From the archive: This episode was originally recorded and published in 2020. Our interviews on Entrepreneurs On Fire are meant to be evergreen, and we do our best to confirm that all offers and URL’s in these archive episodes are still relevant.

Jon Panzer is the Senior Vice President of Technology & Strategic Planning at the Union Pacific Railroad. Jon has been an influential leader across UP for the last 24 years.

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3 Value Bombs

1) The transportation industry isn’t as exciting as technology and aerospace. There’s a lot of technology involved, movement, and being more sophisticated with e-commerce as consumers demand an interest change.

2) Get excited about automation. Be open minded. Realize that it is not tomorrow – change is incremental. As we go on in our lives, there will be more automated kiosks and robots in the streets. Automation is here. As a country and as a society, it is key to keep us moving forward.

3) Logistics is about getting goods to where they need to be. It’s from the beginning of the manufacturing process to warehousing and then distribution to stores and e-commerce where people make a purchase. Logistics makes sure that all of that happens behind the scenes without hiccups.

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Today’s Audio MASTERCLASS: How Self-Driving Trucks Will Change The World with Jon Panzer

[2:05] – Jon shares something interesting about himself that most people don’t know.

• He’s been teaching himself French. He’s been doing it for 2 years already.

[2:50] – What does the logistics industry mean to an outsider?

• It’s about getting goods to where they need to be. It’s from the beginning of the manufacturing process to warehousing and then distribution to stores and e-commerce where people make a purchase. Logistics makes sure all that happens behind the scenes without hiccups.

[3:37] – What are the strengths and weaknesses of the railroad industry?

• It’s effective when you have heavy and dense freight. It’s also fuel efficient.
• Disadvantage is that railroads don’t go everywhere. It’s slower and less reliable than trucking. Railroads are about a day slower than trucking.

[5:45] – The products that Jon focused on.

• The biggest growth area for railroad now is containerized freight.
• They compete with trucks, but they are their partners as well.

[7:18] – Who else is their competitor?

• They have other railroads, and then trucks are next in line.
• Short-sea shipping can also be considered, where freight might come from one port to another within the country. Ocean shipping is quite cheap.

[8:08] – What does Jon define as winning, and how does he do it?

• If you win the freight, you win.
• Customers care about three things: Capacity, Reliability, and Value or costs compared to competition.

[9:40] – A timeout to thank our sponsors!

• HubSpot: HubSpot’s AI- powered tools are changing the way you create content and communicate with your customers! Find out more about how to use AI to grow your business at HubSpot.com/artificial-intelligence!
• Thrivetime Show: Is this your year? Visit ThrivetimeShow.com/eofire to see how Clay Clark’s business coaching has helped thousands of entrepreneurs to dramatically increase profitability!

[11:20] – What are some of the biggest challenges your company might face in the next 5 years?

• Their market shifts a lot.
• E-commerce is bad for rail; it requires them to move fast, therefore posing a big challenge for them since they move a day slower than trucks.
• Technology is evolving rapidly.

[13:32] – How long will it take until driverless trucks becomes a serious contender, and how will it impact the industry?

• They are a threat, but it’s also an opportunity.
• Transportation companies may jump at it quickly.
• We have to face the reality of technology advancements.

[15:22] – How will railroads and other established freight companies compete with driverless trucks when they become reality?

• They need to continue to make sure that trains get longer and more efficient, which dilutes the costs.
• Work on their own automation.
• Try to figure out how autonomous trucks could work in conjunction with railroads.

[15:40] – Self-driving trains and bullet trains—what does it look like to get there?

• The railroad industry has put in an extensive safety system that keeps trains from running red lights and going too fast, or running to each other.
• Next step is to create a software that would allow these trains to run autonomously.
• Full automation might be as far as 10 years out still

[21:22] – Jon’s key takeaway for Fire Nation

• The transportation industry isn’t as exciting as technology and aerospace. There’s a lot of technology involved, movement, and being more sophisticated with e-commerce as consumers demand an interest change.

[22:55] – Thank you to our Sponsors!

• HubSpot: HubSpot’s AI- powered tools are changing the way you create content and communicate with your customers! Find out more about how to use AI to grow your business at HubSpot.com/artificial-intelligence!
• Thrivetime Show: Is this your year? Visit ThrivetimeShow.com/eofire to see how Clay Clark’s business coaching has helped thousands of entrepreneurs to dramatically increase profitability!

Killer Resources!

1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!

2) Free Podcast Course: Learn from JLD how to create and launch your podcast!

3) Podcasters’ Paradise: The #1 podcasting community in the world!

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