Latest / Exit Algorithms / Nuclear Verdicts, AI & 3PL Scaling: Trucking Safety Secrets | Bobby McClain (#43)
Transcript
- speaker-0: Welcome to exit algorithms, the podcast where we decode what it really takes to unlock growth, streamline operations and prepare your business for a high value exit. I'm your host, Pete Vera. And today I'm excited to bring on Bobby McLean. He's a certified director of safety and certified transportation professional with over 35 years of experience in safety, risk management, HR. and 3PL operations. He's held senior leadership roles at ABF Freight, Ward Transport, and JJ Keller, and is now CEO and founder of Arbitrage Logistics. Bobby, super excited to have you. Welcome to the show. speaker-1: Thanks Pete. Love it. And the perfect intro there that that covered all the bases. So yeah, I've been around the block as they say. speaker-0: For sure, yeah. I'd love if you could share a little bit more about ⁓ journey, maybe some key things you picked up through your career. speaker-1: Well, I, you know, I think, I think the secret sauce is for me, I started out as a driver ⁓ you know, ⁓ I got out of the army back in the late eighties, ⁓ you know, I'm telling my age here, but, the was there waiting for me. fell right in and was sort of a plug and play type individual there just needed that, that credential. Right. I still have the class a CDL to this day. I'll maintain it for life or as long as I can maintain the physical ability to pass the DOT physical. But yes, for me, having come from the driver ranks is a key ingredient really to just the view that I have of the industry and all that. And it also gives you instant credit with other drivers that you've kind been there and done that. You're not speaking from a corporate seat. ⁓ And speaking to things that you don't have firsthand knowledge of. So really proud of that fact. I, uh, from that point, Pete, for some strange reason in 2014, I decided to take a pay cut and go into corporate management. And there's a, that's kind of tongue in cheek, but there's a lot of truth to that drivers are paid pretty good, uh, uh, at that time. And, uh, that transfer over was sorta like starting all over. again, you know, right at the bottom level. But again, that's, I had to go and improve myself the corporate level, which I did. felt like I was capable of more and that I actually had something to give back. ⁓ actually got selected ⁓ champion a military hiring process and platform ⁓ through Teamsters Union and ABF freight. to where I could, you and you talk about giving back as a driver, also the opportunity to transition those soldiers over from one uniform to another. And that was an exciting transition for me as well out of the driver ranks. speaker-0: Nice. Yeah, you get to help people. Yeah, I love what you said. Yeah, of course, it gives you instant credibility and you're able to relate more to drivers that inside knowledge, right? speaker-1: Exactly. instant street credit in room full of drivers when you're able to show that CDL. ⁓ It of tells them that you're cut from the ⁓ same you're one of them. And that goes a long way with leading drivers. So as I through the ⁓ up into the levels, typically when I hired managers, regional safety managers, all that sort of thing. Ninety nine percent of those came from the driver ranks because better way right to lead those drivers than with more former drivers. speaker-0: Yeah, for sure. Yeah, know a lot of your career focus has been around safety, right? I think I researched. bet that's influenced your ⁓ outlook on the transportation significantly, right? speaker-1: It does and you know the the the CDS and the CTP, you know, we we all like to put that alphabet above her name. It's it's it's what we do. But you think about it. There are some bragging rights to it. When you earn those credentials, you'll put it by your name to trust me. People take jabs at you know, you know, outside of that fold. But once you're in there and you gain those credentials. That's a rite of passage. You know, you, you, you want to hold those for life. And if you think about it, Pete, there's no true degree in that safety space and what we do. Um, your credentials have to be, you have to go out and gain them on your own. Like I say, there's no, I mean, there are some tertiary educational pieces you can, you can reach for. And I've done that too, but, uh, the bottom line is to prove yourself as a, as get into that family, when you get those credentials and you are a certified ⁓ nerd and we, ⁓ know, would put most people to sleep, we thrive on that. We can pick up the green book, you know, the FMCSRs ⁓ and an exciting read for us, right? We're just that type of people. It's weird, you know, when you get there, you get there and then there's only one way to do things and that's right and do it safe and there's no other option. You just don't accept anything else. speaker-0: Yeah, for sure. I love that. think a lot of business owners think that, you know, expenses ⁓ safety are just, you know, maybe annoying or