20
Volume 16 • Issue 5 • May 2014 1.877.GETS.UTA www.uta.org Used Truck Association Chartered May 16, 1988 Published by the Used Truck Association 325 Country Club Drive, Suite A Stockbridge, GA 30281 SHARE YOUR NEWS with the UTA Industry Watch . Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Grace Management 325 Country Club Drive, Suite A Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected] Table of Contents Board News and Views ....................... 2 Quips & Quotes .................................... 2 New Members.................................. 3, 5 Face to Face with Henry Coberth ....... 4 2014 UTA Board of Director’s Nominations .................................... 5 Industry Events Calendar ................... 6 Moving on Down the Road: Catching Up with Adam Davy......... 7 The Brooks Group Sales Tip of the Month...................... 7 In Memoriam ....................................8-9 Attendees Praise Tampa’s “Selling for Success” Class ................................ 10 Subtle Fix for Big Rigs ....................... 11 NADA Update ............................. 12-15 Medium Duty Corner............................ 15 Industry News Briefs .................... 16-17 2013 UTA Convention Photos...... 18-19 From Where We Sit ........................... 20 The UTA… Members Supporting Members! UTA Young Members Group is on the Move! Angelique Pierce, Daimler Trucks Remarketing T he UTA Dealer Group officially launched the Young Members Group at the 2013 UTA Convention in Orlando, FL. At the heart of this initiative was the desire to create opportu- nities for younger UTA members to be mentored by more seasoned members. With the recognition that younger members represent the future of the UTA, veteran members such as Craig Kendall (e Peterbilt Store), Hal Dickson (Mack Trucks), Jim Zimmerman (Kenworth of Pennsylvania), John Cosgrove (CAG Capital), Mike Mounsey (MHC Kenworth Nashville), Mike urston (Larson Group), and others have invested their time to get the group up and running. Since then, veteran members and young members have met monthly to formalize the goals and structure of the UTA Young Members Group. Our mission is to serve as a catalyst for the advancement of the used truck industry through the effective professional development of the younger members of the Used Truck Association. We are an enthusiastic group that is becoming more involved in UTA activities and taking on leadership roles within the association. As a younger member of the UTA, you may wonder why you should be involved in this group. By actively participating, you will be able to: Rub elbows with more experienced used truck professionals and get involved Build your industry knowledge, broaden your network, and enhance your leadership skills Help guide the UTA’s direction by promoting the interests of younger UTA professionals Get your questions answered about selling trucks, handling difficult customers, and more e Young Members Group also provides a way for veteran members to help ensure the success and longevity of the UTA by directly influencing the next generation of leaders. Brandon Hess (Wholesale Trucks of America) has been elected the Young Member Representative to the UTA Board of Directors. Hess stated, “Everyone that gets involved in the Younger Members Group can reap the benefits of building career- advancing professional relationships and great friendships that can last a lifetime.” Younger members…this is your call to action. You are invited to get involved with the UTA Young Members Group to invest in yourself and our industry. Ready to get involved or have questions? en contact Brandon Hess via phone at 800-705-4008, or via email at brandon@ wtatrucks.com. Our mission is to serve as a catalyst for the advancement of the used truck industry through the effective professional development of the younger members of the Used Truck Association.

Used Truck Association >ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA …William Brawley, Business Development Manager Asset Appraisal Services 3880 Hulen Street, Suite 2000 Fort Worth, TX 76107

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Page 1: Used Truck Association >ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA …William Brawley, Business Development Manager Asset Appraisal Services 3880 Hulen Street, Suite 2000 Fort Worth, TX 76107

Volume 16 • Issue 5 • May 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

New Members ..................................3, 5

Face to Face with Henry Coberth ....... 4

2014 UTA Board of Director’s Nominations ....................................5

Industry Events Calendar ...................6

Moving on Down the Road: Catching Up with Adam Davy.........7

The Brooks Group Sales Tip of the Month ......................7

In Memoriam ....................................8-9

Attendees Praise Tampa’s “Selling for Success” Class ................................10

Subtle Fix for Big Rigs ....................... 11

NADA Update ............................. 12-15

Medium Duty Corner............................ 15

Industry News Briefs ....................16-17

2013 UTA Convention Photos ......18-19

From Where We Sit ...........................20

The UTA… Members Supporting Members!

UTA Young Members Group is on the Move!Angelique Pierce, Daimler Trucks Remarketing

The UTA Dealer Group officially launched the Young Members Group at the 2013 UTA Convention in Orlando, FL. At the heart of this initiative was the desire to create opportu-

nities for younger UTA members to be mentored by more seasoned members. With the recognition that younger members represent the future of the UTA, veteran members such as Craig Kendall (The Peterbilt Store), Hal Dickson (Mack Trucks), Jim Zimmerman (Kenworth of Pennsylvania), John Cosgrove (CAG Capital), Mike Mounsey (MHC Kenworth Nashville), Mike Thurston (Larson Group), and others have invested their time to get the group up and running.

Since then, veteran members and young members have met monthly to formalize the goals and structure of the UTA Young Members Group. Our mission is to serve as a catalyst for the advancement of the used truck industry through the effective professional development of the younger members of the Used Truck Association. We are an enthusiastic group that is becoming more involved in UTA activities and taking on leadership roles within the association.

As a younger member of the UTA, you may wonder why you should be involved in this group. By actively participating, you will be able to:

■ Rub elbows with more experienced used truck professionals and get involved ■ Build your industry knowledge, broaden your network, and enhance your leadership skills ■ Help guide the UTA’s direction by promoting the interests of younger UTA professionals ■ Get your questions answered about selling trucks, handling difficult customers, and more

The Young Members Group also provides a way for veteran members to help ensure the success and longevity of the UTA by directly influencing the next generation of leaders.

Brandon Hess (Wholesale Trucks of America) has been elected the Young Member Representative to the UTA Board of Directors. Hess stated, “Everyone that gets involved in the Younger Members Group can reap the benefits of building career-advancing professional relationships and great friendships that can last a lifetime.”

Younger members…this is your call to action. You are invited to get involved with the UTA Young Members Group to invest in yourself and our industry.

Ready to get involved or have questions? Then contact Brandon Hess via phone at 800-705-4008, or via email at [email protected].

Our mission is to serve

as a catalyst for the

advancement of the

used truck industry

through the effective

professional

development of the

younger members of

the Used Truck

Association.

Page 2: Used Truck Association >ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA …William Brawley, Business Development Manager Asset Appraisal Services 3880 Hulen Street, Suite 2000 Fort Worth, TX 76107

UTA Industry Watch

2 www.UTA.orgMay 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 ... Bryan Boyd

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

If you’re not solving a problem then you’re unlikely to have a business.

~Jonathan Baer, Threshold Ventures

This is about a question that will make you think.

I was reading an article by Jacques Werth, the president of High Probability Selling entitled Are Top Salespeople Born or Made? This question has become for me like a song that gets

stuck in your head. So, to get some relief, I decided to pose this question to you all, and maybe later provide some feedback on your thoughts.

All of us in sales have thought about this age-old question, because it begs an answer if we consider used truck sales our career. I personally believe selling is a skill, and skill sets can be developed. Jacques Werth believes this skill is comparable to accounting or engineering: Specific actions properly applied in a proscribed order produce the best results. Given enough motivation, almost any skill can be learned without formal training.

To make his point, Werth cites the example of two General Motors top engineers who never took an engineering course. And of Michael Dell who didn’t major in computers, and dropped out of college. Werth goes on to say that similar aptitude patterns are seen in highly successful salespeople, trial lawyers, and teachers. Salespeople who lack the right aptitudes and attitudes can substan-tially improve their sales skills, if they are willing to change their behaviors. The changes they need to make are simple; yet it requires a lot of self discipline to make those changes.

