Computers, added services help movers stay in business.

• Author: Sinclair, L.I.
• Position: Trucking industry - Transportation Report

One business magazine recently described the sorry state of Canada's trucking industry. Gloomy statistics such as the bankruptcy of 656 Canadian highway carriers last year and the collective loss of $100 million underlined the fact that, as a whole, Canada's so-called transportation experts deal in an inefficient industry which is fighting for survival.

However, the Report on Business article indicated that Canadian truckers can and will remain solvent through specialization and improved efficiency.

The use of computer technology, for example, must be employed to help fleet managers select the most efficient routes, calculate engine performance and schedule cost-saving maintenance.

James and Peter Armstrong of Armstrong the Mover in Thunder Bay agree that the industry must improve its efficiency in order to survive.

They believe, however, that the law of supply and demand will take care of the problem of over-capacity.

In Armstrong's case, the company improved its efficiency with computers, without reducing staff.

Peter Armstrong calculates that computers have allowed the company to do 40-per-cent more business with the same number of people.

It was a desire to computerize that led Armstrong the Mover to end a 43-year relationship with one Toronto-based company last year in favor of becoming an agent for United Van Lines.

"We knew there was a great need for computers in this business, but we just weren't getting it. United has a very large computer base within themselves and helped us use it to our advantage," says Peter.

"Their (United's) new technology included containers which we had not experienced before. That has shown itself as a more efficient way to move furniture and, in the end, we're connected by computer modem to Toronto for our billing."

The Armstrongs report that their costs have increased dramatically in relation to revenue. Meanwhile, the federal goods and services tax has led to a reduction in business.

"Our Canadian business dropped off by about 25 per cent, but what complicates that is working with the 75 per cent that's left. We have to be more competitive than ever before because there is an over-capacity of movers out there," says Jim Armstrong. "The volume goes down and so does the price, but costs keep going up."

Jim Armstrong is not confident when it comes to the immediate future of the Canadian economy and the moving industry.

"Armstrong the Mover will survive, maybe not in its present form, but it will be here if...