Industry Watch May 2014 - Used Truck Association

1.877.GETS.UTA • www.uta.org
Volume 16 • Issue 5 • May 2014
Used Truck Association
Chartered May 16, 1988
Published by the Used Truck Association
325 Country Club Drive, Suite A
Stockbridge, GA 30281
Table of Contents
Board News and Views........................2
Quips & Quotes.....................................2
New Members...................................3, 5
Face to Face with Henry Coberth........ 4
2014 UTA Board of Director’s
Nominations .....................................5
Industry Events Calendar....................6
Moving on Down the Road:
Catching Up with Adam Davy.........7
The Brooks Group
Sales Tip of the Month.......................7
In Memoriam.....................................8-9
Attendees Praise Tampa’s “Selling for
Success” Class ................................. 10
Subtle Fix for Big Rigs........................ 11
NADA Update .............................. 12-15
Medium Duty Corner............................ 15
Industry News Briefs..................... 16-17
2013 UTA Convention Photos....... 18-19
From Where We Sit............................20
The UTA…
Members Supporting Members!
SHARE YOUR NEWS
with the UTA Industry Watch.
Send submissions, ideas and
comments to:
UTA Industry Watch Editors
Brad and Deb Schepp
c/o Grace Management
325 Country Club Drive, Suite A
Stockbridge, GA 30281
Phone: 877-GETS-UTA (877-438-7882)
Fax: 770-454-0029
editor@uta.org
UTA Young Members Group is on
the Move!
Angelique Pierce, Daimler Trucks Remarketing
T
he UTA Dealer Group officially launched the Young Members Group at the 2013 UTA
Convention in Orlando, FL. At the heart of this initiative was the desire to create opportunities for younger UTA members to be mentored by more seasoned members. With the
recognition that younger members represent the future of the UTA, veteran members such as
Craig Kendall (The Peterbilt Store), Hal Dickson (Mack Trucks), Jim Zimmerman (Kenworth of
Pennsylvania), John Cosgrove (CAG Capital), Mike Mounsey (MHC Kenworth Nashville), Mike
Thurston (Larson Group), and others have invested their time to get the group up and running.
Since then, veteran members and young members have met monthly to formalize the goals and
structure of the UTA Young Members Group. Our mission is to serve as a catalyst for the
advancement of the used truck industry through the effective professional development of
the younger members of the Used Truck Association. We are an enthusiastic group that is
becoming more involved in UTA activities and taking on leadership roles within the association.
As a younger member of the UTA, you may wonder why you should be involved in this group.
By actively participating, you will be able to:
■■ Rub elbows with more experienced used truck professionals and get involved
■■ Build your industry knowledge, broaden your network, and enhance your leadership skills
■■ Help guide the UTA’s direction by promoting the interests of younger UTA professionals
■■ Get your questions answered about selling trucks, handling difficult customers, and more
The Young Members Group also provides a
way for veteran members to help ensure the
success and longevity of the UTA by directly
influencing the next generation of leaders.
Brandon Hess (Wholesale Trucks of
America) has been elected the Young
Member Representative to the UTA Board of
Directors. Hess stated, “Everyone that gets
involved in the Younger Members Group
can reap the benefits of building careeradvancing professional relationships and
great friendships that can last a lifetime.”
Younger members…this is your call to
action. You are invited to get involved with
the UTA Young Members Group to invest in
yourself and our industry.
Ready to get involved or have questions?
Then contact Brandon Hess via phone at
800-705-4008, or via email at brandon@
wtatrucks.com.
Our mission is to serve
as a catalyst for the
advancement of the
used truck industry
through the effective
professional
development of the
younger members of
the Used Truck
Association.
UTA Industry Watch
2014 BOARD
OF DIRECTORS
Board News and Views
http://www.uta.org/directory
I
GOVERNING BOARD:
President...................... Rick Clark
Vice President..............Ken Kosic
Treasurer................... Tom Pfeiler
Secretary................Sheri Aaberg
President Emeritus
........................... Marty Crawford
COMMITTEE CHAIRPERSONS:
Affiliates & Benefits.... Bryan Boyd
This is about a question that will make you think.
was reading an article by Jacques Werth, the president of High Probability Selling entitled
Are Top Salespeople Born or Made? This question has become for me like a song that gets
stuck in your head. So, to get some relief, I decided to pose this question to you all, and maybe
later provide some feedback on your thoughts.
All of us in sales have thought about this age-old question, because it begs an answer if we
consider used truck sales our career. I personally believe selling is a skill, and skill sets can be
developed. Jacques Werth believes this skill is comparable to accounting or engineering:
Specific actions properly applied in a proscribed order produce the best results. Given enough
motivation, almost any skill can be learned without formal training.
To make his point, Werth cites the example of two General Motors top engineers who never took
an engineering course. And of Michael Dell who didn’t major in computers, and dropped out of
college. Werth goes on to say that similar aptitude patterns are seen in highly successful salespeople,
trial lawyers, and teachers. Salespeople who lack the right aptitudes and attitudes can substantially improve their sales skills, if they are willing to change their behaviors. The changes they
need to make are simple; yet it requires a lot of self discipline to make those changes.
Convention..................Hal Dickson,
Sheri Aaberg
I also believe that salespeople, especially used truck salespeople, are born with the rare resilience
gene that gives them the vision to see the glass as half full. They have the right frame of mind to
make it a good day--always. They know uncertainty, but also possess the confidence to know
that if there is opportunity they will reap its rewards.
Dealer Group.......... Mike Thurston,
Bobby Williams
So, Are Top Salespeople Born or Made?
Elections................ George Barnett
Finance.......................... Tom Pfeiler
Marketing........................ Rick Clark
Medium Duty..............Amy Shahan
Membership........... John Cosgrove,
Kenny Doonan
Training............................Ken Kosic,
Brock Frederick
UTA Jerome Nerman Family
Foundation Scholarship
..................................... Jay Burgess,
Brock Frederick
UTA.org Website......Bobby Williams
Wreaths Across America
....................................Bobby Williams
I am going with the combo deal. I believe salespeople are born into this world with an innate
ability to persevere, and make the very best of opportunity. They can be “self made” by learning
what works best for them, but the top 20 percent have been coached by industry mentors, and
through specific in-house and professional sales training like what is offered through the UTA
Selling Initiatives.
One thing is for sure, the top 20 percent of sales professionals are doing something radically
different from the other 80 percent.
If you find that you would like to take your career to the next level I would encourage you to
reach out to a Mentor, or enroll in career classes. You’ll learn to capitalize on what you do every
day with the right mindset for customer perspectives and approach. You have the opportunity
to choose and make a difference. Discipline, Attitude, and Vision make you the Used Truck
Ambassador who makes that difference.
Your UTA also has partners such as the Brooks Group and TMI (Truck Marketing Institute)
that can help you attain success. By success I mean elevate your career, challenge your mindset,
and validate the choice you made to sell used trucks for a living. UTA’s own training initiatives
set the standard as offering the best approach to reaching the top 20 percent of sales professionals in our industry by mapping The Right Frame of Mind.
If anyone would like to discuss used trucks as a career choice or training, I stand ready to help!
I can be reached 24/7, if needed. I would enjoy reading your thoughts on the question:
“Born or Made,” as there are many varying opinions on this. Send your thoughts and ideas to
Ken@UTA.org. Oh, and by the way, you could say that “The Answers My Friend Are Blowing
in the Wind.”
The Very Best of Success to You.
If you’re not solving a problem
then you’re unlikely to have a
business.
~Jonathan Baer,
Threshold Ventures
2 May 2014
Ken Kosic
Vice President/Training Committee
ken@uta.org
www.UTA.org
UTA Industry Watch
New
Members
Andrew Baker, Used Truck Sales
Idaho Falls Peterbilt
4460 West Andeo Drive
Idaho Falls, ID
www.jgpete.com
(208) 227-5029 (w)
abaker@jgpete.com
Andy started in the truck business in 1992
as a mechanic for a road and bridge
department. His goal for his UTA membership
is simple: “To be successful in the trucking
industry,” he said.
