How to fix 'a jumbled mess'

One reason I look forward to summer is it means the most hectic part of spring show season is in the rearview mirror. I write this having just returned from the TTMA convention and we still have staff at ACT Expo. Through one of the quirks of TBB tradition, this issue is where we finally get around to print coverage of some shows from earlier this year: NATM, Trailer Tech Expo, NAFA.

I’d note here that the National Associaton of Trailer Manufacturers did what I never seem to do with our magazine schedule: The convention organizers broke with tradition and tried something different. And, based on full banquet halls and lively participation, the new programs were big hits.

The Government Affairs Lunch & Learn replaced the opening banquet and keynote. To say NATM members were engaged in the discussion on tariffs would be an understatement.

As presented by representatives of K&L Gates, the NATM public policy representative in Washington, the discussion featured some very recent good news: The Supreme Court Feb. 20 decided to strike down the Trump administration’s tariffs under the International Economic Emergency Powers Act. But—there’s always one of those—the administration quickly implemented a 15% global “stop-gap” tariff allowed under The Trade Act of 1974, meaning there’s an expiration date unless Congress acts to cancel, modify, or extend beyond the statutory 150 days, or July 24.

And then we still have the Section 301 (China) and Section 232 (steel and aluminum) tariffs.

In sum, ongoing uncertainty (there’s that word again) means the light and medium-duty trailer industry is caught in an exceptionally volatile trade environment where the cost of doing business can change by the hour.

Panelist Leo Akins, GM at Forest River Inc., noted even a company under the Berkshire Hathaway umbrella and with access to the best available data, can’t keep up with pricing changes for materials.

“While it's difficult to forecast [with constant changes], you really need to make tight partnerships with your key suppliers and make sure that everyone's in lockstep, so that you know when you're absorbing those price increases,” Akins said. “It's a jumbled mess anyway, but try to stay on top of it. Otherwise, you feel like you're just getting price increases constantly, and you don't understand why.”

There is however, something the industry can do—and that discussion was the key takeaway from the government affairs update. Get involved.

Indeed, direct engagement with policymakers is now a strategic necessity for business survival, as the panel. A major legislative challenge is "identity and education," as D.C. staffers often confuse light-duty trailers with heavy tractor-trailers. This leads to inappropriate mandates, such as side underride protection, which creates ground-clearance hazards for smaller trailers.

While NATM had its Regulatory Roundup in April, members don’t have to wait for the next organized visit to the Capitol. Know who your representatives are and keep in touch. Invite them to visit a plant to understand the importance of your business; seeing the "tangible connection" between trade policy and local jobs often shifts a representative's perspective.

Akins, who also chairs the NATM government affairs committee, praised the work done by association staff alongside K&L Gates.

“To put it in a nutshell, I think we have a focus. We have good relationships built, and we take action,” Akins said. “We don't have a lot of mindless busywork. We're networking in a way that is meaningful. I work with numerous organizations that do a lot of lobbying and do a lot of work on The Hill, and what the NATM has done is actually very impactful. There's opportunity for anyone who wants to be involved, to be involved.”

This editorial appears in the May print edition of TBB.