Speaker 2: on that. Now that's you know, we're rolling out pieces 606 00:34:40,160 --> 00:34:43,319 Speaker 2: of it in different segments of the company now. But 607 00:34:43,400 --> 00:34:46,319 Speaker 2: the goal over time is to really have a way 608 00:34:46,320 --> 00:34:50,120 Speaker 2: of really helping our customers be more efficient by leveraging 609 00:34:51,160 --> 00:34:53,759 Speaker 2: vehicles that we have across the Rider network, whether it's 610 00:34:53,760 --> 00:34:56,120 Speaker 2: a Rider truck or it's a truck that's being leased 611 00:34:56,120 --> 00:34:58,760 Speaker 2: by one of our customers or one that we're running, 612 00:34:59,160 --> 00:35:02,239 Speaker 2: find ways to to optimize across all those vehicles. So 613 00:35:02,280 --> 00:35:05,680 Speaker 2: we're excited about that and that's something that we we 614 00:35:05,719 --> 00:35:07,279 Speaker 2: think will be an important part of the future of 615 00:35:07,280 --> 00:35:07,760 Speaker 2: the company. 616 00:35:08,480 --> 00:35:10,200 Speaker 1: Yeah, I got to see some of those platforms that 617 00:35:10,320 --> 00:35:15,680 Speaker 1: your analyst they looked like the pretty powerful platforms, you know, 618 00:35:16,360 --> 00:35:18,960 Speaker 1: So it's pretty cool stuff that you guys were highlighting 619 00:35:20,000 --> 00:35:22,520 Speaker 1: when you were talking about technology. You really you really 620 00:35:22,520 --> 00:35:26,759 Speaker 1: can't not talk about AI or machine learning. What's writer 621 00:35:26,960 --> 00:35:31,879 Speaker 1: doing in that space or kind of the the platforms 622 00:35:31,880 --> 00:35:35,600 Speaker 1: that you kind of discuss are leveraging AI and machine learning. 623 00:35:36,360 --> 00:35:38,919 Speaker 2: Yeah, well, you really can't have an interview without talking 624 00:35:38,920 --> 00:35:42,000 Speaker 2: about AI these days. Right, there's a few things. I 625 00:35:42,000 --> 00:35:44,080 Speaker 2: think one of the areas that we're it's kind of 626 00:35:44,080 --> 00:35:46,400 Speaker 2: the easiest. It's the easy button if you're real around 627 00:35:46,440 --> 00:35:49,879 Speaker 2: AI is more on the back office side, so we're 628 00:35:50,000 --> 00:35:53,160 Speaker 2: using it around some of our back office type functions. 629 00:35:54,080 --> 00:35:57,000 Speaker 2: One area that you know, we there's a pretty simple 630 00:35:57,040 --> 00:36:00,239 Speaker 2: example where we at the end of each lead, we 631 00:36:00,280 --> 00:36:03,120 Speaker 2: have a vehicle that has to be sold, and we 632 00:36:03,160 --> 00:36:04,959 Speaker 2: have to decide is that vehicle going to be sold 633 00:36:04,960 --> 00:36:08,600 Speaker 2: through our retailed use truck networker through wholesale. So based 634 00:36:08,640 --> 00:36:10,360 Speaker 2: on the age of the vehicle, the number of miles 635 00:36:10,360 --> 00:36:13,200 Speaker 2: at its run, the condition it's in. We typically have 636 00:36:13,480 --> 00:36:17,320 Speaker 2: a person who's making that decision. We now have built 637 00:36:17,320 --> 00:36:20,480 Speaker 2: more of an AI model that is making a recommendation 638 00:36:21,239 --> 00:36:24,439 Speaker 2: that is typically you know, it's every every month learns 639 00:36:24,480 --> 00:36:26,279 Speaker 2: a little more and gets a little bit better at it. 640 00:36:26,800 --> 00:36:30,480 Speaker 2: But that's helping save out and speed up