like ⁓ really see a direct ROI. What are some of the benefits of focusing on safety? speaker-1: So you nailed it, Pete, no ROI to tag to it. It's not sexy like operations. They're making money, sales, everybody's making money. As a safety professional, you're leading a cost center, right? It's, you know, I think all of us, at least for those that made it to a director level in the game, all experience the same thing about at least once a year. The CFO calls you says, come see me. You get over there. You already know what is going to be there. He sits, he swings his monitor around. The owners are probably in the room and there's a long list of expenditures there. tag to your department. You're trying to run a capex and they're like, ⁓ is all this and what can we get rid of? Like, wait a minute. So ⁓ got to get hit, bend the knee a lot of times. You got to try to explain, ⁓ Yeah, we're doing this, but here's the more important part. Here's the cost of not doing it right. ⁓ you wanted me to ⁓ as things are in today's time, if you wanted me to hit you with one specific that and there's, there's, could talk to you all day about this stuff, ⁓ but one particular are DQ files, driver qualification files. Okay, so there's there's a laundry list and we won't go through all that the things that have to be in there ⁓ ⁓ to ⁓ FMCSA standards are you know ⁓ acute or critical if you don't have them ⁓ then there are some items in there that ⁓ view ⁓ non-scoring so if you catch a DFT audit, know, you can pass an audit get a satisfactory rating and think ⁓ boy, I did pretty good. I only had X amount of things wrong. These things were missing from the DQ file. These are non-scoring. And I don't like that terminology that FMCSA uses there because what is non-scoring automatically put into your mind? It's just human nature. takes, yeah. You get this cavalier attitude, whoop-de-doo. it's, it's further, you couldn't be further from the truth. I'll give you one instance. A road test would be a non-scoring item in the DQ file. And think, well, yeah, I passed. No deal. ⁓ I'll it in there when I get it in there. ⁓ But the other part. If you in this game long enough, you'll get those calls from the attorneys. ⁓ There will catastrophic events. These things are going to happen. So ⁓ for younger This is coming for you, whether you like it or not. get ready for it. of the time when I would get those calls or those email from attorneys and number one thing, first thing they want to see is a driver qualification file. And telling you now that if you've got non-scoring items missing from it and you passed your audit, that doesn't with the plaintiff attorney, right? Because if that file is not pristine, and there are items missing like a road test, they're going to raise big issue with that in the courtroom. In other words, the eventuality here is they're going to claim that you're negligent in hiring practices by having one item missing and they're not going to give you the opportunities to say, but, but, but it was only this and I passed the audit. not what they're talking about today. ⁓ didn't road test a driver that was just in an accident. You see where that turns into maybe a million into 10 million or above. And then you get into the nuclear verdicts and all that. And again, it's just one little item that nobody thought was a big deal. So if you're paying a third party firm or you've got a staff of five or six, whatever it takes to manage DQ files, when the CFO ⁓ that screen around, ⁓ need to have the ability to lament. the downside for eliminating that, right? So it's a balance that you got, you got to walk that tightrope every year your budget. But again, it's one of the tricky spots. speaker-0: For sure. Yeah, I love that. So that's probably the biggest ticket item you would look for ⁓ in a safety audit then, speaker-1: It's a very, very familiar place. It's a guaranteed place ⁓ an auditor is going to go. ⁓ again, ⁓ demon behind that is that cavalier attitude that doesn't matter when they find something wrong. ⁓ those files perfect, 100 % compliance. And then what? When you get that call, ⁓ doesn't necessarily ⁓ you off the hook. It depends what the issue is. But when you can hand that file over and it's 100 % compliant, it gives them zero fuel to work with in that space. They can no longer say that you're negligent in hiring price. speaker-0: Got it, yeah. So in the event of a lawsuit, not culpable then. speaker-1: Right. And, and you know, they're, they're, attorneys are good at what they do. ⁓ they're always looking for the vicarious liability. They're trying to tie the lines together. ⁓ have people like me working with them over there. So they, ⁓ got there, you know, and not, I don't like pointing myself as an expert, but ⁓ know, my track record, I've just been there and done almost everything in his business. It kind of. kind of gives me a little credit there, they do have folks like me on the other side asking for these certain items. And especially when it comes to a nuclear verdict, people don't realize