>ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn Just Back From the UTA Convention! -Ì ... · With that I got thinking about the motivational books and speeches I experienced over the years. Some

Volume 16 • Issue 11 • November 20141.877.gets.uta • www.uta.org

Used Truck AssociationChartered May 16, 1988

Published by the Used Truck Association325 Country Club Drive, Suite A

Stockbridge, GA 30281

SHARE YOUR nEwSwith the UTA Industry Watch.Send submissions, ideas and comments to:UTA Industry Watch Editors Brad and Deb Scheppc/o Grace Management 325 Country Club Drive, Suite AStockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)Fax: [email protected]

Table of ContentsBoard News and Views .......................2

Quips & Quotes .......................................2

Industry Events Calendar .......................3

Face to Face with Mike Chester........... 4

New Members .....................................5-8

The Brooks Group Sales Tip of the Month .......................8

UTA Q & A: ACT Research’s Steve Tam ............. 10

Women In Trucking and Girl Scouts Launch New “Transportation Patch” ................ 12

Risk Insights ..................................14-15

NADA Update .............................16-19

Industry News Briefs ................... 20-22

From Where We Sit ...........................24

The UTA… Members Supporting Members!

Just Back From the UTA Convention!Hal Dickson, Convention Co-Chair

Greetings to all UTA members. For those of you who came to the Scottsdale convention I’d like to thank you for your participation and support. I thought I would give you a brief review

of the highlights of the 15th annual UTA convention.

There were a few records this year—735 people in attendance and record sponsorship revenue at the Vendor Expo, with 70 exhibitors. As to other highlights, I have to mention our Keynote Speaker Joe Theismann. It was a pleasure to hear him speak. I don’t know how anyone could not have fully enjoyed his dynamic and inspirational presentation. I was pleased to see that after Joe spoke he met with everyone who wanted to say hi to him, and he signed autographs. Yes, Joe is and was a class act!

There were other highlights as well such as the Workshops and the Laboratory on Friday afternoon. Many people attended to review topics such as dealer responsibility for Altered Emission trucks. Lucas Deal of Randall-Reilly did a super job of covering the subject.

At the Friday evening Awards dinner, the Dealer Group presented the UTA Dealers of the Year awards to Grady Shaner of Country Truck Sales, Steve Clough of Arrow Truck Sales, Roy Vaughn of All State Peterbilt, and Trevor Pasmann of Kenworth Sales Company. Also recognized was the Vendor of the Year, Jessica Berens of Premium 2000+.

We also announced the three winners of the first UTA Selfie contest, which was a fun event held at the Vendor Expo, as well as the winner of the Best at Expo exhibitor award. Congratulations to the inaugural winner of the Best at Expo award, J & J Drive-Away.

Friday night was capped off with the announcement of the Lifetime Achievement winner for 2014, Marty Crawford, who well deserved the recognition. Finally, your UTA president for 2015 is Rick Clark, who has done a great job of leading the UTA Board over the last few years.

That was a very brief review of the Convention, but I don’t want to simplify things as Misty Reis and the UTA Convention Committee did a lot of planning to put on the event. Thankfully it all went well—thank you all for your hard work and support.

I returned to my office Monday morning after the convention, and found a fellow UTA Board member had forwarded an email to me and it was from a long-time UTA member, Terry Hebron of HTAEW. After reading his email I thought Terry did a great job of summarizing the importance

Continued on page 3

UTA Industry Watch

2 www.UTA.orgNovember 2014

Board News and Views

http://www.uta.org/directory

governing boArd:

President ..................... Rick Clark

vice President..............Ken Kosic

Treasurer .................. Tom Pfeiler

Secretary ...............Sheri Aaberg

President emeritus ........................... Marty Crawford

CoMMiTTee ChAirPerSonS:Affiliates & benefits ................................Brock Frederick

Convention .................Hal Dickson, Sheri Aaberg

dealer group .........Mike Thurston, Bobby Williams

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

2014 boArd oF direCTorS

Everyone is in business for himself, for he is selling his services, labor or ideas. Until one realizes that this is true he will not take conscious charge of his life and will always be looking outside himself for guidance.

~Sidney Madweed

The Magic Word

As I left the Joe Theismann keynote address at the UTA convention in Scottsdale early this month several people asked my opinion of his performance. In a word it was outstanding.

Joe was warm, witty, and believable. I had told a couple of people that the basic message hasn’t changed over the years, but an updated exciting presentation does make a difference.

With that I got thinking about the motivational books and speeches I experienced over the years. Some of us old-timers probably had Napoleon Hill’s “Think and Grow Rich” as required reading, when we were introduced to sales. Many of us have heard the likes of Zig Zigler, Tony Robbins, Tom Peters, and Brian Tracy. For my money, a cassette program I listened to over 30 years by Earl Nightingale called “Lead the Field” was most powerful. (For those people in the “Young Members Group,” a cassette is small tape that was the bridge between eight-track tapes and CDs. You could listen to the messages at home and in the car. What a country!)

Earl Nightingale was a pioneer in the motivational thinking and speaking industry. Back in 1956, he had the first-ever gold record awarded for the spoken word. It was for his “The Strangest Secret.” Anyway, Joe Theismann had mentioned several times that he had to change his attitude. In Earl’s program, the base and first installment was called The Magic Word. Attitude is the Magic Word.

Attitude is defined as “the position or bearing as indicating action, feeling, or mood.” It is our actions, feelings, and moods that determine those actions, feelings, and moods in others. Our attitude tells others what we expect in return. Successful people have the attitude that achievement is the natural order of things.

I can’t do justice to Earl’s lessons on attitude in this article, but here are a few of his tips: ■ “It’s your attitude at the beginning of a difficult task that more than anything else, will bring its successful outcome.”

■ “Your attitude towards others determines their attitude towards you. We are all interdepen-dent. The success we achieve in life will depend largely on how well we relate to others.”

■ “Don’t waste time talking about your problems with people who can’t solve them, or about your health, unless its good or you’re talking to your doctor. It won’t help you. It can’t help others.”

■ “Treat everyone with whom you come in contact as the most important person on earth. Start this habit, and practice it consistently, and you’ll do it – and benefit from it – for the rest of your life.”

It seems that Joe and Earl had a lot in common. If some of these ideas ring a bell for you, Earl’s award-winning “The Strangest Secret” is on You Tube. It’s thirty minutes of basic-life changing ideas, not new age mumbo jumbo. And, as a bonus, you will get to hear one of the greatest radio

voices in history.

Now, where did I put that damn cassette player?

Tom Pfeiler UTA Treasurer [email protected]

UTA Industry Watch

3www.UTA.org November 2014

and value of the UTA convention and of our Association, as well as the great networking opportu-nities. The theme of this year’s convention was “Let’s Get Networking” and because I could not say it any better than Terry did in his email entitled “Just back from the UTA,” I contacted him and asked if I could include his email here. Terry said “OK,” so I will end my 2014 Convention summary with the following.

Subject: Just back from the UTA

Terry Hebron from HTAEW

Hello fellow members. I just returned from the UTA convention and man was it great. The turnout this year was 735 folks from all parts of the country and Canada as well, dealers made up I’d say 80%, and the rest were spouses and vendors. If you are a used truck dealer and not a member of the UTA then you are really missing out on something that will help your business. The networking is just unbelievable; there is no way to put a number on the value of that networking. You are constantly meeting new folks and talking to others about the industry, and the breakout sessions are so worth the time for you to hear about different topics that you most likely would not hear about unless you were there. This year’s keynote speaker was Joe Theismann, former quarterback for the Washington Redskins, and he was just awesome.

This year’s turnout was the most ever and it continues to grow. If you are a truck dealer—Independent or an OEM—and you are not a UTA (Used Truck Association) member you are missing out. Go to www.uta.org and sign up today. They have so many ways to help make your dealership a winner. For all of those who were there who I did not get to say hello to, well you understand how busy you get.

Thanks for your continued support and I appreciate your business.

