This calendar year won’t go down as a record-setter for Rush Enterprises. But as it races to a close, Chairman, CEO and President Rusty Rush says business has been stronger this year than initially expected.
Speaking along with COO Jason Wilder during a press interview Tuesday at the 2024 Rush Enterprises Tech Skills Rodeo, Rush says focusing on customer experience, operational efficiencies and workforce training has enabled the dealer network to withstand the ongoing freight recession that continues to handicap dealer sales potential.
“The last few years … it’s been slug it out. Hand to mouth,” he says. “You haven’t been able to reach for growth much.”
The soft market has forced the company back to basics, and Rush says in many ways that’s been a good thing.
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By shifting its focus inward, Rush Truck Centers was able to identify and capitalize on its strongest business segments to offset softening sales in other areas. The business also underwent small but tactical cost-cutting measures. Rush says it’s too early to know how the year will ultimately shake out, but he believes the company will deliver solid financial performance, and cites those efforts and “the diversification of how we go to market across every department” as the reason why.
“I’m more proud of everybody for this year than I have been for the last couple, even if they were slightly larger,” Rush says. “It wasn’t easy, especially for the folks in the field … but because of that diversification, we’re going to have a year I’m proud of.”
Rush Enterprises COO Jason Wilder (left) speaks while CEO, Chairman and President Rusty Rush looks on during a press event Tuesday at the 2024 Rush Enterprises Tech Skills Rodeo.
From a segment perspective, Rush cites waste and refuse vocational customers as one bright spot, as well as a large fleets in the parts and service sector. On the latter, Rush says the network has prioritized those customers in recent years and seen consistent high single-digit growth rates despite an overall fixed operations market that has been flat to down.
Rush also is hopeful the worst of the freight recession is behind the industry, though he acknowledges a market turnaround won’t happen instantaneously.
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“I think it’s going to be hand to mouth again, for now,” he says. “The first half is going to be tougher … But we’re also seeing little sprouts pop up. I don’t think we have enough of them yet to show a trend, but we’ve been at the bottom for so long.”
Looking ahead, Rush says it’s too early to know what impact President-elect Trump will have on trucking, and in particular hot-button issues like regulations and tariffs. On the former, Rush says he feels the trucking industry has “too much money invested” in the next round of EPA emission regulations to completely scrap them, but says other regulations requiring the adoption of zero-emission vehicles could be pushed out to better fit “within the bounds of reality” for America’s electrical grid.
As for tariffs, “I really don’t know,” Rush says. He says the influx of product — in all industries — being imported to the United States through Mexico was created over many decadesby American companies operating in a global free trade marketplace. Rush doesn’t see those investments being abandoned or upended for purely political reasons. “I think it’s negotiating,” he says of the proposed tariffs. “I don’t see a reality where they all go through.”
