Lou Ferrigno, aka “The Incredible Hulk” to Keynote UTA’s ... · Incredible Hulk.” As we...

Volume 19 • Issue 7 • July 20171.877.GETS.UTA • www.uta.org

Used Truck AssociationChartered May 16, 1988

Published by the Used Truck Association303 Corporate Center Drive, Suite 300A

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 Sentry Management 303 Corporate Center Drive, Suite 300 AStockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)Fax: [email protected]: @usedtruckassoc

Lou Ferrigno, aka “The Incredible Hulk” to Keynote UTA’s Convention

No matter when you came of age over the past 50 years or

so we bet you’ve heard of Lou Ferrigno, or his alter ego, “The Incredible Hulk.” As we briefly mentioned in last month’s newsletter, Mr. Ferrigno will keynote this year’s UTA Convention to be held at The Paris Las Vegas Hotel & Casino in Las Vegas, NV, November 1-4.

Although Lou lost 75 percent of his hearing by the time he was a toddler, he was undeterred by what some would see as a disadvantage. Instead, he threw himself into athletics, especially bodybuilding.

But you don’t just get to call yourself the incredible Hulk of course. You have to look the part! Lou was only 21 when he won his first Mr. Universe title, a Guinness Book record that still stands. More incredible, at age 22 he won again—and he remains the only person to win consecutive titles! Lou carried the world of bodybuilding to new heights and himself to superstardom with the film documentary, Pumping Iron.

This led to an amazingly successful personal training business including clients such as Mickey Rourke, Michael Jackson, and Chuck Norris; and also led him to write Lou Ferrigno’s Guide to Personal Power, Bodybuilding and Fitness for Everyone.

Lou has also earned his acting chops. He’s starred in over 20 films including Cage and Cage II, All’s Fair, Seven Magnificent Gladiators, and Godson. In two unforgettable performances in Hercules and The Adventures of Hercules, Lou fulfilled a life-long dream by playing the legendary Greek hero.

Throughout his career Lou has proven over and over again the value of working hard to overcome chal-lenges, staying open to new opportunities, and NEVER giving up. These are values that UTA members also share, which is why the UTA is so excited to have Lou Ferrigno at this year’s Convention.

You won’t want to miss this! Come join us in Las Vegas for this year’s convention, or the six-foot four inch, 285 pound Hulk may have something to say about it! n

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

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

The Brooks Group Sales Tip of the Month ...........................2

New Members ............................................3

Face to Face with Kari Rihm .....................4

WIT Teams with Dock411 to Boost “Gravy Loads” ..................... 5

Industry Events Calendar ..........................5

2017 UTA Kansas City Golf Outing ......6-9

How the NMTA Empowers My Customers ......................................10

The Power of Little Ideas: Follow the Customer ...........................11

JD Power Valuation Services Update ...............................12-13

Industry News Briefs .......................... 14-15

2016 Convention Photos ................... 16-17

From Where We Sit .................................18

The UTA… Members Supporting Members!

UTA Industry Watch

2 www.UTA.orgJuly 2017

I would like to take this opportunity to talk to you about the UTA’s training classes.

The UTA offers two classes for our members: Managing for Success and Selling for Success. I am not sure why we named them that way, as they offer a lot more than teaching about selling or managing. The classes teach you about customer service and customer satisfaction.

Most of you probably think that you have to be in sales or a manager to attend these classes. That’s not the case. We all know that price is not the main factor for a customer when buying a truck. Satisfied customers are going to take your business a lot further than than price alone will.

A happy customer is a customer for life. Repeat business is one way to help take your dealership to the next level. Advertising only gets us so far. A happy customer will talk about his/her experience with others, and we all know that is the way to make your dealership stand out.

It starts with the initial sale and then financing. Then servicing the unit and the customer ordering parts come into play. So what am I saying? Anyone who comes in contact with the customer should take these classes.

The customer talks to and interacts with a lot of people at your location. Wouldn’t you like for everyone to know how to interact with the customer and make him feel good? It will help your employees be on the same page if they have the same training when handling a customer’s needs.

These classes will have you and your employees coming back to work excited and focused on making their departments a better environment for the customer! George Papp has over 30 years experience in the truck business. He not only connects with you on a personal level, but on a professional level too. People who have taken one of his courses come back saying great things about George and his training.

We have one training class left this year in Chicago (details to follow). Please visit www.uta.org, and click on the training link to sign up. Dates and locations for next year’s classes have not been determined yet but we will let you know as soon as they are.

Thank you,

Amy ShahanTraining Committee [email protected]

http://www.uta.org/directory

GOVERNING BOARD:

President ....................Craig Kendall

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

Treasurer ..................John Cosgrove

Secretary ................... Amanda Kent

President Emeritus Marty Crawford

COMMITTEE CHAIRPERSONS:

Convention .....Co-Chairs Rick Clark, Hal Dickson and Craig Kendall

Dealer Group ...........Bobby Williams Co-Chairs Mike Roney and Brandon Hess

Elections ...................Charles Cathey

Finance ...................... John Cosgrove

Marketing ......................... Rick Clark Co-Chair Amanda Kent

Membership ............. John Cosgrove Co-Chair Kelly Coldiron

Preferred Partners .. Brock Frederick

Scholarship .....................Dean Jeske

Training ........................ Amy Shahan Co-Chair Jody Johnson

Website ...................... Amanda Kent Co-Chair Rick Clark

2017 BOARD OF DIRECTORS

Motivation will almost always beat mere talent.