I also believe that salespeople, especially used truck salespeople, are born with the rare resilience gene that gives them the vision to see the glass as half full. They have the right frame of mind to make it a good day--always. They know uncertainty, but also possess the confidence to know that if there is opportunity they will reap its rewards.

So, Are Top Salespeople Born or Made?

I am going with the combo deal. I believe salespeople are born into this world with an innate ability to persevere, and make the very best of opportunity. They can be “self made” by learning what works best for them, but the top 20 percent have been coached by industry mentors, and through specific in-house and professional sales training like what is offered through the UTA Selling Initiatives.

One thing is for sure, the top 20 percent of sales professionals are doing something radically different from the other 80 percent.

If you find that you would like to take your career to the next level I would encourage you to reach out to a Mentor, or enroll in career classes. You’ll learn to capitalize on what you do every day with the right mindset for customer perspectives and approach. You have the opportunity to choose and make a difference. Discipline, Attitude, and Vision make you the Used Truck Ambassador who makes that difference.

Your UTA also has partners such as the Brooks Group and TMI (Truck Marketing Institute) that can help you attain success. By success I mean elevate your career, challenge your mindset, and validate the choice you made to sell used trucks for a living. UTA’s own training initiatives set the standard as offering the best approach to reaching the top 20 percent of sales profes-sionals in our industry by mapping The Right Frame of Mind.

If anyone would like to discuss used trucks as a career choice or training, I stand ready to help! I can be reached 24/7, if needed. I would enjoy reading your thoughts on the question: “Born or Made,” as there are many varying opinions on this. Send your thoughts and ideas to [email protected]. Oh, and by the way, you could say that “The Answers My Friend Are Blowing in the Wind.”

The Very Best of Success to You.

Ken Kosic Vice President/Training [email protected]

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UTA Industry Watch

3www.UTA.org May 2014

New Members continued on page 5

Andrew Baker, Used Truck SalesIdaho Falls Peterbilt 4460 West Andeo Drive Idaho Falls, IDwww.jgpete.com(208) 227-5029 (w) [email protected]

Andy started in the truck business in 1992 as a mechanic for a road and bridge department. His goal for his UTA membership is simple: “To be successful in the trucking industry,” he said.

Andy’s favorite part of his current job is that it affords him the option to grow, do new things, and meet new people.

Outside of work, Andy’s other interests include snowboarding, fishing, and spending time with his family camping.

Andy recently attended UTA’s Selling for Success training with George Papp, and found it both “enjoyable and very helpful.”

William Brawley, Business Development ManagerAsset Appraisal Services3880 Hulen Street, Suite 2000 Fort Worth, TX 76107 www.assetappraisalservices.com (817) 869-8938 (w) [email protected]

Will began with IronPlanet in 2009 as an inspection analyst. He later helped develop and launch the company’s post-sale logistics team. “The logistics development exposed me to the truck business,” he said, and “provided a good foundation to continue my education in the industry.”

As a new UTA member, Will hopes to build new relationships and find opportunities for his company. He’s interested in working with other UTA members “to create meaningful and mutually beneficial, long-term business relationships.”

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!

If you’d like a copy of the new member brochure handed out at the convention, please contact David Grace at [email protected], or 770-389-6528 ext. 404.

When we asked Will what he likes best about his job he had no trouble coming up with a response. “I am fortunate to work with a group of such skilled and hardworking colleagues,” he said. “There is a real sense of camaraderie and pride with the teams I’ve been a part of—both with IronPlanet and Asset Appraisal Services. We pride ourselves on building reliable and trustworthy relationships with our customers and providing top-notch customer satisfaction for each assignment.”

Will says that if he wasn’t in the truck industry, he’d likely focus on the oil and gas industries. “I’ve always had an interest in the energy industry,” he said recently. “Oil and gas continue to thrive in the U.S. and influence many other industries along the way.”

When he’s not in the office you may well find Will enjoying the outdoors with family and friends. He grew up in Florida and enjoys “anything on the water,” with fly-fishing, duck hunting, and spear-fishing some of his favorite sports. Although he’s now living in central Texas he quickly found new hobbies including golf, and turkey and deer hunting.

Phil BrownInternational Used Truck Centers 2701 Navistar Drive Lisle, IL 60532(331) 332-5000 (w)(404) 787-1065 (c)[email protected]

Kyle HowardInternational Used Truck Centers 2701 Navistar Drive Lisle, IL 60532(331) [email protected]

William LaverdeCross Country Truck Sales 10000 Southwest Wilshire Street, Suite APortland, OR 97225 (503) 227-3153 (w)[email protected]

Mark McElmurry, Sales ManagerMaudlin International Trucks, Inc.4900 N Orange Blossom Trail Orlando, FL 32810 www.maudlininternational.com(904) 515-8571 (w)[email protected]

Back in 1997, Mark got his start in our business working in inventory control.

The things he likes best about his current job are the company and people with whom he works. “It is a family-owned company,” Mark said, “and that makes you feel like more than an employee.”

Wildlife management also interests Mark, and if he were to choose another field for some reason that’s probably where you would find him. He enjoys the outdoors, and likes “to see the importance we all play in our ecosystem.”

Speaking of the outdoors, Mark says fly fishing is another of his passions. The sport gives him the chance to both be outside and spend time with his family teaching them a field he feels is overlooked— studying the habits and lifestyles of fish.

Wrapping things up, Mark asked that we tell his fellow UTA members that he’s acquired many skills and contacts over the years from his work in Inventory Control, Quality Assurance, Operations Management, and now truck sales management. “I’m always available to help out,” he said.

Christopher O’Donnell Valley Freightliner Truck 10901 Brookpark RdParma, OH 44130www.ValleyFreightlinerTruck.com (216) 267-4800 (w) [email protected]

Page 4: Used Truck Association >ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA …William Brawley, Business Development Manager Asset Appraisal Services 3880 Hulen Street, Suite 2000 Fort Worth, TX 76107

UTA Industry Watch

4 www.UTA.orgMay 2014

Henry Coberthsense of character and integrity as a way of doing business,” he said. “I also learned that business success is directly related to the talented employees you surround yourself with.” He still sees this connection to his coworkers as the most enjoyable part of his job. “I enjoy the interaction between the different departments of our dealerships and our ability to work as a team in exceeding our customers’ expectations in pursuit of profitable growth,” Henry noted.

When we asked Henry what he wished he’d mastered earlier in his career, his answer was straightforward: perseverance. “Never give up on a truck deal,” he said. “There is always another angle out there that can make all of the difference in winning a truck deal or not. Perseverance is what I wish I’d learned earlier in my career.” Henry offers this wisdom to the younger people just starting out in truck sales. “Perseverance in the sales process and a strong commitment to customer service,” he cited as hallmarks to a successful career.

As he looks ahead, Henry sees some challenges to the used truck industry. “I think we are all challenged by the ebb and flow of the industry business cycles,” he commented. And to address those chal-lenges, Henry has a plan. “I focus on hiring good people,” he said. He also stays deter-mined to manage his inventory well.

Henry and his wife Cindy have been married for 20 years and have two young daughters. Anne Dawson is eight and Lila is four. Henry enjoys spending time with his family and when he’s not at work, he also enjoys traveling, golf, and running, but not at the same time. n

Henry Coberth was born into the world of trucks. Although he didn’t

actually start working in the trucking business until the ripe old age of 13, he comes from a family of trucking people. Henry’s dad was the GM/VP at Nalley Motor Trucks of Atlanta when Henry launched into his first job doing odds and ends at his dad’s dealership. He remembers doing various jobs in many departments throughout the dealership. When Henry graduated from the University of Georgia with a degree in economics, he officially started his career in the truck industry when he took a position working with Lewis Dickens, at Arrow Truck Sales in Atlanta. “I learned a lot about truck sales from some of the greats in our industry,” he said. “I have

been lucky to work for and with some of the most talented people in the industry.”