Terry Terry Hebron, HTAEW

Just Back continued from page 1

Industry Events Calendar

January 201522-25 • 2015 ATD/NADA Convention Moscone Convention CenterSan Francisco, CAwww.nadaconvention.org

MarCh26-28 • Mid-America Trucking Show 2015Kentucky Expo CenterLouisville, KY www.truckingshow.com

aPrIL14-17 • NAFA Institute & ExpoOrange County Convention CenterOrlando, FLwww.nafainstitute.org

May1-2 • Midwest Pride In Your Ride Truck & Tractor ShowTri State RacewayEarlville, IAwww.midwestprideinyourride.org

28-30 • ATHS National Show & ConventionYork Expo Center334 Carlisle AveYork, PAwww.aths.org

auGuST27-29 • The Great American Trucking Show (GaTS) 2015Dallas Convention Center650 South Griffin StreetDallas, TX www.gatsonline.com

Editor’s Note: December’s Industry Watch will include full coverage of the Convention complete with many pictures!

UTA Industry Watch


Mike Chesteror through your personal life. “You have to participate,” he said. His advice to those just starting out includes getting to know people in the industry. Attending trainings, seminars, and conferences can help build the relationships that can be instrumental to your success. Mike has used his extensive network of contacts throughout his career, carrying over helpful colleagues from his days selling parts to his current job. “With today’s technology; email, the Internet, LinkedIn, etc., it’s very easy to stay in touch with people,” he said.

Mike also encourages younger staff members to think of creative solutions to challenges. “Don’t let ‘that’s how we always did it’ stop you from looking for a better way to get the job done,” he said. The innovative thinking that has brought the truck industry so far along in the last decade will be useful as trucking faces the challenges Mike sees ahead. “Over the past year we’ve seen the used truck market taking in more and more 2010 emission units,” he noted. “There is a lot of training required to learn all the updates, new parts, and even simple things like dashboard lights.” As an added challenge, it isn’t just enough for industry insiders to learn about and understand these changes. It will be up to those insiders to help their customers learn about and understand them, too. “From dealer principals, down to technicians, these changes affect us all in one way or another,” Mike said.

Outside of work, Mike continues his love for the motor vehicle. “I enjoy working on cars,” he said. “I bought my first car at the age of 16 for $500—a 1965 Mustang, which I still own today. Lately, I’ve taken up road racing and it’s quite a thrill!” Mike and his wife Dawn enjoy the race they share with their five children, Hailey, Christopher, Kylie, Nicholas, and Alexander, too. “Running from gymnastics to soccer to guitar, we’re always busy,” he said. Throw in three dogs and two cats, and this is a high-speed family with plenty to keep them running! n

Mike is the Marketing Manager for International Used Trucks

(Navistar) in Lisle, IL. He’s been a member of the UTA for more than three years now, but he’s been a truck lover since way before that. He started working in the truck industry right out of college. “I worked for an automotive/truck parts supplier,” he explained. “It was a smaller chain in the Midwest, and I managed one of their retail outlets.” His next job was Parts Interchange Researcher for a division of Echlin. Here he was responsible for interchanging competi-tive parts numbers with OE numbers. He joined GVW Parts as Marketing Manager just as the firm was getting started. “It was a startup at the time,” Mike said, “and a few short years later it was purchased by Navistar. GVW was the OE parts distribution arm for Autocar, Workhorse, and Union City Body Company (UCBC). We also had an all-makes segment, UpTime Parts, which sold to major fleets like UPS, Pepsi, and FedEx.”

In his current job, Mike works with International Used Truck’s 15 corporate-owned used truck centers and the International Dealer Network. “Between the two groups, I provide marketing support such as training programs, sales collateral, and larger initiatives like our recent launch of Diamond Renewed, International’s newest offering in the truck industry.” Diamond Renewed was a “huge undertaking” according to Mike. “We put a lot of time and energy into providing a superior product,” he said. The new offering is backed by an industry leading warranty and OnCommand Connection, a telematics system available to users from the small, owner operator to the large fleet manager, all via a smart phone.

Mike is especially proud of the Diamond Renewed offering. “We were under such tight deadlines,” he recalled. “There were so many loose ends I thought we’d never get the launch completed on time. With extra hours put in by all involved, and knowing the only option was to succeed, we pulled through

and everything went off without issues.” Mike said this sense of accomplishment that comes from knowing you and your team have given 110 percent is what makes his job rewarding and brings him pride. He also loves surrounding himself with people who share his passion for his industry. “Most people I know are in this industry, because they’re passionate about it, like me,” he said. “Many of them have been in the industry most of their lives. This makes a unique group of hard workers who love what they do.” Mike says he feels lucky to work with great people. “It makes coming in every day a lot easier,” he said.

Mike has learned over the years how important it is to get involved, whether you

choose to do that through your industry

UTA Industry Watch


Zach Badger V&H Trucks2600 Queen City Drive Charlotte, NC 28208 (704) 960-3146 (w) [email protected]

Keri Baker, Manager, Marketing Communications—Used Trucks Daimler Trucks Remarketing2477 Deerfield Drive Fort Mill, SC 29715 (803) 578-3565 (w)[email protected]

Timothy Berkley, Pre-Owned Truck ManagerTruck Enterprises, Inc. Hagerstown 18216 Maugans Avenue Hagerstown, MD 21740www.truckenterprises.com(301) 739-5577 (w) [email protected]

Tim started out as a truck driver, a job he held for 20 years. For the past 14 years he’s worked in the sales end of the business. The chance to network, and share information on buying trends and sources for buying trucks are what brought him to the UTA.

Tim was quite clear in his answer when asked what he liked best about his work. “Selling!” he said. “I enjoy working with people and filling their truck needs.”

Regular readers of this newsletter know we always ask new members if there’s another field they could see themselves in. Most mention something related to sales, transportation, sports, or perhaps teaching. Tim got us though when he told us “I would like to own a wedding and party venue.”

When not at work you might find Tim at Renaissance Festivals or Wine Festivals; and enjoying football, baseball, golf, or bicycling. But most of all he enjoys being with his family and friends.

new Members

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!

Will Bowman, Territory Manager My Little Salesman2895 Chad Drive Eugene, OR 97408 www.mylittlesalesman.com(512) 636-9070 (w)[email protected]

Will has a background in sales, and worked in the IT, insurance, and health industries among others. In 2011, he joined the trucking industry.

Compared to some of the other industries he’s been a part of Will finds the transportation industry a lot steadier. “There will always be trucks on the road,” he told us. He also likes that there’s a lot of variety in his job, always something different.

Outside of work, Will enjoys spending time with his nine-year-old daughter. He also enjoys watching football and playing golf, which means he fits in great with many other UTA members.

When we spoke in early October, Will was looking forward to attending the then-upcoming UTA Convention and “matching names to faces.”

Bessie Brauthigan, Regional Sales Manager Truckcenter Auction15051 N. Kierland Blvd. #300 Scottsdale, AZ 85254 www.truckcenter.com (310) 595-5505 (w)(909) 429-1495 (c) [email protected]

Bessie began her career in the truck industry in 2008, working in asset recovery. She joins us now hoping to increase her visibility in the trucking and transportation industries. She also looks forward to having greater opportunities for professional

networking, and staying “in the know” through industry updates.

Her job seems to suit her well. The things she especially enjoys are meeting new people, and “helping customers turn their equipment back into cash through the use of my company’s three selling verticals.” She also loves the travel that her job requires. “I look forward to every day that I have a chance to help companies small or large remarket their equipment,” Bessie added.

Outside of this business Bessie can see herself as a counselor at a four-year university. She likes helping others and being a part of their success. “I believe with the proper guidance,” Bessie said, through “hard work and dedication anyone can have a chance for success.”

Her other interests include hiking, Zumba, and traveling. And, as the picture makes clear, spending time with her girls.

Bessie wanted UTA members to know that she wants to learn as much as possible through networking events and seminars. “I am willing to put the work and the time in to grow in this industry. I am here now and not going anywhere anytime soon!”

Verl Brown, Director of Used Truck DivisionSnider Fleet Solutions 4420 N. Graham St. Charlotte, NC 28206 www.sniderfleet.com (303) 989-5600 (w)[email protected]

It was in 1983, that Verl started in our business. Back then he worked in new truck sales selling International Harvester Trucks. He’d be a good person to connect with, as Verl’s joined the UTA to stay informed and establish contacts.

Verl finds the job he now has both challenging and gratifying. He feels he’s met his goal of successfully “establishing one of the premier truck tire and truck service dealers in the used truck sales business.”