~Norman Ralph Augustine People buy for their own reasons—not for yours or mine.

Board News and Views

September 17-19 Courtyard Chicago O’Hare2950 S. River RoadDes Plaines, IL 60018

UTA Industry Watch

3www.UTA.org July 2017

J.R. Bias P.O. Drawer J Gainesville, GA 30503 (770) 535-7877 (w) [email protected]

Carl Boja TravelCenters of America (800) 879-1476 (w) P.O. Box 451100 Westlake, OH 44145

Steve Brostrom Paccar Financial Corp 777 - 106th Ave NE Bellevue, WA 98004 (815) 242-4427 (w) [email protected]

Michael Criscione M&T Truck Sales 7545 S. Madison St. Burr Ridge, IL 60527 (630) 756-2614 (w) [email protected]

Eric Davanport TravelCenters of America P.O. Box 451100 Westlake, OH 44145 (800) 879-1476 (w)

Daniel Duran Navistar, Inc. 14714 Valley Blvd Fontana, CA 92335(909) 356-4404 [email protected]

New Members

It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new (or just returning) 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!

Andrew Lamprecht, Sales River States Truck & Trailerwww.riverstates.com (608) 791-4663 (w) [email protected]

After working in the automotive industry for seven years, Andrew joined the trucking business in 2016.

He really enjoys getting out on the road and “never knowing who you might end up getting to work with.”

Andrew’s also passionate about coaching hockey in the winter and golfing the rest of the year, he said.

Lijun Lyda Alliance DriveAway Solutions, Inc. 210 North Church Street Charlotte, NC 28202 (800) 218-0882 (w)[email protected]

Ryan Morrow, President Classic Truck Sales, LLC 34880 LBJ Freeway Dallas, TX 75146 www.classictrucksalestexas.com(972) 755-3986 (w) [email protected]

Ryan’s been a part of the trucking industry since 1998.

His first job in trucking was working in a family-owned cattle hauling business. As a new UTA member Ryan’s hoping to build relationships within the industry and to gain expertise.

In his current job Ryan can help customers realize a dream, which he really enjoys. He also likes the customer and industry relations parts of his work, and helping customers interested in selling assets.

Ryan’s goal is to have a “used truck super center in several key marketplaces strategically placed in the U.S., for deep penetration all while making Classic Truck Sales the place to work for my associates.”

Nick Roth Cummins, Inc. 1460 National Road Columbus, IN 47202 (303) 968-7213 (w) [email protected]

Brian Rush 4500 N Cliff Ave. Sioux Falls, [email protected]

Carl Walker, Used Truck ManagerDoggett Freightliner 3103 N. Cage Blvd Pharr, TX 78577 (251) 421-4690 (w) [email protected]

Coming from a career in car sales, Carl joined us here in trucking in 2006. That’s when he joined Rush Truck Centers, in Mobile, AL.

The challenge of “operating two stores in two distinctly different markets, keeps me running and thinking,” Carl said when asked what he especially liked about his job.

Now that he’s joined the UTA, Carl’s looking forward to interacting with other members, and being a part of our association.

UTA Industry Watch


Kari RihmWithin the last six years, the company has added two new locations, and Kari is overseeing the construction of a new headquarters for the company. The company is gaining both heavy duty and medium duty market share, and they are also making parts and services more available to all customer locations. “In addition to the two new facilities in the Twin Cities’ market, we are in the preliminary stages of planning two or three locations to reach the far corners of our territory,” Kari said. Of all the aspects of her job, Kari enjoys interacting with customers and employees most of all. “I like to hear what is happening in the industry from the customers’ perspectives,” she explained. “I like to hear from employees about their ideas on how to improve processes and services. Both activities give me insight into what customers expect and need and what our employees think about the situations they encounter every day that can improve everyone’s experience with the dealership.” When asked what she wishes she knew earlier in her career, Kari responded, “Everything, and that’s an understatement!”She is quick to acknowledge the expertise, devo- tion, and professionalism of Rihm Kenworth’s staff, and the profound hard work of her late husband, his father, and grandfather. When asked about her proudest moments in the industry to date, she turns all the credit back to them. “I have experienced many incredible awards,” Kari recalled. They include:

■ Kenworth Truck Company Medium Duty Dealer of the Year – 2011, 2012 and 2014

■ Family Business Honoree 2013 – Twin Cities Business Magazine

■ NAWBO Minnesota Pioneer Award – 2014 – National Association of Woman Business Owners

■ ATD Dealer of The Year Nominee – 2015 – American Truck Dealers Association

■ Influential Woman in Trucking – 2015 – Women in Trucking

■ Inductee in the Minnesota Women Business Owners Hall of Fame – 2017

■ Recipient of the Ernst & Young Entrepreneur of the Year Upper Midwest Award – 2017

“These are proud moments, because they also represent recognition from our OEMs, peers,

