Industry Watch April 2011
Transcription
Industry Watch April 2011
1.877.GETS.UTA • www.uta.org Used Truck Association Class Is In Session! Chartered May 16, 1988 UTA Training for 2011 Published by the Used Truck Association 325 Country Club Drive, Suite A Stockbridge, GA 30281 Table of Contents Board News & Views........................... 2 New Members................................. 3, 5 Face to Face with Lee Chapin............... 4 Bryan’s Spotlight............................... 7-8 Used Truck Market Keeps Accelerating................................... 8-9 The Brooks Group Sales Tip of the Month....................... 9 Industry News Briefs....................... 10-13 From Where We Sit........................... 15 Industry Events Calendar.................... 15 The UTA… Members Supporting Members! Volume 13 • Issue 4 • April 2011 T his year, UTA members can continue to take full advantage of quality, beneficial training opportunities with a UTA focus. I’m excited to be part of this initiative. Many years ago, as a new manager I attended a super power sales seminar. I remember hearing Zig Ziglar say, “It is far better to have trained salespeople and have them leave you, than to have never trained them and have them stay.” Zig’s words still loudly resonate with me today, just as they did when I first heard them. It has been over 20 years since that time, and training is still the hot topic in every major sales-oriented organization today. Training is an on-going commitment—it always was and it always will be. Yes, training programs can get expensive, specific, and proprietary putting them out of reach. But the benefits of solid training efforts often pay off big time. The rewards of good solid training are many. Think about the importance of: ■■ The value of a selling salesman versus a fly-by-the-seat-of-his-pants salesman ($$$$). ■■ A professional approach to meeting and greeting every one of your customers, and making them feel welcomed at your place of business ($$$$). ■■ Product and spec knowledge of what you sell, and how you should present it to your customers to maximize the opportunity for a sale ($$$$). ■■ Turnover reduction in your sales force (success breeds ongoing success, and trust me it is contagious, show me the money is alive and well) ($$$$). ■■ Leadership and promotion possibilities, which can be recognized from your UTA-trained successful sales force ($$$$). Some of the benefits your sales force can attain from training include: ■■ Recognizing ■■ Generous ■■ A the difference between a career and a job (self worth). yearly pay raises from increased repeat and referral sales ($$$$). sales path for success that will increase closing sales percentages ($$$$). ■■ Industry knowledge that will be useful in putting the right product that will do the job, in front of the right customer ($$$$). ■■ Recognized professional UTA achievement levels. The UTA training initiatives begin with online training from the Brooks Group. The Brooks Group, a national award-winning, recognized leader in the field of sales training, has created a custom training program just for UTA. This training is available online, and consists of a self study systemized sales approach called IMPACT. This course will benefit everyone who wants to become the best manager or selling salesman ever. SHARE YOUR NEWS with the UTA Industry Watch. Send submissions, ideas and comments, to: UTA Industry Watch Editors Brad and Deb Schepp, Lara Haag 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 Also, there’s training through the Truck Marketing Institute (TMI), which for over 60 years has trained independent and OEM’s with a home study course for truck classes five through eight. The TMI course starts with terminology and specifications that are essential for industry understanding and success. It incorporates and builds a foundation of truck basics, all the way through advanced specification knowledge. (Continued on page 5) 2011 Board of Directors UTA Industry Watch Board News and Views “Nothing is stronger than the heart of a volunteer.” ~Lt. Col. James H. Doolittle, April 18, 1942 T Front, L to R: Sheri Aaberg, Randy Pennington, Marty Crawford, Tim Ronan, Mike Thurston. Back, L to R: Tim Ormsby, Bryan Haupt, Ken Kosic, Bobby Williams, Rick Clark, Tom Pfeiler, Bryan Boyd, Lara Haag, John Cosgrove, George Barnett. President Rick Clark Vice President Bobby Williams Treasurer Tom Pfeiler Secretary Sheri Aaberg President Emeritus Marty Crawford Affiliates & Benefits Committee Chairman Bryan Boyd Convention Committee Chairman Sheri Aaberg & Tim Ormsby UTA Jerome Nerman Family Foundation Scholarship Committee Chairman Tim Ronan Elections Committee Chairman George Barnett Marketing Committee Chairman Lara Haag Medium-Duty Committee Chairman Randy Pennington Membership Committee Chairman Randy Pennington & John Cosgrove Training Committee Chairman Ken Kosic UTA Dealer Group Committee Chairman Mike Thurston he Japanese attack on Pearl Harbor was one of the darkest points in U.S. history. America was beat and it could have folded but it didn’t. Many of us have heard this famous quote from Lt. Col. James H. Doolittle because we have seen the movie Pearl Harbor. At the time I saw the movie the words were powerful, even moving. Photograph courtesy U.S. Naval Historical Center The dictionary says a volunteer is “a person who voluntarily offers himself or herself for a service or undertaking.” Today Japan is hurt and the world watches and reacts. Volunteers are rushing to its aid with manpower and dollars. Disaster is never good, but it does always seem to have one upside: people who have no connection to the disaster blast into action to help. Why does a volunteer help? Because someone needs help. To make the less fortunate feel better. To make the volunteer feel better. I am sure many reasons could be listed. What do we do in our everyday lives to volunteer? We see many inspiring examples of people helping people on TV and in the newspaper, but what do we do? There are so many great organizations out there we can join in our own communities: Boys and Girls Club, the YMCA, a local church, Boy Scouts, Girl Scouts, hospital and disease organizations, food shelters, the list is endless. Our culture is fast paced today. We are all short on time. The family is running nonstop. The kids have to be driven from practice to practice. Someone in the family is sick. I’ve been traveling all week. How do we find time? I thought technology was supposed to give us more time, but we all seem to have less. So what’s my point? I don’t have a point, but I do want to issue a challenge. I issue this challenge to myself and to all of you. The challenge is to make the time to volunteer. Coach your kid’s baseball team, spend time at the soup kitchen, and deliver goods or food to the poor. Anything helps. I would not be doing my job if I did not ask you to also consider your industry. The