the process 641 00:36:30,480 --> 00:36:34,040 Speaker 2: of getting these vehicles to the right channel. We're also 642 00:36:34,160 --> 00:36:39,320 Speaker 2: leveraging it in some of our finance and accounting areas, 643 00:36:39,880 --> 00:36:43,000 Speaker 2: leveraging the applications that we use. In our case, we're 644 00:36:43,040 --> 00:36:46,400 Speaker 2: using Workday, so leveraging what they are providing. So again, 645 00:36:46,480 --> 00:36:48,839 Speaker 2: more of the back office stuff that I guess what's 646 00:36:48,840 --> 00:36:52,120 Speaker 2: more exciting at Wrider and unique at Writer is what 647 00:36:52,239 --> 00:36:57,759 Speaker 2: I mentioned earlier about optimizing freight across the Writer ecosystem. 648 00:36:58,160 --> 00:36:59,799 Speaker 2: So if you think about it, in any given day, 649 00:36:59,800 --> 00:37:02,640 Speaker 2: there going to be trucks that are running either fully 650 00:37:02,719 --> 00:37:08,279 Speaker 2: empty or half empty across the highway, and there may 651 00:37:08,320 --> 00:37:10,920 Speaker 2: be freight needing to move in that same direction that 652 00:37:10,960 --> 00:37:13,359 Speaker 2: we haven't figured out a way to match those two up. 653 00:37:14,160 --> 00:37:19,120 Speaker 2: So our goal is too as we develop this Writer ecosystem, 654 00:37:19,239 --> 00:37:22,520 Speaker 2: is to have an AI driven machine that is going 655 00:37:22,600 --> 00:37:26,759 Speaker 2: to help identify where those opportunities are for us and 656 00:37:26,760 --> 00:37:29,680 Speaker 2: for our customers. So that's one of the things that 657 00:37:29,719 --> 00:37:33,160 Speaker 2: this Baton group is focused on leveraging AI. 658 00:37:32,920 --> 00:37:38,440 Speaker 1: For gotcha, And then just finally, you know, on the 659 00:37:38,480 --> 00:37:42,320 Speaker 1: technology Ben, what's writer doing with autonomous trucking? 660 00:37:42,440 --> 00:37:44,760 Speaker 3: Is it something that you guys are leading into. 661 00:37:44,840 --> 00:37:48,239 Speaker 1: Do you think it's a lot of hype or do 662 00:37:48,320 --> 00:37:52,240 Speaker 1: you see really a bunch of applications with autonomous trucking. 663 00:37:53,360 --> 00:37:57,360 Speaker 2: No, we've been involved in the autonomous truck space probably 664 00:37:57,360 --> 00:38:01,400 Speaker 2: for the last since probably since twenty seventeen. We've partnered 665 00:38:01,440 --> 00:38:03,920 Speaker 2: with just about every I shouldn't say every single one, 666 00:38:03,920 --> 00:38:10,680 Speaker 2: but just about every autonomous truck company. As obviously, what 667 00:38:10,719 --> 00:38:14,239 Speaker 2: do we have. We have trucks, we have maintenance capabilities, 668 00:38:14,239 --> 00:38:16,480 Speaker 2: we have facilities that you can use for hub and 669 00:38:16,520 --> 00:38:21,880 Speaker 2: spoke type networks, so we have drivers. So we have 670 00:38:22,000 --> 00:38:23,960 Speaker 2: partnered with many of these companies. Some of them are 671 00:38:24,760 --> 00:38:26,839 Speaker 2: continuing to do well, some of them have fallen out, 672 00:38:26,840 --> 00:38:31,600 Speaker 2: some of them have refocused in other areas. But I 673 00:38:31,640 --> 00:38:35,040 Speaker 2: do think number one, it's leading to a much safer truck. 