Kari became the President/CEO of Rihm Kenworth in St. Paul, MN in October

2015 after her husband, John, passed away. “My whole career in this industry has been in this role,” she said. Rihm Motor Company was founded by John’s grandfather in 1932, and John’s father managed the dealership before John took his turn. “As owner and dealer principal, I am responsible for every aspect of the dealership,” Kari explained. “But, I am certainly not the subject matter expert in any of them.” Kari notes the good fortune of having well-seasoned professionals in every area of every location within the dealership. “From my vantage point, I participate in discussions regarding large orders and trade packages, strategies to move used inventory, parts and service promotion, etc.” she said. Kari’s larger role is one of business development and long-term growth planning. “Currently I am working to integrate common functions between Rihm Kenworth and our newly formed and related company, Rihm Leasing, Inc., which operates our recently acquired NationaLease affiliate, Rihm NationaLease (formerly Lawrence NationaLease) and the soon to be launched Rihm PacLease franchise,” Kari explained. “When you own a leasing company, you own a lot of used trucks! I’m on a very fast learning curve on this operation as well.”Rihm’s core business is now 85 years old and enjoys an excellent regional reputation.

pioneers in the industry, and external business experts,” she said. In advising younger people just starting out in trucking Kari noted the value of the trucking industry. “The transportation industry is the backbone of our economy and way of life,” she said. “It is often overlooked, but it employs no less than 17 million American workers. Jobs in this industry pay well and offer a tremendous range of opportunity. It’s evolving in ways that will always offer opportunities to people who dedicate themselves to learning and improving their knowledge and skills. Transportation jobs will never go away. This is not a fad or a fading part of the US marketplace.” Kari shared her perspective on what is ahead for the used truck industry. “Manufacturers respond to new government regulations and economic stressors, and they have an impact on used truck sales. There will always be peaks and valleys. Truck configurations that are popular today may not be when they enter their second life (Day cabs were in high demand in 2011-2012, because of low unit production in the preceding cycle 2008-2010. Sleepers were popular earlier in the decade but have declined in demand, etc.),” she said. “Now there is a glut of day cabs, because of the ramp up of new truck production during 2011-2014. Difficulties with after-treatment systems during the early years of implementation of that technology have dogged these trucks in the secondary market. Sleepers are less popular because routes have been modified to shorter turnarounds to attract drivers who want to be home daily. There is always cause and effect, so developing a healthy network of individual, fleet, and wholesale buyers is imperative. Change, challenges and new regulations will continue to impact the used truck market.”Kari has two grown children, one of whom works with her at the dealership and another who is a student. She enjoys spending time with them, especially at the family’s cabin or on extended trips. Understandably, the demands of her career have kept Kari extremely busy, but she still enjoys reading and keeping up to date with current events. “When I have the chance,” she said, “I still enjoy cooking and entertaining friends and relatives.” n

UTA Industry Watch


Women In Trucking (WIT) Association’s mission includes

removing obstacles that might keep women from entering or succeeding in the trucking industry. One obstacle drivers often mention is not knowing how to prepare for a pick up or delivery. This may include directions to the facility, whether pets are allowed, if Wi-Fi is available, and any challenges involved in backing into the dock.

Dock411’s goal is to make a driver’s stops faster, easier, safer, and less frustrating by providing details about stops before drivers arrive. By merely entering the dock address into the app, drivers can read what the company and other drivers have written about it, including details like dock door location, yard hazards, photos of the facility, the ability to park overnight, whether pets are allowed, and up to 35 other items. After the stop, drivers can add their own details.

Shippers are encouraged to enter information about their facility by completing an online form. This helps speed the loading experience and can eliminate unnecessary delays from driver or dispatcher miscommunication.

The current version of the Dock411 app includes three questions WIT requested specific to female drivers: “Were the personnel helpful?,”

Industry Events CalendarJULY20 • American Trucking Associations Economic SummitATA Headquarters & The Westin Arlington Gateway, Arlington, VAwww.trucking.org/event/12596/2017-ATA-Economic-Summit

SEPTEMBER17-19 • UTA Sponsored Training: Selling for Success 2017, ChicagoCourtyard Chicago O’Hareuta.org/uta-sales-training-events

25-29 • North American Commercial Vehicle Show Georgia World Congress Center Atlanta, GAhttp://nacvshow.com/

OCTOBER11-13 • National Trailer Dealers Association Annual ConventionTPC Sawgrass Marriott Ponte Vedra Beach, FLhttp://ntda.org/

NOVEMBER1-4 • 18th Annual UTA ConventionParis Las Vegas • Las Vegas, NVhttp://uta.org/uta-annual-convention/

MARCH 20186-9 • NTEA, The Work Truck ShowIndianapolis, INhttp://www.worktruckshow.com/

22-24 • Mid-America Trucking ShowKentucky Exposition Center Louisville, KYhttps://www.truckingshow.com/

WIT Teams with Dock411 to Boost “Gravy Loads” “Were you treated like a professional?,” and “Were the restroom facilities adequate?”.

Doc411 says the app’s purpose is to better prepare both female and male drivers for “their warehouse facility experience.” Doc411 feels this may improve the industry by removing unexpected surprises from the pickup or delivery operation.

“A driver once told me how he defined a ‘gravy’ load,” said WIT President/CEO Ellen Voie. “He said it was a shipment with no surprises, and now with the Dock411 app, any driver can be better prepared and will be able to anticipate challenges before he or she arrives at the dock. With Dock411, every load can be a ‘gravy load.”