UTA is an incredible organization. Surely the best aspect is the yearly meeting in November. We spend time together eating, drinking, learning, golfing, fishing, and most of all networking. Then we go down the road for 12 months, and many of us don’t think about UTA again until the next November. We have so many great volunteers, but we need more. We need the next generation. Think about being involved in UTA the entire year. Our golf fundraiser in June is coming up to raise scholarship money. You need to be there! At the very least donate to this great cause. The membership committee is putting on a full court press to expand membership. Let’s help them out. We need more members out west and in Canada. We are proud of this organization; let’s prove it all 12 months of the year. We still need regional committee members for the dealer group. Call me and be a part of the team all year. Nothing is stronger than the heart of a volunteer. I want all of us to prove this 12 months a year. At the very least we should pray for those in Japan, care for those in our community, and show the truck industry that the UTA is here to create a better tomorrow by volunteering our time and resources today. n Mike Thurston UTA Dealer Group Committee miket@uta.org UTA.org Website Committee Chairman Bobby Williams UTATrucks.org Website Committee Chairman Bryan Haupt 2 April 2011 www.UTA.org UTA Industry Watch 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 will 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 like/don’t like 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! New Members George Glover, President Glover Truck & Trailer Sales, Inc. 8608 Hwy 70 E North Little Rock, AR 72117 www.glovertruckandtrailer.com (501) 945-1550 (w) (501) 920-0617 (c) george@glovertruck.com Navistar 8800 State Rd. Philadelphia, PA 19136 (215) 335-2690 (w) scott.barkus@navistar.com David Craig, Sales Manager McBride Mack Sales P.O. Box 2620 Paducah, KY 42002 (270) 442-7545 (w) mcbridemack@aol.com Milwaukee Truck Sales 4444 W. Bluemound Rd. Milwaukee, WI 53208 www.krietegroup.com (800) 761-6225 (w) hommel@krietegroup.com John’s gone from mechanic to director of used truck operations during his 25 years in the truck business. Like so many others he finds working with customers to be the best part of the job. In fact, even if John was no longer in trucks he’d still be doing something in customer service. “I enjoy meeting new people,” John told us. Also, if you’d like a copy of the new member brochure that we handed out at the convention in Jacksonville, please contact David Grace at davidgrace@ charter.net or 770-389-6528 ext. 404. Scott Barkus, UTC Manager John Hommel, Director of Used Truck Operations John became a UTA member so he could network with other used truck dealers. Let’s all welcome him! George is the president of his own company now but his roots are as humble as anyone’s. He’s done a bit of everything in the industry including washing, detailing, driving, and finally selling. He’s also decked trucks himself, driving them from coast to coast and Canada. George’s other passion is golf. Trucks aside, he’d love to be a PGA golfer, “because it is the ultimate test,” he said. “But, I can`t break 80.” George’s son George Jr. is following in dad’s footsteps. “My son, George, played college golf for four years at the University of Arkansas,” he said. “He also played in the U.S. Jr. Amateur and the U.S. Amateur, finishing in 9th place at Jr. Amateur (67 in the 2nd round). He also won the Arkansas State Amateur in 2007. (I was the caddy.)” Jason DeSanto, Owner/UTM Note: Pictured are Roy, George, George (Beau), and Charlie (baby)—four generations of truck salesmen. Windycityjay Truck Sales 115183 Madison St. Burr Ridge, IL 60527 www.windycityjaytrucksales.com (630) 455-5960 (w) (708) 745-2829 (c) windycityjay@yahoo.com Steve Goldenberg, Purchasing & Asset Manager Miami Valley International Trucks, Inc. 7655 Poe Ave Dayton, OH 45414 www.mvigroup.net (937) 898-3660 (w) (614) 778-8989 (c) steve.goldenberg@mviday.com Robert Konneker, Used Equipment Sales Manager PACCAR Financial 9620 S. 76th Ave Hickory Hills, IL 60457-2117 www.pacleasetrucksales.com (708) 430-9182 (w) (425) 691-9976 (c) bob.konneker@paccar.com “Every day is different and presents new challenges,” Bob said when asked what he likes about working in our industry. He joined UTA to network with colleagues and stay current on the industry, and looks forward to being an active member for many years. In 1986, Bob got his start in the truck industry as a finance sales rep. Since then, he’s been happily trucking along and has some trouble imagining being in another field. When pressed, he let his mind drift to other ways he might earn a living. “When the day comes that I don’t enjoy my job and the truck business, I will go sell boats in a warm climate. No snow.” When Bob’s not at work you might find him spending time with family and friends “relaxing at the lake.” Can we come too? Michael Kukoff, Managing Partner 2 Zero Emissions 200 Wright St. Newark, NJ 07114 www.2zeroemissions.com (866) 702-1076 (w) (908) 764-2098 (c) mikek@2zeroemissions.com New Members continued on page 5. www.UTA.org April 2011 3 UTA Industry Watch Lee Chapin T his month we spoke with Lee Chapin, the sales manager for Truck Paper and Truckpaper.com. It is a little out of the ordinary to write a Face-to-Face story about someone who doesn’t actually buy or sell used trucks, but our interview proved to be very enlightening. Since Truck Paper creates a weekly publication listing used trucks for sale, we knew right away we were talking with someone who knows used trucks! Add to that the fact that Lee is a charter member of the UTA, and we are off to a running start. Lee began his career with Truck Paper in 1985, having decided to leave his family business in real estate and home construction. With interest rates at the time hovering near 15 percent, he and his family agreed it was time to start a new career. Fortunately, Lee brought with him all the sales experience he had gained in the family business, and today he still enjoys managing and training the sales staff for Truck Paper. As for the UTA, not surprisingly, Lee spent five years on the board, serving as the head of the Training and Education committee. We talked to Lee about what makes his publication so successful. “Our publication is a weekly, and we’ve been blessed with lots of customers,” Lee said. “It works well for most truck dealers. It’s timely and filled with pictures of the equipment for sale.” Lee noted that the nature of his publication makes it easy for dealers to list their inventory and easy for buyers to search for good deals. “Truckers love trucks,” he noted, “and they follow our publication. I’d like to say it’s because of my sparkling personality and my great wit, but the product helps dealers sell trucks.” Just among us, we also think success has come