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John Larkin wonders if he ended up in
logistics because of some kind of genetic predisposition. Like his father, he has
simply always been interested in transportation, especially trucks. But unlike his
dad, Larkin says, he has been fortunate in
that he could marry that passion with a
vocation.
Larkin began his transportation career
in 1977 as a research assistant at the
Center for Transportation at the University of Texas
at Austin. After going on to obtain his bachelor’s and
master’s degrees in civil engineering from the University
of Vermont and UT-Austin, respectively, as well as an
M.B.A. from Harvard University, Larkin spent three years
at CSX Transportation in various planning and economic
analysis capacities. In 1987, he embarked on what would
become a 30-plus-year career as one of the industry’s
most renowned securities analysts, rising to become managing director and head of the transportation practice at
investment firm Stifel.
As with all of DCV’s Rainmakers, there is more to
Larkin’s accomplishments than his résumé might disclose.
For instance, one of his passions is working with young
people and cultivating talent. “What may be the most satisfying part of my career has been working with younger
folks,” he says. “Many have gone on to much greater professional heights than I will ever achieve. Watching young
people learn, grow, and blossom professionally is truly
one of most gratifying things I have experienced.”
QYou are considered one of the top financial and mar- ket analysts specializing in logistics operations and
performance. How did you become interested in logistics,
and what keeps you interested in the profession?
AMy lifelong fascination with transportation and logistics seems as though it was a natural, inborn
interest that was reinforced by my dad’s love of transportation. It was his true love, but the sad thing was that he
never found a way to make a living in the space.
Right from the beginning, I used to hang around the
airport, railroad stations, and highway construction sites.
Access was often via my bicycle, which, in those days,
gave kids a lot of mobility—as long as you were home by
dinner, you were in good shape with Mom. Trucks have
also been a big part of that lifelong fascination and were
the focal point of my master’s thesis. Call me a transportation geek, if you will. In retrospect, what a joy it has
been to work in the industry that also happens to be your
avocation.
As for continued interest, it is the accelerating pace
of change and avalanche of technology applications that
keeps one on his toes. And, of course, all the great people
in the industry keep life interesting.
QWith your many years of experience in the profession, what has been the
biggest change or advancement that you’ve
seen in the industry?
AWithout question, it was the dereg- ulation [of trucking] in 1980. Those
with a better and/or lower-cost “
mousetrap” had a real opportunity to “strut their
stuff” in a freely competitive marketplace. Contemplate,
for a minute, the value created by entrepreneurs who
grabbed the opportunity and ran with it. J.B. Hunt, Don
Schneider, Sid Verdoorn, Phil Yeager, Russ Gerdin, Jerry
Moyes, Kevin Knight, Duane Acklie, and Earl Congdon
are just a few of the names that come to mind. The value
they created for their customers and their shareholders is
almost incalculable.
QWhat hasn’t changed?
AThe federal government’s blockhead-like approach to infrastructure remains largely unchanged. Not
since the completion of the Interstate Highway System
40-plus years ago have we benefited from any creative
thinking on the funding and build-out of transportation
infrastructure needed to keep America competitive in a
global market.
QWhat’s on your short list of the biggest challenges facing logistics professionals today?
AThe widespread blue-collar labor shortage tops the list of challenges. Effectively, we cannot automate the
supply chain fast enough to outrun what has the potential
to morph into a truly debilitating driver of a recession.
Another issue relates to the management of California’s
independent contractor and air-quality laws and regulations. Lastly, the enlightened shipper community still
represents only a third or so of the total shipper universe.
When two-thirds of one’s customer base cares primarily
about price, a lot of the fun is squeezed out of the industry.
This is especially true during periods of surplus capacity.
QWhat advice would you give someone just entering the profession?
ALearn as much as you can while you are in your 20s. Take courses, matriculate in grad school, attend
conferences, and take every opportunity to build an
industry-centered network. And then spend at least one
hour a day reading some of the wonderful magazines,
newsletters, and blogs that are now readily available on
“the Net.” There is plenty of time to get bogged down
managing “administrivia” as one’s career evolves.
John Larkin