Andy’s favorite part of his current job is that
it affords him the option to grow, do new
things, and meet new people.
Outside of work, Andy’s other interests include
snowboarding, fishing, and spending time
with his family camping.
Andy recently attended UTA’s Selling for
Success training with George Papp, and
found it both “enjoyable and very helpful.”
William Brawley, Business
Development Manager
Asset Appraisal Services
3880 Hulen Street, Suite 2000
Fort Worth, TX 76107
www.assetappraisalservices.com
(817) 869-8938 (w)
will.brawley@assetappraisal.com
Will began with
IronPlanet in 2009 as
an inspection analyst.
He later helped develop
and launch the
company’s post-sale
logistics team. “The
logistics development
exposed me to the
truck business,” he
said, and “provided a
good foundation to continue my education
in the industry.”
As a new UTA member, Will hopes to build new
relationships and find opportunities for his
company. He’s interested in working with
other UTA members “to create meaningful and
mutually beneficial, long-term business
relationships.”
www.UTA.org
It’s always a treat to welcome new members to the Used Truck Association. Each month we
profile our new members in this newsletter. New members have the opportunity to complete a
bio and send a photo so our current members can learn more about you. We hope to learn not
just how to reach you, but what you enjoy about the work you do, why you joined the UTA,
and what gets your gears going as a person. So please return your questionnaire so your
fellow UTA members can get to know you!
If you’d like a copy of the new member brochure handed out at the convention, please
contact David Grace at davidgrace@charter.net, or 770-389-6528 ext. 404.
When we asked Will what he likes best about
his job he had no trouble coming up with a
response. “I am fortunate to work with a
group of such skilled and hardworking
colleagues,” he said. “There is a real sense of
camaraderie and pride with the teams I’ve
been a part of—both with IronPlanet and
Asset Appraisal Services. We pride ourselves
on building reliable and trustworthy
relationships with our customers and
providing top-notch customer satisfaction
for each assignment.”
Will says that if he wasn’t in the truck
industry, he’d likely focus on the oil and gas
industries. “I’ve always had an interest in the
energy industry,” he said recently. “Oil and
gas continue to thrive in the U.S. and influence
many other industries along the way.”
When he’s not in the office you may well
find Will enjoying the outdoors with family
and friends. He grew up in Florida and enjoys
“anything on the water,” with fly-fishing,
duck hunting, and spear-fishing some of his
favorite sports. Although he’s now living in
central Texas he quickly found new hobbies
including golf, and turkey and deer hunting.
Phil Brown
International Used Truck Centers
2701 Navistar Drive
Lisle, IL 60532
(331) 332-5000 (w)
(404) 787-1065 (c)
philip.brown@navistar.com
Mark McElmurry, Sales Manager
Maudlin International Trucks, Inc.
4900 N Orange Blossom Trail
Orlando, FL 32810
www.maudlininternational.com
(904) 515-8571 (w)
mmcelmurry@maudlinintl.com
Back in 1997, Mark got his
start in our business
working in inventory
control.
The things he likes best
about his current job are
the company and people
with whom he works. “It is a family-owned
company,” Mark said, “and that makes you
feel like more than an employee.”
Wildlife management also interests Mark,
and if he were to choose another field for
some reason that’s probably where you
would find him. He enjoys the outdoors,
and likes “to see the importance we all play
in our ecosystem.”
Speaking of the outdoors, Mark says fly
fishing is another of his passions. The sport
gives him the chance to both be outside
and spend time with his family teaching
them a field he feels is overlooked—
studying the habits and lifestyles of fish.
Wrapping things up, Mark asked that we tell
his fellow UTA members that he’s acquired
many skills and contacts over the years
from his work in Inventory Control, Quality
Assurance, Operations Management, and
now truck sales management. “I’m always
available to help out,” he said.
Kyle Howard
International Used Truck Centers
2701 Navistar Drive
Lisle, IL 60532
(331) 332-5000
kyle.howard@navistar.com
William Laverde
Cross Country Truck Sales
10000 Southwest Wilshire Street, Suite A
Portland, OR 97225
(503) 227-3153 (w)
danette@tuckercapitalinc.com
Christopher O’Donnell
Valley Freightliner Truck
10901 Brookpark Rd
Parma, OH 44130
www.ValleyFreightlinerTruck.com
(216) 267-4800 (w)
codonnell@valley1.com
New Members continued on page 5
May 2014 3
UTA Industry Watch
Henry Coberth
H
enry Coberth was born into the
world of trucks. Although he didn’t
actually start working in the trucking
business until the ripe old age of 13, he
comes from a family of trucking people.
Henry’s dad was the GM/VP at Nalley
Motor Trucks of Atlanta when Henry
launched into his first job doing odds and
ends at his dad’s dealership. He remembers
doing various jobs in many departments
throughout the dealership. When Henry
graduated from the University of Georgia
with a degree in economics, he officially
started his career in the truck industry when
he took a position working with Lewis
Dickens, at Arrow Truck Sales in Atlanta. “I
learned a lot about truck sales from some of
the greats in our industry,” he said. “I have
been lucky to work for and with
some of the most talented people
in the industry.”
His next career step took him
back home to Nalley, where he
started as a used truck salesman
just two years into his career. “I
transitioned to new trucks for a
short period and then accepted
a position as used truck
manager with Nalley in 1997,”
he recalled. He stayed in that
job until 2007 when he
became the Used Truck
Manager at Vanguard Trucks
in Atlanta, and he’s been
there ever since.
Henry attributes much of
what he’s achieved in his
career to the years he spent
working with his father. “He
instilled in me a strong
4 May 2014
sense of character and integrity as a way of
doing business,” he said. “I also learned that
business success is directly related to the
talented employees you surround yourself
with.” He still sees this connection to his
coworkers as the most enjoyable part of his
job. “I enjoy the interaction between the
different departments of our dealerships and
our ability to work as a team in exceeding our
customers’ expectations in pursuit of
profitable growth,” Henry noted.
When we asked Henry what he wished he’d
mastered earlier in his career, his answer was
straightforward: perseverance. “Never give
up on a truck deal,” he said. “There is always
another angle out there that can make all of
the difference in winning a truck deal or not.
Perseverance is what I wish I’d learned
earlier in my career.” Henry offers this
wisdom to the younger people just starting
out in truck sales. “Perseverance in the sales
process and a strong commitment to
customer service,” he cited as hallmarks to a
successful career.
As he looks ahead, Henry sees some
challenges to the used truck industry. “I
think we are all challenged by the ebb and
flow of the industry business cycles,” he
commented. And to address those challenges, Henry has a plan. “I focus on hiring
good people,” he said. He also stays determined to manage his inventory well.
Henry and his wife Cindy have been married
for 20 years and have two young daughters.
Anne Dawson is eight and Lila is four. Henry
enjoys spending time with his family and
when he’s not at work, he also enjoys
traveling, golf, and running, but not at the
same time. n
www.UTA.org
UTA Industry Watch
New Members continued from page 3
Michael Siebke
Jackson Group Peterbilt
6633 50 Federal Way
Boise, ID 83716
(208) 344-8515 (w)
msiebke@jgpete.com
Kevin Stevens
International Used Truck Centers
2701 Navistar Drive
Lisle, IL 60532
(331) 332-5000 (w)
kevin.stevens@navistar.com
Tony Trowbridge, Sales Manager
Twin City Truck Sales & Service LTD
2205 County Rd. C2 West
Roseville, MN 55113
www.twincitytruck.com
(651) 253-5141 (w)
tony@twincitytruck.com
Bennett Whitnell, Vice President/
General Manager
Whitnell Analytics
1420 N Marshall, Apt 204
Milwaukee, WI 53202
www.Whitnellanalytics.com
(310) 874-4209 (w)
Bennett@whitnellanalytics.com
Bennett’s new to the full time truck
business, and went full time with Whitnell
Analytics in January of this year.