to Lee based on his sparkling personality and great wit! We couldn’t help but reminisce about how technology has changed the way Truck Paper is published. When Lee started in 1985, of course everything was paper based. “When I first started, I would sit back and be amazed that someone could take a picture and overnight it to us,” Lee recalled. “We’d get it developed, and then if we got that by Friday, we had it in the following Friday’s publication.” Lee recalled that he and his staff spent many lunch hours at the mall waiting for film to be developed. “Onehour developing was the best thing that happened, because everyone sells trucks with pictures,” he said. Of course, now everything happens electronically, drastically cutting the lead time for any publication. With the website, Truckpaper.com, listing trucks and searching for good buys can happen any time, day or night. We asked Lee to look back across his career and share with us some of the best lessons that he still uses today as he trains new salespeople. “The main thing I try to teach them is that sales is a numbers game,” he said. “When you get up in the morning and contact a lot of people, something good is going 4 April 2011 to happen.” This advice also comes with a bit of a warning. “Nobody likes rejection, but you have to get used to it,” Lee said. “You’ll hear a lot of ‘no’s’ but before the day is over, something good will happen.” Lee further remarked that this lesson is especially hard for the younger sales staff. “It takes time to build a customer base,” he said. “There is no fast-forward in sales or life.” Lee enjoys the annual UTA conference, and credits the establishment of this annual event with helping the UTA membership grow and thrive. Over the years he’s watched the UTA evolve, Lee’s found there’s a powerful sense of camaraderie within the industry. “If you treat people well in this business, it’s a great business,” he observed. “Used truck people need each other, and they work well together. But, you do one of them wrong, and you’ll be on the outs. Even competitors work well together.” It’s not only the membership who recognizes the warmth and friendliness of this group. “We’ve had meetings where we bring groups of people in,” Lee explained. “Nine times out of ten, the hotel staff remarks how nice and friendly the membership is.” We asked Lee to look into the future with us a little and share his thoughts about the challenges that are ahead in the used truck industry. Like so many others we’ve spoken with, Lee noted the low inventory of used trucks over the next three years and higher prices on everything— parts, service, and equipment. “We’re going to have to get used to it and figure out how to work with it,” he said. Perhaps it’s the trainer and educator in him but Lee further noted the lack of younger people entering the used truck industry. “We always have a challenge in bringing youth into the industry,” he said. “Obviously college graduates don’t place used truck sales at the top of their radar screens.” We suppose that’s true. But Grandma always said, “You can’t put an old head on young shoulders.” From what we’ve seen, these young and recent college graduates are missing a chance to build a great life for themselves and their families. n www.UTA.org UTA Industry Watch Training (Continued from page 1) New Members continued from page 3. Carmenda Laymon, Regional Sales Manager Bricktown Media-Big Rig Network 210 Park Ave., Ste 1300 Oklahoma City, OK 73102 www.transportationandtrucking.com (316) 208-8866 (w) claymon@bricktownmedia.com Are you interested in transportation and trucking? Sure you are that’s why you’re reading this newsletter! Given that, you may want to check out the website from Carmenda’s company, www. transportationandtrucking.com. From coupons to news, to jobs, and promotions there’s a ton of information about transportation and trucking. Carmenda’s been in the business since 2005 and has been with the same company, Bricktown Media, the whole time. She loves her job since it involves lots of travel and meeting with customers face to face. Carmenda feels the UTA is a great asset for everyone in the used truck industry. She plans to be in the industry a long time, since she finds it “challenging and addicting.” Here’s something Carmenda feels a lot of people don’t know about her: she owns her own website www.360PalmCoast.com, which is modeled after www.transportationandtrucking.com and another Bricktown Media website www.agdirectories. com, “because they’re that good.” Gotta love that enthusiasm! Johnnie McBride, GM McBride Mack Sales 155 McBride Ln. Paducah, KY 42001 (270) 442-7545 jrmtruck@aol.com Joe Monteleone, VP of Assets NFI Industries 71 W Park Ave Vineland, NJ 08360 (856) 794-4791 (w) joe.monteleone@nfiindustries.com Kyle Murray, Vice President KBK Insurance Group, Inc. 1425 Sams Ave. Harahan, LA 70123 www.kbkinsgroup.com (504) 736-0690 (w) kylemurray@kbkinsgroup.com Insurance and trucking fit together well, Kyle feels, since they’re both relationshiporiented businesses. Meeting new people is something he really enjoys. Kyle’s company, KBK Insurance Group, has been insuring used car dealers since 1997. But it only recently expanded its program to include used truck dealers, which is one reason Kyle joined UTA. We‘re also working on informative UTA training videos (how to do a proper used truck appraisal will be first). We all know the value of getting what we expected and paid for. The video will be produced from UTA committee member input and the UTA appraisal form. It will consist of a classroom explanation of the appraisal process and an actual live appraisal (looking for a movie star, any volunteers out there?). Future training videos planned include: ■■ The value in doing a Walk a Round every time ■■ The customer Meet and Greet ■■ The Probe and dreaded Close ■■ Asking the right questions and listening to your customer ■■ The evolution of change EPA - EGR - SCR “KBK is looking forward to working with the used truck industry,” Kyle said. “Hopefully, we can be of benefit to the members.” Hopefully, I have sparked your interest in UTA’s 2011 Training Initiatives and beyond, as the scope for training needs and topics are endless. I am proud of our committee of dedicated industry professionals, and thank them for their input and focus in working toward a solid UTA program. Bob Weaver, Owner The members are: Trucks n Trailers of Northwest Arkansas, LLC 1589 Electric Ave Springdale, AR 72701 www.tntnwa.com (479) 750-7700 (w) (479) 236-7966 (c) bw@tntnwa.com Bob’s a newcomer to the industry, starting out with JB Hunt Transport, Inc. only in 2009. But he works fast. Today he’s the owner of Trucks n Trailers of northwest Arkansas, where they “put the big in rig.” For Bob, the interaction with customers and suppliers is the best part of the job. He’s joined us at UTA for the learning and networking opportunities that come with