When he’s away from work, Verl enjoys

New Members continued on page 6

UTA Industry Watch


football. In fact, he said that if he wasn’t in our business he’d like to be a football coach and teacher. “I enjoy helping others learn and develop the confidence that is necessary to succeed,” Verl said. “I love teaching the fundamental skills of football, basketball, and baseball,” he added.

In closing, Verl said it’s good once again to be a part of a great organization.

Danny Coffman, Director of Sales & Marketing Continental Batteries4919 Woodall Street Dallas, TX 75247 (972) 602-4406 (w)[email protected]

Dennis Gassaway 645 Simbury Street Columbus, OH 43208 (614) 207-2277 (w) [email protected]

Andrew Gergen, Used Truck Manager Vanguard Truck Center of Houston 5216 North McCarty Drive Houston, TX 77013www.vanguardhouston.com (713) 545-6363 (w) (713) 673-3223 (c)[email protected]

Come this January, Andrew will celebrate his 15th year in the business. He started in used truck sales and certainly found a home here.

Andrew is hoping UTA membership will bring him “network advantages, inventory availability notices, marketplace knowledge, and event notifications.”

There’s a lot he likes about the job he has now including “the everyday challenges relating to finding the right inventory and the right process to make our inventory sellable,” he shared. “I enjoy the fluctuating market, and the pulse of the wholesale aspect of this industry as a whole.”

But were he to leave the truck business he could see himself in the business of doing restorations and “resto-mods on classic muscle cars,” he said. Adding: “I love the classic American automobiles, and it has

always been a dream of mine to collect and sell them.”

Andrew said that if he ever became wealthy (such as by striking it big and winning the lottery) he’d want to help out needy folks. But wait. He has some specific ideas about how he would accomplish that. “I’d buy a truck and some construction equipment, hire a crew, and drive around poor, needy neighborhoods and do home repair for the folks who really need it and can’t afford it,” Andrew said. “I think it would be very rewarding and fun.”

Andrew also wanted to say that he’s enjoyed his many years in the industry, and has met and done business with a lot of very fine people.

Adam Hardy, National Accounts ManagerAccess Trucks5515 NW 88th Street P.O. Box 800Johnston, IA 50131www.accesstrucks.com(800) 241-0094 (w) [email protected]

Adam just started working in our industry this year. UTA seems like a good fit for him as he’s hoping to meet some new people in the business.

He likes that his job gives him the chance to speak with people from all over the country, he told us.

If he wasn’t in the truck business he could see himself in marketing for a professional sports team. “It would be great to go to all of the games and meet all of the players,” he said. Andy is also an avid fisherman, hunter, and golfer, enjoying pretty much anything outdoors.

He may be a newcomer to our industry but he seems already sold on it. He wanted us to share that he’s “realized that there are a lot of great people that work in the trucking industry.” We agree!

Robert Hinz 165 White Bridge Road Old Chatham, NY [email protected]

Frank Johns, Regional Wholesale ManagerDaimler Trucks North America 1601 Turnberry Drive, Apt B Pickerington, OH 43147 (614) 400-6636 (w)[email protected]

Mark JonesEaton12820 Gallant Court Fort Worth, TX 76244(214) 415-5747 [email protected]

Alex Kimbro River Valley Capital Group14868 West Ridge Lane, Suite 200 Dubuque, IA 52003 www.rivervalleycapital.com (563) 584-9800 (w)[email protected]

Greg Kindberg, Buyer/WholesalerTruck Central LLC 600 NE Central Dr. Blue Springs, MO 64014 (805) 200-7702 (w)[email protected]

Greg got his start in the truck industry in 2004 as a purchaser for Arrow. He’s been in and around the UTA since he started in the business. He’s found that the UTA has helped him build his contact base and given him a lot of information.

What does he like best about his job? “Freedom,!” he told us. “Truck Central is a very well-established independent dealer that focuses on wholesaling. We buy and sell a lot of trucks, and I can buy from or sell to just about anybody. If I buy trucks of any make or model and I can’t sell it right away, Jeff and Andy have the resources to sell them immediately.”

Ok Greg, but outside of trucks what else can you see yourself doing? Being a “Rock Star,” he replied. “Who wouldn’t?”

Greg recently celebrated being married for 20 years. Now that the kids are older he plans on playing a lot more golf and doing more deep sea fishing.

New Members continued from page 5

UTA Industry Watch


He wanted his fellow UTA members to know that “without the UTA I would have never met a lot of good people in this industry. I have some that I just do business with and I have made some great friends at UTA events over the years, so I would like to thank the UTA for being there.” Thank you Greg!

Matt Manero, President Repopost.com, Inc. dba Equippost.com1445 Macarthur Dr., #216 Carrolton, TX 75007 www.equippost.com (972) 559-8340 (w) [email protected]

Matt’s been in the truck business for about 20 years now. He’s become a UTA member hoping to make new contacts.

Matt said he “loves the industry” when we asked what he most likes about his job. Specifically, he “has a passion for helping customers and employees reach their potential.”

And, as you might expect, Matt says he can’t see himself in any other field. He invites his fellow UTA members to “call us with anything!”

Mark Orth GE Capital Fleet Services 3 Capital Drive Eden Prairie, MN 55344 (952) 828-2434 (w)[email protected]

Brian O’Shea, Director of Vehicle Remarketing Bergey’s Truck Center446 Harleysville Pike Souderton, PA 18964 bergeystruckcenter.com(609) 586-3333 (w)[email protected]

Brian got his first job in the truck business in 1979, but it must seem to him that trucks have always been a part of his life. He worked at his family’s Mack distributorship beginning in high school, joining the company full-time while finishing college at night.

Although Brian’s an industry vet, he still views UTA membership as quite valuable. He’s here with us now hoping “to make contacts that will last into the future, and to learn ways of improving the company’s used truck department.”

Bergey’s especially appeals to him, he told us, because its truck division is so much larger than what he had been accustomed to. He also enjoys working with a very diverse customer base.

We should have known this would be his response when we asked him if he could envision himself in any other field. “After 35 years I can’t think of any other business in which I would rather be associated,” he said.

Brian’s also a devoted dad. He coached all three of his sons in basketball and baseball and “loved every minute of it,” he said. “Although I didn’t realize it until they were grown.”

Closing thoughts Brian? “We are not used car lot salesmen, we are professionals, and we provide a valuable alternative to the transportation industry,” the longtime industry member noted.

Clarence Robertson 2600 8th Avenue Chattanooga, TN 37407 (423) 622-4161 (w)[email protected]

Casey Smith Access Trucks5515 NW 88th Street Johnston, IA 50131 [email protected]

Bill Snyder, Regional Sales ManagerTruckCenter.com/Liquidity Services1121 Cantrell Sansom Road Fort Worth, TX 76131 (817) 946-4535 (w) (817) 230-0100 (c)[email protected]

Retail sales was Bill’s first job in the business, which he joined in 1980. Like so many new members he’s looking to broaden his network now that he’s a UTA member.

“Dealing with the customers…fleets, financial institutions, and dealers,” is what Bill most enjoys about his job. But if he had to choose another field to work in it would be sports, he told us.

Bill’s also passionate about helping the homeless.

Josh Sparpana, President Grand Rapids Truck Center 7405 Expressway Dr. SW Grand Rapids, MI 49548 www.grtruckcenter.com(616) 802-0422 (w)[email protected]

“I’ve been around trucks my whole life,” Josh told us when asked when he started in the business. His first job was as a driver.

As a new UTA member he’s hoping to make more contacts from around the country.

Josh said the best part of his job “is that every day is different, and he gets to meet people from all different parts of the country.”

Once again, it came as no surprise when Josh said he couldn’t really see himself working outside of the industry. “I love what I do and the relationships I have,” he said.

Josh is also a head coach for youth football, and coaching kids is a special passion of his.”I like being involved in youth sports, it’s rewarding to teach kids and be able to forget about work while doing it,” he noted.

Finally, Josh said he looks forward to meeting new people in the industry, and building great relationships.

Sam Trapani Commercial Truck Center of Virginia740 South Military Highway Virginia Beach, VA 23464 www.ctcofva.net(757) 961-8364 (w) (757) 961-8934 (c) [email protected]

New Members continued on page 8

UTA Industry Watch


Enrique “Rick” Vasquez, Truck Sales Professional Pacific Truck Centers487 S. 56th Pl. Ridgefield, WA 98642www.pac-truck.com(360) 909-8200 (w) (360) 887-2025 (c) [email protected]

Rick started in the truck business in 1990 as an accounts manager for truck finance company, Associates Commercial Corporation.

