Used Truck Association How Do You Top The 2011 Convention? T · 2017-05-18 · November 2011 3...

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

Volume 13 • Issue 11 • November 20111.877.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

How Do You Top The 2011 Convention?

The UTA Board has the following question for those of you who attended the 2011 Used Truck Association’s 12th Annual Convention, held at the Talking Stick Hotel and Casino

early this November: How do we top this convention? We have all received so many compliments either in person or by email. The convention survey went out the week of November 6, and so far the results are outstanding.

Credit has to be given to the convention committee, led by Sheri Aaberg as convention chairperson and her two co-chairmen, Tim Ormsby and Hal Dickson. Now all three people have experience holding at least one convention. We are all hoping that these three past convention chair-people team up again for the 2012 convention.

The entire convention committee played a large part in making this convention such a success. The committee consisted of the following people: Sheri Aaberg, Tim Ormsby, Rick Clark, Craig Kendall, Hal Dickson, Terry Williams, Bobby Williams, Tim Ronan, Lara Haag, Tom Pfelier, Eddie Walker, Marty Crawford, and Laura Jones.

Behind the scenes is the Grace Management team, led throughout the year by David Grace. David’s team is responsible for everything from planning the convention two years in advance, to getting the monthly “ticklers” out as the convention approaches.

For 2012, the Used Truck Association will hold its annual convention in New Orleans at the Hyatt Regency New Orleans, which has been totally renovated and should be open this Decem-ber. The 2013 convention will be held in Orlando at a Disney property called the Swan Resort, which is adjacent to Epcot Center. As you can see, planning for future conventions takes a great deal of time and dedication for all of the convention committee members.

If you would like to become involved in the convention committee, or any Used Truck Associa-tion committee, please send an email to [email protected], and we will definitely accommodate your request. n

Thank you,

Rick Clark UTA President [email protected]

Table of ContentsBoard News & Views .......................... 2

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

Face to Face with Mark Fishel .............. 4

A Look at 2011 to Date. Higher prices; Higher-miles set the pace............... 6-7

Polk Data Used Truck Sales ................ 7

Industry News Briefs ....................... 8-9

Moving on Down the Road: Checking in with Randy Hackler ........ 11

The Brooks Group Sales Tip of the Month .................... 11

Industry Events Calendar ................... 12

From Where We Sit .......................... 12

The UTA… Members Supporting Members!

2 November 2011 www.UTA.org

President Rick Clark

Vice President Bobby Williams

Treasurer Tom Pfeiler

Secretary Sheri Aaberg

President Emeritus Marty Crawford

Affiliates & Benefits Committee Chairman

Bryan Boyd

Convention Committee Chairman Sheri Aaberg & Tim Ormsby

UTA Jerome Nerman Family Foundation Scholarship Committee

Chairman Tim Ronan

Elections Committee Chairman George Barnett

Marketing Committee Chairman Lara Haag

Membership Committee Chairman John Cosgrove

Training Committee Chairman Ken Kosic

UTA Dealer Group Committee Chairman

Mike Thurston

UTA.org Website Committee Chairman

Bobby Williams

2011 Board of Directors

Front, L to R: Sheri Aaberg, Randy Pennington, Marty Crawford, Tim Ronan, Mike Thurston. Back, L to R: Tim Ormsby, Bryan Haupt, Ken Kosic, Bobby Williams, Rick Clark, Tom Pfeiler, Bryan Boyd, Lara Haag, John Cosgrove, George Barnett.

Board News and ViewsYour Membership Committee Needs Your Help

The convention we just had has overall been the best convention I have ever been to. I decided to write my Board News & Views article after the Wednesday night “Meet & Greet” held in

the courtyard of the Talking Stick Hotel and Casino. I wanted to write this article now because I can feel the excitement of the crowd in the courtyard, and I didn’t want to lose the inspiration it provided about the Membership Committee’s duties for the Used Truck Association.

We had an interesting UTA Board meeting earlier this morning about membership. The meeting began with a discussion about outsourcing a new survey to the current members, and how to build membership from there. We now have almost 800 members in the Used Truck Association, and this is our biggest year for growth. We are on the threshold of being too large an organization to hold an annual convention without taking every room in a hotel—as we did this year. At our board meeting we had a number of volunteers join the Membership Committee to help me and the rest of the board make some strong decisions and forecasts going forward. We don’t want to outgrow our capabilities for the future membership and association. I would like to present a follow-up Membership Committee newsletter article in January or February 2012. It would describe our findings, and hopefully a clear and decisive plan we intend to follow.