membership. Something others may not know about Bob is that he’s “shy by nature.” So let’s all reach out and welcome him to the UTA! ■■ Tom Pfeiler ■■ Michael ■■ George ■■ Eddie ■■ Jon Mounsey Papp Walker Tepper ■■ Don Mueller ■■ Ken Kosic Finally, members, we need your support to encourage and promote this UTA initiative within our organization—no matter how large or small your business is. We are open to any and all suggestions for training needs that you would like to have addressed. At any given time, there are gaps and timing issues in anyone’s training program. Your UTA wants to step up and be counted on to assist with your training needs. Thank you and the very best of success! Ken Kosic Training Committee ken@uta.org www.UTA.org April 2011 5 UTA Industry Watch by Bryan Boyd, Affiliates and Benefits Committee • bb@uta.org Premium 2000+™ Medium and Heavy Duty Warranty Programs Premium 2000+™ entered the commercial truck marketplace over a decade ago, because it saw the need for a warranty product that would help franchise and independent dealers sell more trucks and increase their bottom lines. By simplifying the qualification and inspection processes, and significantly lowering warranty acquisition costs, Premium 2000+™ feels it has forever changed the aftermarket warranty landscape. that their customer deemed acceptable as is. We reserve better than anyone else and are prepared to handle claims – spending some money after the sale for necessary repairs seemed much more appropriate than spending money before the sale, especially when buyers are often limited as to what lenders will advance due to credit issues.” With more than 10,000 trucks under warranty at any time, Premium 2000+™ has become what it says is the most popular warranty option for dealers, fleets, lenders, and service facilities in today’s marketplace. “And we’ve only scratched the surface,” says Larry Palkins, Director of Sales. “We listen to the needs of this diverse marketplace and develop whatever is necessary to assist dealers so that they can provide affordable options for their customers.” Remarketers such as Enterprise Rent-A-Truck, Hino, and Idealease came to Premium 2000+™ for custom programs. Rush, Lonestar, FYDA, Hunter, Larson, The Velocity Group (Los Angeles Freightliner), Navistar and others, about 1,400 in all, have enrolled with Premium 2000+™, and are successfully using the programs, Murphy says. Nearly every UTA dealer takes advantage of the $100.00 UTA and $150.00 Co-op Ad discounts that are available, Murphy says. Additional discounts are available for monthly volume and loss ratio targets. When assessing the used truck warranty product years ago, the company saw the difficulty dealers were having. Providing the necessary peace of mind when their customers were contemplating the purchase of a used vehicle, especially one that had run out of factory warranty, seemed like a strong opportunity for us, says Lynn Murphy, President and CEO. “The elimination of unnecessary dyno-testing and complicated and expensive pre-approval inspections won over a lot of dealer’s right from the start,” he notes. Murphy continues: “Dealers don’t want to deliver bad trucks—they depend, in large part, on repeat and referred business. We wanted to reward good dealers who sold good trucks, not punish them with added costs for reconditioning a vehicle The UTA has been a strong supporter of Premium 2000+™ and vice versa. “When we first began certain Board members were skeptical. In fact Steve Nadolson, Paul Spokas and others approached us because we were so different than any of our predecessors. They were curious as to how we had come up with our programs and philosophies for marketing,” Murphy reflects. “Soon Paul Spokas and Bear (Steve Nadolson) became sales representatives – I guess they saw our vision and concluded that they wanted to participate,” says Murphy. “Paul and Bear and so many others have assisted our efforts and we always listen to the marketplace, it will tell us the direction we need to take,” Murphy concluded. “We haven’t been around the longest but there is a difference between longevity and popularity and we are the most popular option for warranties on commercial trucks,” says Palkins, the Sales Director. “We will be coming out with some new products that will help sell trucks and create lifetime loyalty between dealers and customers,” he added. Stay tuned. The company says many dealers find its monthly e-mail newsletter useful. “Our website (www.premium2000.com) has all of our up to date programs and information and is the source for on-line warranty submittals,” Palkins added. l 6 April 2011 www.UTA.org UTA Industry Watch UTA A f f i li at e s 4 State Trucks Inc Chrome Shop Mafia HALO Branded Solutions HTAEW.com Manheim Heavy Duty Truck and Equipment Auctions HALO Branded Solutions My Little Salesman Founded over five decades ago in the small Midwestern town of Tampico, IL, HALO Branded Solutions has grown into a global leader of promotional solutions by helping over 40,000 satisfied customers make their mark, according to Julie Genovese, Brand Specialist for HALO. National Truck Protection HALO Branded Solutions, a fully integrated marketing firm, specializes in the use of branded merchandise to support its clients’ ongoing marketing efforts. Today, some of the world’s leading corporations look to HALO for advice in building their brand and their business. “We respond with solutions that achieve results, exceed expectations, and create success,” says Julie. While HALO embraces its small town beginnings, it is driven by continuous improvements in marketing, technology, and operational tools. The company has invested millions of dollars in the most sophisticated technology, efficient processes, people, and equipment to offer what it claims is “unmatched reliability, creativity, and results on every order.” “Passion starts in the heart,” says Genovese. The heart of HALO Branded Solutions is complete customer care. The company “combines its small-town Midwestern ethos with world class technology to provide an exceptional buying experience.” Passionate, caring service on every order defines the HALO Branded Solutions difference, Julie says. HALO Branded Solutions feels it has made its mark in a crowded market by developing award-winning exclusive products, available only to its clients. Its “Exclusive” line of calendars and dated products offers dynamic designs at everyday low prices. The “Lasting Impressions” product catalog provides hundreds of top-selling products Premium 2000+ Medium and Heavy Duty Warranty Programs R.L. POLK Ramsey MediaWorks LLC Revolution Payment Systems SOARR.com (Interstate Online Software) The Truck Blue Book Trucker to Trucker Vehicle Inspection Pros priced to meet any budget. HALO also works with clients to create private label apparel and custom employee incentive programs that “immediately add value to their brands.” The