His next career step took him back home to Nalley, where he started as a used truck salesman just two years into his career. “I transitioned to new trucks for a short period and then accepted a position as used truck manager with Nalley in 1997,” he recalled. He stayed in that job until 2007 when he became the Used Truck Manager at Vanguard Trucks in Atlanta, and he’s been there ever since.

Henry attributes much of what he’s achieved in his career to the years he spent working with his father. “He instilled in me a strong

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UTA Industry Watch

5www.UTA.org May 2014

New Members continued from page 3

Michael SiebkeJackson Group Peterbilt 6633 50 Federal Way Boise, ID 83716 (208) 344-8515 (w) [email protected]

Kevin StevensInternational Used Truck Centers 2701 Navistar Drive Lisle, IL 60532 (331) 332-5000 (w)[email protected]

Tony Trowbridge, Sales ManagerTwin City Truck Sales & Service LTD 2205 County Rd. C2 West Roseville, MN 55113www.twincitytruck.com (651) 253-5141 (w) [email protected]

This year is Tony’s 40th year in the truck business. He started out as a technician in 1974.

He may be an industry vet, but he still recognizes the value of belonging to the UTA. He mentioned the chance to gather information on trends, and regulations, as well as networking as some of the reasons he’s joined. He’s also looking to gain access to equipment to buy.

There’s a lot about his job that Tony enjoys, including buying, selling, and repairing heavy-duty trucks and equipment. He also enjoys building gliders, staying current on specifications, and “interfacing with customers from different cultures, other parts of the country and the world— all with unique personalities and perspectives,” he said. “Every day is a new opportunity.”

One look at his picture and you can guess the other business Tony can see himself in: motorcycle dealer, service, and repair. He also likes building motorcycles.

Bennett Whitnell, Vice President/General Manager Whitnell Analytics 1420 N Marshall, Apt 204Milwaukee, WI 53202 www.Whitnellanalytics.com (310) 874-4209 (w) [email protected]

Bennett’s new to the full time truck business, and went full time with Whitnell Analytics in January of this year.

But Bennett was already quite familiar with the business. His first exposure to the industry was when he worked in the service department for Chicago International. He spent many of his college summers working in various functions within that dealership.

Bennett’s quite enthusiastic about being a new UTA member. Asked what he hoped to get out of his membership he replied: “A lot of knowledge— I know numbers but I still have a lot to learn about trucks and the truck business. There is a wealth of experience in this group that I hope to tap into!”

Bennett really enjoys his work as it blends in well with his love of puzzles from crosswords to jigsaws. At Whitnell Analytics, Bennett helps make sense of a lot of data and “solve puzzles” every day, which he finds a lot of fun.

You might find yourself listening to Bennett on the radio if he wasn’t in the truck business. “I would love to host a radio show,” he said. “I read everything I can get my hands on so I’ve got an opinion on just about everything. I’d love to talk with and debate people on those opinions for a living.”

Finally, Bennett’s committed to exercising his body as well as his mind. He and his wife have made a real commitment to getting healthy. They have been doing “Crossfit” for about a month, and are “loving it!” He’s also a pretty solid amateur chef.

2014 UTA Board of Director’s NominationsNominations Due June 20, 2014

The Elections Committee needs you to nominate UTA members to serve on the

UTA Board of Directors. The UTA Board of Directors plan and run the annual convention, provide training programs, help members obtain discounts on affiliate products and services, maintain the UTA website, and publish an industry newsletter. In addition, the UTA Board has substantially increased the UTA Scholarship Fund, which has helped many deserving students pay for their tuition and books.

Please consider nominating UTA members who could help the UTA continue its growth and improve the services it provides to the used trucking industry. Also, please remember you may nominate yourself if you would like to run for the Board. All nominees must meet the following criteria:

■ Have experience in the used truck industry ■ Demonstrate a history of ethical and professional business practices

■ Be willing to advance the goals and objectives promoted by the UTA

If you know of someone who meets these criteria, please nominate them!

To submit your nomination please go to our website at www.UTA.org. Then follow the directions to the “Board of Director Nomination” screen. On the form you’ll see where to send the application via mail, fax, or email. UTA members with voting rights will then vote and elect the Board members through internet voting. Please be sure to vote when you are emailed the UTA Board of Director ballot.

We need qualified professionals who will dedicate their time, knowledge, and experience to our organization, and, have a little fun while serving the membership. Thank you for your

consideration and we’ll be looking for your nominations and votes for the UTA Board of Directors. n

George Barnett Elections Committee [email protected]

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UTA Industry Watch

6 www.UTA.orgMay 2014

Industry Events CalendarMAY 19-20 • UTA Sponsored Training SeminarSelling for SuccessCourtyard by Marriott, Downtown • Baltimore, MDwww.uta.org

29-31 • ATHS National Show & ConventionOzark Empire Fairgrounds • Springfield, MO www.aths.org/convention

JUNE20-22 • Great Lakes Truck Show Cabela’s • Dundee, MI http://greatlakestruckshow.org

25-26 • 9th Annual UTA Kansas City Golf Outing Adams Pointe Golf Club • Blue Springs, MOwww.UTA.org

28 • East Coast Large Cars Truck Show 2014Augusta , NJwww.eclcannualtruckshow.com

JULY10-12 • Walcott Trucker’s Jamboree Iowa 80 Truckstop • Walcott, IA http://iowa80truckstop.com/trucker-jamboree/

21-22 • UTA Sponsored Training SeminarSelling for SuccessDallas, TXwww.uta.org

AUGUST1-3 • Carlisle Truck NationalsCarlisle Expo Center, Carlisle Fairgrounds • Carlisle, PA www.carlisleevents.com/carlisle-events/carlisle-truck-nationals/

8-9 • Waupun Truck-N-ShowWaupun Community Center • Waupun, WIhttp://waupuntrucknshow.com

15-17 • Eau Claire Big Rig Truck ShowChippewa Valley Technical College • Eau Claire, WIwww.eauclairebigrigtruckshow.com

AUGUST continued20-21 • Commercial Vehicle Outlook ConferenceDallas Convention Center • Dallas, TXwww.cvoconline.com

21-23 • The Great American Trucking Show 2014Dallas Convention Center • Dallas, TXhttp://www.gatsonline.com

SEPTEMBER5-6 • Big Iron ClassicMantorville, MNwww.bigironclassic.com

22-23 • UTA Sponsored Training SeminarSelling for SuccessPhoenix, AZwww.uta.org

OCTOBER1-3 • 24th Annual NTDA Convention 2014LaQuinta Resort & Club and PGA West • La Quinta, CAhttp://www.ntda.org

4-7 • ATA Management Conference & ExhibitionSan Diego Convention Center & Marriott Hotel San Diego, CAhttp://www.truckline.com

29-30 • Green Fleet Conference & ExpoRenaissance Schaumburg Convention Center Schaumburg, IL http://www.greenfleetconference.com/

NOVEMBER5-7 • 15th Annual UTA ConventionTalking Stick Resort & Casino • Scottsdale, AZhttp://www.uta.org/

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UTA Industry Watch

7www.UTA.org May 2014

Invest your time where it counts: With your highest performing or highest potential salespeople.

Moving on Down the Road: Catching Up with Adam Davy

After 25 years in the truck business, Toronto’s Adam Davy fulfilled a long-time dream and opened his own dealership a couple of years ago. We recently caught up with him to find out how things were going.