I would like input from our current members—that being you—so I can effectively hold a Membership Committee meeting. I’d like to know why you became a member of the Used Truck Association and why you continue to be a member. There are many reasons why people join organizations, and I would like hear from you personally. After we get this rolling with your input, I would also like to start a regular monthly newsletter column about this topic. Each month, one or more members could discuss why they joined the UTA, why they continue to be a member, the benefits of being a member, and also some background on their business and company. As any idea starts with a thought and grows into something significant we will adapt from there.

Therefore, I am asking for your help and some feedback to make sure the Membership Commit-tee is moving in the right direction. Please email me your thoughts on the subjects in the previous paragraph, and any other thoughts you have for the Membership Committee. I have two email addresses, which are listed below. n

Thank you,

John Cosgrove Membership Committee [email protected]@UTA.org

Note: The 13th Annual UTA Convention will be held November 7-10, 2012 in New Orleans, Louisiana at the Hyatt Regency New Orleans

3November 2011www.UTA.org

sales, stuck with it, and today’s he’s Director of Used Truck Operations for MHC.

As a new UTA member he’s looking forward to building strong relationships with other dealers and vendors.

S. Hatch Barrett, Consultant Trebar Financial Services, Inc. 3939 South Transport St.Boise, ID 83705 www.equfs.com (208) 424-6300 (w) (208) 899-2803 (c) [email protected]

Henry Coberth, Used Truck ManagerVanguard Truck Center of Atlanta 700 Ruskin Dr. Forest Park, GA 30297 www.vanguardtrucks.com (404) 363-8390 (w) (404) 735-1812 (c) [email protected]

R.C. Euler, Buyer Whiteford Kenworth12650 Eckel Junction Rd.Perrysburg, OH 43551www.whitefordkenworth.com(419) 874-3511 (w) (419) 779-6991 (c) [email protected]

R.C.’s career in the trucking industry began in 1995, selling trucks at Bi-State Ford in Toledo, Ohio. He’s hoping that through his UTA member-ship he can establish and build connections across our industry. “There is a strong network of good people in the trucking industry, and I want to learn from others’ successes and challenges in today’s marketplace.”

What he really enjoys about his job is the chance to work with both current and new customers. “My job today offers a unique flexibility where I can truly learn about their businesses, and provide them with the best trucks to meet their needs,” he explained.

R.C. grew up on a small Ohio farm and his first passion is agriculture and farming. He gets to indulge that passion a bit even in his current line of work, where he sells to many customers who also farm. “Agriculture is a dynamic industry with fast-paced new technology from the equipment, to the seed you plant in the ground,” he explained.

When he’s not working, R.C. spends most of his time in the summer boating with his two children, Caleb, who is four, and Lauren who is two; as well as his wife, Chasitie. In the winter, you may well find him snowmobiling in the Upper Peninsula of Michigan.

George Andler, Used Truck Department ManagerWisconsin Kenworth6395 Lake Rd. Windsor, WI 53598 www.wisconsinkenworth.com(608) 846-5451 (w) (608) 235-4965 (c) [email protected]

George first started driving trucks in 1976, and continued doing that until 1984 when he went into construction for a time. In 1997, he got back into the truck industry, this time in sales.

Working in sales seems a good match for him. George really enjoys interacting with people “including sales personnel, customers, and the different departments of our organization,” he told us. He joined the UTA hoping for industry contacts and information.

If George wasn’t in the truck business you might find him in heavy equipment and construction, or farming. “I have always enjoyed being around power equipment and the bigger the better,” he said.

As much as he enjoys our business, George says his greatest passion is motorcycling. “I do some hobby farming also that I truly enjoy,” he added.

He had some other thoughts to share with us. “It is amazing the changes in our industry that I have seen, and I don’t consider myself that old. My father and uncle drove trucks also, and it is very interesting to hear stories from their early years of trucking.”

Robert Barnicle, Director of Used Truck OperationsMHC Truck 1524 North CorringtonKansas City, MO 64120www.mhctruck.com (816) 242-6238 (w) (816) 536-5802 (c) [email protected]

Robert Barnicle started out in the truck business in 2001. He began in used truck

New MembersIt’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 like/don’t like about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you!

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.

Kevin Keegan, President KeeVac Industries, Inc. 3100 Cherry Creek S. Dr. #704 Denver, CO 80209 www.keevac.com (303) 789-9440 (w) [email protected]

Matt McDevitt, General Manager Husky Trucks LLC11222 E. Marginal Way S.Seattle, WA 98168 www.huskytrucks.net(206) 859-4310 (w) (206) 730-3700 (c) [email protected]

A 16-year veteran of our business, Matt’s joined UTA for one simple reason—he’s looking for contacts for buying, selling, and remotely inspecting trucks.

For him, the best part of his job is “learning the mechanics of each new customer’s business.”