company invites UTA members to create their own exclusive products. Because the company is “fluent on the latest product trends, decoration techniques, and global product sourcing,” Julie says HALO can offer UTA members “perfect products,” providing the greatest impact at the lowest prices. For UTA members with messages that they wish to deliver to specific target audiences, whether for a new product/ service introduction, commemorating a special occasion, or building traffic at a trade show booth, HALO can create and implement promotional programs to add impact to those messages. As a new member and affiliate of the Used Truck Association, HALO is giving back five percent of all member purchases to go toward the UTA scholarship fund. Plus, you can order items with your own company logo, and HALO will add the UTA logo for free. If you have any questions, please contact Julie Genovese. You can find her contact information on the UTA website under the “Promotional Items” tab. l www.UTA.org April 2011 7 UTA Industry Watch Used Truck Market Keeps Accelerating by Chris Visser, Senior Analyst and Product Manager, Commercial Trucks T he average mileage, age, and selling price of sleeper tractors retailed and wholesaled in February continued to climb upwards in unison. Dealers retailed a slightly higher number of used trucks in this period, with wholesale sales decreasing by a comparable amount. In January, average mileage and age of all sleeper tractors under 1M miles hit their highest levels in at least three years, with mileage at 519K and age at 61 months. February’s figures were only slightly lower, with mileage at 508K and age at 60 months (see graph). These measures should remain at high levels as trucks that were held in extended trade cycles continue to filter in to the secondary market. Despite ever-higher mileage and age, the average selling price of this group hit its highest point since September of 2008, at $44,581 (see graph). The market is now off its May, 2008 peak by less than 8%. With average mileage approximately 50,000 miles higher now than in that period, these market gains are even more dramatic than they appear at first glance. Focusing strictly on the four-year old sleeper market, January’s average simply blew away the preceding three years, coming in at $69,519 (see graph). February was off January by about 10%. Keep in mind that “four year old” now means the 2008 model year, of which a relatively small volume has filtered through the secondary market. Due to this limited sample size, multiple-unit package deals can skew averages each month. It is therefore advisable to look at this segment in terms of the 2-3 month trend rather than focusing on monthly swings up or down. On the wholesale side (auction plus dealer wholesale sales), average selling price appears at first glance to have increased dramatically from January (see graph). However, the sale of a large package of 2009 model year trucks had an outsized impact on this period’s data. As such, February’s data point is not necessarily representative of the true market trajectory. Nonetheless, even if we remove this package deal from the calculations, there was still an increase from January. Thus, it is still legitimate to say that the wholesale market continued to trend upwards. As of this writing, the Japanese disaster is impacting domestic manufacturing (and presumably freight, although post-disaster figures are not yet available). It is fairly certain that slowdowns will continue through the late second quarter and possibly beyond. While the timing is fairly predictable, the severity is not. What we do know is that factories will have to meet pent-up demand after Japanese production returns to normal. As such, it is probable that used truck buyers will see the disaster as temporary, and the fundamental supply/demand relationship will continue to favor upward movements in price, mileage, and age. n Reprinted with permission from the ATD/NADA Official Commercial Truck Guide® 8 April 2011 Average Retail Age and Mileage all Sleeper Tractors Under 1M Miles 540000 520000 62 Mileage Age in Months 60 500000 58 480000 56 460000 54 440000 52 420000 08 nJa r Ap l Ju t Oc 09 nJa r Ap l Ju t Oc 10 nJa r Ap l Ju t Oc 50 11 nJa Average Retail Selling Price all Sleeper Tractors Under 1M Miles 520000 $50,000 510000 $48,000 500000 $46,000 490000 $44,000 480000 $42,000 470000 $40,000 460000 $38,000 450000 $36,000 440000 $34,000 Mileage Price 430000 $32,000 420000 08 nJa $30,000 ay M p Se 09 nJa ay M p Se 10 nJa ay M p Se 11 nJa Average Retail Selling Price 4YO Sleeper Tractors, Adjusted for Mileage $75,000 2009 2008 2010 2011 $70,000 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov www.UTA.org Dec UTA Industry Watch Sales Tip of the Month Average Wholesale Selling Price and Mileage all Sleeper Tractors Under 1M Miles 750000 $35,000 700000 $30,000 650000 $25,000 600000 $20,000 550000 $15,000 500000 Mileage Price 450000 400000 $5,000 -08 Jan y Ma p Se -09 Jan y Ma p Se -10 Jan y Ma p Se -11 Jan Average Number of Sales Per Reporting Dealership (Trend) r Ap Three-deep is following a question with another question. The deeper you go, the more you understand what the prospect is looking for. Here is an example: 1. “Do you get the level of service you want from your current supplier?” 2. “What do you like most about their service?” 3. “If you could change anything about your current supplier, what would it be?” Retail Wholesale -09 Jan $10,000 Questioning Skills – GO THREE DEEP! Jul t Oc -10 Jan r Ap Jul t Oc www.nada.com/b2b -11 Jan Don’t Forget to Sign Up for Sponsorship AND to PLAY! June 17 & 18th, 2010 June 15 & 16, 2011 http://uta.org/kc_golf_tournament/ www.UTA.org April 2011 9 UTA Industry Watch Industry News Briefs UCLA Real-time Study: Slow Growth Ahead The flow of goods and services to factories, retailers, and consumers dropped by 1.5 percent in February, according to the Ceridian-UCLA Pulse of Commerce Index™ (PCI), a real-time measure. This drop comes on the heels of January’s drop of 0.3 percent. The combined downturn of 1.8 percent for the two months wiped out December’s gain of 1.8 percent. That’s the disappointing news. The good news is that February was the fifteenth straight month of year-to-year growth. The study’s authors conclude from this activity that the recovery remains underway, although “fragile.” “The PCI performance in the first two months of this year suggests weakness in some parts of the economy,” states Ed Leamer, chief PCI economist and director of the UCLA Anderson Forecast. “Nevertheless, our outlook for 2011 is for continued economic recovery – we expect GDP to grow at the historically “normal” rate of 3 percent, accompanied by a persistent level of high unemployment.” There’s been a lot of speculation about how the dramatic rise in oil prices over the past few months is affecting, and will continue to affect, the recovery. The