this is beyond what the auditor is going to ask for. know, if MCSA is only allowed to ask for certain things, they're not going to, you know, kick the door in in the middle of the night with a flashlight in their teeth going forensic on you. But guess what? That plaintiff attorney wants it all, all transactions. that's the deeper dive you have to do in preparing, ⁓ just for the audit. You can come out squeaky clean satisfactory, like I said, ⁓ you've got to prepare for the billboard attorney. And if you're not, sooner later, you're going to end up in the deep end of the pool. And then back to full circle, how this started, we talked about ⁓ spending money. ⁓ That's money spent. speaker-0: For sure. It's almost, you can think of it as insurance in a way. It's preventative. love that. And you have a lot of experience also in ⁓ HR, relations. ⁓ I, I'd hear your thoughts on, ⁓ you know, are some of the big things businesses get wrong in that area as well? speaker-1: Right, exactly. Well, I am a very unique character, Pete. I started out on the union side and held a pretty significant leadership role over there before I switched over to corporate. And I don't know familiar you are with how that works, but there's an us and them mentality ⁓ you're either one or the other. And it's very, very rare that one side allows the other to cross over, ⁓ I managed to. To be able to do that, it's kind of a long story the scope of what we're trying to get to here today, but I have worked both sides. So ⁓ that ⁓ I did cross over into corporate, that was part of my nerd space, labor law. ⁓ I needed to follow that up with basic ⁓ employment law too. So it took ⁓ tertiary education, you know, through Cornell ⁓ kind of my game on that. I really enjoyed learning that all the other pieces to the puzzle that that went, but it gave me an edge when I got into it, especially into the corporate world. So you think about things now, people, you know, I, as a consultant, I would go out and boy, I can tell you, ⁓ have seen it all. You you see the fake cultures, you see the, ⁓ know, you go out there. a coffee station on every floor and snacks and here's our exercise room. But yeah, but look at how you're treating employees, right? So when I could sniff that out when I would go out to do audits, did in the first 10 minutes, I can tell you whether the place is genuine or whether it's one of those types, right? So then when you start talking about mistreating employees, a lot of employers don't have both sides of the education. You know of labor and they think well because we're not under a collective bargaining agreement. We can do this this and this just simply not the truth and you know we all see you know here recently that the chainsaw was taken to a lot of the government entities. The labor board still there alive and well ⁓ meaning you know you don't have to have. be a bargaining member. You can be in a non-union environment, but you still have basically all the same rights. encourage people to go ⁓ look up NLRA ⁓ Section 7 and 8 and read those protected concerted activity rights, ⁓ every one of your employees has those rights. So you think about using profanity towards them. ⁓ There's just a multitude lanes I could go down there with you, ⁓ you kind of get what I'm talking about. Go read those rights ⁓ know that your employees have those rights. And that whistleblower hotline, ⁓ me, there's someone on the other side of it that's going to answer. So ⁓ ⁓ just one piece, Pete, and it's a subject I could talk on for hours. ⁓ But that is essentially, I think, where a lot of people fail. They think, well, we're not union. We don't have to put up with that. Wrong. The basic same rights as a union employee do exist. People just a lot of times don't know where to look for those. But I would encourage leaders get their managers to at least look over those protected, concerted activity rights, get familiar with those because you violate those. You'll go in the deep end of the pool real quick and those fines are heavy. speaker-0: Yeah, for sure. I love that. Thanks for breaking it down so eloquently. I love your different vantage point of the transportation industry. Not just safety, but people ⁓ and HR et cetera. They build a solid foundation for running a good operation. speaker-1: really does. you know, ⁓ just started up my own ⁓ ⁓ ⁓ to having to do it all again. So a lot of the things I've delegated over the years, it's like, wow, ⁓ got to do them on my own. Now, ⁓ like to call it the bagging our own groceries over here. Yeah, running lean. I have small staff and we're you know, like I say, everybody's got their sleeves rolled up, including me. I may be or recruiting all those things in a day where normally ⁓ you'd those subsets and you'd have other folks doing it for you, but no delegation in the early stages. speaker-0: Yeah, the buck stops with you. speaker-1: It's all right. Well, then there's the, you know, I get to build this how I want, you know, it's, it's, uh, that's the other side of that. There's, there's a gift