For more information, visit dock411.com or email [email protected]. Download the app in iTunes or Google Play. n

Women In Trucking Association, Inc. is a nonprofit association established to encourage the employment of women in the trucking industry, promote their accomplishments and minimize obstacles faced by women working in the trucking industry. Membership is not limited to women, as 17 percent of its members are men who support the mission. For more information, visit www.womenin-trucking.org or call 888-464-9482.

UTA Industry Watch


UTA’s 2017 Golf Open Draws Generous Crowd 10 Scholarships to be Awarded

The UTA’s 12th Annual Jerome Nerman Family Foundation Kansas City Golf Open, held June 21 – 22, once again scored a

hole-in-one. As Amanda Kent noted, Dean Jeske and the Scholarship Committee did a fabulous job in picking the course (the Staley Farms Golf Club, Kansas City).

Most importantly, special thanks goes to our generous sponsors. They were (as always) so willing to give to the great cause of helping our young people further their educations. Because of everyone’s support, the UTA will award 10 scholarships this year! A huge thank you to Lewis Nerman who so graciously donated $10,000 after the tournament.

Lewis also spoke heart-warmingly about his father, Jerry, who had the original vision for the Scholarship fund. Sadly, Jerry died in February, but his presence was felt by all who attended the Outing. “My dad felt strongly about the UTA and the Scholarship Fund,” Lewis recalled. “He

always wanted to help students to enhance and better their lives, perhaps because he himself didn’t have the chance to pursue his education. And he loved the UTA and all the people—the UTA just meant the world to him.”

The Golf Awards1st Place Team with a score of 58Russell SwartzWayne SheetsJim ToweryDrew Reynolds

2nd Place Team with a score of 60Cory SpitcaufskyLee WallaceRobert Yost

3rd Place Team with a score of 61Brian LawlorLarry Moran Brian Lawlor Jr.

Closest to the Pin: John Barrett

TWO Longest Drive Awards: Chuck McCann

Longest Drive Award: Brian Lawlor

And Robert Yost won this year’s Marty Crawford Chicken Leg Award

The UTA could not have pulled off this event without Sentry Management (David Grace, Misty Feltman Reis) and our graphic designer Laura Jones Carter, who helped coordinate things behind the scenes.

Everyone is looking forward to returning to Kansas City next year. Mark your calendars now for the third week of June 2018! n

1st

2nd

3rd

UTA Industry Watch


Jerry NermanRemembering

Chuck McCannTWO Longest Drive Awards

John BarrettClosest to the Pin

Brian LawlorLongest Drive Award

The Story Behind the Marty Crawford Chicken Leg Award

Lifetime Achievement Award winner Marty Crawford has definitely had a life of many rewards and achievements. But perhaps the one for which he is most widely known is the Chicken Leg Award. Marty began playing golf within the last decade or so, and sadly his game has not improved much. “I have managed to get worse at it each year,” he once said.

In 2006, Marty joined a foursome to play in the first UTA-Jerome Nerman Golf Outing. Marty’s wife, Marietta, warned his group that their newest member would show up in shorts that would highlight his legs. “Marty’s legs look like two frozen Perdue drumsticks,” she said. Since her description was so accurate, Terry Williams put the new award in motion by the second hole! The award, a KFC container with a dozen frozen chicken legs became an instant hit. “I accept this award for one good reason,” Marty said, “I deserve it!”

UTA Industry Watch


THANK YOUto our Generous Sponsors

UTA Industry Watch


June 17 & 18th, 2010


How the NMTA Empowers My Customersby Courtnay Beckham

This is not a story about me —but about what the National Minority Trucking Association (NMTA) provides for my customers. Some

time ago, I met with Kevin Reid, NMTA’s founder and CEO, to learn more about his vision for the association.

I learned we shared the same vision and beliefs about the industry, and what it will take to build the right foundation. I consider myself more of a teacher than a salesperson. I feel it’s important to ensure my customers have the tools and network in place to succeed. So I always give them a

folder filled with contacts, industry mate-rials, and tools I think will help them.

Kevin was just starting the NMTA when we met. He wanted to bring a light to this industry and a way to succeed in it. He has done that in an incredible way. NMTA provides workshops, classes, and tools that are priceless to my customers. I direct almost every customer that comes in my office to the NMTA. I am a member myself, and feel as a woman I can be a great advocate for what the NMTA stands for.

This leads to the story of Melodie Goodwin (now M.R Trucking LLC.–as she is now a company!)

Melodie recently called me and said “You probably don’t remember me, but you spoke with me at the NMTA Truckers Opportunity Expo three years ago. You talked about everything I needed to do, and gave me direction in how to succeed in this business. We didn’t talk about trucks—we talked about getting educated in every aspect of the business before jumping in.”

Over the next three years, Melodie worked on everything. She took classes and workshops with the NMTA, and took advice from their experts in the business. She was then ready to buy a truck.

I worked hard on getting her financing in place, which is never easy for a start up. We finally were able to match the right truck with her finance option and put a deal together. She recently closed and soon thereafter picked up her truck. What an exciting (yet stressful) time for her.

There is a saying I put in every truck I sell:

~Some people dream of success while other people wake up and work hard at it!Melodie is a prime example! n

Courtnay Beckham is the National Fleet Sales/ Consultant for SelecTrucks of Atlanta

Register Now for the Event of the Year!