But Bennett was already quite familiar with
the business. His first exposure to the
industry was when he worked in the service
department for Chicago International. He
spent many of his college summers working
in various functions within that dealership.
Bennett’s quite enthusiastic about being a
new UTA member. Asked what he hoped to
get out of his membership he replied: “A lot
of knowledge— I know numbers but I still
have a lot to learn about trucks and the truck
business. There is a wealth of experience in
this group that I hope to tap into!”
Bennett really enjoys his work as it blends in
well with his love of puzzles from crosswords
to jigsaws. At Whitnell Analytics, Bennett
helps make sense of a lot of data and “solve
puzzles” every day, which he finds a lot of fun.
This year is Tony’s 40th year in the truck
business. He started out as a technician in
1974.
He may be an industry vet, but he still
recognizes the value of belonging to the
UTA. He mentioned the chance to gather
information on trends, and regulations, as
well as networking as some of the reasons
he’s joined. He’s also looking to gain access
to equipment to buy.
There’s a lot about his job that Tony enjoys,
including buying, selling, and repairing
heavy-duty trucks and equipment. He also
enjoys building gliders, staying current on
specifications, and “interfacing with
customers from different cultures, other
parts of the country and the world— all
with unique personalities and perspectives,”
he said. “Every day is a new opportunity.”
One look at his picture and you can guess
the other business Tony can see himself in:
motorcycle dealer, service, and repair. He
also likes building motorcycles.
www.UTA.org
You might find yourself listening to Bennett
on the radio if he wasn’t in the truck business.
“I would love to host a radio show,” he said.
“I read everything I can get my hands on so
I’ve got an opinion on just about everything.
I’d love to talk with and debate people on
those opinions for a living.”
Finally, Bennett’s committed to exercising
his body as well as his mind. He and his wife
have made a real commitment to getting
healthy. They have been doing “Crossfit” for
about a month, and are “loving it!” He’s
also a pretty solid amateur chef.
2014 UTA Board
of Director’s
Nominations
Nominations Due
June 20, 2014
T
he Elections Committee needs you to
nominate UTA members to serve on the
UTA Board of Directors. The UTA Board of
Directors plan and run the annual convention,
provide training programs, help members
obtain discounts on affiliate products and
services, maintain the UTA website, and
publish an industry newsletter. In addition,
the UTA Board has substantially increased
the UTA Scholarship Fund, which has helped
many deserving students pay for their
tuition and books.
Please consider nominating UTA members
who could help the UTA continue its growth
and improve the services it provides to the
used trucking industry. Also, please
remember you may nominate yourself if you
would like to run for the Board. All
nominees must meet the following criteria:
■■ Have experience in the used truck industry
■■ Demonstrate a history of ethical and
professional business practices
■■ Be willing to advance the goals and
objectives promoted by the UTA
If you know of someone who meets these
criteria, please nominate them!
To submit your nomination please go to our
website at www.UTA.org. Then follow the
directions to the “Board of Director Nomination”
screen. On the form you’ll see where to send
the application via mail, fax, or email. UTA
members with voting rights will then vote
and elect the Board members through internet
voting. Please be sure to vote when you are
emailed the UTA Board of Director ballot.
We need qualified professionals who will
dedicate their time, knowledge, and experience
to our organization, and, have a little fun while
serving the membership. Thank you for your
consideration and
we’ll be looking for
your nominations
and votes for the
UTA Board of
Directors. n
George Barnett
Elections Committee
Chairman
george@uta.org
May 2014 5
UTA Industry Watch
Industry Events Calendar
MAY
AUGUST continued
19-20 • UTA Sponsored Training Seminar
Selling for Success
20-21 • Commercial Vehicle Outlook Conference
Courtyard by Marriott, Downtown • Baltimore, MD
www.uta.org
Dallas Convention Center • Dallas, TX
www.cvoconline.com
21-23 • The Great American Trucking Show 2014
29-31 • ATHS National Show & Convention
Ozark Empire Fairgrounds • Springfield, MO
www.aths.org/convention
JUNE
20-22 • Great Lakes Truck Show
Cabela’s • Dundee, MI
http://greatlakestruckshow.org
Dallas Convention Center • Dallas, TX
http://www.gatsonline.com
SEPTEMBER
5-6 • Big Iron Classic
Mantorville, MN
www.bigironclassic.com
25-26 • 9th Annual UTA Kansas City Golf Outing
22-23 • UTA Sponsored Training Seminar
Selling for Success
Adams Pointe Golf Club • Blue Springs, MO
www.UTA.org
Phoenix, AZ
www.uta.org
28 • East Coast Large Cars Truck Show 2014
Augusta , NJ
www.eclcannualtruckshow.com
OCTOBER
1-3 • 24th Annual NTDA Convention 2014
JULY
LaQuinta Resort & Club and PGA West • La Quinta, CA
http://www.ntda.org
10-12 • Walcott Trucker’s Jamboree
4-7 • ATA Management Conference & Exhibition
Iowa 80 Truckstop • Walcott, IA
http://iowa80truckstop.com/trucker-jamboree/
San Diego Convention Center & Marriott Hotel
San Diego, CA
http://www.truckline.com
21-22 • UTA Sponsored Training Seminar
Selling for Success
Dallas, TX
www.uta.org
AUGUST
1-3 • Carlisle Truck Nationals
Carlisle Expo Center, Carlisle Fairgrounds • Carlisle, PA
www.carlisleevents.com/carlisle-events/carlisle-truck-nationals/
29-30 • Green Fleet Conference & Expo
Renaissance Schaumburg Convention Center
Schaumburg, IL
http://www.greenfleetconference.com/
NOVEMBER
5-7 • 15th Annual UTA Convention
Talking Stick Resort & Casino • Scottsdale, AZ
http://www.uta.org/
8-9 • Waupun Truck-N-Show
Waupun Community Center • Waupun, WI
http://waupuntrucknshow.com
15-17 • Eau Claire Big Rig Truck Show
Chippewa Valley Technical College • Eau Claire, WI
www.eauclairebigrigtruckshow.com
6 May 2014
www.UTA.org
UTA Industry Watch
Moving on Down the Road: Catching Up with Adam Davy
After 25 years in the truck business, Toronto’s Adam Davy fulfilled a long-time
dream and opened his own dealership a couple of years ago. We recently caught
up with him to find out how things were going.
As for many UTA members, trucking was the family business in the Davy
household. It was Adam’s father Bob Davy who first introduced him to the truck
business. Bob was the founder of Truck Equipment and Service, a company still
operating today. He was the first in Canada to manufacture a Tuck Away Tailgate
(he called it the “TruckMaster”).
Before opening Davy Truck Sales, Adam was the branch manager for Arrow
Truck Sales in Toronto. With Adam at the helm, his branch became Arrow’s
number one branch out of 18 branches at the time! But Adam was quick to point
out he couldn’t have achieved this without the help of a great team. “Overseeing
all of the different departments, Adam said, “made me quickly see how crucial it
is to find competent people in building something to last, and of course
prosper!”
Davy Truck Sales now employs seven people, and plans to soon hire another
salesman. Adam added that the company hired its own mechanic, which “has
been a great help in controlling costs and providing better customer service as
well.” The dealership focuses mostly on highway tractors and a few day cabs.
“Another big part of its business,” Adam said, “is selling soft products, such as
gap insurance, and, of course, National Truck Protection warranties!”
The company may be doing well now, but the road wasn’t always a smooth one.
“For me to bankroll Davy Truck Sales,” Adam said, “I had to sell my cottage and
liquidate all my other assets.” Adding: “Having a lack of capital gives you a
unique ability to work your tail off pretty much daily. I actually found our
second year more trying than our first! I was glad to see the calendar turn to 2014. We made a profit our first year, but
it was a grind to say the least! Having a solid two years under our belt showing a profit will open up some borrowing
opportunities now ( fingers crossed!)”