study addressed that concern. “February’s spike in diesel fuel prices to well over $3 a gallon likely did not drive the weakness in the PCI this month,” explained Craig Manson, senior vice president and index expert for Ceridian. “However, if the trend persists, higher prices will likely have an impact in the coming months as consumers are robbed of spending power. As a leading indicator for the goods producing segment of the economy, the PCI is sensitive to this dynamic and should provide early indications of direction and magnitude as higher fuel prices impact the broader economy.” If you’re interested in the complete report, which includes regional data and analysis, visit www.ceridianindex.com or contact index@ceridian.com. Video commentary is also available through the website, and you can register to receive data updates via email and RSS feeds. n MHC Kenworth Colorado Named Kenworth’s 2010 Dealer of Year MHC Kenworth Colorado was named 2010 Kenworth Dealer of the Year for the U.S. and Canada at Kenworth’s annual dealer meeting, held recently at the PACCAR engine plant in Columbus, MS. “It’s a great honor for MHC Kenworth Colorado to receive the prestigious Kenworth Dealer of the Year award,” said Tim Murphy, president of MHC Kenworth, which operates 41 Kenworth dealerships in 10 states. “Our many dedicated employees strive every day to provide the world’s best customer support. It’s certainly gratifying to be recognized for our efforts from among the many outstanding Kenworth dealers.” The award encompasses MHC Kenworth Colorado locations in Colorado Springs, Denver, Grand Junction, Greeley and Pueblo, Colo., and Cheyenne, Wyo. Kenworth notes that MHC Kenworth Colorado was chosen as Dealer of the Year from among five 2010 Gold Award winners. The other Gold Award winners are Custom Truck Sales (Regina, Sask.), Edmonton Kenworth (Edmonton, Alb.); Kenworth of Buffalo (Buffalo, NY), and Kenworth of South Louisiana (Gray, LA). “MHC Kenworth Colorado had an outstanding performance during 2010,” said Bill Kozek, Kenworth general manager and PACCAR vice president. “Our Dealer of the Year offers the entire Kenworth heavy and medium duty product line – including the Kenworth T700 and PACCAR MX engine, operates excellent facilities, invests in the business, and has employees who are relentless in their pursuit of providing exceptional customer support. MHC Kenworth Colorado exemplifies the world’s best.” n Used Commercial Registrations at Record Levels for 2010—Polk The anecdotal evidence and monthto-month data have suggested the trucking industry is emerging from the recent deep Recession, and now full-year numbers confirm things turned around in 2010 in a big way. That’s especially true for dealers of larger rigs. Market number cruncher Polk reported recently that U.S registrations for used commercial vehicles (GVW 3-8) in the U.S. reached record levels during the year, with about 672,000 units registered. This was an increase of 21.7 percent over 2009. Used commercial vehicle registrations accounted for about 65 percent of total commercial vehicle sales. Polk also noted that 2010 was the first year that registrations of used commercial vehicles exceeded 600,000 units. 10 April 2011 “The significant increase in used vehicle registrations during the 2010 calendar year is indicative of a strengthening in the demand for commercial vehicles overall,” said Gary Meteer, director, sales and client services, at Polk. “Large fleet owners and operators are upgrading to new vehicles, and therefore the smaller fleet companies and independent owner operators have the opportunity to find available clean used equipment; however, the pattern of used vehicle transactions indicates a softer supply of clean used equipment during the last quarter of the calendar year.” The best news of all may be that used GVW 8 vehicles were in the most demand, accounting for more than 47 percent of all used commercial vehicle transactions in 2010. n www.UTA.org UTA Industry Watch Con-Way Helps Nab Would-Be Terrorist In late February a Saudi engineering student, Khalid Ali-M Aldawsari, was arrested for plotting to bomb several targets, one of which was former president George W. Bush’s Texas home. The formal charge was attempted use of a weapon of mass destruction. According to authorities, the student was caught attempting to buy chemicals and other items needed to manufacture explosive devices. We bring this up because Con-Way Freight, a $5 billion freight transportation and logistics services company, was directly involved in unearthing this plot. The company issued the following statement regarding its involvement. Con-way Freight has been working closely with local police and the FBI on this case from the beginning. The case stemmed from a shipment we determined to be of a suspicious nature, received at our Lubbock, Texas service center on February 1, 2011. Based on training and experience, Con-way’s local management immediately flagged the shipment as suspicious and notified Con-way’s corporate security department. The shipment matched profiles outlined in Con-way’s security protocols for identifying shipments of a suspicious nature, and which appeared for use not consistent with known commercial application of the product. These concerns triggered the company’s Homeland Security escalation plan. Con-way’s corporate security department then notified law enforcement authorities, who then visited our facility and examined the shipment. The FBI subsequently reviewed the shipment information as part of its ongoing investigation, which resulted in Aldawsari’s arrest. For more information about the company, visit www.con-way.com/en/freight. n Hino Unveils First U.S. Diesel-Electric Hybrid Truck Diesel-electric hybrids are for the first time a “viable option” in the U.S., Hino Trucks announced at the recent NTEA Work Truck Show in Indianapolis. The company announced a “revolutionary” addition to its product line—four models of its newly designed Class 4 and Class 5 cab over engine (COE) trucks. In the class 4 market, Hino will offer the 155 diesel model and the first ever U.S. class 4 diesel-electric hybrid model, the 155h. The 155 and 155h models will carry a 14,500 lb. GVW rating. In the class 5 market, Hino will offer the 195 diesel model and the first ever U.S. class 5 dieselelectric hybrid model, the 195h. The 195 and 195h models will carry a 19,500 lb. GVW rating. “The new cab over line-up is an exciting addition to the Hino Trucks brand as we strive to provide our customers with a comprehensive offering for their trucking needs,” said Sumio Fukaya, President and CEO of Hino Trucks. “With the introduction of this new truck, Hino Trucks is making the diesel-electric hybrid a viable option in the U.S. commercial truck industry for the first time.” All models are powered by the Hino J05E Series engine. The 5-liter engine is rated at 210 hp and 440 lb. ft. of