Feb. 4--In another measure of the slowing economy, Arrow Trucking Co., the Tulsa-based flatbed carrier, has laid off 32 people, or 2 percent of its work force, company executives said Tuesday.

Arrow President and CEO Doug Pielsticker said the job cuts involve clerical and administrative positions. No drivers lost their jobs, he said.

The company operates 1,320 tractors and 2,600 trailers.

"It's a tough deal, but it was something we had to do to make sure we are solid going forward," Pielsticker said. "The economy, demand, are softer than they were six months ago. You have to batten down the hatches and make yourself as efficient as possible to ensure your survival.

"The freight market is going to be soft through the balance of the year. It's soft across the board."

Trucking industry demand at other area companies, and nationally, mirrors business levels at Arrow, trucking and industry executives said.

The American Trucking Associations' Truck Tonnage Index plunged 11.1 percent in December, the largest month-to-month reduction since April 1994, when the unionized less-than-truckload industry was in the midst of a strike. Trucking industry employment in December was just under 1.4 million people, down 5 percent from December 2007, ATA says.

During the fourth quarter, freight tonnage hauled by U.S. trucking companies was down 6 percent from the same period of 2007, ATA Chief Economist Bob Costello said.

"Motor carrier freight is a reflection of the tangible-goods

economy, and December's numbers leave no doubt that the United States is in the worst recession in decades," Costello said. "There is nothing at this point that leads me to believe trucking is going to rebound in the next six months. I don't think we are going to see much growth -- probably all year."

The Institute for Supply Management Index, which measures manufacturing employment, inventory levels and new orders, was 32 in December, the lowest level since June 1980. If the index is above 50, the manufacturing sector is expanding; an index below 50 indicates that the manufacturing sector is contracting.

Robert Ragan, senior vice president of finance at Melton Truck Lines Inc. in Tulsa, said employment at the flatbed carrier remains steady at 940 drivers and 225 support positions, but freight and business levels remain weak. Melton operates 1,000 tractors.

"Our customers are retrenching, not expanding," Ragan said. "We're a flatbed carrier, and it's been hit hard with the lack of construction. When people can't get money to grow their business or expand their plant, there is a lot less freight for us to haul.

"We're all expecting a difficult first part of 2009."

Pielsticker said a ray of hope may be an Obama administration economic stimulus package that includes funding for road and bridge construction.

"Infrastructure -- that could be good for us," Pielsticker said. "This recession is very difficult. With credit and liquidity being tight, it creates a whole new set of issues we haven't seen before."

D.R. Stewart 581-8451 don.stewart@tulsaworld.com

-----

To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com.

Copyright (c) 2009, Tulsa World, Okla.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.