One of the surprising things that Adam learned over the past couple of years is how the pressure he felt as the guy in
charge was actually empowering. “I find it ironic that the best thing about working for yourself is that all of the pressure
you have to deal with doesn’t get to you when you’re the one who’s actually in control! It’s empowering! You know
what they say, ‘When you want to lead the orchestra, you have to turn your back on the crowd.’” n
Invest your time where it counts:
With your highest performing or
highest potential salespeople.
www.UTA.org
May 2014 7
UTA Industry Watch
In Memorium
Bryan Boyd
Wendell Doonan
Bryan L. Boyd, affectionately known as “BB,” passed away on April
13th, 2014 at the age of 64. He had battled health issues stemming
from an accident he suffered while working on his custom Corvette.
The Corvette was his passion in life after he lost his beloved wife a year
and a half earlier.
Wendell Doonan, founder of Doonan Truck & Equipment, passed
away Sunday, April 27 in Arizona. Wendell was the father of Kenny
Doonan, owner of Doonan Peterbilt and a UTA Board Member.
BB owned Tulsa Truck Depot, he was on the UTA Board, and was
successful in business as well as in life. He was in the truck business
for most of his adult life. Most of the older members of the UTA knew
or knew of BB, and had been involved in some way in equipment deals
with him through the years. His infectious laugh, and unique way of
doing business, made you smile and feel comfortable with the
deal—regardless if you were buying or selling.
He was one of the most giving people on the earth, and would donate
his time or money to causes close to his heart. He truly made you feel
like a close friend the first time you met him. His attention span was
short. This meant you had to get your business done quickly so he
could tell you a short story that always ended in a laugh and smile.
You’d just shake your head and say, “that knot head.” You had to love
him. He wouldn’t have it any other way.
Bryan’s history in dealerships in which he worked would read like a
Who’s Who of Texas and Oklahoma businesses. But when he opened
Boyd Truck Center, and later acquired Tulsa Truck Depot, his destiny
was set. He would be his own man to the end. Mission accomplished.
Bryan’s love of family and friends went deep, and all those who loved
him back now feel a great void in their lives. His way of life should be a
lesson to all of us to work hard, but to love harder. His passion for the
bright side of life was
inspiring. He truly believed
that it’s not what you
accomplish in life, or the
things you leave behind, that
truly matter. Instead, he
believed that what really
counted were the positive
memories that others will
have of you, which live on in
our minds.
All who knew you BB have
some great memories and
smiles to grab hold of
whenever we want to. Good
game BB: you won. n
8 May 2014
The elder Doonan founded Doonan Truck and Equipment, which sold
farm equipment in the late 1940’s. His began his next new venture in
1955, when he started a GMC dealership in Great Bend, KS. He signed
on to add a Peterbilt store in 1964, and put in a new Peterbilt store in
Wichita, KS in 1965, according to Kenny Doonan who now owns and
operates the dealerships.
Wendell Doonan retired 15 years ago to Arizona where Kenny says his
father played just as hard as he worked. “He loved the weather and
enjoyed riding his four-wheeler in the Colorado Mountains,” Kenny
says. “He knew all the trails. He never got out a map. He just had this
knack of finding his way around.”
Wendell Doonan sold the Wichita dealership to Kenny in 2002, but
Kenny was given the opportunity to buy the Great Bend dealership
back three years later. Kenny began working for his father in 1965, and
successfully brought full circle a family business that was almost 50
years old. “I started driving trucks at 15, Kenny says, “bringing a stack
of trucks back home. I went through four years of college, and always
came home and worked the weekend doing something.” Brent
Doonan, the 3rd generation, is now running the day-to-day operations.
A respect for hard work, instilled by his father, is Kenny Doonan’s
work ethic to this day. He’s
also respected for his
contributions to the
trucking industry, and the
contributions he’s been able
to make to charities through
the UTA.
The UTA extends its
sympathies to Kenny, Susie,
and the rest of the Doonan
family—with sad hearts and
grateful memories for a life
well lived by Wendell
Doonan.
With love from your UTA
Family. n
www.UTA.org
UTA Industry Watch
Richard “Dick” Fellows
May 22, 1945 - April 10, 2014
Richard “Dick” Fellows, age 68, of Hendersonville, Tennessee, passed
away on April 10, 2014 in Nashville, Tennessee. He was born May 22,
1945 to Raymond and Artha Fellows in Milwaukee, Wisconsin. He is survived by his loving wife Sharon Fellows of Hendersonville,
Tennessee; two sons, Scott Fellows and wife Talisha of McKinney,
Texas; and Jeff Fellows and wife Betsy of Aubrey, Texas. He is also
survived by three grandsons, Zachary and Trey Fellows of McKinney,
Texas and Hayden Fellows of Aubrey, Texas; brothers Dennis Fellows and wife Joann of California; and Hank and wife Karyl Fellows of
Tampa, Florida; sister, Sharon
Allen and husband Don of
California; uncle, Henry
Fellows of Arizona; and
step-children and step-grandchildren, and many other
loving family and friends.
Dick was preceded in death by
his first wife of 41 years, Jean
Marie Fellows and parents,
Raymond and Artha Fellows.
A memorial service was held
Saturday, April 19, 2014 at
4:00 p.m. at TurrentineJackson-Morrow Chapel in
Allen, Texas. n
June 17 & 18th, 2010
The 9th Annual
UTA Jerome Nerman
Family Foundation
Golf Open Fundraiser
Wednesday, June 25
6:00 – 9:00 p.m.
Welcome Reception
at the Adams Pointe Conference Center,
Marriott Courtyard KC East
1400 NE Coronado Dr.
Blue Springs, MO 64014
Thursday, June 26
Golf Outing
at the Adams Pointe Golf Club
816-220-3673 • 1601 R.D. Mize Road
http://www.adamspointegolfclub.com
Breakfast will be served
at the course from 7:00 – 7:30 a.m.
Tee Time is at 8:00 a.m.
Show Your Support and
Sponsor this Charitable Event!
WWW.UTA.ORG
www.UTA.org
May 2014 9
UTA Industry Watch
Attendees Praise Tampa’s “Selling for Success” Class
A
ll the reviews are now in! UTA’s recent “Selling for Success” seminar in Tampa, FL was a
rousing success. Attendees left supercharged to get back to work, and apply some of the
smart strategies industry veteran and UTA trainer George Papp presented. But we’ll let the
attendees speak for themselves about just how valuable they found the training.
The Quality of the Materials
Selling for Success “The binder given with the presentations was excellent and will be a good future reference.” ~Tyler Pontier
“Exactly what I was looking for. George was fantastic in presenting the material.”
~Ian Logan
Most Beneficial Materials
“The importance of prospecting and the method to achieve success.”
~Ian Logan
“How to Create Relationships with Customers.” ~Andy Daugherty
More on the Presenter
“Very knowledgeable. He made it easy to understand with great examples. It is a
pleasure to lean from a true professional like George. He made learning very enjoyable.”
~Andy Daugherty
“George is the man, Couldn’t have presented the material any better.”
~Tyler Pontier
“I was captivated most of the presentation”
~Ian Logan
Would you Recommend this Class?
“Absolutely, I feel that this class is a must, if you want to be successful in the industry.”
