Michael Wichert Named 2003 Chairman of DLCA

At the January 19, 2003 annual meeting of the Distribution and LTL Carriers Association (DLCA), Michael Wichert, President of Cal State Xpress, was installed as the 2003 Chairman. Mike has served as an Officer of the Association for 4 years, his last position being First Vice Chairman.

The DLCA is a national trade association that represents for-hire trucking companies engaged in the local, regional, and inter-regional transportation of freight, principally less-than-truckload (LTL) shipments. The LTL transportation market is a $20 billion a year service sector. The DLCA member trucking companies specialize in expedited overnight and second day deliveries. The associate members are the premiere equipment, parts and software manufacturers and suppliers, and business consultants for the trucking industry.

On their web site, WWW.DLTLCA.Org, the DLCA lists their Mission Statement as: The primary missions of this association are education and advocacy. Knowledge, and the skills to implement it, are essential in today's competitive trucking industry. We provide the executives and owners of trucking companies with the forum to communicate, learn, and improve their business management. Representation and leadership in industry policy is the dual role of this association. Through consensus building and forceful advocacy, we represent the interests of distribution and LTL trucking companies before Congress, federal agencies, in court and within the American Trucking Associations, of which we are affiliated. This association is the only forum available for distribution and LTL carriers. Legal and legislative issues affecting our businesses are continually examined and discussed. Our training seminars are second to none, aimed specifically at our type operators. Chairmen Wichert invites all trucking companies wishing to join the association to call Kevin Williams, CEO, at 703-838-1806 or email him at dltlca@aol.com.

All of us at Cal State Xpress wish to congratulate Mike on being named Chairman of the DLCA. We know that he will serve with integrity and dedication.

California Trucking Industry Update

It looks like another interesting year in the trucking industry. With the closing of Consolidated Freightways (CF) and others in the California market, the look and feel of our industry is changing. As these companies close their doors, they remove shipping capacity from the industry. As business and the economy improve over the next months and years, the capacity of the industry may become an issue. Couple this with the fact that manufacturers, retailers and suppliers continue to reduce inventories and expedite deliveries with their JIT (Just In Time) programs, our experience, training and commitment to Quality Service becomes even more important. One of the other big issues in California is the cost of doing business. We are one of the most regulated states and the trucking industry is severely affected by these regulations. In a bill now before the California legislature, SB X11, outlines some of these costs. The bill was written to suspend some of the new laws that are looked upon as creating a bad business climate. These new laws include bills that affect Workers Compensation, labor standards and labor relations. The new legislation contains the following language that describes the California business climate at this time:

The Legislature finds and declares the following:

1. State spending has increased by over 30 percent in the last four years, and the Legislative Analyst projects that the state will experience operating deficits of $12 to $16 billion every year unless significant cuts in state spending are implemented.

2. While other states are facing fiscal pressures, California's taxpayers, both individuals and businesses, shoulder a disproportionate share of the fiscal burden. State governments faced a nationwide combined budget gap of more than $40 billion in 2002; this state's $23 billion budget deficit last year represented one-half of the combined deficits, with no relief in sight.

3. According to the Milken Institute, in a study conducted in early 2002, this state has the third highest overall cost of doing business in the United States, 32 percent above the national average, and the costs of doing business in this state are the highest in the West.

4. California's tax burden has increased nearly 4 percent, while nearby states have lowered their tax burden an average of 7.8 percent in the last decade.

Those of you interested in viewing this bill can locate it at:
http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sbx1_1_bill_20030106_introduced.html

When you take into consideration the overall economy, the cost of fuel, the cost of insurance and the high regulation of our industry, you get one of the highest "cost of doing business" in the country. To continue to service our customers in this market, we need to be innovative and flexible. We are continuing our Quality Service Commitment and stand ready to move ahead in our ever-changing industry.

Connect With Others to Renew Strength

In these stressful times, it's easy to become isolated, anxious, and disconnected. Renew strength and purpose by finding ways to connect with others and, ultimately, rediscover yourself. Here are some ideas:

Volunteer: Homeless shelters, health centers, libraries, after-school programs, animal rescue organizations - once you start looking, opportunities to help are practically endless. Where to start is the question. Contact nonprofit organizations in your neighborhood, such as service clubs (Rotary, Kiwanis, Lions, etc.), schools, hospitals, eldercare organizations, and shelters. Watch for volunteer fairs and announcements in local papers.

Meet your neighbors: Organize a block party, flea market, neighborhood crime watch, community garden or childcare group - anything that joins the people in your area can foster a sense of trust and connectedness.

Join In: Book groups, sports teams, clubs, committees, and church groups are meeting every day. Some of them can most likely be found near your home or work. Look for flyers in supermarkets and coffee shops or on the workplace bulletin board about activities in your area, or simply ask around.

Food for thought: Remember the words of the poet John Donne: "No man is an island". Fostering healthy relationships within the community where you live and work can help you be a better co-worker, parent, spouse, and friend. You may start out helping others, and ultimately improve yourself.

Special Thanks to All of Our Employees

There's no time like the present to say "Thank You" to all of our Cal State Xpress employees for their hard work and dedication. As with most companies, we face our share of challenges. With the great new ideas and teamwork of our employees, we have been able to see our way through these challenges. Through our program of weekly employee "ISO Pod" meetings, we have identified new ideas and corrected processes in our Quality System. These ISO Pod groups have also contributed many new ideas that affect all areas of our operation. We have instituted recycling programs, web page updates, customer service programs and many others employee ideas. These weekly meetings work hand-in-hand with our Mission Statement's "continuing training and innovation" mandate. With our employee's vision, ideas, and dedication, we look forward to continued improvement and growth throughout the coming years.

San Diego "New Family" Update