PowerPoint Presentation

National Association of Development Organizations

June 14, 2016

Dave ManningSecond Vice Chairman, American Trucking AssociationsPresident, TCW

OVERVIEWBrief description TCW and ATATrucking industry facts and figuresEconomic data and impact on transportation

Congestion and highway fundingDriver shortage

Emerging safety technologies

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Talk about TCW3

AMERICAN TRUCKING ASSOCIATIONSFEDERATION:ADVOCACYEDUCATIONPOLICY EXPERTS

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TRUCKING IS SAFE

From 1980 -2014, the large truck-involved fatal crash rate per 100 million miles dropped 74%.

TRUCKING IS ESSENTIAL80% of All Freight Hauled by Truck

80% of All Communities Exclusively Depend on Trucks

TRUCKING IS SUSTAINABLE/GREEN

Trucking has invested BILLIONS of dollars over the last decade essentialy turning our trucks into air cleaners.

Every 10 New Trucks Purchased TODAY = the Nox and PM emissions producted by a SINGLE truck purchased just 10 years ago

TRUCKING SNAPSHOT

7.1 Million Strong

1 out of 16 People in US work in Trucking

3.4 Million Professional Truck Drivers

Drove 275 Billion Miles Double 25 Years Ago

97.3% of all Motor Carriers have 20 Trucks or Less

90.6% of all Motor Carriers have 6 Trucks or Less

TRUCKING SNAPSHOT

Hauled 9.96 Billion Tons of Freight in 2014 - or 68.8 Percent of Total U.S Freight

Rail was Next Busiest Mode Moving 14.8 Percent of Nations Freight Tonnage

Astounding $700.4 Billion Industry

Representing 80.3 Percent of the Nations Freight Bill (2014)

Sources: U.S. Freight Transportation Forecast to 2026, Eno Foundation, ATATruckings Importance to the Economy Has Surged Over the DecadesTruckBillions of TonsRailFact: Trucks will haul more than 10.3 billion tons of freight in 2015, representing 69.2% of all freight tonnage.

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Distribution of Tonnage by Mode: 2015Source: U.S. Freight Transportation Forecast to 2026 Truck Tonnage Only

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Total Increase in Tonnage from 2015 to 2026WaterborneRail CarloadTruckingRail IntermodalAirPipelineSource: U.S. Freight Transportation Forecast to 2026 All Modes of Freight Transportation Will Grow

12It is simply due to the energy production surge we are seeing in the US. While the number ofoil wells are down 78% from their recent peak, we are only producing 6% less crude oil from the recent peak. In fact, we are still near all-time highs in production (high was in early 1970s). That product is mostly transported in pipeline. As a result, and for the first time in recent decades, rail intermodal is not the fastest growing mode...pipeline will be. Not quite yet, but in the near term it will be.

Sources: U.S. Freight Transportation Forecast to 2026; ATAGrowth in Truck Tonnage (2015-2026) Compared with Actual Tonnage in 2026 for All Other Modes

13Bob likes to show that trucking is so big, that just the growth in trucking over the next 12 years will be larger than the actual tonnage hauled by other modes in 2026. To me, that is impressive. Just the growth in trucking is the second largest mode.

RETAIL SALES(Q1 2000 = 100)Source: Census Bureau +49%+1433%

Consumer spending is one of the bright spots in the economy. Consumers are spending money differently - there is a tremendous growth in retail sales somewhat surprising #s but majority is for online buying. 14

Retail SalesSource: Census Bureau20002015When excluding autos, gasoline, and food and beverage, on-line sales are 15% of total sales.

Internet sales while not a majority of retail sales it is rapidly growing. This slide excludes buying autos on line (although some people do) gasoline food and beverage although doing grocery online is picking up.15

And It Is Not Just On-Line Sales That Are ChangingSource: US Census Bureau+44%+21%

consumers are spending more money going out to eat than in the grocery stores but grocery stores shouldnt panic that sector is still growing.16

Dry Van Truckload Average Length-of-Haul(Miles)Source: ATAs Trucking Activity Report

Length of haul is decreasing because a few reasons the supply chain itself as I mentioned before online sales continue to grow companies like Amazon and big box companies have built smaller distribution centers around the country literally dozens so consumer can get goods quickly and when they want so length of haul has decreased.17

Cost of CongestionCongestion on U.S. NHS cost trucking industry $49.6B in 2014

Lost productivity = 728 million hoursEquates to 264,500 commercial drivers sitting idle for entire year

2015 Top 10 Freight BottlenecksRankLocationAverage Speed2014 RankChange1Atlanta, GA: I-285 at I-85 (North)403+22Chicago, IL: I-290 at I-90/I-9427203Fort Lee, NJ: I-95 at SR 4361-24Louisville, KY: I-65 at I-64/I-71449+55Houston, TX: I-610 at US 290386+16Houston, TX: I-10 at I-454213+77Cincinnati, OH: I-71 at I-75474-38Houston, TX: I-45 at US 59 395-39Los Angeles, CA: SR 60 at SR 57 458-110Houston, TX: I-10 at US 594316+6