The Power of Little Ideas: Follow the Customerby David Robertson and Kent Lineback

The first step and the foundation for all that follows is to lay out the complete set of activities starting when your customers first sense a need for your product and then find, buy, use,

maintain, repair, and then dispose of it. This customer activity chain is the core of the customer context.

The key to following the customer is to look behind your customers’ activities and understand what they’re trying to accomplish with your product at every step along the way as they find and use it. Customers often cannot express, explain, or even know what they want or need.

How can they, if they don’t know what’s possible? But they can tell you something even more useful: the job they’re trying to do, the outcome they’re trying to accomplish, and the result they want to achieve, when they use your product. Once their overall goal or job has been identified, every step in the chain of activities leading up to completing that job can be evaluated in light of the ultimate result being sought.

This jobs-to-be-done approach, as it has come to be called, arose from Theodore Levitt’s still-relevant Harvard Business Review article “Marketing Myopia,” which first appeared over a half-century ago. In it, Levitt argued that people buy a product not for itself but as a means to accomplish some task. The now-classic example of this concept is that people don’t buy a drill because they want a drill; they buy a drill because they want a hole.

The appeal and power of this approach is that many products force the user to compromise because they don’t do the complete job the user wants done. That’s frustrating because it forces users to cobble together their own solutions around the product. The Third Way is an ideal method for dealing with this situation. By knowing what outcome your key customers are trying to achieve, you can begin to discern needs they cannot yet express directly. By adding complemen-tary innovations around the product, you can provide a solution that does the whole job.

GoPro’s early success can be traced to its deep understanding of what customers were trying to do with its products. From the process of mounting the camera, to planning which parts of the experience to record, to editing the video, GoPro has developed an integrated set of products, accessories, and tools that support the entire process .

To document the customer activity chain, break down the user’s activities into separate steps, describe each, and then ask users what job they’re trying to accomplish with each. Finally, question the user to gather two additional pieces of information about each of the steps in the chain. First, rank the importance of each step to getting that job done.

Each step can range from crucially important to entirely optional. Second, rank how satisfied the user is with the way that step is getting done now. This information will come from observing customers, asking what purpose or job they are seeking to do, and then having them rate each step for importance and satisfaction. n

Reprinted by permission of Harvard Business Review Press. Excerpted from The Power of Little Ideas: A Low Risk, High Reward Approach to Innovation by David Robertson. Copyright 2017. All rights reserved.

NetworkingFun and Exciting ToursInformative Speakersand, well…It’s VEGAS, Baby!

UTA Industry Watch


in May were 10 months newer, had 19,174 (3.6 percent) fewer miles, and brought $100 (or 0.4 percent) less money. Compared to May 2016, the average sleeper sold this month was 25 months newer, had 108,630 (or 17.5 percent) fewer miles, and brought $962 (3.3 percent) less money.

The average wholesale selling price of 3-5 year-old sleepers stabilized in May. A low volume of model-year 2015 trucks combined with large groups of similarly-equipped units continues to cause swings in this monthly average. Average wholesale pricing for this cohort was $42,746 - $1,343 (or 3.2 percent) higher than April.

Average pricing by age was as follows: 3 year-old trucks: $72,101 - $14,016 (24.1 percent) higher than April4 year-old trucks: $27,535 – $6,849 (24.9 percent) lower than April5 year-old trucks: $28,603 - $3,138 (9.9 percent) lower than April

On a year-over-year basis, late model trucks sold in the first five months of 2017 are averaging 3.5 percent lower than the same period of 2016.

See the “Average Sleeper Tractor Pricing by Model Year (All Wholesale)” graph for detail.

Sleeper Tractors – RetailThe average sleeper tractor retailed in May was 72 months old, had 448,696 miles, and brought $48,929. Compared to April, the average sleeper was 2 months newer, had 3,785 (0.8 percent) fewer miles, and brought $460 (1.0 percent) more money. Compared to May 2016, this average sleeper was 2 months older, had 19,301 (4.1 percent) fewer miles, and brought $6,469 (11.7 percent) less money. The retail market overall averaged 9.9 percent lower pricing in the first five months of 2017 compared to the same period of 2016.

Looking at trucks three to five years of age, retail selling prices have dropped an average of 1.7 percent per month so far in 2017. This figure compares favorably to the 2.4 percent per month average in the first five months of 2016.

Average pricing by age was as follows:3 year-old trucks: $81,728 - $6,677 (8.9 percent) higher than April4 year-old trucks: $60,675 – $92 (0.2 percent) higher than April5 year-old trucks: $44,900 - $3,849 (8.4 percent) lower than April

On a year-over-year basis, late-model trucks sold in the first five months of 2017 are averaging 6.4 percent lower than in the same period of 2016. Keep in mind the varying mix of models sold each month can result in swings in our averages. Multi-month trending shows the retail market leveling out, with depreciation quite minimal.

See the “Average Retail Selling Price: 3-5 Year-Old Sleeper Tractors” graph for detail.

June Market Returns to ExpectationsJune’s Class 8 auction results were back to normal, with volume up notably, and pricing down mildly compared to last month. Retail selling prices remain stable, with minimal depreciation. The medium-duty market retracted moderately.