He’s looking forward to “developing and building relationships with peers in the industry leading to sources for inventory,” as a new UTA member.

Rick really enjoys his work. “I work for a great company that is growing and I enjoy being a part of that growth process,” he said.

Outside of trucks you might find him in something else sales-related where he could be “a positive catalyst impacting people’s lives.”

He also loves living in the Northwest and all the culture it has to offer. He pointed out the “world class fishing, wonderful wine, crafted brews and culinary delights.” He also mentioned that he loves to cook and share with those he interacts with.

Rick left us with these words: “I like staying on top of industry changes and innovations and sharing with others to help this industry stay strong and viable.”

New Members continued from page 7

Jesse Voysey, Used Truck ManagerTruck Component Services/The Larson Group403 E. Evergreen Strafford, MO 65757 www.truckcs.com (417) 829-6700 (w)(417) 736-9218 (c)[email protected]

Back in 2010, Jesse was working as an outside sales representative selling vocational equipment to municipalities and individuals—his first job in the industry.

The chance to meet other truck professionals and build a better network for buying and selling vocational equipment are some of the reasons he’s now a UTA member.

Meeting people is something Jesse enjoys, in fact it’s meeting new people and building relationships with customers that he enjoys most about his job.”It is always more fun to sell to someone you like,” Jesse said. “Building relationships is like becoming friends with someone.”

We then asked him if there was another field he could imagine himself in. “I can’t really think of one,” he replied. Then he thought more about it. “Maybe a marriage counselor,” he suggested. “Because closing a truck sale is like getting a husband and wife to agree on where to go shopping (win/win).”

Finally, we asked if he had any special interests or passions. “I am an open book, he replied. Just ask me.”

Daniel Wilson Bridges Truck Center 6314 S I-45 Wilmer, TX 75172 (972) 441-6500 (w) [email protected]

Never miss an opportunity to coach, train, observe, praise, provide feedback, or course correct a salesperson’s performance.

UTA Program Ad-Peterbilt579&MX-13.indd 1 7/31/14 11:13 AM

UTA Industry Watch


UTA Q & A: ACT Research’s Steve Tam

The data is aggregated and used to help understand both current and future market performance. The data and analysis are directly input into our forecasting model, where we forecast production and sales for the next five years. The data is important to dealers because it provides market size, timing, and price information for those new trucks when they become used trucks.

Industry Watch: There are other companies seemingly reporting the same type of information that ACT does, such as FTR and NADA. Where does ACT’s data fit into the mix?

Tam: ACT is the recognized leading publisher of commercial vehicle (CV) industry data, market analysis and forecasting services for the North American market. Our commit-ment to data quality & integrity; in-depth analysis; and timeliness have made our services the industry standard.

There are a handful of other companies that provide similar services, but we each have our own approach to analyzing and understanding the market. That differentiates us to the point that most of us do not compete head-to-head. For example, we differ from NADA and the other publications that provide used equipment valuation services in that we are more interested in the performance of the total industry, rather than specific prices a of a given truck model. We analyze and predict trends in valuations and composition of used trucks that are moving through the marketplace.

Industry Watch: What are the most important trends that you see in the used truck industry?

Tam: The two most important trends in the used truck industry right now are availability of inventory and what that lack of it has done to prices. On top of that, solid economic growth has improved confidence to the point that there is pent-up demand, especially for late model, low mileage trucks, that has sent prices skyward. While growth is expected to slow in 2015, prices will remain elevated.

Industry Watch: And what should used truck dealers be doing to maximize their chances for success over the next 12 months or so?

Tam: Far be it for an industry observer to tell participants how to succeed, but the advice of “Buy low, sell high” comes to mind. While

that is not entirely practical, “buying right” is key. Establishing appropriate truck values is one of the most difficult, but critical aspects of the used truck business. A dealer has to know that price the market will bear so he can buy at the right price and still make a profit. Knowing his market and customers and which trucks or specs are in demand is also crucial. Used trucks are not likely to magically appear over the next year, so dealers are going to have to play the hand they are dealt.

Industry Watch: Finally, aside from the “State of the Industry” what other reports, etc., does ACT provide that UTA members should be sure to check out?

Tam: We have not talked at all about the Used Truck Flash and Report, which are part of the State of the Industry series. Of all our publications, this one is the most relevant to used truck dealers. Similar to other State of the Industry reports, we collect a sample of transaction-level data from over 600 dealers each month, including units sold, selling price, average mileage, and age. The focus of the report is an assessment of the current market, with a look toward near- to mid-term expectations. We are always looking for additional dealers to share data in exchange for the reports. They can see a sample on our website here.

Thanks Steve! n

It doesn’t take long for people in the used truck business to become familiar with

ACT Research, one of the industry’s top sources for market data. In this second of our series of interviews with industry experts we chatted with ACT’s Steve Tam about his background and the data ACT provides.

Industry Watch: Please tell us a bit about your background as it relates to the trucking industry.

Tam: I started in the trucking industry as an internal auditor at Cummins Engine Company. I held several different positions there, including managing the warranty accrual rate setting process. I’m not sure which of the two positions was least appreciated. After all, I WAS there from Corporate and I WAS trying to help! But no matter where I went or what news I had, someone was always disappointed. I joined ACT in 2000 and never looked back. Providing products and services that help companies manage their future has been a very rewarding path.

Industry Watch: Your bio identifies you as ACT’s Vice President, Commercial Vehicle Sector. What exactly are your duties?

Tam: ACT Research is a small company, so I work in many facets of the business. My primary duties include analysis and forecasting for the light and medium-duty commercial vehicle markets. I handle data collection, analysis and reporting for those and various other segments, such as used truck sales. I manage most of our databases and am responsible for many of our special projects. When I am not busy with those obligations, I give presentations to private companies as well as industry organizations and interviews to industry publications, newspapers, and business periodicals.

Industry Watch: Industry Watch features data from your State of the Industry: N.A. Classes 5-8 Vehicles report nearly every month. Tell us a bit about how the data is compiled for that report, and how dealers can best use the information that’s compiled.

Tam: This particular report is a compilation of market indicator data that is collected from the truck manufacturers each month. The indicators include production, retail sales, truck orders, inventory, and backlog.

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UTA Industry Watch


Women In Trucking and Girl Scouts Launch New “Transportation Patch”by Ellen Voie

Dozens of area Girl Scouts now have one more patch to showcase their

interest in learning about something new–the Women in Trucking Association awarded its first Transportation Patch in October. A total of 84 Girl Scouts of Greater Chicago and Northwest Indiana, ages 5-12, spent half a day at Olive-Harvey College learning about the transpor-tation industry from experts.

At the event, the Girl Scouts completed a vehicle inspection, climbed into the cab of a semi-truck and built a truck out of paper. Attendees also heard a presentation from Lenora Hardee, Chief Technical Engineer at Navistar, who spoke about her career and the opportunities in the industry.

“Women In Trucking Association’s mission includes the goal of encouraging the employment of women in the trucking industry,” said Ellen Voie, President/CEO of

Women in Trucking Association. “The opportunity to reach young

women in the Girl Scout program to tell them about

career opportunities in transportation supports this objective. The Girl Scouts who earned their patch in transpor-tation learned about an important segment of our economy while

getting an up-close view of a tractor trailer in a

fun-filled day of learning. We are thrilled to pilot this

patch in the greater Chicago area and look forward to seeing it expand

throughout the United States.”

Volunteers from Olive-Harvey College, Women in Trucking Association, and

Navistar were on hand to help the Girl Scouts with each of the activities and answer any questions they had about the transporta-tion industry. The meal was sponsored by Averitt Express and patches were paid for by C.H.Robinson, Inc. Frito-lay provided snacks. Olive-Harvey College is the City Colleges’ College to Careers hub for TDL (transporta-tion, distribution, and logistics) education. n

Ellen Voie is the President/CEO of Women In Trucking, Inc.