As for many UTA members, trucking was the family business in the Davy household. It was Adam’s father Bob Davy who first introduced him to the truck business. Bob was the founder of Truck Equipment and Service, a company still operating today. He was the first in Canada to manufacture a Tuck Away Tailgate (he called it the “TruckMaster”).

Before opening Davy Truck Sales, Adam was the branch manager for Arrow Truck Sales in Toronto. With Adam at the helm, his branch became Arrow’s number one branch out of 18 branches at the time! But Adam was quick to point out he couldn’t have achieved this without the help of a great team. “Overseeing all of the different departments, Adam said, “made me quickly see how crucial it is to find competent people in building something to last, and of course prosper!”

Davy Truck Sales now employs seven people, and plans to soon hire another salesman. Adam added that the company hired its own mechanic, which “has been a great help in controlling costs and providing better customer service as well.” The dealership focuses mostly on highway tractors and a few day cabs. “Another big part of its business,” Adam said, “is selling soft products, such as gap insurance, and, of course, National Truck Protection warranties!”

The company may be doing well now, but the road wasn’t always a smooth one. “For me to bankroll Davy Truck Sales,” Adam said, “I had to sell my cottage and liquidate all my other assets.” Adding: “Having a lack of capital gives you a unique ability to work your tail off pretty much daily. I actually found our second year more trying than our first! I was glad to see the calendar turn to 2014. We made a profit our first year, but it was a grind to say the least! Having a solid two years under our belt showing a profit will open up some borrowing opportunities now ( fingers crossed!)”

One of the surprising things that Adam learned over the past couple of years is how the pressure he felt as the guy in charge was actually empowering. “I find it ironic that the best thing about working for yourself is that all of the pressure you have to deal with doesn’t get to you when you’re the one who’s actually in control! It’s empowering! You know what they say, ‘When you want to lead the orchestra, you have to turn your back on the crowd.’” n

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UTA Industry Watch

8 www.UTA.orgMay 2014

Wendell Doonan Wendell Doonan, founder of Doonan Truck & Equipment, passed away Sunday, April 27 in Arizona. Wendell was the father of Kenny Doonan, owner of Doonan Peterbilt and a UTA Board Member.

The elder Doonan founded Doonan Truck and Equipment, which sold farm equipment in the late 1940’s. His began his next new venture in 1955, when he started a GMC dealership in Great Bend, KS. He signed on to add a Peterbilt store in 1964, and put in a new Peterbilt store in Wichita, KS in 1965, according to Kenny Doonan who now owns and operates the dealerships.

Wendell Doonan retired 15 years ago to Arizona where Kenny says his father played just as hard as he worked. “He loved the weather and enjoyed riding his four-wheeler in the Colorado Mountains,” Kenny says. “He knew all the trails. He never got out a map. He just had this knack of finding his way around.”

Wendell Doonan sold the Wichita dealership to Kenny in 2002, but Kenny was given the opportunity to buy the Great Bend dealership back three years later. Kenny began working for his father in 1965, and successfully brought full circle a family business that was almost 50 years old. “I started driving trucks at 15, Kenny says, “bringing a stack of trucks back home. I went through four years of college, and always came home and worked the weekend doing something.” Brent Doonan, the 3rd generation, is now running the day-to-day operations.

A respect for hard work, instilled by his father, is Kenny Doonan’s work ethic to this day. He’s also respected for his contributions to the trucking industry, and the contributions he’s been able to make to charities through the UTA.

The UTA extends its sympathies to Kenny, Susie, and the rest of the Doonan family—with sad hearts and grateful memories for a life well lived by Wendell Doonan.

With love from your UTA Family. n

In Memorium

Bryan BoydBryan L. Boyd, affectionately known as “BB,” passed away on April 13th, 2014 at the age of 64. He had battled health issues stemming from an accident he suffered while working on his custom Corvette. The Corvette was his passion in life after he lost his beloved wife a year and a half earlier.

BB owned Tulsa Truck Depot, he was on the UTA Board, and was successful in business as well as in life. He was in the truck business for most of his adult life. Most of the older members of the UTA knew or knew of BB, and had been involved in some way in equipment deals with him through the years. His infectious laugh, and unique way of doing business, made you smile and feel comfortable with the deal—regardless if you were buying or selling.

He was one of the most giving people on the earth, and would donate his time or money to causes close to his heart. He truly made you feel like a close friend the first time you met him. His attention span was short. This meant you had to get your business done quickly so he could tell you a short story that always ended in a laugh and smile. You’d just shake your head and say, “that knot head.” You had to love him. He wouldn’t have it any other way.

Bryan’s history in dealerships in which he worked would read like a Who’s Who of Texas and Oklahoma businesses. But when he opened Boyd Truck Center, and later acquired Tulsa Truck Depot, his destiny was set. He would be his own man to the end. Mission accomplished.

Bryan’s love of family and friends went deep, and all those who loved him back now feel a great void in their lives. His way of life should be a lesson to all of us to work hard, but to love harder. His passion for the

bright side of life was inspiring. He truly believed that it’s not what you accomplish in life, or the things you leave behind, that truly matter. Instead, he believed that what really counted were the positive memories that others will have of you, which live on in our minds.

All who knew you BB have some great memories and smiles to grab hold of whenever we want to. Good game BB: you won. n

Page 9: Used Truck Association >ÀÌiÀi`Ê >ÞÊ£È]Ê£ nn UTA …William Brawley, Business Development Manager Asset Appraisal Services 3880 Hulen Street, Suite 2000 Fort Worth, TX 76107

UTA Industry Watch

9www.UTA.org May 2014

Richard “Dick” FellowsMay 22, 1945 - April 10, 2014

Richard “Dick” Fellows, age 68, of Hendersonville, Tennessee, passed away on April 10, 2014 in Nashville, Tennessee. He was born May 22, 1945 to Raymond and Artha Fellows in Milwaukee, Wisconsin. 

He is survived by his loving wife Sharon Fellows of Hendersonville, Tennessee; two sons, Scott Fellows and wife Talisha of McKinney, Texas; and Jeff Fellows and wife Betsy of Aubrey, Texas. He is also survived by three grandsons, Zachary and Trey Fellows of McKinney, Texas and Hayden Fellows of Aubrey, Texas; brothers Dennis Fellows  and wife Joann of California; and Hank and wife Karyl Fellows of

Tampa, Florida; sister, Sharon Allen and husband Don of California; uncle, Henry Fellows of Arizona; and step-children and step-grand-children, and many other loving family and friends.

Dick was preceded in death by his first wife of 41 years, Jean Marie Fellows and parents, Raymond and Artha Fellows.

A memorial service was held Saturday, April 19, 2014 at 4:00 p.m. at Turrentine-Jackson-Morrow Chapel in Allen, Texas. n

June 17 & 18th, 2010

The 9th Annual UTA Jerome Nerman Family Foundation Golf Open Fundraiser

Wednesday, June 256:00 – 9:00 p.m.

Welcome Receptionat the Adams Pointe Conference Center,

Marriott Courtyard KC East1400 NE Coronado Dr.

Blue Springs, MO 64014

Thursday, June 26 Golf Outing

at the Adams Pointe Golf Club 816-220-3673 • 1601 R.D. Mize Road

http://www.adamspointegolfclub.com

Breakfast will be served at the course from 7:00 – 7:30 a.m.

Tee Time is at 8:00 a.m.

Show Your Support and Sponsor this Charitable Event!

WWW.UTA.ORG

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UTA Industry Watch

10 www.UTA.orgMay 2014

Attendees Praise Tampa’s “Selling for Success” Class

All the reviews are now in! UTA’s recent “Selling for Success” seminar in Tampa, FL was a rousing success. Attendees left supercharged to get back to work, and apply some of the

smart strategies industry veteran and UTA trainer George Papp presented. But we’ll let the attendees speak for themselves about just how valuable they found the training.

