Former ATA Chairman and Birmingham trucking executive remains a vital asset for the state's trucking industry.

The following article was published in the 1st Quarter 2005 edition of Alabama Trucker magazine:

By Ford Boswell

Birmingham, AL
Southern Cal Transportation, Inc. owner and president Ken Adams knows how to run a successful trucking firm. He's been in the business for 45 years and has had success at many levels. He's done so by taking care of customers, employees, his industry and the details that sometimes make operating a large trucking outfit a tall order.

Despite his busy schedule, Adams has remained one of the Alabama Trucking Association's strongest supporters, donating expertise, time and finances to various ATA causes. He was Chairman of the Board in 1993, and continues to play an active role in policymaking through various committees. Later this year, he will head ATA's Workers' Comp Fund Board of Trustees.

But make no mistake he will still keep his eye on the ball when it comes to his own business and plans to capitalize on the industry's current upturn.

According to the 66 year old Adams, Southern Cal runs coast to coast, primarily from the southeast to California (typically done by team drivers), while a division, Eagle Motor Lines, provides primary service up the East coast, from Florida to New England, as well as secondary service to Dallas and select areas in Ohio and Oklahoma. The combination has nearly 400 tractors, several hundred employees at three locations and projected revenue of $96 million for 2005.

Foundation for Leadership

Upon completing high school in Oklahoma, Adams spent three years (1956 - '59) in the U.S. Marine Corp at Camp Pendleton, California. He says the Marines taught him a lot about self-discipline and maintaining a strong work ethic. Even today, it serves as a foundation for his carrer, he notes.

"I found that the military is a good training ground for young men and women," he recalls. "I know that I got a lot out of the three years I served. It helped me mature and focus more on what I wanted to do when my enlistment ended."

When his commitment ended, Adams enrolled at college in California and started working at a warehouse with connections to trucking. "I wasn't necessarily looking to start a career in trucking," he explains, "but that's how it happened for me. I was simply looking for a job. I did know that I wanted to one day operate my own business."

During the 1960s and '70s, he moved around with various companies, gaining more managerial experience with each position. In 1978, an executive position with a flatbed company brought him to Alabama. But shortly after, that company merged with another Utah-based firm, and he moved again to Salt Lake City to manage the combined companies.

The industry in Alabama impressed him, and a few years later, he purchased the Alabama-based Hall Systems. "I had every intention of buying a company (in Alabama) and settling here to live," he says. "I had a very good experience here in 1978 - I liked the transportation community here in Birmingham. The area's trucking companies work very well together. It's competitive, but there is a certain level of cooperation that I appreciate."

In 1995, Adams sold the company, but the terms of that contract included a two-year, non-compete clause. Meanwhile, Adams regrouped, and three years later, purchased Southern Cal Transport, Inc., a smaller operation doing about $13 million annually with 60 trucks. Today, the company is running 390 units and has projected revenue of $96 million for 2005, according to Adams. The business has terminals in Memphis, Tenn. and Mira Loma, Calif., just east of Los Angeles.

Service to Industry

Since coming to Alabama in early 1980s, Adams has consistently served the state's trucking industry through financial and leadership support of ATA. Furthermore, he has represented the industry in many state and national organizations, including the Interstate Carrier Conference, the National ATA Foundation, and the Truckload Carriers Association, among others. Currently, he serves as Vice Chairman of the ATA Workers' Compensation Fund. Along with this, Adams has a long history of supporting various charity and community events.

"I enjoy being a part of these groups," Adams says. "One thing that I have gotten from all these years I have been involved with the Alabama Trucking Association is an appreciation for what it does for the industry. I've seen the behind the scenes management and effort that goes into running the organization - plus all the things the staff does. It gives me more appreciation for their efforts."

According to ATA president and CEO Frank Filgo, Adams has held almost every office on his group's leadership board, including Chairman of the Board (1993). Since then, he has sat on various committees. In 2005, he will serve as Chairman of ATA Workers' Compensation Fund Board of Trustees, something, he admits, he is eagerly looking forward to.

"We have one of the strongest, if not the strongest, Workers' Comp. fund of any state trucking group," explains Adams. "We have a great staff and we've had such stability with the Board. I can think of several people who have been routinely involved on the board for years - Bruck MacDonald, Drew Linn, Buck Hamilton, Carl Carson, and Joe Whatley."