~Andy Daugherty
Sales Associate Training My goal is to “Improve Sales Performance” by providing quality-­‐training programs specifically for the new and designed used truck industry. Delivered by an industry p
rofessional, one who has w
alked in their shoes provide
training advantage. I know s me the ultimate what they face every day, I
speak their language and I
sales associates with inform
will provide your ation they can put to use immed
iately. Selling for Success 2-­‐Day Course New to sales, new to our industr
y or not producing up to your capabilities…this is a must course to put your sales associa
take tes on the path to success. D
esigned to implement a sound activity routine that will m
daily eet the demands of your dealers
hip. Selling for Success will associates the fundamentals
teach your of selling plus they will be g
iven additional tools needed to successful in our industry. be Participants will learn the d
ifference between a sales job CAREER. and a sales Selling for Success Will T
each Your Associates How to: • Prepare for the sales day • Prospect for success • Control the sales call • Overcome objections Agenda Day 1 • Attitude – It’s all about attitude • Preparation – Inventory, add campaigns, industry knowle
dge • Relationship Building –
Its what selling is all about! • Closing Rate – A look a
t qualified opportunities VS sales • Prospecting – Finding a
nd qualifying • Your Database – It’s your book of business • Keys to Controlling the Sales Call – Control the call…co
ntrol the Day 2 • Price and Objections – Eliminate then early • Inbound Calls – The import
ance of an incoming call • Your Lot Day – Make a “Great Impression” • Outside Sales Calls – Empow
ering and effective • Closing – Techniques • Role play – Lets have some fun sale “It was just what I needed as a new salesperson.”
~Ian Logan
And Overall?
“I have been to a lot of sales classes and this is the best one I have been to.”
~Mike Siebke
“Awesome!”
~Audra Caldwell
Thanks to George Papp, and all the attendees, for making UTA’s Selling for Success class in
Tampa such an educational and enjoyable experience for everyone. If you missed this class,
don’t worry. There will be at least two more presented this year.
Here are the dates: May 19–20 Baltimore, MD
July 21–22 St. Louis, MO Save these dates! Details about the location of
the hotels will be posted shortly on UTA.org.
10 May 2014
www.UTA.org
UTA Industry Watch
Subtle Shift for Big Rigs
Research by Professor, Students May Improve Long-Haul Trucks for Women
L
ook at Jeanette Kersten, and you probably
don’t think trucker. The assistant
professor of operations and management for
University of Wisconsin-Stout is so slight you
would think she’d have a hard time climbing
into the cab of an 18-wheeler, much less
driving the beast on the open road.
That’s that focus of Kersten’s research: to make
long-haul trucks more accommodating and
comfortable for women— a largely untapped,
and badly needed, pool of drivers.
“Today’s trucks are not designed with women
in mind,” Kersten said. “Given the driver
shortage and the changing demographics
that the trucking industry faces, it’s important
for manufacturers to make trucks more
female-friendly through moderate design
changes for seats, pedals, and gauges, for
example.”
Kersten, with the assistance of her Organization
Development class graduate students, and Ellen
Voie, president for the Wisconsin-based
Women in Trucking Association, conducted
research that led to major recommendations
on improvements in the design of truck
seats, dashboards, steering mechanisms and
other ergonomics for female drivers.
Kersten recently presented her paper “Truck
Cab Design: Perceptions of Women Truck
Drivers” at the fifth annual International
Conference on Women’s Issues in
Transportation in Paris, France.
The trucking industry says that it needs an
additional 20,000 to 25,000 drivers, and
women could help fill that gap. In 2011,
women accounted for just seven percent of
the workers in the U.S. trucking industry.
The study Kersten conducted used a
questionnaire that went to 663 members of
the Women in Trucking Association.
“Adjustability was a central issue facing
women truck drivers,” the study concluded.
“A well-designed truck cab not only makes a
significant difference in the working conditions for a truck driver but also affects the
safety of truck drivers and other road users.
“If the design of the truck cab is poorly fitted
to the size and dimensions of the driver, the
road may be less visible, driving controls may
be more difficult to reach and seat belts may
be less comfortable and less likely to be used.”
www.UTA.org
UW-Stout Assistant Professor Jeanette Kersten, student Matt Mauer, and two other
students did research on improving cab designs for female truck drivers. As a result
of the research, Ryder is considering making changes to its trucks.
The research caught the attention of the
Ryder transportation company, which has
announced a partnership with the Women
in Trucking Association to improve
conditions for female drivers.
Vehicle specifications Ryder is reviewing
include:
■■
■■
Height and placement of cab steps and
grab handles
Adjustable foot pedal height (accelerator,
brake, clutch)
■■
Height of seat belts (shoulder area)
■■
Visibility of dash gauges
■■
Electric/hydraulic hood lifting mechanism
■■
Automated transmission shift lever
placement/location
■■
Access to the top of the dash
■■
Better access to oil and coolant check and fill
“It’s important for manufacturers to take
women’s needs into consideration when
designing and specifying new vehicles, and
we are encouraging all of our major suppliers
to do so,” said Scott Perry, Ryder vice
president for supply management.
“In addition many of the same design changes
will also support the needs of men who are
smaller in stature, as well as the growing
population of older male drivers. With the
current industry-wide shortage of professional
drivers, this is a strategic initiative that can
have far-reaching implications for truck fleets.”
Ryder said it will deploy the design changes
in its owned and leased fleet and will encourage
vehicle manufacturers to consider additional
design changes.
Kersten emphasized the important role Voie
had in the study. “She came to me with this
issue, and I designed the project with her for
the students,” Kersten said. “She was also
instrumental in influencing Ryder to take an
active approach regarding the results.” n
May 2014 11
UTA Industry Watch
NADA Update
Chris Visser, Senior Analyst and Product Manager, Commercial Trucks
Monthly Retail Sales Volume by Model Year: Sleeper Tractors Under 1M Miles Summary
2 per. Mov. Avg.(2009) 300 2 per. Mov. Avg.(2010) 2 per. Mov. Avg.(2011) 250 2 per. Mov. Avg.(2012) 200 150 100 50 Price $35,000 430,000 Price Mileage $30,000 Ja
n-­‐
12
M
ar
M
ay
Ju
l Se
p No
v
Ja n-­‐
13
M
ar
M
ay
Ju
l Se
p No
v
Ja n-­‐
14
M
ar
400,000 Period The year-over-year comparison provides a good example of how the
market has shifted over this period, with the average used truck now
worth over $5000 more retail, despite identical age and mileage. As we’ve
stated, continued increases in our universal average are due mainly to
an increased number of newer, lower-mileage trucks available to the
secondary market. Trucks of 2011 vintage are now the most common
sold retail, and 2012s are slowly but surely coming on-line. In terms of
mileage, trucks in the 300-399,000 range have increased in recent
months. See “Monthly Retail Sales Volume” graph.
Based on this positive data, why did we say that the market ticked mildly
downward? Because when viewed on an individual basis, most
trucks declined slightly in March. Essentially, the market is increasingly
represented by newer trucks, which bolsters our universal average—
but when viewed by model year, trucks are flat to slightly down. See
“Average Retail Price by Model Year” graph.
12 May 2014
Feb Mar Dec Jan-­‐14 Oct Nov Sep Jul Aug Jun Apr May Feb Mar Dec Jan-­‐13 Oct Nov Sep $30,000 $20,000 Se
p l Ju
Se
p l Ju
M
ar
M
ay
Source: ATD/NADA No
v
Ja n-­‐
14
M
ar
460,000 Jul $40,000 No
v
Ja n-­‐
13
M
ar
M
ay
$40,000 Aug $50,000 490,000 2012 $60,000 12
$45,000 2011 $70,000 Ja
520,000 2010 $80,000 n-­‐
Price $50,000 2009 Period Mileage 550,000 2008 $90,000 $0 $55,000 Jun 2007 $100,000 $10,000 580,000 Source: ATD/NADA Apr Average Retail Price by Model Year All Sleeper Tractors Under 1M Miles -­‐ Adjusted for Mileage Retail sales data submitted to NADA from dealers and OEMs shows
that the overall sleeper market in March ticked mildly downward.
$60,000 Period Source: ATD/NADA Sleeper Tractors – Retail
Average Retail Price and Mileage: All Sleeper Tractors Under 1M Miles May Mar Feb 0 Major players in the new truck arena are making big bets on the used
truck market, as a special commentary explores.