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RankLocationAverage Speed11Dallas , TX: I-45 at I-303912Atlanta, GA: I-75 at I-285 (North)4613St. Louis, MO: I-70 at I-64 (West)4214Seattle, WA: I-5 at I-903515Chicago, IL: I-90 at I-94 (North)3216Austin, TX: I-353317Auburn, WA: SR 18 at SR 1674618Los Angeles, CA: I-710 at I-1054419Baton Rouge, LA: I-10 at I-1104220Hartford, CT: I-84 at I-9146

2015 Top 11-20 Freight Bottlenecks

2015 Top 30 100 Freight Bottlenecks By StateALBirmingham I-65 at I-20AZPhoenix I-17 at I-10CASan Bernardino I-10 at I-15Corona I-15 at SR 91Oakland I-880 at I-238Los Angeles I-110 at I-105CODenver I-70 at I-25Denver I-25 at I-6CTHartford I-84 at I-91Norwalk I-95New Haven I-95 at I-91Stamford I-95Bridgeport I-95at Rt 8Charter Oak Bridge I-91Waterbury I-84 at SR 8DCI-495 at I-270

GAAtlanta:I-20 at I-285 (WestI-20 at I-285 (East)I-20 at I-75/I-85I-75 at I-85I-75 at I-675ILChicago:I-90 at I-94I-80 at I-94INIndianapolis I-65 at I-70 (North)Indianapolis I-65 at I-70 (South)Gary I-65 at I-80Indianapolis I-465 at I-69LABaton Rouge I-10 at I 110MABoston I-95 at I-93 (NorthBoston I-93 at SR 3

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2015 Top 30 100 Freight Bottlenecks By StateMIDetroit I-94 at I-75Port Huron I-94 at I-69Detroit I-75 at I-696MNMinneapolis I-35W at I-94Minneapolis I-35W at I-494Minneapolis I-35E at I-94MOKansas City I-70 at I-670NCCharlotte I-77 at I-485 (South)NJParsippany I-80 at I-287Camden I-76 at I-676Morristown I-287 at SR 24NYBrooklyn I-278 at Belt ParkwayBuffalo I-90 at I-290Manhasset I-495 at Shelter Rock RoadElmsford I-287 at I-87Rye I-95 at I-287

OHCincinnati I-75 at I-74Dayton I-75 at US 35Columbus I-71 at I-70ORPortland I-5 at I-84Portland I-5 at I-205 (South)PAPhiladelphia I-76 at I-676Philadelphia I-76 at I-476RIProvidence I-95 at I-195SCCharleston I-26 at I-526TNNashville I-24 at I-440 (North)Nashville I-65 at I-24Memphis I-40 at I-240 (East)Nashville I-40 at I-65 (East)

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2015 Top 30 100 Freight Bottlenecks By StateTXHouston I-10 at I-610 (West)Ft. Worth I-35 at I-30Houston I-610 at US 59 (West)Houston I-45 at I-610 (South)Houston I-45 at Sam Houston Tollway (North)Dallas US 75 at I-635Houston I-10 at I-610 (East)WASeattle I-90 at I-405Tacoma I-5 at I-705/SR 16Federal Way SR 18 at I-5Vancouver I-5 at Columbia RiverLynwood I-5 at I-405Everett I-5 at US 2Tacoma I-5 at SR 512WIMilwaukee I-94 at I-894

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TRUCKING PAYS FAIR SHARE

12 percent of vehicles on the road

$37.3 billion in federal and state highway taxes

$16.5 billion in federal highway-user taxes

$20.8 billion in state highway-user taxes

52.7 billion gallons of diesel

$147.7 billion in 2013

The Driver ShortageSource: ATAs Truck Driver Shortage Analysis 2015

Source: ATAs Truck Driver Shortage Analysis 2015Shortage was 48,000 in 2015. At current trends, it would balloon to 175,000 in 2024.

New Drivers Needed by Reason 2015-2024Source: ATAs Truck Driver Shortage Analysis 2015

Source: ATAs Truck Driver Shortage Analysis 2015

EMERGING SAFETY TECHNOLOGIES

Lane Departure Warning SystemsBlind Spot Detection Systems

New & Retrofit Stability Systems TrailersStability Control Systems for Trucks & BusesForward Collision Warning and/or mitigation systemsActive Cruise Control & Braking

Emerging Safety Technologies:Lane Departure Warning SystemsForward Collision Warning and/or mitigation systemsActive Cruise Control & BrakingNew & Retrofit Stability Systems TrailersStability Control Systems for Straight Trucks & BusesStability Control for Class 7 & 8Blind Spot Detection Systems

Monitoring & Management Technologies Designed to Improve Fleet and Individual Safety PerformanceBrake-Stroke Monitoring SystemsFleet Related Incident Management SystemsSpeed Management SystemsDriver Performance/Behavior Management

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IMAGINE

I want to show you a quick video to remind us all why we do what we do.

Atlanta

Nashville

Memphis

Jackson

TN

AR

LA

KY

VA

FL

NC

SC

ALGA

MS

Birmingham

Savannah

Charleston

Wilmington

CharlotteKingsport

Spartanburg

Columbia

MO

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