Trucks are Matt’s number one priority right now, but in a different world, say one without trucks (if that can even be imagined) Matt would be doing something far different. “I’d like to own a professional sports franchise, preferably a woman’s beach volleyball team,” he said.

Now ladies, before you get up in Matt’s face about this, we should tell you that Matt also loves UFC fights. What’s more, “I practice the martial art of Hapkido,” he told us. In case you’re wondering, Wikipedia says Hapkido is “a dynamic and also eclectic Korean martial art. It is a form of self-defense that employs joint locks, techniques of other martial arts, as well as kicks, punches, and other striking attacks.” Whoops. We will definitely be treating Matt with the utmost of respect.

Bob Schmaing, Sales Mgr Montana Peterbilt 1110 3rd Ave North Billings, MT 59103 (406) 252-5667 (c) [email protected]

Don Seabaugh, Vice President Used Truck Manager Midway Ford-Western Star-Freightliner 7601 NE 38th Street Kansas City, MO 64161 (816) 935-0328 (w) (816) 935-0328 (c) [email protected]

New Members continued on page 5.


Mark Fishel

Mark Fishel began life as a member of the team at Vandeventer Truck Sales,

Inc. in St. Louis, Missouri. The company was founded by Mark’s grandfather, Bill, in 1928. His father Marvin took over the firm when it came time for Bill to slow down. So, when Mark was born, it was clear that the newest member of the family would someday be the third-generation owner of the family business. Of course, everyone has to start somewhere short of the top, and Mark’s beginnings were grounded in physical labor. “At the age of 16 I was taught how to ‘Deck’ 3 and 4 ways of trucks, and then drive them to their destination. We would deck all day, drive all night, and un-deck the next day!” Mark told us. “My personal best?” he asked. “Seven 3 ways decked in a day!”

Not counting high school, Mark’s worked for his family’s firm for 32 years. Today, he considers himself a “throwback” of sorts. “As an owner sometimes the best leadership is by example,” Mark explained. “I do all the buying and selling and everything else in between.” Mark also knows that each employee is vital to the company’s success. “Respect for the next person’s job in this industry goes a long way,” he observed. “Everyone

deserves recognition for what they do especially when it’s done correctly and professionally.

Mark summed up the secret to his successful career with one word: Ethics. “I was raised with a simple credo. Your word is your bond and a handshake is a deal!” Mark lives by this motto today, and the result is his fine reputation within the industry. “The truck community can be a small world. If you become known as ‘less than reputable’, word will spread fast. Selling trucks always starts with a comfort factor,” he explained. “The last component in selling trucks today,” Mark said, “is service after the sale, especially listening to complaints, discussing the options, and dealing with the problems swiftly and to conclusion.”

After all these years, Mark still finds buying trucks the most exciting part of his job. “I do not do ‘cold call’ to sell,” he said. “I do ‘cold call’ to buy! Intentionally or accidentally finding a truck deal is what I live for. Knowing that you have located the product, negotiated the purchase, and you now own it for resale insures more and more business. I sell out of necessity in order to buy more!” Mark told us his best feeling of accomplish-ment comes when he can both buy and sell trucks on the same day!

When we asked Mark about his proudest moments, his answer was wise. “The truck business, especially the used truck business, is self rewarding,” he said. “Knowing that you have created a deal and walked it through the ‘cradle-to-grave’ process to everyone’s complete satisfaction leaves you amazingly satisfied,” he said. Mark was quite proud when UTA Board member Bobby Williams asked him to serve on UTA’s board and make a presentation. “I was terrified at first,” he admits. “What do they think I know? Why do I want to stand and speak in front of an audience? I was overwhelmed by the

offer and truly proud to be asked. Recogni-tion by your peers in this industry is earned not deserved! We can’t always measure our success in profit and loss. It is the intangible feeling that others feel you are accomplished that is most rewarding.”

Mark shared his advice for young salespeo-ple entering the industry. “Never risk your ethics in conducting business,” he advised. “Be cautious you are never coerced by anyone to lie, cheat, steal, or tell your customers what they want to hear versus the truth!” Mark also recommends passion. “You must have passion for what you do in order to truly succeed,” he said. “I can tell in the first minutes of a conversation who likes their job and who doesn’t. If I can tell, everyone else can, too.”

It’s rare when you know at an early age what you want to do for the rest of your life. “I always considered myself lucky,” Mark recalled. “I always knew this is what I wanted to do. I had a tremendous teacher in my father Marvin Fishel, one of the greatest Truckologists I have ever known.” Plus, today Mark himself is the proud father of two sons who stand ready to launch their own careers. His older son, Allen, attends the University of Missouri. He younger son, Steven, is still in high school. “I have a great sense of accomplishment carrying the torch into our 84th year!” he said. “Will there be a fourth generation? This past summer, they both worked for me. It would be my ultimate pleasure to have them join me one day and become the fourth generation.”