The average sleeper tractor retailed in March was 77 months old, had
524,564 miles, and sold for $55,840. Compared to February, this truck
was one month newer, had 4224 (or 0.8 percent) fewer miles, and
worth $386 (or 0.7 percent) less. Compared to March 2013, this truck
was identical in age, essentially identical in mileage, and worth $5048
(9.0 percent) more. See “Average Retail Price and Mileage” graph.
2 per. Mov. Avg.(2008) 350 Jan-­‐12 Class 8 retail pricing on average is mildly down, suggesting that
late-model trucks may have found their price ceiling. Class 8 wholesale pricing on average also ticked downward, driven by the continued
increase in number of high-mileage trucks sold. In the medium duty
market, Class 4 conventionals continue to gradually strengthen, while
Class 6 conventionals turned in a very strong month.
400 Sales Volume The volume of trucks sold at auction roared back in March after a
mediocre start to the year, thanks to pent-up demand and the month’s
traditionally strong results. Volume through the retail channel
increased mildly, potentially representing a return to month-overmonth stability.
Spring market dynamics are still shaking out after an unusual winter,
so we are not yet identifying a trend. We expect retail pricing in
upcoming months to be stable to very mildly downward.
Sleeper Tractors – Wholesale
The wholesale channel continues to be a story of two separate markets,
with trucks with under 600,000 miles representing the late-model,
higher-priced component and the segment represented by trucks with
over 800,000 miles increasing in popularity. Volume and pricing for
the high-mileage segment increased through the 1st quarter of 2014,
which is a new development. On average, the typical used truck sold at auction or dealer-to-dealer
in March was 86 months old, had 699,500 miles, and brought $32,183.
Month-over-month, this truck was 3 months older, had 23,965 (or 3.3
percent) fewer miles, and cost $492 (or 1.5 percent) more. Year-overyear, the average truck was 7 months newer, had 43,785 (or 5.9 percent)
fewer miles, and cost $8452 (or 26.3 percent) more. See “Average
Wholesale Price and Mileage” graph.
The year-over-year increase is due mainly to a higher number of 2009
and 2010 model-year trucks moving through wholesale channels, their
higher relative pricing comprising a larger proportion of the universal
average this month.
As for high-mileage trucks, buyers continue to pay more for trucks
with over 800,000 miles, continuing a trend that began in the 1st
quarter. In 2014 to date, trucks in this mileage group comprise a larger
proportion of the market than they did in 2013. These trucks are most
www.UTA.org
UTA Industry Watch
Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles $45,000 750,000 $40,000 700,000 $35,000 650,000 600,000 $25,000 $20,000 550,000 $15,000 $10,000 $5,000 2 per. Mov. Avg.(Price) 500,000 2 per. Mov. Avg.(Mileage) 450,000 Mar Nov Jan-­‐14 Jul Sep Mar May Jan-­‐13 400,000 Nov Sep May Mar Jan-­‐12 Jul Source: NADA and AucFonNet $0 Mileage Price $30,000 Period commonly from the 2006 and 2007 model years, which are popular as
the last of the pre-DPF models. Engines will need a major overhaul if
they haven’t had one already, but some buyers may consider this
procedure worth the investment, since the market for pre-DPF trucks
with remaining useful life remains healthy outside of coastal/port
regions. Anecdotal evidence suggests this activity is most common in
the long & tall segment, but our data indicates aerodynamic models
are also contributing to this trend. See “Average Wholesale Price and
Number of Trucks Sold” graph.
Average Wholesale Price and Number of Trucks Sold by Mileage Range -­‐ Sleeper Tractors, YTD2014 Price Count $70,000 120 $60,000 100 80 $40,000 60 $30,000 Count Price $50,000 40 $20,000 20 $10,000 0-­‐
99
9K
9K
89
0-­‐
80
90
9K
79
0-­‐
9K
69
0-­‐
60
70
0-­‐
59
9K
50
40
0-­‐
49
9K
9K
39
0-­‐
30
9K
29
0-­‐
20
10
0-­‐
19
9K
0 $0 Mileage Sources: ATD/NADA and AucDonNet Given this dynamic, dealers may want to revisit their aged, high-mileage
inventory, as there may be more buyers out there now than in previous
months. Establishing a relationship with a high-mileage truck broker
or buyer could pay off in inventory reduction and potentially increased
comfort with high-mileage trade-ins.
We will continue to monitor this segment to determine whether these
results suggest a long-term trend or merely a short-term anomaly
following the unusual start to the year. Stay tuned.
Competitive Comparison
This month, we return to our benchmark 4-year-old comparison of
aerodynamic models sold through the retail channel. As always, the
comparison is limited to trucks equipped with big-bore or proprietary
engines. As you can see, pricing for these trucks followed the broader
market, staying similar to February or ticking mildly downward. See
“Average Retail Price – 4 Year-Old Sleeper Tractors” graph.
www.UTA.org
The Freightliner Cascadia continues to lead the aerodynamic segment,
retaining that position even after moving slightly downward this month.
The 386, T660, and T700 returned very similar results month-overmonth, and are positioned essentially equally in the marketplace.
In the late-model market, there does not appear to be a clear difference
between wide cab trucks, such as the T700 and 730/780, and narrow
cab trucks, such as the T660 and 386. The moderately increased
versatility of the narrower cab design is likely counterbalanced by the
increased interior space of the wide-cab trucks, at least for units with
remaining useful life in a long-haul role. A difference may become more
apparent as trucks accumulate mileage and are placed in more local/
regional roles.
For trucks that typically trail the segment average, an increased number
of MaxxForce-equipped ProStars were sold in March, placing downward
pressure on that model’s average. As experience with the 2011 iteration
of the MaxxForce engine grows, marketplace confidence appears to be
improving, judging by increased volume and pricing stability. As for
other models, the 630/670 was stable month-over-month, and the
limited build of 2011 387s resulted in no reported sales in March.
NADA continued on page 14
May 2014 13
UTA Industry Watch
NADA continued from page 13
Medium Duty – Class 4 Conventionals
The Class 4 Conventional segment showed strength in March, with
average wholesale pricing for 4-7 year-old units coming in at $17,581
- $2487 (or 14.1 percent) higher than last month, and $3274 (or 18.6
percent) higher than March 2013. Average mileage was 98,745 – 16,499
(or 14.3 percent) lower than February, and 9492 (or 8.8 percent) lower
than March 2013. See graph.
Given the low monthly volume of this cohort, it is useful to look at
quarterly results for a basis of comparison. Average price for the first
quarter of 2014 was $24,005 – a whopping $8028 (or 33.4 percent)
higher than 4Q 2013. Lower average mileage this quarter was largely
responsible for the price difference, coming in 23,015 (or 13.4 percent)
lower than last quarter. Year-over year, Q1 2014 was $7798 (or 32.5
percent) higher on price, and 35,663 (or 19.5 percent) lower on
mileage. The Class 6 market is now priced higher than the previous
post-recession peak in early 2012.
Lower average mileage is the main factor behind the higher pricing. At
the same time, a deeper dive into the data suggests that trucks at given
mileage points are bringing moderately higher pricing in the current
period. As such, our confidence in the strength of the Class 6 market
is increasing.
Special Commentary: Major Players Betting Big on
Used Trucks
On a quarter vs. quarter basis, Q1 2014 saw higher pricing than Q4
2013, at $16,005 vs. $13,322, respectively. Mileage in Q1 2014 was
mildly lower than the previous quarter, at 105,307 vs. 108,282. Q1 2014
was slightly better than Q1 2013, with a $776 (or 4.8 percent) improvement in price despite a 6708 (or 6.4 percent) increase in mileage.
This higher pricing is encouraging, but keep in mind the moderately
lower mileage this month is partly responsible. Also, and more importantly,
the volume of trucks reported sold in this cohort has remained in the
40-50 unit range each month, down about 25 units from the 2012 average.
Given these results, we continue to view the Class 4 segment as gradually
improving. As this segment touches a wide variety of economic
segments, we expect results in upcoming months to roughly track the
gradual improvement in the domestic economy overall.