to it too. speaker-0: For sure. Yeah. Back to that foundation thing. You have the tools to set up a really successful business in the long term as well. Yeah, that's awesome. Yeah, one of the big themes on this show is how are implementing AI and technology. Yeah, I'm curious your thoughts on that and the as applied to the transportation industry. speaker-1: Well, a year a while back, I took a course through MIT. wanted credible. surprisingly, it affordable. But I ⁓ wanted to my own knowledge. Because I just felt especially I was consulting, that was a space that I was a little bit short in. You go out, and people are asking you all these questions. You see the robotics in their warehouse. It's like, man, I'm just not there. So I did that on my own. I took that on my own spare time. A great course. ⁓ encourage anyone else to go take that. the reason I did it is this industry ⁓ transportation is got these people that are either on one side or the other. They're an alarmist. They think it's, you know, it's Satan. going to be the end of us all. ⁓ going to create robots and they're going to destroy the world. Then got the other people that think it's the next coming of Christ. It's like, ⁓ it's to take care of everything. I can kick my feet up. I don't have to work anymore. ⁓ AI the magic bullet for everything. ⁓ And like with most things in life, You know, there's some middle ground there. The truth is more down the middle than it is to either extreme side. And that goes for a lot of things in life. So one thing did discover and that part of that ⁓ prowling through LinkedIn and looking at some backgrounds. ⁓ people that were the most vocal on either end of that spectrum ⁓ no formal education in the space. So I'm like, wait a minute. Look, who's everybody listening to? Basically, and I don't mean this in a bad way, but you're listening to uneducated people in this space. So I went out and gained my own credential. got my own thinking now. I don't have to read it. It helps me filter out all the static around AI. with that, you're of curious as to where I feel like things are ⁓ and where they're going, think we're still, we're probably at a level four of a level five autonomy. think, ⁓ think there's another breakthrough that needs to happen. ⁓ has a couple of, I'm not going say failure points, but it, do very well with reasoning right now. And it's horrible with semantics. ⁓ I give a bunch of examples on that, but for it ⁓ And I think the machine learning, there's a lot of, know, Elon Musk right up the road from me here in Memphis that big data center. Data is the key, right? We all know that's the use that AI needs to get better at what it does. ⁓ you know, ⁓ say all that to say that I think in order to get ⁓ four to five, there needs to be a significant breakthrough. ⁓ think it's on the horizon. Here's the thing with those breakthroughs. Nobody, nobody knows when it could be tomorrow. It could be 10 years from now. There are certain lanes. I know down in Texas there, there's some lanes they're running there, you know, completely driverless. And I get that there are select markets that, know, that's attainable, but then there are other markets where it's not going to be right. There needs to be that blend or the AI folks call it a parallel. meaning that the machine can't necessarily do that up here where I live, all that great on its own. ⁓ ⁓ honesty, the driver by themselves, he'd do it all that great on their own. ⁓ This the culprit, these handheld devices. ⁓ So in words, if the driver's distracted, the AI keeps the driver from going off the cliff, or maybe the driver keeps AI from taking it off the cliff following a flawed glitch in GPS. So that I think there needs to be someone at the controls. If you look at the airlines, the cockpit, there's ⁓ a pilot. Look at the railroad. They have their own separate set of infrastructure. where they're not commingling side by side. And they still have an engineer at the controls. again, I'm but I'm also a realist too, right? And that, again, I think that comes from taking that middle ground and understanding that ⁓ a little bit of truth to both sides of it. ⁓ that's where ⁓ see it. ⁓ a lot of that's my opinion, right? That's where I see it. ⁓ But I think that's the hurdle we gotta make right now is at four to five before we don't need the driver anymore. speaker-0: Yeah, a lot of good nuggets there. love your educated perspective, because I think I'm even guilty of probably, you know, reading material was produced by people that haven't had any ⁓ real education the space. Super useful. I had heard ⁓ AI was about through maturity, but for So four out of five is more accurate, you think? speaker-1: Yes, when it comes to vehicles in particular, I think the overall broader scope, know, from a macro view, I think we're probably in a high three for other things. You know, I just I just believe, you see that ⁓ they're to have the mobile assistant robots now walk around. And I ⁓ think there's some there. But again, it's the ⁓ It needs that to learn from itself