torque. Utilizing Aisin’s A465, 6-speed automatic transmission, the Hino hybrid is the first to be packaged with an automatic transmission. Hino notes that both models feature an ergonomically friendly wide cab with a North American standard 33-inch frame rail width, a 56,900 PSI frame, and a standard center mounted rear fuel tank. The cab’s styling emphasizes aerodynamics and visibility with an angled windshield, narrow pillars, and rounded-radius curves. Inside, the new cab uses its increased width to provide room for drivers up to 6 ft. 6 in. tall, seating for three, and a mobile workspace with a variety of organizational storage options. A crew cab version will also be available. For more information visit www.hino.com. n Industry News Briefs continued on page 12. www.UTA.org April 2011 11 UTA Industry Watch Industry News Briefs continued from page 11. Power Shot Device Reduces Diesel Consumption Peterbilt Names Dealers of the Year The recent tragedy in Japan underscores, once again, the need to develop “alternative” energy sources that are safe and renewable. While solar energy has come a long way since photovoltaic cells were first used in the space program in the 1950s, it can still be pricey. But conserving diminishing non-renewable energy sources, like diesel, is something we can do right now. Peterbilt recently announced its Dealer of the Year awards, at its annual dealer meeting. And that brings us to the Power Shot LPG. With this device, fleet owners can reduce their consumption of diesel considerably, according to Richard Garfinkel, UTA member and managing partner of 2 Zero Emissions, which distributes the device. “The Power Shot LPG for diesels offers a cost effective way to not only reduce a fleet’s carbon footprint but also to reduce the fleet’s running costs,” Garfinkel says. Peterbilt Manitoba Ltd. in Winnipeg, Canada won the 2010 Peterbilt North American Dealer of the Year award. Doug Danylchuk, dealer principal, accepted the award at Peterbilt’s annual dealer meeting, which was held this year at its new engine plant in Columbus, MS. Peterbilt highlighted the company’s dedication to customer service in presenting the award. Western Peterbilt (Seattle, WA) was named the 2010 Peterbilt Medium Duty Dealer of the Year. Frank Anglin, dealer principal, accepted the award. It announcing the award, Peterbilt cited the dealer’s product line diversity, and “high level of dedication and professionalism.” n The Power Shot system sends liquid propane gas (LPG) into the combustion process of the diesel engine, which improves diesel combustion from 75 percent to around 95 percent, he continued. “The improved combustion can reduce your diesel consumption by as much as 20%. The other benefit is a reduction in black smoke (particulate matter) and a 50% reduction in NOx.” Garfinkel notes the Power Shot LPG for diesel systems is totally mechanical, it uses the boost pressure of the turbo to meter the flow of LPG into the air stream, and it’s easy to install. His company can train service staff to maintain, adjust, and tune the system. “Our typical customers are heavy duty truck dealers that have service facilities and the ability to scale installations for fleets,” Garfinkel said. His company has installed the device on vehicles including a 1983 2233 Mercedes Benz truck. “That truck has about 600,000 miles, and has not been adjusted since its final tuning eight years ago, and it continues to be productive.” Bill Jackson, Peterbilt general manager; Doug Danylchuk, Peterbilt Manitoba Ltd. dealer principal; Arlen Savitt, Peterbilt assistant general manager, sales & marketing For more information, visit www.dieselperformanceproducts.com, or contact Richard at richg@2zeroemissions.com. n New Cat Insurance for On-Highway Engine Investments Component Plus Extended Service Coverage (ESC) from Cat Insurance covers Cat® on-highway engine parts and, the company feels, provides peace of mind and an effective means of avoiding unexpected costs. Coverage is available for up to four years. Component Plus ESC is available to anyone who purchases qualified parts at authorized Cat dealers—even if the parts are not installed by the dealer. Currently, 15 on-highway engine parts are eligible for Component Plus ESC. The covered parts include most internal engine components, the complete short block, cylinder heads, fuel injectors, turbocharger(s), water pump, and electronic control module. Component Plus ESC parts and servicing may be financed through the Cat AccessAccount, a charge account that enables customers to pay for parts, service, and rentals at any Cat dealer or Cat Rental Store in the United States. n 12 April 2011 Bill Jackson, Peterbilt general manager; Frank Anglin, Western Peterbilt dealer principal; Arlen Savitt, Peterbilt assistant general manager, sales & marketing. www.UTA.org UTA Industry Watch Mitsubishi Fuso Truck and Bus Corporation to Resume Truck Production Mitsubishi Fuso Truck and Bus Corporation (MFTBC) announced it would start limited vehicle assembly on Tuesday, March 29, 2011, at its main Kawasaki, Japan plant, in a move “intended to support the company’s customers around the world.” Mitsubishi Fuso began limited parts production last week. For the time being, vehicle production will continue on a limited and selected basis and will depend on parts availability and logistics, the power situation in Japan and related factors, the company noted in a release. The company also thanked its customers and business partners for “their understanding and cooperation during this time.” For more information, visit http://www.mitfuso.com. n Dorsey Debuts LiteGuard 5000, 10-Year Trailer Warranty Dorsey Trailer (www.dorseytrailer.net) recently introduced the LiteGuard 5000, a wear-resistant refrigerated (reefer) trailer which it says is the “toughest, lightest and most energy efficient reefer the company has ever produced.” Dorsey said it is introducing this reefer as part of its strategic plan to recapture, reemphasize and retarget product durability as its primary focus. Isuzu Resumes Truck Production in Japan Isuzu Commercial Truck of America, Inc. resumed production at its Fujisawa plant in Japan on April 5. The factory had been idled since the devastating earthquake and tsunami that struck the country on March 11. The Fujisawa plant manufactures N-Series trucks, diesel engines and components for the North American market, as well as commercial vehicles and parts for markets worldwide. The facility opened in January 1962. All operations were halted at the factory until March 28, when testing of production equipment began, using vehicles already in the production process. According to Ryozo Tsukioka, executive vice president and director of Isuzu Motors Limited, “We confirmed that the equipment was normal and that we could proceed with trial production as planned.” The company said production at Fujisawa will build gradually to normal levels