The Quality of the Materials

“The binder given with the presentations was excellent and will be a good future reference.” ~Tyler Pontier

“Exactly what I was looking for. George was fantastic in presenting the material.” ~Ian Logan

Most Beneficial Materials

“The importance of prospecting and the method to achieve success.” ~Ian Logan

“How to Create Relationships with Customers.” ~Andy Daugherty

More on the Presenter

“Very knowledgeable. He made it easy to understand with great examples. It is a pleasure to lean from a true professional like George. He made learning very enjoyable.” ~Andy Daugherty

“George is the man, Couldn’t have presented the material any better.” ~Tyler Pontier

“I was captivated most of the presentation” ~Ian Logan

Would you Recommend this Class?

“Absolutely, I feel that this class is a must, if you want to be successful in the industry.” ~Andy Daugherty

“It was just what I needed as a new salesperson.” ~Ian Logan

And Overall?

“I have been to a lot of sales classes and this is the best one I have been to.” ~Mike Siebke

“Awesome!” ~Audra Caldwell

Thanks to George Papp, and all the attendees, for making UTA’s Selling for Success class in Tampa such an educational and enjoyable experience for everyone. If you missed this class, don’t worry. There will be at least two more presented this year.

Here are the dates: May 19–20 Baltimore, MD July 21–22 St. Louis, MO 

Save these dates! Details about the location of the hotels will be posted shortly on UTA.org.

Selling  for  Success  

Sales  Associate  Training    My  goal  is  to  “Improve  Sales  Performance”  by  providing  quality-­‐training  programs  designed  specifically  for  the  new  and  used  truck  industry.    Delivered  by  an  industry  professional,  one  who  has  walked  in  their  shoes  provides  me  the  ultimate  training  advantage.  I  know  what  they  face  every  day,  I  speak  their  language  and  I  will  provide  your  sales  associates  with  information  they  can  put  to  use  immediately.        

Selling  for  Success  2-­‐Day  Course    

New  to  sales,  new  to  our  industry  or  not  producing  up  to  your  capabilities…this  is  a  must  take  course  to  put  your  sales  associates  on  the  path  to  success.  Designed  to  implement  a  sound  daily  activity  routine  that  will  meet  the  demands  of  your  dealership.  Selling  for  Success  will  teach  your  associates  the  fundamentals  of  selling  plus  they  will  be  given  additional  tools  needed  to  be  successful  in  our  industry.  Participants  will  learn  the  difference  between  a  sales  job  and  a  sales  CAREER.      Selling  for  Success  Will  Teach  Your  Associates  How  to:    • Prepare  for  the  sales  day  

• Prospect  for  success  • Control  the  sales  call  • Overcome  objections    

 Agenda  Day  1  

• Attitude  –  It’s  all  about  attitude  • Preparation  –  Inventory,  add  campaigns,  industry  knowledge  • Relationship  Building  –  Its  what  selling  is  all  about!  • Closing  Rate  –  A  look  at  qualified  opportunities  VS  sales  • Prospecting  –  Finding  and  qualifying    • Your  Database  –  It’s  your  book  of  business    • Keys  to  Controlling  the  Sales  Call  –  Control  the  call…control  the  sale    

Day  2  • Price  and  Objections  –  Eliminate  then  early  • Inbound  Calls  –  The  importance  of  an  incoming  call  • Your  Lot  Day  –  Make  a  “Great  Impression”  • Outside  Sales  Calls  –  Empowering  and  effective    • Closing  –  Techniques    • Role  play  –  Lets  have  some  fun        

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UTA Industry Watch

11www.UTA.org May 2014

Subtle Shift for Big RigsResearch by Professor, Students May Improve Long-Haul Trucks for Women

Look at Jeanette Kersten, and you probably don’t think trucker. The assistant

professor of operations and management for University of Wisconsin-Stout is so slight you would think she’d have a hard time climbing into the cab of an 18-wheeler, much less driving the beast on the open road.

That’s that focus of Kersten’s research: to make long-haul trucks more accommodating and comfortable for women— a largely untapped, and badly needed, pool of drivers.

“Today’s trucks are not designed with women in mind,” Kersten said. “Given the driver shortage and the changing demographics that the trucking industry faces, it’s important for manufacturers to make trucks more female-friendly through moderate design changes for seats, pedals, and gauges, for example.”

Kersten, with the assistance of her Organization Development class graduate students, and Ellen Voie, president for the Wisconsin-based Women in Trucking Association, conducted research that led to major recommendations on improvements in the design of truck seats, dashboards, steering mechanisms and other ergonomics for female drivers.

Kersten recently presented her paper “Truck Cab Design: Perceptions of Women Truck Drivers” at the fifth annual International Conference on Women’s Issues in Transportation in Paris, France.

The trucking industry says that it needs an additional 20,000 to 25,000 drivers, and women could help fill that gap. In 2011, women accounted for just seven percent of the workers in the U.S. trucking industry.

The study Kersten conducted used a questionnaire that went to 663 members of the Women in Trucking Association.

“Adjustability was a central issue facing women truck drivers,” the study concluded. “A well-designed truck cab not only makes a significant difference in the working condi-tions for a truck driver but also affects the safety of truck drivers and other road users.

“If the design of the truck cab is poorly fitted to the size and dimensions of the driver, the road may be less visible, driving controls may be more difficult to reach and seat belts may be less comfortable and less likely to be used.”

The research caught the attention of the Ryder transportation company, which has announced a partnership with the Women in Trucking Association to improve conditions for female drivers.

Vehicle specifications Ryder is reviewing include:

■ Height and placement of cab steps and grab handles

■ Adjustable foot pedal height (accelerator, brake, clutch)

■ Height of seat belts (shoulder area)

■ Visibility of dash gauges

■ Electric/hydraulic hood lifting mechanism

■ Automated transmission shift lever placement/location

■ Access to the top of the dash

■ Better access to oil and coolant check and fill

“It’s important for manufacturers to take women’s needs into consideration when designing and specifying new vehicles, and we are encouraging all of our major suppliers to do so,” said Scott Perry, Ryder vice president for  supply management.

“In addition many of the same design changes will also support the needs of men who are smaller in stature, as well as the growing population of older male drivers. With the current industry-wide shortage of professional drivers, this is a strategic initiative that can have far-reaching implications for truck fleets.”

Ryder said it will deploy the design changes in its owned and leased fleet and will encourage vehicle manufacturers to consider additional design changes.

Kersten emphasized the important role Voie had in the study. “She came to me with this issue, and I designed the project with her for the students,” Kersten said. “She was also instrumental in influencing Ryder to take an active approach regarding the results.” n

UW-Stout Assistant Professor Jeanette Kersten, student Matt Mauer, and two other students did research on improving cab designs for female truck drivers. As a result of the research, Ryder is considering making changes to its trucks.

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12 www.UTA.orgMay 2014

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

SummaryThe volume of trucks sold at auction roared back in March after a mediocre start to the year, thanks to pent-up demand and the month’s traditionally strong results. Volume through the retail channel increased mildly, potentially representing a return to month-over-month stability.

Class 8 retail pricing on average is mildly down, suggesting that late-model trucks may have found their price ceiling. Class 8 whole-sale pricing on average also ticked downward, driven by the continued increase in number of high-mileage trucks sold. In the medium duty market, Class 4 conventionals continue to gradually strengthen, while Class 6 conventionals turned in a very strong month.

Major players in the new truck arena are making big bets on the used truck market, as a special commentary explores.

Sleeper Tractors – RetailRetail sales data submitted to NADA from dealers and OEMs shows that the overall sleeper market in March ticked mildly downward.