Sleeper Tractors – Auction/WholesaleVolume of the most common sleeper tractors sold at auction increased dramatically in June after a depressed May. Pricing of our benchmark model decreased 2.8 percent compared to last month, which is somewhat higher than expectations, but much less dramatic than May’s drop.

June auction performance of our benchmark model was as follows:MY2013: $28,000 average; $27 (0.1 percent) lower than MayMY2012: $23,250 average; $1,685 (6.8 percent) lower than MayMY2011: $20,250 average; $358 (1.7 percent) lower than May

In the first half of the year, trucks of model year 2011 averaged 3.7 percent depreciation per month, trucks of model year 2012 depreciated 1.8 percent per month, and trucks of model year 2013 have averaged less than 1 percent (low January pricing was negated by higher February through June pricing).

We did not consider May’s atypical results particularly notable, since one month does not make a trend. June’s results were on par with the longer-term trend, and we continue to view the auction market as firming.

See the “Volume of all Aerodynamic Sleeper Tractors Sold…” and “Average Selling Price: Benchmark Sleeper Tractor” graphs for detail.

The larger overall wholesale environment (auction, dealer-to-dealer, and dealer-to-wholesaler combined) dipped slightly in May (June results were not yet available at the time of this writing). Average pricing in the first five months of 2017 is running 6.8 percent lower than the same period of 2016.

The average sleeper tractor sold wholesale in May was 60 months old, had 513,859 miles, and brought $28,442. Compared to April, trucks sold

J.D. Power Valuation Services Update Chris Visser, Senior Analyst and Product Manager, Commercial Vehicles

0100200300400500600700800

VolumeoftheThreeMostCommonSleeperTractorsSoldthroughtheTwoLargestNationwideNo-ReserveAuctions(ModelYears2011-2013)

Source: J.D.PowerValuationServices

$0$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

Jan-15 Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec

Jan-16 Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov Dec

Jan-17 Feb

Mar Apr

May

Jun(Est.)

AverageSleeperTractorPricingbyModelYear(allWholesale)2per.Mov.Avg.(2007)2per.Mov.Avg.(2008)2per.Mov.Avg.(2009)2per.Mov.Avg.(2010)2per.Mov.Avg.(2011)2per.Mov.Avg.(2012)2per.Mov.Avg.(2013)2per.Mov.Avg.(2014)


$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

AverageSellingPrice:BenchmarkSleeperTractorSoldthroughtheTwoLargestNationwideNo-ReserveAuctionCompanies

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UTA Industry Watch


Month-over-month fluctuations aside, pricing for newer, lower-mileage trucks has been generally stable since January on average. Buyers continue to look for the newest equipment available.

See the “Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 Cabovers” graph for detail.

The conventional market retracted in May. Both the heavier and lighter GVW segments pulled back notably, with lighter segments continuing to bring higher pricing than heavier segments.

Specifically, Class 4’s averaged $18,640 in May. This figure is $2,348 (11.2 percent) lower than April, and $4,360 (19.0 percent) lower than unusually-high May 2016. Class 6’s averaged $15,211 in May. This figure is $4,771 (23.9 percent) lower than April, and $2,599 (or 14.6 percent) lower than May 2016.

Through May, Class 4 trucks are running 2.1 percent ahead of the same period of 2016, with mileage averaging 1.1 percent higher. Pricing for Class 6 trucks is 10.2 percent lower, with mileage 18.1 percent higher.

Volume for Class 4 was moderately higher than last month, while volume for Class 6 decreased dramatically. We still see demand continuing to incrementally improve in upcoming months for trucks of all GVW classes, based on general macroeconomic trends.

See the “Average Wholesale Selling Price: 4-7 Year Old Conventionals by GVW Class” graph for detail.

ForecastJune’s results show a return to the expected trend in the retail and wholesale channels. Pricing continues to flatten out. Dealers should be seeing incrementally improved conditions compared to this time last year. n

Drilling down to individual models, the Peterbilt 579, Kenworth T680, Volvo VNL 730/780, and Freightliner Cascadia continue to outperform the market average. The apparent outsized strength of the 579 is due to a disproportionate number of model-year 2015 trucks rather than high pricing in all three model years. At the same time, this model is generally performing at the top of the market.

See the “Average Retail Selling Price of Selected 3-5 Year-Old Sleeper Tractors” graph for detail.

Looking at the number of retail sales per rooftop, our early estimates of a poor showing in May turned out to be unfounded. Dealers who reported sales early in the month sold fewer trucks than those who reported later, throwing off our early assessment. May was actually a strong month, with dealers retailing 5.8 trucks per rooftop. This figure is 0.6 truck higher than April, and a full 1.0 truck higher than May 2016. This result puts 2017 0.6 truck ahead of 2016. Dealers should be feeling some improvement at this point.

See “Number of Trucks Retailed per Dealership Rooftop” graph for detail.

Medium Duty TrucksStarting with Class 3-4 cabovers, pricing of our benchmark cohort dropped again in May, but this time a higher-mileage mix of trucks can’t be blamed. May’s average pricing was $16,869, which was $629 (3.6 percent) lower than April, and $2,118 (14.4 percent) higher than May 2016.