at this point, right? That data is the fuel for it. And I think collecting that now, which is the big game, who can collect the most? At the end of that, when the dust is all settled, I think there will be some, you know, the major players there. I don't need to name those off to you. You know who they are. It's typically the folks with the most money. And unless something takes us into another, what was called an AI winter during the eighties where folks has kind of lost interest in it. Uh, you know, it's been around since the sixties, but, and until, until that were to happen again, I think we're still going to progress and, and, uh, probably quicker than what a lot of people, a lot of the naysayers think. speaker-0: Yeah, wow. Yeah, it's exciting for sure. And, you know, talking about autonomous vehicles, that seems to be the potential have the biggest disruption in the industry, in the transportation industry. Would you agree? speaker-1: Yeah, I think there's a of things at play here, but I think ⁓ the bigger one. But, you know, I'll kind of go back to that plaintiff attorney thing. If there's no one behind the wheel, and I know we're doing it in certain markets, but where's the plausible deniability here? floating that out there is something for you to think about. Without deniability, who gets sued here? Was it the technology maker? Was it the, ⁓ you again, that could go a lot of different directions. I just think it. It behooves us to, to we at least figure that out, even when the technology is there to keep someone at least in the seat in case something goes astray. just think it's an extra layer, right? Because think about it. If you don't, whether you chose not to place someone in the seat, technology failed. And then there goes that. Yeah. speaker-0: Yep, and who's fault is it? speaker-1: Yeah, they can play the what if game with you and that's typically how it works in the courtroom, you know. speaker-0: Gotcha. Yeah, I think it was Aurora that's actively deploying in the Texas Triangle, That's much the main ⁓ area that's being implemented. speaker-1: Yep, wide open spaces, you know, and they're having good success with it. I'm proud of them. I'm excited about it. I'm fascinated with it. I just think before it other areas of the country, it's ⁓ that's why they're doing what they do. They're essentially working the bugs out of that. ⁓ know, and then the simple stuff we got going on right now. mean, ⁓ people are panicking over fuel prices and, you know, they ⁓ through the the roof here ⁓ a couple of weeks ago. We're all having to deal with that. with that, you know, we're in a new war. And how long does that take? I don't know. ⁓ will give you a little nugget of something that I learned the other day. ⁓ was watching ⁓ a ⁓ article. ⁓ so that same choke point ⁓ the straight over there, It's not just the pent up fuel and oil. It's also helium. And I thought I scratched my head when I first heard it as helium. the deal with that? And guest on to educate me on the fact that helium ⁓ is the one source in cooling chips as they are produced. ⁓ And that shrinking the chip down and all that thing. Helium is what is used to cool it off to make that possible. And as the guest stated, you know, again, I'm no scientist by far reach, but as I understood it, there were no alternative source. You know, I started thinking of all, you know, from a military background, is there some kind of other source that could be used as a cooling agent, ⁓ thorium fluoride, all these things going through my mind. I said, well, if it's only helium and it's bottlenecked that straight, it's, solely coming out of Qatar, then ⁓ we get it. ⁓ As understand it, there's about three months supply of that lip. ⁓ So when think ⁓ are guilty, I a lot of times and not looking at that macro and I call it. 30,000 foot perspective, you step back away from that. fuel industry, that market's gonna adjust itself, right? There's a squeeze that's about to happen right now with that, because those prices ⁓ not reflected in spot market. I'm sitting there watching that and it's like, this is crazy. That was good money ⁓ month, but it's not right now. That will fix itself. But now if you start talking about a shortage of chips, ⁓ talking AI. ⁓ We're talking these devices we're using right here, the whole nine yards, including, I'm actually in my fleet, I've got a 2026 Mac Pioneer, ⁓ machine. ⁓ many chips or this thing, just about it. ⁓ If disrupts, that's a bigger problem to me. speaker-0: Thanks. speaker-1: So these are the things I look at. This is what I go to bed thinking of at night. It's not, read ⁓ waves and ⁓ topics. They're great threads, ⁓ them. ⁓ if that's your only source, I you need to step back. Again, take that macro point advantage. Just get back, ⁓ have look at it and see what's going on in the broader scope. Cause there could be some other things on the horizon that disrupt. speaker-0: For sure. Yeah, I love that macro data driven outlook. Right. That's awesome. Yeah, I interviewed Seth from Transport Topics on one