674 00:38:35,400 --> 00:38:39,240 Speaker 2: So I think the collision avoidance technology that we're seeing 675 00:38:39,320 --> 00:38:44,360 Speaker 2: in commercial trucks today is kind of part and parcel 676 00:38:44,440 --> 00:38:49,160 Speaker 2: with some of this same technology that's being developed for 677 00:38:51,040 --> 00:38:55,680 Speaker 2: autonomous vehicles. I think there will be there will be 678 00:38:55,719 --> 00:38:59,320 Speaker 2: a breakthrough in this. I said three years ago that 679 00:38:59,320 --> 00:39:01,640 Speaker 2: it would be five it's probably still five years away, 680 00:39:02,160 --> 00:39:05,640 Speaker 2: because getting it perfect enough is probably going to take 681 00:39:05,680 --> 00:39:08,920 Speaker 2: us a little longer than we originally thought. But certainly 682 00:39:09,480 --> 00:39:12,560 Speaker 2: we see this idea of an application where it could 683 00:39:12,600 --> 00:39:15,319 Speaker 2: be a hub and spoke where the middle mile is 684 00:39:15,360 --> 00:39:19,120 Speaker 2: done by the autonomous vehicle and then the first and 685 00:39:19,160 --> 00:39:22,560 Speaker 2: final mile are done by a drivers has an opportunity. 686 00:39:22,600 --> 00:39:26,239 Speaker 2: We also are working with a company that's doing more 687 00:39:27,680 --> 00:39:33,200 Speaker 2: distribution centertor from filment center, so small, shorter routes type 688 00:39:33,239 --> 00:39:37,000 Speaker 2: application and more of a maybe rural environment is supposed 689 00:39:37,040 --> 00:39:40,680 Speaker 2: to on highway and they seem to be finding a 690 00:39:40,680 --> 00:39:43,240 Speaker 2: good application there too. So there's a lot of smart 691 00:39:43,280 --> 00:39:46,799 Speaker 2: people looking at it, and I think that will be 692 00:39:46,840 --> 00:39:53,520 Speaker 2: a part of the transportation network in the future exactly 693 00:39:53,560 --> 00:39:55,480 Speaker 2: when I think It's hard to tell still, but a 694 00:39:55,520 --> 00:39:58,000 Speaker 2: lot of good progress is being made, right. 695 00:39:58,040 --> 00:40:01,000 Speaker 1: You definitely want autonomous stucking to be perfect, not near. 696 00:40:00,880 --> 00:40:03,480 Speaker 2: Perplec yes, not kind of that kind of perfect. Right. 697 00:40:03,880 --> 00:40:07,400 Speaker 1: So, so how did a guy who studied electrical engineering 698 00:40:07,800 --> 00:40:09,520 Speaker 1: get into transports? 699 00:40:10,360 --> 00:40:13,400 Speaker 2: Well, you know, that's a good question. I when I 700 00:40:13,440 --> 00:40:16,040 Speaker 2: was in graduate school, my wife and I had gotten 701 00:40:16,040 --> 00:40:18,200 Speaker 2: married before my first and second year, So my wife 702 00:40:18,239 --> 00:40:21,680 Speaker 2: from South Florida. She had never lived up north and 703 00:40:23,200 --> 00:40:27,680 Speaker 2: was not very excited about living in the snow and 704 00:40:27,680 --> 00:40:30,799 Speaker 2: in the winter being up in Philly. So although I 705 00:40:30,840 --> 00:40:34,799 Speaker 2: had a job in offer in Chicago doing consulting, which 706 00:40:34,840 --> 00:40:36,560 Speaker 2: is what I had originally thought I wanted to do, 707 00:40:37,160 --> 00:40:39,720 Speaker 2: given her propensity to want to live in South Florida, 708 00:40:39,760 --> 00:40:41,600 Speaker 2: I decided I wanted to stay married more than I 709 00:40:41,600 --> 00:40:44,400 Speaker 2: wanted to be a consultant. So I looked for a 710 00:40:44,480 --> 00:40:47,680 Speaker 2: job in South Florida, and Rider was the was the 711 00:40:47,719 --> 