The average sleeper tractor retailed in March was 77 months old, had 524,564 miles, and sold for $55,840. Compared to February, this truck was one month newer, had 4224 (or 0.8 percent) fewer miles, and worth $386 (or 0.7 percent) less. Compared to March 2013, this truck was identical in age, essentially identical in mileage, and worth $5048 (9.0 percent) more. See “Average Retail Price and Mileage” graph.

The year-over-year comparison provides a good example of how the market has shifted over this period, with the average used truck now worth over $5000 more retail, despite identical age and mileage. As we’ve stated, continued increases in our universal average are due mainly to an increased number of newer, lower-mileage trucks available to the secondary market. Trucks of 2011 vintage are now the most common sold retail, and 2012s are slowly but surely coming on-line. In terms of mileage, trucks in the 300-399,000 range have increased in recent months. See “Monthly Retail Sales Volume” graph.

Based on this positive data, why did we say that the market ticked mildly downward? Because when viewed on an individual basis, most trucks declined slightly in March. Essentially, the market is increasingly represented by newer trucks, which bolsters our universal average—but when viewed by model year, trucks are flat to slightly down. See “Average Retail Price by Model Year” graph.

Spring market dynamics are still shaking out after an unusual winter, so we are not yet identifying a trend. We expect retail pricing in upcoming months to be stable to very mildly downward.

Sleeper Tractors – WholesaleThe wholesale channel continues to be a story of two separate markets, with trucks with under 600,000 miles representing the late-model, higher-priced component and the segment represented by trucks with over 800,000 miles increasing in popularity. Volume and pricing for the high-mileage segment increased through the 1st quarter of 2014, which is a new development. 

On average, the typical used truck sold at auction or dealer-to-dealer in March was 86 months old, had 699,500 miles, and brought $32,183. Month-over-month, this truck was 3 months older, had 23,965 (or 3.3 percent) fewer miles, and cost $492 (or 1.5 percent) more. Year-over-year, the average truck was 7 months newer, had 43,785 (or 5.9 percent) fewer miles, and cost $8452 (or 26.3 percent) more. See “Average Wholesale Price and Mileage” graph.

The year-over-year increase is due mainly to a higher number of 2009 and 2010 model-year trucks moving through wholesale channels, their higher relative pricing comprising a larger proportion of the universal average this month.

As for high-mileage trucks, buyers continue to pay more for trucks with over 800,000 miles, continuing a trend that began in the 1st quarter. In 2014 to date, trucks in this mileage group comprise a larger proportion of the market than they did in 2013. These trucks are most

400,000  

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$50,000  

$55,000  

$60,000  

Jan-­‐12  

Mar  May  

Jul  

Sep  

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Jan-­‐13  

Mar  May  

Jul  

Sep  

Nov  

Jan-­‐14  

Mar  

Mileage  

Price  

Period  

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

Price   Mileage  Source:  ATD/NADA  

0  

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Jan-­‐12

 

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Jan-­‐13

 

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Jan-­‐14

 

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Sales  Vo

lume  

Period  

Monthly  Retail  Sales  Volume  by  Model  Year:    Sleeper  Tractors  Under  1M  Miles  

2  per.  Mov.  Avg.(2008)  

2  per.  Mov.  Avg.(2009)  

2  per.  Mov.  Avg.(2010)  

2  per.  Mov.  Avg.(2011)  

2  per.  Mov.  Avg.(2012)  

Source:  ATD/NADA  

$0  

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Average  Retail  Price  by  Model  Year  All  Sleeper  Tractors  Under  1M  Miles  -­‐  Adjusted  for  Mileage  

2007   2008   2009   2010   2011   2012  

Source:  ATD/NADA  

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

NADA continued on page 14

commonly from the 2006 and 2007 model years, which are popular as the last of the pre-DPF models. Engines will need a major overhaul if they haven’t had one already, but some buyers may consider this procedure worth the investment, since the market for pre-DPF trucks with remaining useful life remains healthy outside of coastal/port regions. Anecdotal evidence suggests this activity is most common in the long & tall segment, but our data indicates aerodynamic models are also contributing to this trend. See “Average Wholesale Price and Number of Trucks Sold” graph.

Given this dynamic, dealers may want to revisit their aged, high-mileage inventory, as there may be more buyers out there now than in previous months. Establishing a relationship with a high-mileage truck broker or buyer could pay off in inventory reduction and potentially increased comfort with high-mileage trade-ins.

We will continue to monitor this segment to determine whether these results suggest a long-term trend or merely a short-term anomaly following the unusual start to the year. Stay tuned.

Competitive ComparisonThis month, we return to our benchmark 4-year-old comparison of aerodynamic models sold through the retail channel. As always, the comparison is limited to trucks equipped with big-bore or proprietary engines. As you can see, pricing for these trucks followed the broader market, staying similar to February or ticking mildly downward. See “Average Retail Price – 4 Year-Old Sleeper Tractors” graph.

The Freightliner Cascadia continues to lead the aerodynamic segment, retaining that position even after moving slightly downward this month. The 386, T660, and T700 returned very similar results month-over-month, and are positioned essentially equally in the marketplace.

In the late-model market, there does not appear to be a clear difference between wide cab trucks, such as the T700 and 730/780, and narrow cab trucks, such as the T660 and 386. The moderately increased versatility of the narrower cab design is likely counterbalanced by the increased interior space of the wide-cab trucks, at least for units with remaining useful life in a long-haul role. A difference may become more apparent as trucks accumulate mileage and are placed in more local/regional roles.

For trucks that typically trail the segment average, an increased number of MaxxForce-equipped ProStars were sold in March, placing downward pressure on that model’s average. As experience with the 2011 iteration of the MaxxForce engine grows, marketplace confidence appears to be improving, judging by increased volume and pricing stability. As for other models, the 630/670 was stable month-over-month, and the limited build of 2011 387s resulted in no reported sales in March.

400,000  

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550,000  

600,000  

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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:  NADA  and  AucFonNet  

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900-­‐999K  

Count  Price  

Mileage  

Average  Wholesale  Price  and  Number  of  Trucks    Sold  by  Mileage  Range  -­‐  Sleeper  Tractors,  YTD2014  

Price   Count  

Sources:  ATD/NADA  and  AucDonNet  

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NADA continued from page 13

Medium Duty – Class 4 ConventionalsThe Class 4 Conventional segment showed strength in March, with average wholesale pricing for 4-7 year-old units coming in at $17,581 - $2487 (or 14.1 percent) higher than last month, and $3274 (or 18.6 percent) higher than March 2013. Average mileage was 98,745 – 16,499 (or 14.3 percent) lower than February, and 9492 (or 8.8 percent) lower than March 2013. See graph.

On a quarter vs. quarter basis, Q1 2014 saw higher pricing than Q4 2013, at $16,005 vs. $13,322, respectively. Mileage in Q1 2014 was mildly lower than the previous quarter, at 105,307 vs. 108,282. Q1 2014 was slightly better than Q1 2013, with a $776 (or 4.8 percent) improve-ment in price despite a 6708 (or 6.4 percent) increase in mileage.

This higher pricing is encouraging, but keep in mind the moderately lower mileage this month is partly responsible. Also, and more importantly, the volume of trucks reported sold in this cohort has remained in the 40-50 unit range each month, down about 25 units from the 2012 average.

Given these results, we continue to view the Class 4 segment as gradually improving. As this segment touches a wide variety of economic segments, we expect results in upcoming months to roughly track the gradual improvement in the domestic economy overall.