Medium Duty – Class 6 Conventionals
Since January, we’ve been reporting on the extremely low number of
2008-2011 model year Class 6 Conventionals sold. Along with that low
volume has come historically high pricing. In March, the average 4-7
year-old Class 6 Conventional sold wholesale for $25,014 – the highest
average price in at least six years. Mileage was moderately low, at
136,871, continuing a trend begun in January. See graph.
Recently, two of the nation’s largest sources of new and used trucks,
Rush Enterprises and Penske, opened brick-and-mortar locations
dedicated solely to used trucks. Rush currently operates one Rig Tough
used truck location, and is planning to open an unknown number of
additional locations this year. Penske Used Trucks currently has two
locations, and plans to open two more by the end of 2014.
For entities with access to the necessary capital, a major investment in
used truck infrastructure makes sense. Late-model trucks are selling for
historically high prices, and increased numbers of these trucks have been
entering the secondary market due to the return to normal build rates
and shorter trade cycles. In addition, competition between OEMs for
new truck business will likely provide additional late-model trade-ins.
In general, dedicated used truck locations provide enhanced visibility
among end users, extend services to areas otherwise not served by a
dealer group, and ensure that a used truck is marketed on its own
merits as opposed to merely being a component of a new truck deal.
Looking specifically at Penske, this move represents a shift from their
traditional wholesale model towards the retail channel, providing the
end user with medium and heavy trucks ready for immediate purchase.
In terms of Rush, the move provides potential customers increased
access to trucks returning from trade in the near future. In both cases,
an expected increase in volume of trade-ins is an underlying rationale.
In terms of the customer base, customer analytics have become extremely
advanced thanks to better understanding of big data, and major
operators like Penske and Rush are surely among the most savvy when
it comes to taking advantage of all the predictive tools available.
According to ATD 20 Group data, used trucks represent a higher
margin than new trucks as a percentage of gross. Establishing physical
outlets for used trucks indicates a realization that there will be more
iron to move, and there is money to be made doing it.
Sales Volume
As predicted, March’s retail volume was slightly higher than February’s.
March came in at 6.3 trucks retailed per rooftop – 0.2 higher than
February. See “Average Number of Used Trucks” graph.
March is traditionally a high-volume month, and the remaining
pent-up demand from the winter likely contributed to sales. Thanks to
fewer external factors suppressing demand, we expect increased
stability in volume in upcoming months.
14 May 2014
www.UTA.org
UTA Industry Watch
Coming Next Month!
On the wholesale side, pent-up demand following the rough winter
combined with timing of our data collection processes resulted in a
massive increase in number of trucks reported sold in March. In fact,
this month represented the highest volume reported since May of 2010.
June 17 & 18th, 2010
Month-over-month, March’s total of 4183 trucks was higher than
February’s by 1202 (or 28.7 percent). Year-over-year, March 2014 was
1109 (or 26.5 percent) higher. See “Total Wholesale Sales” graph.
“Tips You Can Count On”
Moving Old Inventory
When you have old inventory that just won’t
retail consider changing things up.
• Perhaps run it back thru detail
• Add or change the body (for example, take
the van off and put the flatbed on)
• Paint the unit (e.g., if it’s painted yellow, paint
it white or make it two tone)
Due to the timing of our data collection processes, we received one
additional week of sales in March compared to February. However, even if
we split that “extra” week evenly between February and March, March
still comes out ahead by almost 12 percent. That additional volume is
explained by typical early-spring seasonality amplified by the severe
winter. Volume will likely return closer to the 2013 average, and we expect
auction activity in 2014 to proceed moderately higher than last year.
• Add aluminum wheels or simulators
• Fix any damage (at first you may think that
little dent in the door didn’t need it)
Sometimes putting extra money into the truck
will help you sell it!
~ The Medium Duty Counselor
Conclusion
In the retail channel, Class 8 sleepers have likely seen the last of their
appreciation. Pricing should remain at or mildly off record highs in
upcoming months as more late-model trucks become available. In the
wholesale channel, increased interest in high-mileage trucks is the
new dynamic. In the medium duty sector, Class 4 conventionals are in
recovery, albeit a very gradual one. Class 6’s may finally be coming
back, although we will need another month of sales not impacted by
winter weather to gain confidence in that assertion. n
Reprinted with permission from the ATD/
NADA Official Commercial Truck Guide®
www.nada.com/b2b
www.UTA.org
May 2014 15
UTA Industry Watch
Industry News Briefs
March’s Orders Up Again:
ACT Research
March brought good news all around
this year. It signaled the arrival of
Spring, of course, but it also brought good news for the trucking
industry, in particular. Class 8 orders were up 24 percent as compared
to last March. Medium Duty orders were up 15 percent.
ACT’s preliminary numbers pegged Class 8 net orders at 27,400 units;
Classes 5-7 orders at 17,600 units.
“Class 8 orders in March represented the lowest intake since November,”
said Kenny Vieth, ACT’s President/Sr. Analyst, “but March was also the
sixth best order month since early 2006, up 24 percent compared to a
year ago. Typically a strong month, seasonal adjustment drops March
orders to 26,100 units/314k SAAR. In Q1, Class 8 net orders were booked
at a 353k SAAR.
“Like Class 8, Classes 5-7 net orders rose compared to March 2013, but
slipped sequentially. In March, Classes 5-7 net orders totaled 17,600
units. That volume represents a seven percent decline from February’s
cycle-to-date high, and a 15 percent improvement from last March.
Consistency continues to be part of the MD vehicle order story: Over
the past 3, 6, and 12 months, orders have been booked at a 209k SAAR,
a 206k SAAR and 204k units, respectively,” said Vieth.
For more information, visit ACT at http://www.actresearch.net. n
Tight Capacity, Surging Rates Breed
Confidence: TCP
Truckers are optimistic about rates and volumes according to Transport
Capital Partners’ (TCP) first quarter survey. In fact, optimism concerning
volume growth has steadily risen over TCP’s last six surveys. TCP said
the results reflect a better outlook for the economy at large. Also,
seasonal capacity shortages contributed to carriers’ expectations that
volume will increase over the next 12 months.
Volume expectations grew 74 percent from 2013’s 4th quarter—from 44
percent to 77 percent. Compared to last year this time the increase is
48 percent.
“The literal mother of all rate increases may be here in 2014, as reflected
in our first quarter survey,” said TCP’s survey leader, Richard Mikes.
The market research firm also noted that rate expectations have moved
almost in tandem with volume expectations. Four out of five carriers
expect rates to rise over the next 12 months—a 62 percent increase from
last quarter.
“Historically, smaller carriers have been the more optimistic about rate
increases,” TCP Partner, Steven Dutro noted. n
Trucking Conditions Reflecting
“Unprecedented” Capacity Constraints: FTR
FTR’s Trucking Conditions Index (TCI) reading of 7.54 for February,
was down some from January’s reading, but was still good news for
trucking fleets. It was also “a warning to shippers seeking carriers to
move their goods,” FTR said in a release.
Once again, the wrath of last winter had
some serious repercussions, which were
not reflected in the data. When adjusted
for weather, the TCI reading would be
pushed above a reading of 10, “certainly
making this the tightest truck market on
record,” FTR noted. FTR said it expects the
TCI to remain in this range throughout 2014—affected by both “truck
freight demand and regulatory drag hindering available capacity.”
Jonathan Starks, FTR’s Director of Transportation Analysis put the
findings in perspective. “The most recent weekly spot market data shows
that the spring thaw has come to truck demand with spot market
capacity up and load activity down slightly—a plateau versus the last
couple of months when both demand and pricing spiked while capacity
was severely constrained. Both carriers and shippers have to be on the
lookout for a potential tipping point when freight demand is able to
keep the current high level of truck use well into the summer months.