UTA Industry Watch


Risk InsightsGetting a Grip on Your Workers’ Compensation Costs

Workers’ compensation is a signifi-cant cost of doing business,

including for independent and franchise truck dealerships, drive-away companies, and the service shops that cater to truck dealers. Often, it’s also a very frustrating part of running an operation as many employers see rising premiums even though their payrolls haven’t increased and their claims history is good. Moreover, there is uncertainty as to whether the Affordable Care Act (Obamacare) will ultimately impact workers’ comp rates as more employees possibly look to claim work-related injuries and illnesses because of the limits imposed by their health plans.

There is a lot you can do to keep your workers’ comp costs in line, including establishing a culture of safety that begins with management’s commitment, imple-menting a sound loss control protocol, ongoing training of all employees, and working with your insurance company to implement a solid return-to-work program. These are effective solutions and take time to see real results. There are also immediate measures you can take to pinpoint whether you are properly being charged for workers’ comp coverage, and to vet any anomalies that may be affecting how your business is being rated.

We spoke with Mike Turano of compcheck.net who works with companies across the country to reduce their workers’ compensa-tion premiums. Mike’s background spans years of workers’ comp experience on the insurance carrier side, including investi-gating fraudulent claims. “The first thing is to understand how workers’ comp premiums are calculated,” explained Mike, “and then to take action to make sure your premium adequately reflects your business, experi-ence, and loss history.”

Calculating Workers’ Comp

Workers’ comp rates are calculated using the following formula: “Base Rate x Mod x Payroll plus or minus adjustments”. The base rate is unique to each state and industry classification, and in most states is set by the National Council of Compensation Insurance (NCCI). This base rate is multi-plied by a factor of payroll ($1 for every $100 of payroll) to come up with an employer’s base premium. The experience modification factor (or X-mod) represents a business’

claims history over a three-year period and its safety record as compared to other businesses in the same industry. A mod factor of more than 1.0 means that an employer’s losses are worse than expected and a surcharge will be added to the premium. A mod factor less than 1.0 means losses are better than expected, resulting in a premium discount. “For example, to calculate the X-mod for 2015, you look at the amount of actual reserves that was set by the insurance company when a workers’ comp claim is presented to them on behalf of an employer,” explains Mike. “You also look at the expected losses, which is based on the three-year average (2011 to 2012, 2012 to 2013, 2013 to 2014). You divide the expected losses into the actual losses. So, if you have $2.00 in Workers’ Comp claims for three years and $1.00 in payroll (expected losses), the X-mod would be 2.00. Conversely, if you had 50 cents of actual losses with a payroll of $1.00, you would be at .50.”

Auditing insurance Company reserves Set for Claims

The potential problem with this, according to Mike, is that reserves are based on an estimation of what the cost of a claim would be. In many cases, these reserves may be set too high resulting in an employer over-paying in premiums as the X-mod is not accurately calculated. “To illustrate this, let’s say the insurance company sets the reserves at $100,000 for each year, which leads to an experience modification worksheet of $300,000 over the three years it’s reported. However, in three years, payments of only $20,000 per year are made for a total of $60,000. The employer ends up being overcharged, as the X-mod does not reflect what the reserves should be.

“Employers have the right to challenge the reserves with an audit of their open workers’ comp claims within six months after policy renewal to ensure that reserves are correct. This can lower the X-mod and over time significantly reduce premiums,” emphasizes Mike.

“We also send out a questionnaire to the adjuster handling every claim on behalf of an employer. This questionnaire includes 34 questions designed for the adjuster to review the carrier’s log notes to justify the reserve set for a specific claim. Some of these questions include: ‘Please give us a detailed description of how the injury incurred. What is the rationale for putting a reserve of $100,000 for indemnity benefits only (lost pay and earning capacity)? Has the claimant had any prior injuries to this particular body part?’ When we receive the answers, we’ll have a medical consultant look at the reserves for any anomalies or to see if a claim is warranted. For example, let’s say you have a worker on the job for six months who’s filed a carpal tunnel claim. Medical guidelines stipulate that carpal tunnel development is not possible in less than a year, therefore a pre-existing condition must exist and an investigation should take place. We’ll suggest the adjuster look into this, and request a HIPAA release under the OSHA Act to perform a medical background check. We can then review the prior seven years to see if the employee has had a previous repetitive trauma claim. If so, we contact the previous carrier to join as a co-defendant in the claim. This controls the costs of the claim.”

Inside Workers’ Comp Premiums

•Arethereservessetforyouropenworkers’compcasesreasonableorexcessive?

• Isyourbusinessbeingplacedinthemostfavorableandleastcostlyworkers’compclassification?

• Isyourexperienceratingbeingcloselymonitoredtoreflectpositivechangesthatmayhaveoccurredinyouroperation’sclaimshistory?

• Isyourinsurerproactivelyseekingreimbursementfromthirdpartieswhoseactionsmayhaveresultedinanon-the-jobinjuryandasubsequentworkers’compclaim?

•Haveyouincurredchargesforuninsuredsubcontractorsorowner-operators?


Additional Avenues to reduce Costs

Subrogation recoveries–reimbursement from the responsible party for a claim the insurer has already paid–significantly affect reserves if not tracked. This occurs most often when employees are injured in motor vehicles on the job–something particularly of interest to independent franchise dealers. If an accident is determined to be a third-party’s fault, the injured worker, in addition to filing a workers’ comp claim, could also file a claim against the other driver’s insurance company. If this occurs, an employer should find out if the workers’ comp insurer is seeking reimburse-ment from that third party and whether the insurer aggressively pursues second-injury benefits. This could reduce the cost of the claim.

The way in which employees are classified also affects a workers’ compensation policy. For instance, labeling your secretaries as drivers or mechanics, who have a much higher injury rate, will drive up your company’s X-mod rate, and thereby your premiums. To reduce errors, businesses should classify each employee on an individual basis.“It’s critical that classifications be reviewed regularly to ensure accuracy,” explains Mike.

Payroll audits are also important to make sure that payroll estimates are not overinflated, causing unjustly high premiums. Premiums should be based solely on total remuneration consisting mainly of wages or salary, commis-sions, bonuses, and other similar items. As such, payroll records should be reviewed to ensure that non-remuneration items like tips, gratuities and payments to independent contractors are reported separately.

These are just some of the several ways in which to get a handle on workers’ comp costs. It may seem a bit daunting but it doesn’t have to be. When working with experts like Mike and CompCheck who are experienced in tracking and auditing claims, you’ll be able to pinpoint any problems and look to save premium dollars.

BOLT Insurance Agency works with CompCheck to bring added value to clients to help improve their bottom line. If you are interested in reviewing your workers’ comp policy with us, please contact Brian Lawlor at 860-777-2671 or via email at [email protected]. n

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Come to AZto Networkfrom A to Z

UTA Industry Watch


Market Summary

The volume of Class 8 trucks sold was up in both the retail and wholesale channels in September, with late-model trucks responsible for the increase. Supply of these trucks accelerated in late summer, shaking up the mix of trucks available to the marketplace. Medium Duty segments continue to mildly improve. A special study examines the effect of region on price.

Sleeper Tractors – retail

Hopefully, we no longer need to state that the market is absorbing an expanded supply of model-year 2010-2013 trucks – this is the new normal, and the used truck industry should be accustomed to it. The new factors to watch are the acceleration of that supply that began in late summer, and the increased proportion of the market comprised of the International ProStar. August and September data showed numerous group package sales of this model as well as the Kenworth T660.

A combination of ProStar supply and natural depreciation resulted in NADA’s universal sleeper tractor average moving down $1,103 (or 1.8%) from August, despite average mileage 8,577 (or 1.7%) lower. Specifically, the average sleeper tractor retailed in September for $59,356, had 501,868 miles, and was 75 months old. Year-over-year, average pricing was up $5,663 (or 10.5%), mileage was down 35,707 (or 6.6%), and age was 3 months younger. See “Average Retail Price and Mileage” graph for detail.

If we exclude the ProStar from our calculations, the August-September pricing decline was 1.2%. So the ProStar was responsible for 0.6% of overall market depreciation. Increased supply of many other makes and models combined with somewhat typical seasonal depreciation is responsible for the remainder. Our early prediction of 1-1.5% deprecia-tion for 2011 and newer trucks has been accurate on average - slightly high for 2011’s and 2012’s, and slightly low for 2013’s.

NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

400,000

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Average Retail Price and Mileage: All Sleeper Tractors Under 1M Miles

Price Mileage

Source: ATD/NADA

Outside of these variables, 3-5 year-old trucks continue to bring notably more money in 2014 than in the previous two years. See the “Average Retail Selling Price by Age” graph for detail.

Sleeper Tractors – Wholesale

September’s wholesale marketplace was shaken up even more by the influx of newer trucks. This month, 3-year-old Kenworth T660’s made an outsized impact on our wholesale database, pushing our universal average pricing to a new record. Thanks to this activity, average mileage and age were also pushed down to record levels, and were in fact lower than trucks sold retail!

Specifically, NADA’s wholesale benchmark average price hit its highest level in at least six years, coming in at $47,008. Average mileage was the lowest we’ve seen, coming in at 492,160. Average age was – you guessed it – the youngest recorded, at 64 months.

Month-over-month, pricing was up $6,949 (or 17.3%), mileage was down 74,929 (or 13.2%), and age was 9 months younger. Year-over-year, pricing was up $14,705 (or 45.5%), mileage was down 162,645 (or 24.8%) and age was 16 months newer. See “Average Wholesale Price and Mileage” graph for detail.

A monthly change of this magnitude is an anomaly. At the same time, we have expected an accelerated supply increase of newer, lower-mileage trucks now that we are in the thick part of the trade-in cycle of trucks built post-recession. As such, we characterize September’s wholesale results as somewhat unusual, but indicative of the direction the market is heading. Expect a better selection of late-model sleepers in the auction lanes and from wholesale partners going forward.

Competitive Comparison – 3- and 4-Year-old Sleepers

Starting with 3-year-old (2012MY) trucks, the Freightliner Cascadia and Peterbilt 587 vied for top spot in September, with both models returning strong, stable pricing for multiple months. The Cascadia remains the highest-volume model in this cohort, which underlines its positioning. As for the 587, the vast majority of this model sold to date (85%) have been equipped with the ISX engine, which likely supports value.

The Kenworth T660 has depreciated more heavily than the other top-performing models, with increased volume of this model the primary factor.

Peterbilt’s 386 continues to return volatile pricing, due to a low volume of trucks reported sold combined with heavy MX engine representation in trucks sold recently. $30,000

$40,000

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Average Retail Selling Price by Age: Sleeper Tractors Adjusted for Mileage

3YO

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5YO

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$15,000

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Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles

2 per. Mov. Avg.(Price) 2 per. Mov. Avg.(Mileage)

Source: ATD/NADA

UTA Industry Watch


NADA continued on page 18

Volvo’s 730/780 series returned back above the market average this month, with slightly lower average mileage the main factor behind the higher pricing. This model continues to return average mileage well above the industry mean. 630/670 models also moved up back to the market average this month. As with their larger brandmates, 630/670’s sold this month featured average mileage lower than last month.

The Kenworth T700 is also a model that appears to be well-used prior to trade-in, with average mileage well above the mean for this cohort. That factor combined with heavy MX engine representation are the main factors in this model’s positioning.

The International ProStar ticked back up in September, and continues to run roughly 25% below the average for this group. As we mentioned, this model has appeared in much greater numbers in recent months in our retail and wholesale sales data. Wholesale records are comprised mainly of package deals – groups of trucks each selling for the same price. Retail pricing remains volatile, which suggests the industry is still finding a comfort level for pricing of this model.

See “Average Retail Price – 3-Year-Old” graph for detail.

Moving over to 4-year-old (2011MY) trucks, most models ticked downwards in September, save for the 730/780 and 387. Increased volume appears to be the main factor behind the downward movement. The 730/780 and 387 simply had a stronger month than the competition, with no outstanding factors explaining their superior performance.

The ProStar continues to depreciate, currently running about 13% behind the market average for the year to date. There was a larger proportion of MaxxForce-equipped trucks sold this month, with 33% equipped with that engine.

See the “Average Retail Price – 4-Year-Old” graphs for detail.

Medium duty – Class 3-4 Cabovers

2014 has been a better year for used cabovers than 2013, with pricing up notably. However, the number of trucks sold has decreased, and the upward movement in price over time is due partially to a lower mileage mix of trucks sold. Still, positive year-over-year pricing comparisons suggest an improved market.

Specifically, the average 4-7 year-old Class 3-4 cabover sold wholesale in September for $13,961 – a $5,003 (or 26.4%) decrease from August, but a $3,358 (or 31.7%) increase over September 2013. Mileage came in at 100,583 – a 4,538 (or 4.7%) increase over last month, and a 28,340 (or 22.0%) decrease vs. September 2013. See Class 3 Cabover graph for details.

The mild mileage increase does not explain the major decrease month-over-month. Unfortunately, monthly volatility is a fact of life in a low-volume segment. 2014 is running a whopping 65.5% behind 2013 in terms of volume. Part of this shift is due to the inclusion of two low-build model years in the 2014 data (vs. one in the 2013 data), but if demand existed for these trucks in the used market, they would exhibit higher pricing.

At this point, it appears that the various users of light-GVW cabovers are paying about 19% more for these trucks in 2014 than they were last year, but there are fewer of these buyers.

Medium duty – Class 4 and 6 Conventionals

Starting with Class 4, volume for our benchmark 4-7 year-old group is similar to last year, at an average of 42 sold in 2014 to date vs. 45 for the same period last year (excluding one major outlier month last year). Month-over-month and year-over year pricing comparisons are both positive, indicating an improving market.

UTA Industry Watch


NADA continued from page 17

Specifically, the average 4-7 year-old Class 4 conventional sold wholesale in September for $15,747 – a $2,625 (or 20.0%) increase over August, and a $3,707 (or 27.0%) increase over September, 2013. In terms of mileage, September came in at 118,932 – an 8,305 (or 6.5%) decrease over last month, and an 11,009 (or 10.2%) increase over September, 2013. See Class 4 Conventionals graph for details.

With mileage and sales volume stable over the past two years, positive pricing performance appears to be organically driven. Contractors, landscapers, and light haulers have gradually been finding more work.

As for Class 6, that segment continues to eke out a recovery at a rate somewhat slower than Class 4. Pricing comparisons are positive, but volume in 2014 to date is notably lower.

Specifically, the average 4-7 year-old Class 6 conventional sold wholesale in September for $19,362 – a $1,258 (or 6.9%) increase over August, and a $4,855 (or 33.5%) increase over September, 2013. In terms of mileage, September came in at 173,532 – a 2,501 (or 1.5%) increase over last month, and a 3,562 (or 2.0%) decrease over September, 2013. The apparent bubble in pricing early this year was due to newer, lower-mileage trucks impacting our averages, not any shift in conditions. See Class 6 Conventionals graph for detail.

If volume in 2014 had been comparable to 2013, it would be appropriate to identify a recovery on the level of Class 4. However, with average monthly sales of this cohort averaging just 15 - compared to 43 in 2013 – demand has not clearly increased. The P&D and towing customers purchasing these trucks are paying moderately more money for them, but there are fewer of these buyers. We continue to consider this market in a very gradual recovery.

Special Study – effect of region on Price

This analysis updates NADA’s earlier study published in mid-October in our Commercial Vehicle Blog, controlling for additional variables. The conclusion is similar, but the figures are slightly different.

NADA is occasionally asked about the effect of location on the value of a used truck. We have looked at this data in the past, and have not drawn definitive conclusions outside of common wisdom – namely, that there is little demand for lower horsepower engines in mountain states, or pre- EPA2007 trucks in California and other western port states. Logically, regional microeconomies and access to used truck supply vary. So it is possible that location itself is a factor impacting value.

To examine this issue, we split our retail database of aerodynamic sleeper tractors into five regions: Midwest, Northeast, Southeast, Southwest, and West. Trucks included were model years 2008-2012 sold in calendar year 2013. We chose MY2008 as the cutoff so EPA2007 (and newer) would be the spec for all trucks. We limited the database to trucks with mileage inside our acceptable range of 100-125,000 per year. Models included were those with representation in each region, to reduce the effect of higher-value models being overly represented in one or two regions.

With these parameters, our dataset is tightly defined. The high-low regional average age spread was 4 months, and the high-low average mileage spread was 29,288 (or 6.2%). Specs were similar between regions. As such, we did not need to perform any age or mileage adjustments.