Medium Duty – Class 6 ConventionalsSince January, we’ve been reporting on the extremely low number of 2008-2011 model year Class 6 Conventionals sold. Along with that low volume has come historically high pricing. In March, the average 4-7 year-old Class 6 Conventional sold wholesale for $25,014 – the highest average price in at least six years. Mileage was moderately low, at 136,871, continuing a trend begun in January. See graph.

Given the low monthly volume of this cohort, it is useful to look at quarterly results for a basis of comparison. Average price for the first quarter of 2014 was $24,005 – a whopping $8028 (or 33.4 percent) higher than 4Q 2013. Lower average mileage this quarter was largely responsible for the price difference, coming in 23,015 (or 13.4 percent) lower than last quarter. Year-over year, Q1 2014 was $7798 (or 32.5 percent) higher on price, and 35,663 (or 19.5 percent) lower on mileage. The Class 6 market is now priced higher than the previous post-recession peak in early 2012.

Lower average mileage is the main factor behind the higher pricing. At the same time, a deeper dive into the data suggests that trucks at given mileage points are bringing moderately higher pricing in the current period. As such, our confidence in the strength of the Class 6 market is increasing.

Special Commentary: Major Players Betting Big on Used TrucksRecently, two of the nation’s largest sources of new and used trucks, Rush Enterprises and Penske, opened brick-and-mortar locations dedicated solely to used trucks. Rush currently operates one Rig Tough used truck location, and is planning to open an unknown number of additional locations this year. Penske Used Trucks currently has two locations, and plans to open two more by the end of 2014.

For entities with access to the necessary capital, a major investment in used truck infrastructure makes sense. Late-model trucks are selling for historically high prices, and increased numbers of these trucks have been entering the secondary market due to the return to normal build rates and shorter trade cycles. In addition, competition between OEMs for new truck business will likely provide additional late-model trade-ins.

In general, dedicated used truck locations provide enhanced visibility among end users, extend services to areas otherwise not served by a dealer group, and ensure that a used truck is marketed on its own merits as opposed to merely being a component of a new truck deal.

Looking specifically at Penske, this move represents a shift from their traditional wholesale model towards the retail channel, providing the end user with medium and heavy trucks ready for immediate purchase. In terms of Rush, the move provides potential customers increased access to trucks returning from trade in the near future. In both cases, an expected increase in volume of trade-ins is an underlying rationale.

In terms of the customer base, customer analytics have become extremely advanced thanks to better understanding of big data, and major operators like Penske and Rush are surely among the most savvy when it comes to taking advantage of all the predictive tools available.

According to ATD 20 Group data, used trucks represent a higher margin than new trucks as a percentage of gross. Establishing physical outlets for used trucks indicates a realization that there will be more iron to move, and there is money to be made doing it.

Sales VolumeAs predicted, March’s retail volume was slightly higher than February’s. March came in at 6.3 trucks retailed per rooftop – 0.2 higher than February. See “Average Number of Used Trucks” graph.

March is traditionally a high-volume month, and the remaining pent-up demand from the winter likely contributed to sales. Thanks to fewer external factors suppressing demand, we expect increased stability in volume in upcoming months.

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“Tips You Can Count On”

~ The Medium Duty Counselor

Moving Old InventoryWhen you have old inventory that just won’t retail consider changing things up.

• Perhaps run it back thru detail

• Add or change the body (for example, take the van off and put the flatbed on)

• Paint the unit (e.g., if it’s painted yellow, paint it white or make it two tone)

• Add aluminum wheels or simulators

• Fix any damage (at first you may think that little dent in the door didn’t need it)

Sometimes putting extra money into the truck will help you sell it!

On the wholesale side, pent-up demand following the rough winter combined with timing of our data collection processes resulted in a massive increase in number of trucks reported sold in March. In fact, this month represented the highest volume reported since May of 2010.

Month-over-month, March’s total of 4183 trucks was higher than February’s by 1202 (or 28.7 percent). Year-over-year, March 2014 was 1109 (or 26.5 percent) higher. See “Total Wholesale Sales” graph.

Due to the timing of our data collection processes, we received one additional week of sales in March compared to February. However, even if we split that “extra” week evenly between February and March, March still comes out ahead by almost 12 percent. That additional volume is explained by typical early-spring seasonality amplified by the severe winter. Volume will likely return closer to the 2013 average, and we expect auction activity in 2014 to proceed moderately higher than last year.

ConclusionIn the retail channel, Class 8 sleepers have likely seen the last of their appreciation. Pricing should remain at or mildly off record highs in upcoming months as more late-model trucks become available. In the wholesale channel, increased interest in high-mileage trucks is the new dynamic. In the medium duty sector, Class 4 conventionals are in recovery, albeit a very gradual one. Class 6’s may finally be coming back, although we will need another month of sales not impacted by winter weather to gain confidence in that assertion. n

www.nada.com/b2b

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

June 17 & 18th, 2010

Coming Next Month!

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Industry News Briefs

March’s Orders Up Again: ACT ResearchMarch brought good news all around this year. It signaled the arrival of Spring, of course, but it also brought good news for the trucking industry, in particular. Class 8 orders were up 24 percent as compared to last March. Medium Duty orders were up 15 percent.

ACT’s preliminary numbers pegged Class 8 net orders at 27,400 units; Classes 5-7 orders at 17,600 units.

“Class 8 orders in March represented the lowest intake since November,” said Kenny Vieth, ACT’s President/Sr. Analyst, “but March was also the sixth best order month since early 2006, up 24 percent compared to a year ago. Typically a strong month, seasonal adjustment drops March orders to 26,100 units/314k SAAR. In Q1, Class 8 net orders were booked at a 353k SAAR.

“Like Class 8, Classes 5-7 net orders rose compared to March 2013, but slipped sequentially. In March, Classes 5-7 net orders totaled 17,600 units. That volume represents a seven percent decline from February’s cycle-to-date high, and a 15 percent improvement from last March. Consistency continues to be part of the MD vehicle order story: Over the past 3, 6, and 12 months, orders have been booked at a 209k SAAR, a 206k SAAR and 204k units, respectively,” said Vieth.

For more information, visit ACT at http://www.actresearch.net. n

Tight Capacity, Surging Rates Breed Confidence: TCP Truckers are optimistic about rates and volumes according to Transport Capital Partners’ (TCP) first quarter survey. In fact, optimism concerning volume growth has steadily risen over TCP’s last six surveys. TCP said the results reflect a better outlook for the economy at large. Also, seasonal capacity shortages contributed to carriers’ expectations that volume will increase over the next 12 months.

Volume expectations grew 74 percent from 2013’s 4th quarter—from 44 percent to 77 percent. Compared to last year this time the increase is 48 percent.

“The literal mother of all rate increases may be here in 2014, as reflected in our first quarter survey,” said TCP’s survey leader, Richard Mikes. The market research firm also noted that rate expectations have moved almost in tandem with volume expectations. Four out of five carriers expect rates to rise over the next 12 months—a 62 percent increase from last quarter.

“Historically, smaller carriers have been the more optimistic about rate increases,” TCP Partner, Steven Dutro noted. n

Trucking Conditions Reflecting “Unprecedented” Capacity Constraints: FTRFTR’s Trucking Conditions Index (TCI) reading of 7.54 for February, was down some from January’s reading, but was still good news for trucking fleets. It was also “a warning to shippers seeking carriers to move their goods,” FTR said in a release.

Once again, the wrath of last winter had some serious repercussions, which were not reflected in the data. When adjusted for weather, the TCI reading would be pushed above a reading of 10, “certainly making this the tightest truck market on record,” FTR noted. FTR said it expects the TCI to remain in this range throughout 2014—affected by both “truck freight demand and regulatory drag hindering available capacity.”

