Kyle Kottke, Kottke Trucking, Inc.

Kyle Kottke and his brothers Kurt and Kory own and operate Kottke Trucking, Inc. BB #:118316 in Buffalo Lake, MN. The company was founded by their grandfather Elmer Kottke back in 1938. Today, Kottke Trucking’s transportation network spans nearly half the country, serving the Midwest and East, along with Texas and Oklahoma.

Still headquartered in Buffalo Lake, there’s a branch in Minnesota and two terminals in Florida BB #:363460. We talked to Kyle about the family company, what he considers the toughest aspects of the trucking industry, and what the future will bring for the transportation sector.

Q: Tell us about your background and education. Did you want to go into the family business?

I went to school to be a banker, but I was pretty sure I’d return. After two years at St. Cloud Technical College with a degree in credit and finance, I did just that. 

Q: You’re an avid reader of business fiction and nonfiction, when did this start? Do you enjoy other genres as well?

My dad got me started with nonfiction business and autobiographies when I was a senior in high school. I’ve been hooked into business books since. I occasionally dabble in other stuff, stealing a book from my wife, but only for an occasional change of pace. 

Q: How would you characterize your style of management?

Open door. Our management team is not hard to find and we encourage that. If you visit our Buffalo Lake terminal, you’ll find our doors literally wide open.

Simply put, we try to be as transparent as possible. We want everyone from the office to the shop to our drivers to feel comfortable to bring any issue to us at any time.

Simply put, we try to be as transparent as possible.

Q: Since you and your brothers took over Kottke Trucking, what company milestones resonate the most?

Not to sound overly cheesy, but every day that we get to go to work and continue the legacy of our grandfather and our parents, resonates. Work is a privilege.

To be a little more specific, acquisitions to expand our Florida footprint in 2016 and 2019 come to mind. They led to the opening our warehouse in Lake Alfred, FL, three years ago. This growth and what we’re building with our business is what truly matters.

Q: How much of the overall business is produce-related?

About a third of the total and about 80 percent of our Florida operation is produce-based—it’s deep in our roots and daily activities.   

Q: Do you see expansion into other states or additional services, like offering more LTL loads?

We’re always open to bettering Kottke Trucking. If we see something that can improve Kottke Trucking and the lives of our employees, we owe it to ourselves to take a good look at those potential opportunities.

Q: When do you expect the fourth generation to come on board?

The fourth generation of Kottke is already active in our organization. My nephew has been full-time in our office for about a decade now.

My oldest daughters are doing some part-time work for us while attending school and juggling activities. Everyone over the age of 14 in the Kottke family has done something for the company.

Q: Over the last decade or so, technology has changed trucking – ELDs, cameras, retooled HOS, portable recorders, GPS/real-time tracking – do you see all of these as positive developments?

As with most changes in life, not just trucking, there are positives and negatives. It’s all about leaning into the positives and trying to limit the negatives as much as possible.

It’s important to embrace the changes and keep moving forward, because most things are never going back to the way they were. With that said, any technology to make our drivers safer on roadways is something we’re interested in and most likely invested in.

Our strategy has been to be one step behind the rest—they can pioneer it and we’ll execute the heck out of it. 

Q: Are there other, newer, or experimental tools or technology you’re excited about?

Let’s face it, our children will see a different life than we’ve lived, and technology will be at its center. Whether it’s dabbling with autonomous trucks or changes to how goods are delivered, technology is often at the center.

Our strategy has been to be one step behind the rest—they can pioneer it and we’ll execute the heck out of it. 

Q: How many reefers are in your fleet? How many owner-operators do you work with regularly?

We have 330 reefer trailers, 175 company trucks, and 75 owner-operators.

Q: In the debate over the availability of truck drivers, do you think the age for an interstate CDL should be lowered from 21? 

There’s a place for this—we won’t be one to work with it—but there are situations for putting younger people in trucks. In Minnesota, many of the roads are remote and agricultural routes are nonmetropolitan, but they can’t cross the border.

Q: Let’s talk about AI in transportation and logistics: where is it a good fit and where is it a bad idea?

This is not the case in just our world of transportation, but AI can be a really helpful tool to harness and decipher information in virtually every corner of an organization.

Being able to use this information and interpret it is a great fit. The other side of the coin is that data is important enough to make sure it’s safe and secure. Not all AI applications are made equal or protect your data equally.  

We find the gathering and presenting of data is a powerful topic in AI. We use it to help make fuel purchasing decisions, routing, LTL pickup patterns, warehouse assignments, and more. So we’re starting to experiment around the edges with the technology.

Not all AI applications are made equal or protect your data equally.  

Q: Fraud has become endemic in transportation, what’s the best way to prevent cargo theft, double brokering, forged documents, etc.?

The easiest way to prevent fraud is to keep the freight in your network with people you know. We broker only a low percentage of our freight, and the vast majority is brokered to someone who’s been working with us for a very long time. 

Q: What do you consider the top three operational challenges for trucking companies? What can be done?

Talent, margin, and a changing landscape. For talent, continuing to work hard to paint a picture so people want to be involved in logistics and trucking. Whether a driver, mechanic, manager, or CFO, we need to continue attracting talent to the industry. 

Regarding margin, the industry is coming off of four very bad years that affected balance sheets and will continue to do so. It’s imperative to find markets that allow a fair margin on a regular basis so companies can invest in people, equipment, and technologies.

A changing landscape is probably on every industry’s list but has the potential to change trucking more than any other. From how trucks are driven, to how routes are built, and how we effectively reduce waste in the system. Managing these changes will be key.

Q: Are autonomous or tandem vehicles the future of trucking? What about electric trucks?

All are probably a part of the future, but the real question is how close that future is. My suspicion is we’re still far away from any measurable market share. To boil it down to two simple things, these advances need to prove they’re both efficient and, most importantly, safe. 

Honestly, I was wrong about platooning. I thought it would’ve caught more attention by now, but it really hasn’t.

Electric trucks already have a market; the local trucks or fleets, home every night, are already changing that world. The over-the-road applications of electric trucks are much tougher. 

Two feet in—there’s no other way to win in this industry.  

Q: What advice would you give someone starting a new transportation or logistics company?

Two feet in—there’s no other way to win in this industry. Work to serve people, do right by others, and it will find you in return. 

Q: Anything else you’d like to share with our readers?

A special thanks to our employees, customers, and vendors who have helped us find our corner in this industry. Without you, we’re not here. Until next time, keep on keeping on!