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UTA Industry Watch


Purchase Intentions at Highest Level Since ‘14: ACTA full 61 percent of fleets responding to ACT’s latest For-Hire Trucking Index plan equipment purchases in the next three months. This was the strongest three-month reading, ACT said, since 2014’s third quarter. ACT added that all of the purchase forecasts will be for new equipment. Seven percent of respondents not planning purchases reported plans to extend the lease on their current equipment.

Following April’s slowing growth, the volume reading advanced for the fifth consecutive month in May to 65.3, over twenty points above the December 2016 index. Ten percent of respondents reported having significant gains, 53 percent percent had modest increases, and 33 percent were flat. The remaining four percent of fleets had either significant or modest decreases. Said one fleet: “Generally industrial customers seem to be increasing loads slightly, nothing over the top, but generally load counts are moving up.” n

April’s TCI jumps Four Points to 7.03Considered a “mid-positive” range

April’s Trucking Conditions Index jumped four points to a reading of 7.03, according market researcher FTR. FTR sees more good news ahead as freight demand is moving up, as the industrial sector continues to improve with capacity tightening.

This year’s first quarter was the second strongest in terms of freight growth of the current recovery. FTR feels that the balance of 2017 will continue to see growth but at a more modest level.

“Overall, our expectation of improvements in freight demand for 2017 are coming to fruition,” said Jonathan Starks, FTR’s Chief Operating Officer. However, we are seeing a significant difference between the contract carriers, specifically those in more dedicated routes, and the spot market. Contract markets are showing limited load growth and weak pricing, but spot market indicators are telling a very different story. Data from Trans4Cast.com shows that spot market load activity in early June was up more than 50 percent compared to the same time last year. Importantly, truck capacity in the spot market is down during that same time. This has led to significant rate increases for spot moves, with the average rate up more than 10 percent on a year-over-year basis.”

Starks continued: “We typically see spot markets move prior to the contract arena, so we would expect to see stronger contract pricing negotiations as we finish 2017 and head into 2018. The market is gaining strength, and conditions for carriers are showing significant improvements.” n

May Uptick in Used Truck SalesThere were plenty of May flowers to go around as used truck dealers celebrated a May uptick in same dealer sales. The rebound was unexpected and helped offset April’s decline.

“While volumes generally begin to fall off as summer approaches, May’s volumes were up month-over-month, offsetting a portion of April’s decline,” said Steve Tam, ACT’s Vice President. “With used truck prices stabilizing, it appears that truckers could be starting to take advantage of the low prices,” Tam added.

ACT noted that dealers said used truck sales “appear to be showing signs of improvement.” While there’s still an oversupply of trucks , “the mood of the used truck business is improving,” said Tam. “There is still an excess of late model aerodynamic sleeper trades in inventory, a fact that continues to cause concern among truckers and financers,” he concluded. n

May’s Class 8 Orders Drop to 16,300 Units: FTRClass 8 net orders for May came in at 16,300 units, according to FTR. May’s order activity dropped 31 percent below April’s, and that was below expectations. On the bright side, May 2017’s orders were up 29 percent from those of May 2016.

FTR said May’s “drop was not totally surprising” as fleets have been placing very strong orders for the last several months for second half delivery. FTR says its 2017 forecast looks solid if orders maintain this pace through the summer. Total orders for the past 12 months stand at 211,000 units.

“The order numbers are not that worrisome, considering the steady volume of orders over the past seven months,” said Don Ake, FTR’s Vice President of Commercial Vehicles. “It appears the typical summer order slump just showed up one month early. It does indicate the market is functioning normally and there is a steady, not robust, upward trend. The slowdown in order activity will give the OEMs a chance to get production lined up with demand.”

Ake added that FTR “still expects the Class 8 build and sales to continue to increase as the year progresses.” He added that “May orders were actually very close to our January forecast, so the market continues to move ahead as expected. Orders should continue at about this pace through the summer, which will be good enough to support stronger demand in Q3 and Q4.” n

Industry News Briefs

UTA Industry Watch


Mack Trucks Participates in Ride for Freedom Honoring Fallen Military Heroes

Navistar Reports 2nd Qtr. LossBut Sees Better Days Ahead

Navistar recently reported a net loss of $80 million for 2017’s second quarter, however it sees a better second half “driven by backlog and improving industry conditions.”

“We are on track to improve on last year’s results, but still have quite a bit of work to do in the second half,” said Troy A. Clarke, Navistar chairman, president and chief executive officer. “However, the work we’ve done in the first six months growing share, building our backlog, and managing costs, combined with improving industry conditions, positions us to deliver a stronger second half.”

Some second quarter highlights:

Improving Core market share, with additions to the company’s production schedule and extensions of the company’s backlog into the fourth quarter.

Strengthening competitive presence in the Class 8 market, including ramped-up deliveries of the new International LT Series with the Cummins ISX 15 liter engine; introduction of the new RH™ Series of Class 8 regional haul tractors; and unveiling of the new International A26 12.4-liter engine, which launches in the LT and RH Series in the coming weeks.

The company reiterated its guidance for the full year. n

Volvo Trucks Debuts Painted Parts ProgramVolvo Trucks North America (VTNA) through its new Genuine Painted Parts Program, delivers genuine, factory-built replacement parts, “custom painted for pre-order or quick turnaround. “

VTNA said that through the new program customers and dealers can order more than three dozen different parts, including hoods and bumpers, for both the Volvo VNL and VNM models. Replacement parts are painted with the same custom formula and paint used at VTNA’s New River Valley facility in Dublin, Virginia.

