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Ryder System CEO Greg Swienton on the state of business, economic growth and the demand for natural gas vehicles.
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Well speaking -- business how is it reacting how is -- holding up in this weak economy.
And watching what is going on in the nation's capital breaks when can tell us he's chairman and CEO of Ryder System the company leases rents maintains -- of commercial vehicles.
Gregg always terrific to see you.
From your business and from what you can see with your customers is the economy worsening or is -- hold -- up.
Well I think that it continues to be what we saw on our last report after the first quarter.
And I can't give you any new news until we report a couple of weeks but generally there's been the same trend.
I think customers have been cautious but they are.
Needing more capacity to move freight.
And that we said would probably continue at a somewhat bumpy erratic pace throughout the rest of this year and I think that's what we expect clearly.
Not robust growth but caution and there is more freight to move which is a good sign overall.
Is -- anything that Washington could do -- should do to improve.
The business climate to make it less bomb they we so much of our focus has been on.
These debt negotiations are that are going on in DC and and really the lack of progress do you care about that what else you wanna see out of lawmakers.
Well ultimately we all ought to care as as citizens and as business people.
I think you know philosophically.
If you can have the government get out of the way and let free enterprise do what free enterprise does.
That is create wealth and create jobs.
The more you have uncertainty the more you have uncertainty regarding tax burdens the more you have over regulation.
That's going to suppress a natural recoveries so I think from most business' point of view.
If you let Washington stay out of the way.
And and let.
The capitalistic system and free enterprise do what it does best.
We have a faster recovery already and longer term.
Economic growth.
It's thinking of the bomb penis and the recovery you have been very focused on natural gas and you just announced he Reese reached a deal to lease.
-- 87 heavy due -- natural gas vehicles and they were all part of the -- of trial program that you're doing in Southern California.
It's the move toward that by your customers -- calls of the volatility they've seen.
In just regular gasoline and diesel prices.
That's what they tell us I think that we have.
A vast majority of customers who only care about the economics.
And then we have some customers who are very focused on the sustainability.
And the and the clean this of natural gas.
But for most customers I think what we will see and we are seeing now quite interestingly heavy demand.
The customers are willing to pay a 50% premium.
For more expensive equipment because they will make that up in annual savings of natural gas vs.
High diesel prices or the of the variability -- diesel prices so if you can drive about 60000 miles a year or more on one of those heavy duty vehicles you'll break even you go above that you're saving yourself money so the investment will pay for itself.
Does it -- was -- go back the government that the Arab world revolves around Washington these days.
What did the government do to make the adoption or that you want to -- the government didn't make the adoption of these natural gas vehicles up quicker and easier.
Well there was a proposal for a natural gas bill and if my numbers are correct I think it would have.
-- upwards of maybe fifty billion dollars that would encourage investment in more rapid deployment.
For this technology to utilize natural gas -- vehicles.
I think however that in in this environment that's dead on arrival right now because after we've had -- trillion spent on stimulus money.
I don't think anything's going to pass this going to try to generate something else at this point.
Maybe someday 22 exaggerate or exacerbate or speed up that process could be coming but I don't think in the near term.
In the meantime we're not waiting for government intervention we think.
This is something that makes sense for the country and for the future we're gonna keep investing in this because it's innovative is growth oriented and makes sense.
And it's a part of I think our our whole.
Offering to the marketplace of all sorts of alternative vehicles whether they be electric hide hide -- -- natural gas.
Greg that's refreshing to hear we're not waiting for government intervention -- Clinton -- CEO of Ryder Ryder System take.