of my earliest episodes. And he it was going to be like 40 years until, you know, widespread AV adoption. And it's interesting. must be, I mean, A lot of the factors you just listed, but I imagine especially the legal ramifications it, are probably gonna, the policy is gonna be a lie before it catches up to the technology. speaker-1: I would say so, quite some time. speaker-0: Yeah, interesting. Well, man, I love this conversation. Bobby, thank you so much. I always ask this at the end of an episode, if you could leave ⁓ one tip for a business owner for safety and ⁓ scaling properly, would it be? speaker-1: And you mean, we talking 3PL or are we just talking? Well, good. Just transportation in general. think a lot of people get excited and want to start up a 3PL, which that's cool. And there's money to be made there, right? There's a lot of low hanging fruit and overused phrase, but it applies there. You can make money. speaker-0: transportation. speaker-1: right out of the gate doing it. think where people, my advice to them would be to be very, very careful what you take on. a 3PL, just the warehousing on its own, that one element, if you acquire the wrong client, the wrong customer, ⁓ can essentially put you bankrupt. hard as a business owner to turn away people, ⁓ knocks on the door, like, yeah, we can do it. And secretly, we really can't yet, but we're going to do it. It's one of those things you can't make up as you go along. In other words, so if you take ⁓ on a that's got a couple of SKUs of some kind of stuffed animal, right? That's pretty easy. It's lightweight. It's fluff. There's only two sizes of box. It's two palettes to maintain and you can do it blindfolded. The cost of it's very cheap. let's say someone knocks on the door or even better yet them, Hey, we got another product. You know, they've already got a foot in the door. ⁓ doing well with them. You're making a lot of money. And then you start thinking, well, I can take on whatever else and bring it. And let's say they, it's, it's this long skew list of different sized gadgets, value ⁓ numbered items and on and on and on. ⁓ ⁓ those two people you got in the warehouse, it's not enough. And what like to tell people is if you want to get in ⁓ 3PL, can get in the game, but watch scale. Be careful and you will forever be measured against the Amazons of the world. know, that may not seem fair and life isn't in general, ⁓ But you will be measured against Amazon. Now, can Amazon take on there with all their robotics? That's what you're competing with. ⁓ can Amazon scale to those sort of things? How many times do you see, I've seen numerous cases where people say, I've sold a million dollars worth of my product on Amazon and I'm still not profitable. a reason for that, right? ⁓ knows how to work that. They know how to do that in their favor. Trust me, they're making money. ⁓ Amazon, not casting a stone at them or any of the other big but right. That's the difference in you and them. And essentially, think you got to kind of stay in your lane, your limitations. So that would be my tip for the 3PL. a trucking company in general, it's safety. That's my cornerstone to everything. ⁓ The example gave for Deque Files, I've got 1,000 more. Boy, don't even get me started on vehicle maintenance. There's a whole other big topic. speaker-0: Yeah, well said. Wow, thank you. Yeah, such an insightful conversation today, Bobby. I appreciate you coming on. Where's the best place listeners can find you at? speaker-1: I'm anti-social media other than the boring LinkedIn channel. You can find me there, ⁓ McLean. I don't actually have a page up for Arbitrage ⁓ Logistics That's on the way, still working on ⁓ my As I said, we're bagging our own groceries over here, but big things to come with that. ⁓ You find me on there or you can email me at bobby at arbitragelogistics.com. speaker-0: Awesome, yeah, I'll leave that in the show notes. speaker-1: Pete, really, really appreciate this and really enjoyed speaking with you today. I think it goes without saying, you can tell I got a passion for this sort of thing. That's the reason, you know, I didn't follow my buddies out onto the golf course in retirement, screaming at golf balls all day. I chose to stay in logistics. The truth is I'm not very good at golf and I can scream the same obscenities at freight. behind the scenes. So what's the difference? Might as well be doing what I have a passion for and what I think I'm relatively good at. speaker-0: Yeah, absolutely. Yeah, it was a pleasure having you, speaker-1: At the risk of sounding pretentious there on that last part, my friends know that that's the furthest thing from that. I'm just kidding. speaker-0: Yeah, no, for sure. It was a pleasure having you on. I'd love to maybe have you on again eventually. speaker-1: Yeah, let's do it. Pete, just let's sure we both got the bandwidth. I love the time you gave me today. This works. So let's try it again sometime. speaker-0: For sure. All right, Bobby, I'll be in touch. speaker-1: All right, thank you, sir.