Volvo expects to ship all hood and bumper orders within 48 hours of request.

“Our customers have asked for a solution to reduce their time in the shop as a result of body repairs,” said Michael Leipold, Volvo Trucks Parts Marketing product manager. “With this program, our dealers can stock or express-order custom-painted pieces for their fleet customers. In some cases, repairs can literally begin on those vehicles as soon as the truck rolls into the shop. That can mean the truck is on the road days earlier than was previously possible.”

Aside from painted hoods and bumpers, the program also offers bulk part ordering for all models, and “fully dressed” hoods for the VNL. Fully dressed products come complete with mirrors, headlights and grille ready to bolt on and roll.

Rounding out the program are full cab options. “A complete line of VNL and VNM cabs are available painted, sealed and ready for final dressing at the dealership,” the company said in a media release. The company added that an enhanced, semi-groomed daycab is also available for both models. All cab options can be available to ship within 20 days of order.

“We listened closely to our dealers and customers when developing our catalog of offerings,” Leipold said. “Whether it’s replacing a single piece of the bumper or a complete cab, we believe these factory quality parts can save fleets time and money.”

Information on the new program is now available online at http://bit.ly/volvopaintedparts. n

Over Memorial Day weekend, Mack Trucks employees participated in the Rolling Thunder – Ride for Freedom Rally, to pay tribute to America’s fallen military. This year, Mack’s Ride for Freedom truck was Jack Mack, a custom-built one-of-a-kind mega-crew cab named after John “Jack” M. Mack, one of the founders of Mack Trucks.

The 30th annual rally took place in Washington, D.C. Mack Lehigh Valley Operations and Mack Customer Center employees travelled from Pennsylvania by truck and motorcycle to Hagerstown, MD for a special memorial ceremony at Mack’s powertrain facility. Hagerstown employees then joined their colleagues following the ceremony as they continued to Washington, D.C. to join thousands of other Ride for Freedom participants. n


17th Annual Convention

UTA Industry Watch


This year’s treat was that we took two of our little grandsons to the carnival for the first time. Benny rode the rides, and his baby brother pointed out every “ball” in the place. Now we’ve been part of this community long enough to see our grandchildren enjoy the same exact treat their parents enjoyed. We never fail to meet up with at least one teacher or two who knew our children and also their spouses. When they tell us how lucky we are to have had such great kids who married great kids, we smile and nod. That’s the part of community

that lasts no matter where life takes you on its travels. That’s the kind of wealth we were hoping for all those years ago when we brought our family to this little community, and that’s the type of wealth we intend to share with the neighbors we’ll welcome in the years we all continue to live here. At least that’s the way it looks from where we sit.

From Where We Sit

Deb and Brad Schepp [email protected]

We’ve been thinking a lot about community these last few weeks. Maybe these thoughts linger from the time we spent immersing ourselves in the accomplishments of the late Jerry Nerman, who we’ve grown to admire so much, and love, too.

One thing was clear throughout Jerry’s life, and that was his commitment to community, wherever he happened to be a part of one. That sense of belonging is a wealth not material or financial and one folks sometimes tend to overlook while caught up in the race to get from today to tomorrow, this week to the next. We know we do. Growing up in a military family, frequently moving from place to place, and then, as adults moving hundreds of miles away from family, we’ve always hoped to recapture that sense of belonging, and here in this last month or so, it seems we have.

Yesterday we attended the wedding of the last of our children’s childhood friends. The groom was once the hair-raising daredevil who captured our son’s imagination from the first day they met. This boy has the distinction of being the only child whose mom ever got a call to come and get her offspring, and we do mean now! It happened after, “Joey,” (names have been changed to protect the innocent) rode our son’s new electric scooter off our back porch, the one we reach by climbing eight steps! With scenes of ambulances and ER visits, Joey’s mom came and the story ended well. At least for that day. This was the kid who always had an extremity in a cast or a line of stitches covered in bandages. Yet, we stuck with this friend, saw him become an Eagle Scout, and yesterday, we watched him marry his bride. And the ride we’ve watched him take has been wild, but rewarding and fun all along the way. That sounds like community to us.

Earlier this week, we spent an annual happy evening at the Firefighter’s Summer Carnival. This was our 19th trip since we moved to town, and every last one of them has its own special memories. This was the place we first allowed our kids to go while middle-school students with a bunch of friends, and no adult supervision, at least no obviously visible adult supervision. They knew we were there in the crowd, but we promised not to interfere unless we saw trouble, and they promised to make sure we knew if they needed us. This was the place where our daughter once won her goldfish, took it on the Ferris wheel and brought it home to live 10 years in her room! That was some fish. One year I wanted to buy a whisk brush from the members of the Lion’s Club who always sell ice cream at the carnival. When I got to the stand, they had no small brushes, and I expressed disappointment. The man asked if I planned to come back to the fairgrounds before the carnival ended, and I told him that wouldn’t be a problem. (We could walk, if we wanted to.) He was a little skeptical that I’d actually do it, but the next evening when I arrived, there was my little broom just sitting there waiting for me. That sounds like community to us.

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