Tennessee Steel Haulers: The Long Haul
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Written by Ashley McGown   
Tuesday, 31 March 2009
Tennessee Steel Haulers: The Long Haul
This family owned company survived many changes in the market throughout the years by using independent contractors and adapting to change. Sid, Gregg, and Craig Stanley explain.
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Tennessee Steel Haulers (TSH) was incorporated in 1976 by Sid Stanley, who still serves as president. Because Sid founded TSH prior to deregulation, his transition into the industry wasn’t particularly easy, but when the company he worked for from 1970 to 1975 was sold, he was forced to pave his own way.

“The new owners of the company I worked for wanted to downsize, so I had to leave, but I wanted to stay in the Nashville area,” Sid said. “Prior to the Motor Carrier Act of 1980, which deregulated the industry, a person had to gain operating authority in an area if he wanted to work there. The set up was much different from today. It was more of a monopoly, not particularly conducive to newcomers.”

Tennessee Steel Haulers: The Long Haul
Sid Stanley, president
Although he started TSH with just one truck, the company, located in Nashville, Tenn., employs 75 people today. The company has an annual revenue of approximately $100 million and has more than 500 contracted owner/operators in its fleet.

Four years after the business was incorporated, the deregulation act completely changed the face of the trucking industry and allowed TSH to grow and expand. “The deregulation act put everyone on the same level in terms of being able to market in the 48 contiguous states to whatever extent they wanted to,” Sid said.

The year to come
The year ahead is expected to be slow for many US businesses, and TSH is no exception. However, it’s structured to handle fluctuations in the market, and the non-asset based company has a plan to deal with the softening economy. And as one of the few ISO 9001:2000 certified flatbed companies in the US, Stanley believes his company is in a good position for 2009.

Because TSH uses independent contractors and brokers, the company is in a position of fluidity. “The fact that we use independent contractors allows us to reduce our base of owner/operators when business slows down,” Sid said. “When the supply base fell out last November, we were able to drop contracts and adjust employment situations because we don’t own the trucks or equipment.”

Tennessee Steel Haulers: The Long Haul
Craig Stanley, VP of sales
Still, last November was a transitional time for the team at TSH. According to Craig Stanley, vice president of sales, the company’s business dropped by approximately 30%. “None of us are sure about the direction the market is headed, so we’re not sure what we, or the government, can do to improve the situation,” Craig said.

Fortunately for the team at TSH, the company is heading into its prime season in the near future, which will run through October. “Some of our slowdown has been part of the winter cycle that happens every year, but it’s still unknown how much business will pick up in the coming weeks,” Sid said.

A family affair
Although they essentially grew up in the business, Sid’s twin sons, Gregg and Craig, weren’t always sure of their future with TSH. Neither of the brothers was particularly fond of the business at the time they graduated from college, but both grew to become very passionate about it.

“I moved to Colorado after school and wanted to become a restaurant owner, and Craig was a stockbroker for three years before he joined the team here,” said Gregg, vice president of operations. Since TSH is a family owned and operated business, the two brothers caught on quickly, and the transition across industries was smooth.

Tennessee Steel Haulers: The Long Haul
Gregg, VP of operations
“The family atmosphere is what we try to trickle down to our drivers,” Gregg said. “My father has been the sole owner since the beginning, and the stability has created a sense of loyalty among employees.”

This sense of loyalty results in a very low owner/operator and employee turnover rate at TSH. Although every company that uses independent contractors sees a relatively high percentage of turnover among drivers, the Stanley family tries its best to keep this to a minimum, especially in tough economic times.

“When we are looking for new owner/operators, we offer sign-on bonuses and orientation bonuses,” Gregg said.     “We don’t have to work too aggressively because we usually have a good amount of freight. We have a good
reputation, so owner/operators are eager to work with us. We rely a lot on word-of-mouth recommendations because on the road, all of the guys are always talking to each other, speaking about who has freight and who doesn’t.”

At TSH, the team is constantly doing whatever it can to help improve the environment for owner/operators, especially in terms of safety. To start, the company doesn’t hire any drivers without a certain amount of experience in the flatbed industry or with major safety violations. Any DUI, felony, or drug conviction automatically means a driver is unqualified to work at TSH.

To help its fleet locate freight, the team at TSH also implemented a driver support specialist program. Because TSH doesn’t have a force dispatch, owner/operators call into the central dispatch to locate freight. Owner/operators can tell a driver support person where they’ll be in a certain amount of days, and the support specialist will find loads for them to choose from.

To accompany the service, the team at TSH prints and circulates a monthly newsletter that keeps all owner/operators and employees abreast of what’s going on within the company and the industry.

“The newsletter informs employees about technical updates and changes in safety regulations, among other things,” Gregg said. “If we have a particularly large number of loads coming out of one area, we might mention that in the newsletter. Any information we can give our drivers will benefit the business in the long run.”
 
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