Jonathan Starks, FTR’s Director of Transportation Analysis put the findings in perspective. “The most recent weekly spot market data shows that the spring thaw has come to truck demand with spot market capacity up and load activity down slightly—a plateau versus the last couple of months when both demand and pricing spiked while capacity was severely constrained. Both carriers and shippers have to be on the lookout for a potential tipping point when freight demand is able to keep the current high level of truck use well into the summer months. Such an environment would necessitate shippers bidding up rates to maintain secure capacity during the fall shipping season…It would only take a relatively modest and short uptick in the industrial sector for capacity to tighten significantly further. We advise everyone to stay tuned to the manufacturing data to see if the thaw continues.” n

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Volvo’s 2014 GHG-Certified Engines are Beating Fuel Efficiency ExpectationsVolvo’s Greenhouse Gas (GHG) 2014-certified engines are more fuel efficient than anticipated, Volvo Trucks recently announced. The integrated engines are delivering up to a three percent fuel efficiency improvement compared with their 2013 counterparts.

“Introduction of our SCR-equipped models yielded a five percent fuel efficiency increase…our 2014 engine lineup is delivering up to an additional three percent savings.” said Göran Nyberg, president, Volvo Trucks North American Sales & Marketing.

“Fuel efficiency remains top-of-mind across the industry, but there’s no one-size-fits-all solution that will deliver massive improvements. Every drop counts,” Nyberg said. “On average, a one percent fuel efficiency improvement amounts to annual savings of more than $650 per truck. Carriers ignoring opportunities for incremental fuel efficiency gains are leaving money on the table.”

In addition to the fuel efficiency gains from Volvo’s 2014 engine technology, Volvo Trucks’ XE powertrain package boosts fuel efficiency by up to an additional three percent, according to the company. Available on Volvo VNM and VNL models equipped with 2014 Volvo engines, the XE11, XE13 and XE16 packages improve fuel efficiency by lowering engine rpm at a given vehicle speed, a concept Volvo calls “downspeeding.” Possible through the combination of Volvo’s standard I-Shift automated manual transmission and Volvo engine with modified software, XE allows the engine to cruise about 200 rpm less than the average truck sold today.

Fuel efficiency improves by about 1.5 percent for every 100 rpm of downspeeding, so customers spec’ing the XE package can expect up to a three percent improvement when compared with another overdrive transmission in a similar operation. Demand for XE powertrain packages has grown each year since the initial introduction of the XE13 for the D13 engine. n

Peterbilt Introduces New 220 ModelPeterbilt Motors Company has added the Model 220 to its medium-duty COE lineup “that features numerous interior and exterior enhancements to increase driver productivity, safety and durability,” according to the company. The new model comes with a new electronic braking system (EBS) “that provides quicker responsiveness and an improved braking feel.”

Peterbilt said the new cab has a completely redesigned interior, engineered to give drivers “unparalleled levels of productivity and comfort.” It features a curved dashboard with easy-to-read instrumentation and an interactive, five-inch color display module that provides information on vehicle and driver performance.

“The Driver Information Center display in the Model 220 keeps operators abreast of all vital vehicle and engine functions,” said Landon Sproull, Peterbilt Chief Engineer. “It also features advice for the operator on ways to improve in areas such as increasing fuel efficiency and reducing brake

wear by modifying driving behavior.” Other improve-ments include a multi-func-tion steering wheel and a push-button style shifter the driver can easily reach.

“Ergonomics were enhanced with easier-to-read instru-mentation and all switches are grouped by function. Everything is within easy reach of the driver and the overall layout provides a

logical, easy-to-operate environment,” said Sproull. He added that storage is abundant in the new cab with compartments in the door panels, along the back wall, in the header and on the dash, conve-niently located near the driver for paperwork or other items. In addition there’s an optional lockable compartment with two inte-grated cup holders that fits along the engine tunnel area.

The Model 220 will remain standard with features including: power windows, locks and mirrors; air-ride driver’s seat; and air conditioning. It’s also available with passenger-side air-ride seats, or a fixed two-man bench to accommodate three people in the cab.

Exterior Cab Improvements The new cabs are designed for durability to withstand harsh, urban operating environments. For instance, the new bumper is manufactured from galvanized steel, there’s a new radiator protection plate, and the headlamps are protected by a tough Lexan covering. For improved visibility during adverse conditions, fog lamps have been integrated into the bumper. 

“Productivity and safety are two major areas of improvement. We’ve facilitated ease of entry and egress with doors that open a full 90 degrees and there’s ample courtesy lighting,” said Sproull.

According to Sproull, implementing the new cab allowed Peterbilt to integrate the new EBS.

“Braking performance is improved with faster response from the pedal to the brakes, and drivers will appreciate the improved feel when braking,” he said. n

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Deb and Brad Schepp [email protected]

From Where We SitHooray! It’s springtime in our beautiful little valley, and we’ve all made it through to the glorious month of May! See, we told you this winter would end, and end it did. Now life is filled with the happy sound of children playing in the sunshine and the characteristic smell of the manure in the farmers’ fields means it’s time to stop waiting and start growing. Life in agricultural country is good indeed. Still everyone who has made it through to this wonderful reward can see the effects of the winter-we-thought-would-never-end. The kids had a two-day spring break from school instead of more than a week. So snow days come at a cost. Roofs and sidewalks need some repair after the onslaught, and all the damage that was done to trees and yards is now fully visible. Well, luckily, those are all “first-world” problems.

Ugh! This expression has crept into our lexicon over the last few years, and we despise it. We really truly do. It’s insulting to the people throughout the world who are struggling with third-world problems, and it’s entirely dismissive of the day-to-day challenges of those who aren’t. Absolutely, as a human community, all of our hearts should go out to the parents who are struggling to feed their children today and the oppressed people who are only dreaming of the types of freedoms and opportunities we who live in this country enjoy. Even the neediest Americans have a better life and more advantages than many who weren’t born to our good fortune.

We would never compare our daily issues with the struggles of families who aren’t guaranteed clean water every day, or who never know what it means to take a loved one who is ill to a doctor. Americans in general are among the most generous and giving of people who have ever walked this planet. In our generation alone, we’ve raised kids who joined Teach for America, the Peace Corps, and Volunteers in Service to America (VISTA). We’re proud of all our country does when terrible storms, earthquakes, or terrorist attacks happen throughout the world, and we’re proud to stand among our fellow citizens in doing what we can to help the less fortunate. But, do we categorize our problems as first world? No, thank you very much, we don’t.

Maybe that’s because we grew up among people who knew first-hand what life was like under dictatorial governments. Maybe it’s because their history showed us that when one group of people is suffering, it detracts from the happiness and peace all groups of citizens know. Even so, that doesn’t mean those of us who are more fortunate need to

hide our own personal sufferings or act like we don’t have problems or concerns. If your child isn’t thriving in school, that’s a genuine concern. It’s certainly wonderful that she went off in the morning with a belly full of a good breakfast, but her tears and frustrations are still

hers and yours and they matter. If your spouse is struggling to find the right job while taking stop-gap work to make ends meet, that’s a genuine worry. Yes, it might only mean that you forgo a vacation this summer or cut back on spending in the meantime, but it is still your struggle and you are entitled to your feelings about it.

So, do these examples of “first-world problems” compare to the struggles of the third world? No, of course they don’t. But, if you broke your leg skiing during the endless winter that just ended, your pain was no less real to you. That the injury happened while you were enjoying a great day doing something many in the world

can’t even dream of doing doesn’t change that. Sure, here in the first world, you would have gotten great care, and you’d now be well on your way to being mended. We’d still include you among those who

deserve our empathy and compassion. We won’t use the expression “first-world problem,” out of respect for the entire human family. We will continue to try to make the world a better place, both around the globe and here at home, but suffering is suffering and it need not be dismissed. At least, that’s the way it looks from where we sit.