00:40:50,320 Speaker 2: only was the only offer I had in South Florida 712 00:40:50,360 --> 00:40:52,560 Speaker 2: at the time, And I said, well, I'm going to 713 00:40:52,600 --> 00:40:54,480 Speaker 2: try this truck thing, but I don't know. I don't 714 00:40:54,480 --> 00:40:57,200 Speaker 2: think I'm gonna like it too much. And sure enough, 715 00:40:57,480 --> 00:40:59,359 Speaker 2: I actually my wife told me back then, don't worry, 716 00:40:59,360 --> 00:41:02,440 Speaker 2: You're gonna learn to truck. So she seems like Nostradamus 717 00:41:02,520 --> 00:41:04,400 Speaker 2: now because it looks like she knew what the future 718 00:41:04,400 --> 00:41:06,520 Speaker 2: help for me. So I was only going to do 719 00:41:06,560 --> 00:41:08,040 Speaker 2: this for a couple of years, and it's been thirty 720 00:41:08,080 --> 00:41:11,279 Speaker 2: one and it's been a great ride. I think this 721 00:41:11,360 --> 00:41:16,160 Speaker 2: is such an underappreciated industry because we really are the 722 00:41:16,200 --> 00:41:19,880 Speaker 2: backbone of so much that happens in the economy, And 723 00:41:19,880 --> 00:41:21,840 Speaker 2: that's really what excited me when I got to Ryder 724 00:41:22,000 --> 00:41:24,920 Speaker 2: was just seeing how many companies we did business with, 725 00:41:25,080 --> 00:41:27,800 Speaker 2: and how many companies you really learn about the inner 726 00:41:27,800 --> 00:41:30,520 Speaker 2: workings of how they function and you get to be 727 00:41:30,520 --> 00:41:33,680 Speaker 2: a part of it. So it's really been an exciting journey. 728 00:41:34,640 --> 00:41:39,080 Speaker 1: Yeah, it's fun to follow as well. Is there anything 729 00:41:39,120 --> 00:41:43,960 Speaker 1: that keeps you up at night running a large transportation company. 730 00:41:44,040 --> 00:41:51,120 Speaker 2: Well, listen, having survived now the Great Recession and the 731 00:41:51,160 --> 00:41:55,759 Speaker 2: global pandemic, I don't know what could be next. You know, 732 00:41:55,800 --> 00:41:57,759 Speaker 2: these are all once in a lifetime or once in 733 00:41:57,800 --> 00:42:02,520 Speaker 2: a career type experiences. But no, I look, I'm confident 734 00:42:02,560 --> 00:42:07,680 Speaker 2: that we have a very resilient company that no matter 735 00:42:07,719 --> 00:42:11,960 Speaker 2: what happens, people need to move stuff, and people are 736 00:42:12,000 --> 00:42:15,200 Speaker 2: buying things, and as long as that happens, they need 737 00:42:15,239 --> 00:42:17,719 Speaker 2: somebody to get it to them, and writers very well 738 00:42:17,760 --> 00:42:21,400 Speaker 2: positioned to do that. So I do worry about the unknowns. 739 00:42:21,440 --> 00:42:23,040 Speaker 2: What are the things that can happen in the macro 740 00:42:23,200 --> 00:42:27,160 Speaker 2: environment that could slow things down for us and be 741 00:42:27,200 --> 00:42:29,759 Speaker 2: a roadblock for us. But I feel really good about 742 00:42:29,760 --> 00:42:33,600 Speaker 2: where we are, and I feel great about the folks 743 00:42:33,719 --> 00:42:37,240 Speaker 2: that we have in this company that you know, dedicate 744 00:42:37,280 --> 00:42:39,439 Speaker 2: themselves to making us better every day. 745 00:42:39,520 --> 00:42:42,160 Speaker 3: So got ya? And this is a question I like 746 00:42:42,200 --> 00:42:45,239 Speaker 3: to ask my guests at the end. You know, is 747 00:42:45,239 --> 00:42:47,280 Speaker 3: there a favorite book that you read, whether. 