On to the results. Overall, trucks sold in the western part of the country appear to mildly outperform those sold in the east. Specifically, trucks sold in the highest region (West) brought $2,134 (or 3.6%) more than the lowest region (Southeast) on average. The Southwest and West perform nearly identically, with only $370 (or 0.6%) separating the two regions. See “2008-2012 Aerodynamic Sleeper Tractors” chart for details.

Potential explanations for the regional spread are numerous. First, even though spec level is similar between regions, there is nonetheless a 10% gap in number of trucks equipped with a 13-18 speed transmission in the West vs. Southeast regions. Second, even though various models are represented in each region, the mix of high-value trucks such as the Cascadia and T660 was moderately higher in the West – and, conversely, the number of ProStars sold in the Southeast was greater. Third, state and intra-state microeconomies impact demand, with Western states generally outperforming Southeastern states in that regard. Finally, intangible factors impacting vehicle condition such as weather patterns, road conditions, and percentage of urban usage also differ.

Importantly, it must also be stated that identical trucks sold within a region (even by the same dealership) can vary in price by more than the $2,134 figure. NADA’s reporting dealers submit net price, which excludes overallowance – so this variation is simply a reflection of one customer paying more than another for an identical truck. This behavior is present in all regions, so the net impact to our study may cancel out – but it represents a big “asterisk” in the analysis.

With all these issues in mind, it is valid to state that location impacts value to a small degree. In an apples-to-apples comparison, sellers in the West can expect their trucks to sell for fractionally more money than their counterparts in the Southeast. Differences between other regions are minor enough to be considered negligible.

If you’re a national fleet – or are involved in remarketing a large volume of trucks nationwide – ongoing regional performance analysis is worth the effort. For local or regional entities dealing in moderate volumes, your competitors are not likely doing any better or worse than you based on location alone.

UTA Industry Watch


Sales volume – retail and Wholesale

The number of trucks reported sold wholesale (auction plus dealer-to-dealer) stands at 31,094 through September, for a 4.2% increase over same-period 2013. Dealer-to-dealer activity is the main story this month, with dealers reporting 3.2 trucks wholesaled per rooftop. This result is the highest since December 2010, and reflects the major increase in package trades. See “Total Wholesale Sales Reported to NADA” graph for detail.

As for the retail channel, volume returned to trend after a weak August, coming in at 6.1 trucks per rooftop. Given continued strong pricing, we didn’t assign much importance to August’s result, and September’s figure indicates that this was the correct stance.

In terms of the year to date, a weak September 2013 brings year-over-year comparisons up to parity. 2014 to date is now identical to same-period 2013 in terms of trucks retailed monthly per rooftop, averaging 6.0. This average rooftop has retailed 53.8 trucks so far in 2014, compared to 53.6 in the same period last year.

It is likely that calendar year 2014 will end up almost identical to calendar year 2013 in terms of retail volume per dealership. This would mark the fifth year in a row for very similar annual volume. See the “Average Number of Used Trucks Sold per Rooftop” graph for detail.

Conclusion

Retail and wholesale used truck pricing should remain strong through the end of the year despite the continually increasing supply. Our prediction of depreciation on the order of 1-1.5% for 2011 and newer trucks has generally proven accurate, and we may want to include 2010’s in that equation as well given recent performance of those models. n

www.nada.com/b2b

Reprinted with permission from the ATD/NADA Official Commercial Truck Guide®

november 4-7, 2015dallas, Texas

16th AnnualUTA Convention

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UTA Industry Watch


FTR: September Sales “Exceptionally Strong”September is typically a month of change as school starts and the weather reminds us that fall is coming. Yet, for trucking the good news just rolled on, according to FTR.

FTR reported “exceptional strength” for September’s net trailer orders--32,111 units. That represented a 32 percent hike over August’s tally, and a whopping 80 percent jump over last September’s numbers, according to the market research firm. September’s trailer orders were well above what would normally be expected with the typical seasonal sales boost. FTR predicted larger order numbers will continue “due to the tremendous strength of the current trailer market and the booking of orders into 2015.” FTR’s data found that orders were especially strong for dry vans, with other trailer segments also performing well.

“September orders at the larger OEMs reflect their increasing capacity constraints, which are recognized by the larger fleets,” said Don Ake, FTR Vice President of Commercial Vehicles. “To firm up their requirements for all of 2015, those fleets have started placing large orders now. The orders are spread throughout 2015, so they should not put much additional stress on production rates,” he added.

To contact FTR, send an email to [email protected] or call (888) 988-1699 ext. 1. n

TCI also Stays high Another measure of the industry’s health, FTR’s Trucking Conditions Index (TCI), rose to 9.10 for August. This continued an upward trend reflecting “an uneasily tight capacity situation.” FTR also noted that as “market tightness continues,” rate and service spreads are increasing between “good” and “bad” freight. With demand levels for their services high, carriers can be picky about what freight to haul, while “maintaining dependable workloads and increasing margins.” Positive trucking conditions should continue as the economy strengthens further, FTR said. So freight demand could grow even higher.

“With overall capacity remaining tight and continued cost pressures at fleets we can expect to see freight rates moving higher into 2015,” said Jonathan Starks, FTR’s Director of Transportation Analysis. “Spot rates are edging lower--from a very high level--but contract rates are still showing signs of acceleration. Growth in the use of outsourced capacity (e.g., broker and spot markets) is joining wage increases as a main driver of cost increases. Fleets are using more outsourced capacity, a segment in which regulatory impacts are especially strong.”

For further details about the August TCI Index see FTR’s Trucking Update, published September 30, 2014. n

Industry News BriefsVolvo Sponsors America’s Road Team for 2015Volvo Trucks will once again sponsor “America’s Road Team,” a safety outreach program. The company’s support for the program includes donation of a 2015 Volvo VNL 780 model for the America’s Road Team program to use. Volvo made the announcement at the American Trucking Associations recent Management Conference & Exhibition.

“Volvo Trucks is proud to again be the exclusive sponsor of the America’s Road Team program,” said GÖran Nyberg, a Volvo Trucks executive. “We applaud their efforts to share the trucking industry’s message of safety, environmental sustainability, and the vital role trucks play in our economy.”

Volvo notes that America’s Road Team members, called Captains, are “expert professional drivers with elite driving skills who have logged millions of accident-free miles.” The Captains help boost awareness about highway safety and how important the trucking industry is by meeting with other drivers, government officials, and students.

“Volvo has been a sponsor of America’s Road Team for more than a decade,” Nyberg said. “We could not ask for better representatives of our industry than the men and women serving as Road Team Captains.”

The 2015 to 2016 Road Team Captains will drive Volvo’s VNL model. They will use it to haul the ATA’s Image Trailer, which features “an interactive experience space.” Volvo said the tractor will also feature several of its advanced safety technologies, including adaptive cruise control with integrated collision avoidance, an electronic stability program, and Volvo’s I-Shift automated manual transmission. n

Volvo Trucks will continue as the exclusive sponsor of America’s Road Team in 2015. Traveling the country in a Volvo VNL 780 tractor with the American Trucking Associations’ Image Trailer, the Road Team delivers messages about highway safety and the importance of America’s trucking industry.

UTA Industry Watch


Industry News Briefs continued on page 22

Navistar Showcases Fuel Efficiency, OnCommand Enhancements Navistar, Inc. showcased its most fuel-efficient Class 8 truck specification plus several new OnCommand™ Connection remote diagnostics features at the recent American Trucking Associations (ATA) Management Conference and Exhibition.

“Every percent of fuel economy improvement helps our customers and spec’ing a vehicle properly can make all the difference,” said Jodi Presswood, vice president and general manager, Heavy-Duty Truck Product Line. “Our ProStar with ISX15 coupled with the Eaton Cummins SmartAdvantage™ powertrain is our most fuel efficient Class 8 spec., and our customers are already seeing impressive results.”

Navistar characterized the SmartAdvantage as a 10-speed Eaton Fuller Advantage automated manual transmission, combined with the Cummins® ISX15 engine. The company said it provides “significant benefits across the board for linehaul and regional haul fleets, SmartTorque2 ratings automatically sense vehicle weight, grade and operating gear to select the optimum torque to optimize fuel economy and performance.” In addition, “Cummins Vehicle Acceleration Management (VAM) also helps maintain a more consistent accelera-tion rate to deliver a smoother experience for the driver and reduce wear on the driveline,” according to Navistar.