In 2003, the Association honored Adams with the H. Chester Webb Award for distinguished service to the trucking industry. President and CEO of the Birmingham based Transportation Refrigeration Sales and Service, Inc. MacDonald, himself a former Webb award winner, said in a nomination letter, "Ken leads by example and has devoted substantial financial support and countless hours of service to both the Association and its Workers' Comp Board of Trustees."

Filgo adds, "Whatever the event or project, Ken Adams is there for us. He is one of our Association's most ardent supporters. We are very fortunate to have him as a member of our group."

Safety, Management

ATA Director of Safety Gene Vonderau attributes the company's solid safety program to Safety Director Ed Hickman, adding that the comany's safety policies not only look after the company's bottom line, but also the well-being of each employee, especially drivers.

Hickman, a certified safety professional, is a four-time ATA Safety Professional of the Year and has also received several national awards for his services. Vonderau says Hickman's safety program is not only comprehensive, but also conscientious to drivers' concerns, such as hours and working conditions.

"He is one of the most highly regarded safety professionals in the state," Vonderau says. "He has made Southern Cal's safety program very thorough. It starts with the hiring process, followed by extensive training and follows up with re-evaluations once a driver is put on the road."

Adams says managers like Hickman keep his company in top form. Along with Hickman, Adams' management team also includes Executive Vice President C.J. Holloway, Chief Financial Officer Bill Vines, Vice President of Equipment Mike Hales, Vice President of Operations / Eagle Division Danny Blalock, Southern Cal Operations Manager Trey Banks, Director of Maintenance David Swan, and Southern Cal Director of Operations Mike Norsworthy.

Southern Cal/Eagle Motor Lines' management team has an "open-door" policy when it comes to employees and drivers. "There is no separation between office staff and drivers," Adams explains. "We want all employees to know that when they come to the office it is their place of business, too, and they are free to see the people they need to see or take care of the business they need to take care of. There is no special holding area for drivers where their only contact with the office is through a window. I think our drivers appreciate that. To their credit, they rarely abuse the policy. For us, making drivers feel more a part of the company helps retain them."

Adequate training and equipment also keep the drivers happy, according to Adams. "All new hires go through a two-day training session where we cover safety procedures, our expectations of them, paperwork process, and so on," he tells. "After we put them on the road, we monitor them for 90 days. We find that retention rates go up tremendously after the first 90 days."

Adams adds while there's no magic formula with hiring drivers, thoroughly examining safety records and work histories heads off problems with most hires.

Adams says he controls driver retention as best he can by offering competitive compensation and benefits for drivers. "We want to keep good people, but it's difficult. Drivers will leave if their situation isn't perfect. We look at employment patterns when considering a new driver. Otherwise, we try to make their jobs as desireable as possible."

Meanwhile, the company also spends a lot of effort keeping equipment in good shape. Southern Cal's maintenance department offers a large shop, with several work bays, top-of-the-line equipment and tools, and a staff of about 15 qualified serve techs. The company typically keeps tractors for about 500,000 miles, purchasing Freightliners (Freightliner of Montgomery and South Alabama) and Volvos (Premier Truck Center, Fultondale). In fact when, Alabama Trucker visited, the company had just taken delivery of seven new Volvos. "We purchase extended warrenties on new tractors so they are covered for the time we have them in operation," he explains. "But we really stay on our preventative maintenance to ensure there's no unnecessary down time."

Onward and Upward

Adams says his business was plagued with the same things that other trucking firms encountered during the recent downturn: driver shortages, low demand levels and spiking fuel and insurance costs. "They were definitely hold us back from growing the business to where we wanted it," Adams says. "Last year, freight demand was strong and pricing increased, but we're still battling some issues, especially finding drivers. In fact, lately; we've found that it's easier for us to get business then it is to find good drivers. All of our tractors are seated presently but it is still a continuous process to keep it that way."

Adams says that while markets tend to be pretty strong these days, there is still volatility due to fuel prices. "With all the concern about what is happening in the Middle East, there is a sort of terror premium on fuel, and I don't see that changing for a while. We can bill that into rates, but it's hard to gauge. We watch the things that increase our consumption: idling time, out-of-route miles and negotiating fuel prices with vendors."

However, even with the obstacles, Adams is extremely optimistic for the coming months. "I have a very good organization here," he tells. "I have excellent managers, great drivers, and a determined staff. The organization is where I want it at the present time. We are in a position to take advantage of future growth opportunities depending on the business demand and that may include acquisitions in the coming years."

Now after 45 years of trucking, one would think Adams would want to slow it down a bit. But judging by his business, he's no closer to retirement than he was 10 year ago. "In fact," he says, "I like doing this, and I have no intentions of stopping now."

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