as the supply and availability of parts remains inconsistent. Isuzu will announce a timetable for a return to full production at a later date. “We are grateful that Isuzu Motors Limited has taken such care to ensure that production of vehicles will resume safely,” said Shaun C. Skinner, executive vice president and general manager of Isuzu Commercial Truck of America. “We know our dealers and our customers understand that it will take some time before normal vehicle distribution schedules resume, and we appreciate their patience as production resumes.” n “Dorsey’s goal is to continue to build the most durable trailers on the market,” said company spokesperson Jeff Pitts. “We’re using the highest quality materials, the most advanced engineering techniques and a tradition of craftsmanship that has literally been passed down, from generation to generation, on the same factory floor, over the last century. With the introduction of the LiteGuard 5000, I’m excited to announce that the 10-year trailer warranty has officially arrived.” Dorsey has been focused on building longer-lasting trailers from the start, Pitts said. Previously, that often meant “over engineering” the product by using better, thicker steel and other more robust materials in the manufacturing process, he added. Pitts said that with the design of the LiteGuard 5000, the company has met its objective of engineering in superior quality materials, while engineering out weight and components that could promote corrosion. “We’re still over engineering our trailers,” Trey Gary, vice president and chief operating officer for Dorsey Trailer, said. “We’re just doing it in a more sophisticated way—a way that brings even greater value to the end user by lowering trailer operating costs and raising resale values.” Gary explained that many of the features that come standard on the LiteGuard (http://dorseytrailer.net/pages/Reefers.html) trailer are not even available as custom orders from most major manufacturers. He cited the trailer’s “heavy-duty floor construction, its impact resistant, heavy-duty stainless steel rear frame, its tough, stainless steel upper coupler and its highly engineered rear doors with proprietary fuel-saving seal design,” among other examples. n www.UTA.org “ Quips & Quotes” It takes time to build a customer base. There is no fast-forward in life ~Lee Chapin April 2011 13 BOOT CAMP 2010 The 11th Annual UTA Convention See You in Warm, Sunny SCOTTSDALE! UTA Industry Watch From Where We Sit Distracted Driving Although we live in a very small town—so small in fact that they turn the three traffic lights off at 11:00 p.m. and on again at 7:00 a.m.—Main Street was once the only road linking the east coast to the west. During the day, more than 10,000 vehicles pass by our front porch. They include every form and variety you can imagine; from farmers transporting huge loads of hay via tractors, to the shiny new cars parents have bought for their newly minted drivers heading up to the high school, to 18-wheel semis loaded with goods. Sit on the front porch on any given sunny day, and you will soon see that somehow, driving has gone from a primary task to just another thing people happen to be doing. We’ve seen a little bit of everything. Driving while eating, talking on the phone, reading the paper, or even putting make up on, are all things we’ve seen time and again. Now, we grant you that we’re old enough to remember learning to drive with the admonition, “NO RADIO!” Parents in our younger days considered rock-and-roll too distracting for a young driver. With the world we’ve created today, we’d be thankful if it were only music occupying the mind space of drivers! Yet, it would be wrong for anyone to target just young people for this behavior. We’ve spotted a man eating a huge hamburger with both hands, leaving no way for him to steer the vehicle! The child who was struck in the cross walk at the corner on his way to elementary school had the nerve to step off the curb with the right of way in front of a woman taking a cell phone call. Thankfully, he was not seriously hurt, but that was just a matter of good fortune. Local and state ordinances and laws have popped up all over the country banning cell phone use, texting, and other forms of distracted driving, but to very little avail. It’s impossible to drive more than a few miles without coming across the person on the phone or otherwise occupied. It’s not the government who will fix this problem for us. It has to come from each individual who slides in behind the wheel of a car. We all consider ourselves to be good drivers. When was the last time you heard someone admit to poor driving skills? Nah, we’ve never heard it either. But whether in fact a driver is good or bad, driving while otherwise occupied is simply dangerous, no exceptions, no excuses. The Department of Transportation has recently posted a series of videos on its website, www.distraction.gov, to bring this point home in a deeply personal and meaningful way. The videos include interviews with surviving family members and friends of victims who lost their lives to distracted drivers. They hammer home the impact of this practice better than hundreds of hours of lecturing and pleading. If you have a young person just getting ready to drive, please make some time to sit down with that new driver and review a few of these videos. If you don’t, please take a few minutes to do it yourself. Let’s be honest, in this case, we’re all guilty at one time or another. As the spring weather warms and brings us out of hibernation, let’s all commit to driving with intention and compassion. Every single person in every other vehicle is someone else’s loved one. Let’s give to them the devotion we’d like to receive for ourselves and our own loved ones. Let’s not lose anyone to an accident that is 100-percent preventable, and let’s not let any of us bear the lifelong burden of living with such a consequence from our very own carelessness. Deb and Brad Schepp editor@uta.org www.UTA.org APRIL 2011 15-18 • ATD Convention & Expo Phoenix, AZ Phoenix Convention Center http://tinyurl.com/2fkeorj MAY 2011 17-18 • The Truck Blue Book Conference New Orleans, LA Hilton New Orleans Riverside http://truckbluebook.com/conference/ JUNE 2011 9-11 • The Great West Truck Show 2011 Las Vegas, NV Las Vegas Convention Center http://www.greatwesttruckshow.com/2011-great-westtruck-show-information/ 15-16 • UTA Kansas City Golf Open Kansas City, MO Country Club of Blue Springs http://uta.org/kc_golf_tournament/ June 17 & 18th, 2010 AUGUST 9-13 • National Truck Driving Championships Orlando, FL Orange County Convention Center http://www.truckline.com/Federation/Councils/slpmc/ NTDC/Pages/Default.aspx 25-27 • Great American Trucking Show Dallas, TX Dallas Convention Center www.gatsonline.com OCTOBER 5-7 • National Trailer Dealers Association Palm Beach, FL The Breakers www.ntda.org April 2011 15