“Our relentless focus on uptime as a company, with OnCommand Connection at the epicenter of that activity, is really exciting,” said Mike Cerilli, vice president and general manager, OnCommand Connection. “With our all-makes open architecture remote diagnostics solution, we’re bringing connectivity to life in a results-oriented, bottom-line way. One of our fleet customers recently experienced a 28 percent reduction in down days and a 31 percent reduction in repairs by leveraging the vehicle health reports and repair recommendation data provided by the OnCommand Connection system, and we’re just getting started with new feature development.”

This month Navistar says it will introduce new feature enhancements for its OnCommand Connection system. New capabilities include:

■ A mobile app ■ Customized geo-fencing capabilities enabling customers to filter their dashboards into geographic zones

■ Direct integration with major component suppliers beginning with Cummins

Navistar noted that integrating with Cummins Connected Diagnostics will give customers the option of viewing Cummins recommendations via the OnCommand Connection portal.

Named by Heavy Duty Trucking magazine to its 2014 Top 20 Products list, OnCommand Connection, said Navistar, “was the first to offer a single remote diagnostics system using an open architecture system with a fleet’s existing telematics providers--making it all-makes compatible.”

For additional information visit www.Navistar.com. n

HOS Rules Again Top ATRI List of Top Trucking ConcernsThe American Transportation Research Institute (ATRI) announced its annual list of the top ten critical issues the North American trucking industry faces.

HOS rules again top the list.”Operational impacts being experienced across the supply chain from the changes to the Hours-of-

Service (HOS) rules that went into effect in 2013, once again propelled the HOS rules to the top of the list in ATRI’s annual survey of more than 4,000 trucking industry stakeholders,” ATRI said in a media release.

The growing driver shortage came in a close second. This replaced the Federal Motor Carrier Safety Administration (FMCSA) Compliance, Safety, Accountability (CSA) program in the number two spot. However, ATRI reports, challenges still exist with CSA, which ranked third overall on the 2014 list.

Driver retention jumped to fourth place from seventh place as trucking fleets labor to keep their most experienced and qualified drivers. Finally, concern over the timing and specifics of the pending FMCSA Final Rule on electronic logging devices (ELDs) rounded out the top five industry issues.

There’s some good news though. Concerns about the health of the economy are less pressing than they have been in the last six years. The economy first appeared as the top concern in 2008, and held that spot in ATRI’s ranking for three straight years. In the 2014 list, it ranked ninth. But the latest list also featured a new issue: Driver Distraction. That ranked in 10th place “amid industry concern over the safety impacts of car driver use of cell phones while driving.”

The ATA Federation will use the survey results and proposed strategies “to better focus its advocacy role on behalf of the U.S. trucking industry and ATA Federation stakeholders.”

“ATRI’s annual survey of top industry issues gives us direct insight into all of the complex forces affecting motor carriers and drivers so that we can plan accordingly, and focus on running a safe and profitable industry,” said ATA chairman Phil Byrd, President/CEO, Bulldog Hiway Express, Charleston, SC.

“As we all know, the trucking industry constantly faces changes and challenges to how we operate safely and efficiently,” ATA President and CEO Bill Graves said. “However, our industry has always responded to these issues with determination, and ATRI’s work gives us the information to decide where to focus our energies first and foremost.”

ATRI is the trucking industry’s not-for-profit research institute.

A copy of the survey results is available here. n

UTA Industry Watch


Industry News Briefs continued from page 21

4-State Trucks Holds “Record-Breaking” Fundraiser and Truck ShowThe 6th annual “Guilty By Association Truck Show,” hosted by 4 State Trucks, broke several different records making it the “truck show of the year,” the company said.

Up until Sept 27th, the largest 2014 Convoy for the Special Olympics took place in Canada with 291 trucks participating. But recently, truck owners and drivers gathered in Joplin, MO “like never before,” 4 State Trucks said. The company noted that 300 rigs entered the convoy, setting a new North American record for the Special Olympics. Between the convoy entrants’ donations and the funds pledged from auctioning off the first 16 convoy spots, over $75,000 was raised. “This money will allow budgeting for events, equipment and activities for area athletes all year long,” 4-State said.

Bryan Martin, owner of 4 State Trucks/Chrome Shop Mafia, reflected on the GBATS 2014 weekend. “Every once in awhile, and it doesn’t happen often, all the ‘stars line up’ and things just fall into place for a ‘once in a decade’ type event. We were blessed with fantastic weather, the truckers came out, and we had a maxed-out show in so many ways! It was an incredible dream come true for us to be able to host so many of our friends and customers--a super show and a great thing for Special Olympics!”

The event broke another record with 314 semi trucks on display for the 10,000+ GBATS 2014 attendees to check out. Attendees could also see a jet truck flame show, a Speedco sponsored high-energy truck and tractor pull, and a downtown street party and light show that took place in historic downtown Joplin, MO. “This year’s truck show was by far the biggest and best one yet,” the company said. “This leads us to hope that with the help of many enthusiastic attendees, 2015’s will be an even bigger show, and blow 2014’s records out of the water!

See 4 State Trucks and Chrome Shop Mafia on Facebook for more show highlights. n

UTA Industry Watch


From Where We SitLife has been hectic and crazy here in our little valley. The little bundle who arrived at the end of the summer is keeping his parents and his grandparents busy, as only someone so small can do. Add into that the hustle and bustle of working people, the family and community gatherings, the upcoming election season, and, of course, all the news that bombards us from sea to shining sea and around this sorry old globe, and we sometimes feel like we’ve forgotten to breathe! Well, when life gets tough, go clean out some closets. Yeah, we know, most people think of clearing out to be “Spring Cleaning” and just right for those days leading up to the summer yard sales. But, we’ve always felt more energized when the days start getting shorter and the air has a little snap in it reminding us of colder days ahead. So, as life starts running away with us, we clean closets.

It’s been quite some time since the last undertaking of this chore. Sure, autumn comes annually, and, in a perfect world, closet cleaning would, too, but we’ve yet to discover that perfect world. That’s why this whole weekend was devoted to one single closet. It’s the one that stores most of the clothes and also the remnants of two kids and their childhoods. We’re guessing you’ve already figured out we were not working in the closet of your editor who mows the lawn and checks the oil in the cars. It can only be true that the bulk of the clothes and the entire children’s memorabilia collection would be the domain of your other editor. Okay, I admit it. I have a tendency to hang on to sentimental things longer than necessary. And, yet, I know, that way leads to an appearance on a reality TV show someday. So, with shovels and buckets, and multiple large-capacity trash bags, we conquered the beast. At least we got a start.

It turns out that many of those treasures tucked away as the children outgrew them are just a precious and sentimental to us now as they were when we tucked them away. Facing the challenge of deciding what to keep and what to shed proved daunting. We’d like to congrat-ulate ourselves on divesting of a huge amount of out-of-date fashions and accessories. Ruthless consideration went like this: “Have you worn this in the last season? How about the last year? Okay, then what about the last decade?” Having some rules helped empty the closet pretty well, and we’re certain the local charity picking up these overstuffed bags will be happy to have them. We’re also happy to know that garments we no longer need will continue to warm others during the cold weather that is coming at us. Things got a little harder when it came to the more personal mementos.

Do you suppose having a new grandchild in the family has made our own children’s baby books and preschool work more valuable to us? We’re not exactly sure, but those boxes that used to cram a closet now sit looking at us and waiting for us to glean the treasure and pass along the rest. After all, no one can keep everything, and objects don’t necessarily enhance memory. At least that’s what we’ve all learned from watching those aforementioned reality shows. So, as the days grow short, the air gets cold, and that Polar Vortex they talked so much about last year returns, we look forward to taking these boxes on one-by-one. We’ll sit together, take one last stroll down memory lane, and then box everything off to the homes of these now-grown children. Yes, having your kids grow up, move out, and start families of their own is a blessing on many levels. But, now that they have closets of their own too, they can take over some of the memories

we’ve tucked away for them. Our nest is now a little emptier than it’s been in decades, which should translate at least a bit to the contents of our closets! At least that’s the way it looks from where we sit.

Deb and Brad Schepp [email protected]

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