Such an environment would necessitate shippers bidding up rates to
maintain secure capacity during the fall shipping season…It would
only take a relatively modest and short uptick in the industrial sector
for capacity to tighten significantly further. We advise everyone to stay
tuned to the manufacturing data to see if the thaw continues.” n
16 May 2014
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UTA Industry Watch
Volvo’s 2014 GHG-Certified Engines are
Beating Fuel Efficiency Expectations
Peterbilt Introduces
New 220 Model
Volvo’s Greenhouse Gas (GHG) 2014-certified engines are more fuel
efficient than anticipated, Volvo Trucks recently announced. The
integrated engines are delivering up to a three percent fuel efficiency
improvement compared with their 2013 counterparts.
Peterbilt Motors Company has
added the Model 220 to its mediumduty COE lineup “that features numerous
interior and exterior enhancements to increase
driver productivity, safety and durability,” according to the company.
The new model comes with a new electronic braking system (EBS)
“that provides quicker responsiveness and an improved braking feel.”
“Introduction of our SCR-equipped models yielded a five percent fuel
efficiency increase…our 2014 engine lineup is delivering up to an
additional three percent savings.” said Göran Nyberg, president, Volvo
Trucks North American Sales & Marketing.
“Fuel efficiency remains top-of-mind across the industry, but there’s
no one-size-fits-all solution that will deliver massive improvements.
Every drop counts,” Nyberg said. “On average, a one percent fuel
efficiency improvement amounts to annual savings of more than $650
per truck. Carriers ignoring opportunities for incremental fuel
efficiency gains are leaving money on the table.”
In addition to the fuel efficiency gains from Volvo’s 2014 engine
technology, Volvo Trucks’ XE powertrain package boosts fuel
efficiency by up to an additional three percent, according to the
company. Available on Volvo VNM and VNL models equipped with
2014 Volvo engines, the XE11, XE13 and XE16 packages improve fuel
efficiency by lowering engine rpm at a given vehicle speed, a concept
Volvo calls “downspeeding.” Possible through the combination of
Volvo’s standard I-Shift automated manual transmission and Volvo
engine with modified software, XE allows the engine to cruise about
200 rpm less than the average truck sold today.
Fuel efficiency improves by about 1.5 percent for every 100 rpm of
downspeeding, so customers spec’ing the XE package can expect up to
a three percent improvement when compared with another overdrive
transmission in a similar operation. Demand for XE powertrain
packages has grown each year since the initial introduction of the
XE13 for the D13 engine. n
Peterbilt said the new cab has a completely redesigned interior, engineered
to give drivers “unparalleled levels of productivity and comfort.” It
features a curved dashboard with easy-to-read instrumentation and an
interactive, five-inch color display module that provides information on
vehicle and driver performance.
“The Driver Information Center display in the Model 220 keeps operators
abreast of all vital vehicle and engine functions,” said Landon Sproull,
Peterbilt Chief Engineer. “It also features advice for the operator on ways
to improve in areas such as increasing fuel efficiency and reducing brake
wear by modifying driving
behavior.” Other improvements include a multi-function steering wheel and a
push-button style shifter the
driver can easily reach.
“Ergonomics were enhanced
with easier-to-read instrumentation and all switches
are grouped by function.
Everything is within easy
reach of the driver and the
overall layout provides a
logical, easy-to-operate environment,” said Sproull. He added that
storage is abundant in the new cab with compartments in the door
panels, along the back wall, in the header and on the dash, conveniently located near the driver for paperwork or other items. In
addition there’s an optional lockable compartment with two integrated cup holders that fits along the engine tunnel area.
The Model 220 will remain standard with features including: power
windows, locks and mirrors; air-ride driver’s seat; and air conditioning.
It’s also available with passenger-side air-ride seats, or a fixed two-man
bench to accommodate three people in the cab.
Exterior Cab Improvements
The new cabs are designed for durability to withstand harsh, urban
operating environments. For instance, the new bumper is manufactured
from galvanized steel, there’s a new radiator protection plate, and the
headlamps are protected by a tough Lexan covering. For improved
visibility during adverse conditions, fog lamps have been integrated
into the bumper. “Productivity and safety are two major areas of improvement. We’ve
facilitated ease of entry and egress with doors that open a full 90 degrees
and there’s ample courtesy lighting,” said Sproull.
According to Sproull, implementing the new cab allowed Peterbilt to
integrate the new EBS.
“Braking performance is improved with faster response from the
pedal to the brakes, and drivers will appreciate the improved feel
when braking,” he said. n
www.UTA.org
May 2014 17
UTA Industry Watch
18 May 2014
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UTA Industry Watch
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May 2014 19
UTA Industry Watch
From Where We Sit
Hooray! It’s springtime in our beautiful little
valley, and we’ve all made it through to the
glorious month of May! See, we told you this
winter would end, and end it did. Now life is
filled with the happy sound of children
playing in the sunshine and the characteristic
smell of the manure in the farmers’ fields
means it’s time to stop waiting and start
growing. Life in agricultural country is good
indeed. Still everyone who has made it
through to this wonderful reward can see the
effects of the winter-we-thought-would-neverend. The kids had a two-day spring break from
school instead of more than a week. So snow
days come at a cost. Roofs and sidewalks need
some repair after the onslaught, and all the
damage that was done to trees and yards is now fully visible. Well,
luckily, those are all “first-world” problems.
Ugh! This expression has crept into our lexicon over the last few years,
and we despise it. We really truly do. It’s insulting to the people
throughout the world who are struggling with third-world problems,
and it’s entirely dismissive of the
day-to-day challenges of those
who aren’t. Absolutely, as a human
community, all of our hearts
should go out to the parents who
are struggling to feed their
children today and the oppressed
people who are only dreaming of
the types of freedoms and
opportunities we who live in this
country enjoy. Even the neediest
Americans have a better life and
more advantages than many who
weren’t born to our good fortune.
We would never compare our
daily issues with the struggles of
families who aren’t guaranteed
clean water every day, or who
never know what it means to take
a loved one who is ill to a doctor. Americans in general are among the
most generous and giving of people who have ever walked this planet.
In our generation alone, we’ve raised kids who joined Teach for
America, the Peace Corps, and Volunteers in Service to America
(VISTA). We’re proud of all our country does when terrible storms,
earthquakes, or terrorist attacks happen throughout the world, and
we’re proud to stand among our fellow citizens in doing what we can
to help the less fortunate. But, do we categorize our problems as first
world? No, thank you very much, we don’t.
Maybe that’s because we grew up among people who knew first-hand
what life was like under dictatorial governments. Maybe it’s because
their history showed us that when one group of people is suffering, it
detracts from the happiness and peace all groups of citizens know.
Even so, that doesn’t mean those of us who are more fortunate need to
20 May 2014
hide our own personal sufferings or act like we don’t have problems or
concerns. If your child isn’t thriving in school, that’s a genuine
concern. It’s certainly wonderful that she went off in the morning with
a belly full of a good breakfast, but her tears and frustrations are still
hers and yours and they matter. If
your spouse is struggling to find the
right job while taking stop-gap work
to make ends meet, that’s a genuine
worry. Yes, it might only mean that
you forgo a vacation this summer or
cut back on spending in the meantime,
but it is still your struggle and you
are entitled to your feelings about it.
So, do these examples of “first-world
problems” compare to the struggles
of the third world? No, of course
they don’t. But, if you broke your leg
skiing during the endless winter that
just ended, your pain was no less real
to you. That the injury happened
while you were enjoying a great day
doing something many in the world
can’t even dream of doing doesn’t change that. Sure, here in the first
world, you would have gotten great care, and you’d now be well on
your way to being mended. We’d still include you among those who
deserve our empathy and compassion. We
won’t use the expression “first-world
problem,” out of respect for the entire human
family. We will continue to try to make the
world a better place, both around the globe
and here at home, but suffering is suffering
and it need not be dismissed. At least, that’s
the way it looks from where we sit.
Deb and Brad Schepp
editor@uta.org
www.UTA.org