748 00:42:47,040 --> 00:42:50,120 Speaker 1: It's about transportation or leadership that really stuck with you 749 00:42:50,360 --> 00:42:53,239 Speaker 1: that you know, anyone that's either trying to get into 750 00:42:54,000 --> 00:42:56,879 Speaker 1: the field or getting into business should read. 751 00:42:58,320 --> 00:43:01,200 Speaker 2: You know. I do read quite a bit. I like 752 00:43:01,320 --> 00:43:04,280 Speaker 2: reading a lot of history books and a lot of biographies, 753 00:43:04,360 --> 00:43:08,239 Speaker 2: I guess as it relates to business, I recently read 754 00:43:08,239 --> 00:43:13,600 Speaker 2: the Elon Musk biography, you know, seeing how these innovators 755 00:43:14,480 --> 00:43:19,680 Speaker 2: really step out and come up with a different solution 756 00:43:19,920 --> 00:43:23,160 Speaker 2: to maybe a problem that people have been thinking around 757 00:43:23,160 --> 00:43:26,080 Speaker 2: for a while. I think is a great lesson about 758 00:43:26,280 --> 00:43:30,920 Speaker 2: you know, thinking about things differently, always always challenging the 759 00:43:31,200 --> 00:43:34,560 Speaker 2: status quo and and how things could be done better, 760 00:43:35,560 --> 00:43:38,320 Speaker 2: being a change agent in whatever it is that you're doing. 761 00:43:38,920 --> 00:43:44,279 Speaker 2: I think are those are good inspirational type examples of 762 00:43:44,280 --> 00:43:47,319 Speaker 2: folks that have really done that well. So I think 763 00:43:47,360 --> 00:43:50,040 Speaker 2: that's great. Outside of that, I'm a big fan of 764 00:43:50,080 --> 00:43:52,480 Speaker 2: Benjamin Franklin, the guy who was able to do a 765 00:43:52,520 --> 00:43:55,719 Speaker 2: lot of things. And if you read his biography, you 766 00:43:55,719 --> 00:43:58,080 Speaker 2: think it was like ten people that lived that life 767 00:43:58,200 --> 00:44:00,640 Speaker 2: as one. So being good at all of things I 768 00:44:00,640 --> 00:44:02,360 Speaker 2: think is also very inspiring. 769 00:44:03,360 --> 00:44:08,160 Speaker 1: Right well, Robert, I really appreciate your time. Thanks so much, 770 00:44:08,280 --> 00:44:12,319 Speaker 1: and I hope you're staying dry in South Florida right now. 771 00:44:12,920 --> 00:44:15,120 Speaker 2: I think we're getting to the end of this reign. 772 00:44:15,320 --> 00:44:17,799 Speaker 2: I was told that we're might this might be the 773 00:44:17,880 --> 00:44:20,359 Speaker 2: last day, so I think we're drying out now. 774 00:44:20,840 --> 00:44:23,600 Speaker 1: Okay, hopefully you don't take a boat home. All right, 775 00:44:24,480 --> 00:44:26,440 Speaker 1: Thank you and thanks for tuning in. If you like 776 00:44:26,520 --> 00:44:29,560 Speaker 1: an episode, please subscribe and leave a review. We've lined 777 00:44:29,640 --> 00:44:32,560 Speaker 1: up a number of great guests for the podcast. Check 778 00:44:32,600 --> 00:44:36,759 Speaker 1: back to hear conversations with C suite executives, shippers, regulators, 779 00:44:36,760 --> 00:44:39,759 Speaker 1: and decision makers within the freight markets. Also, if you 780 00:44:39,800 --> 00:44:42,120 Speaker 1: have any ideas for future episodes, please hit me up 781 00:44:42,160 --> 00:44:45,800 Speaker 1: on the terminal or on Twitter at logistics Lee. Thanks everyone, 782 00:44:45,920 --> 00:44:46,319 Speaker 1: Take care,