When Mark isn’t at work, he loves shopping for antiques! “The first thing you see upon entering my office is a line of wooden phone booths. Everyone gravitates toward them, and the conversation begins!” If we ever visit Mark, we’d want to try out those old wooden phone booths ourselves. You never know where Superman might be hiding. n


Doug Shields, DirectorDealer Truck Source, Inc.940 E. Laredo St. Chandler, AZ 85225 www.dealertrucksource.com(800) [email protected]

Doug tells us he began working in new and used truck sales with a Volvo/Mack dealership in Medford, OR in 1999. “Casey Jones (now a GM for TEC Equipment) hired me, and showed me the ropes,” he said. “I have never forgotten his friendship and the skills that I acquired while working with him. He was, and continues to be, an inspiration to me.”

Doug has some clear goals for his UTA membership.

• Recognition that the members of the Dealer Truck Source team are very serious about our company and profession.

• To align our company closely with the core values set forth by the UTA’s Code of Ethics.

• To network with like-minded individuals and companies who prize integrity and excellence as much as profits.

• The opportunity to display the tremendous leadership that our team exhibits on a daily basis.

• To make a positive impact on our industry.

What’s the best part of his job? “I treasure the unfettered ability to employ creativity and ingenuity to serve more customers more often and to serve them well,” he said.

When we asked Doug about what else he might be doing if not for trucks, we learned two things: how much he loves to teach, and to write. (They do go-hand-in-hand after all.) “During my twelve years in this business I’ve been privileged to train many individuals who went on to have outstanding careers in the truck sales profession,” he said. “I can think of no other field of endeavor I would rather be involved in than the systematic development of future sales superstars in this industry. That was one of the chief reasons I made the decision to start this company. I love to teach and inspire others to be successful.”

Doug went on to explain his passion for writing. (Which we must tell you is rarer than you might think. Many writers love having written, but they don’t actually enjoy the process of writing all that much.) But Doug’s a true wordsmith. “I also love to write. What better way to engage in both activities than to do so with the current and future members of my own company? I have written a book coming out in 2012 on the subject of retail truck sales and marketing. I believe it will change the game for a lot of retail and

wholesale salespeople. I’ll send you an advance copy if you promise to give me a review.” Doug, you have a deal!

Hobbies? Doug’s a chess player from way back. “I’ve been an avid chess player since I was in my early teens. What drew me to chess was the fact that unlike other games, nothing is ever left to chance,” he explained. “Chess is a game that teaches one to think ahead, to plan and to execute that plan with calculated precision. I can think of no other hobby that has made such a positive impact on my creativity and ingenuity in selling than this one.”

Finally, Doug introduced the other members of the Dealer Truck Source team. “Don Fotiades and Todd Fotiades are equal partners in the success of this enterprise,” he noted.”Most of you already know or have at least heard of these gentlemen. I have had the distinct privilege to work with both of them in years past, and have found their level of integrity and commitment to success to be of the highest caliber. Their philosophy of life and business dovetails nicely into my own.”

And finally, Doug spoke directly to his fellow UTA members. “All of us on the Dealer Truck Source team look forward to working with each and every one of you whenever the need for used equipment arises. I’m happy to say that happens rather frequently in our industry.”

David Smith, Director of Used Equipment Sales TransAm Trucking 15910 S. 169 HwyOlathe, KS 66062 www.transamtruck.com (913) 393-6000 (w) (913) 579-6336 (c) [email protected]

Seth Watson, Used Truck ManagerMichigan Kenworth 7393 Expressway Court SW Grand Rapids, MI 49548 www.michigankenworth.com (616) 281-8610 (w) (269) 903-9034 (c) [email protected]

Seth started from the ground up, when back in 1989 he worked in the wash bay at a Freightliner Dealer, de-greasing used trucks and pulling the plastic off the floors of new trucks.

He’s looking forward to his UTA membership since he feels it’s important to keep expanding the network of people with whom you buy and sell trucks. Even more important than that, Seth says, is that it’s “really great when through that network, good friendships are made that last for years.”

For Seth, the best part of his job day-in day-out is helping customers find value where they didn’t see value before.

We weren’t surprised when Seth told us he never even considered working in a business other than the truck business. “I grew up around truck dealers and always wanted to be involved in the business,” he said.

Being from Michigan it’s also no surprise that Seth is a Detroit Lions fan!

Tina Werle, Credit ManagerCapital Lending 2350 Sauget Industrial PkwySauget, IL 62206 www.larsongroup.net (314) 609-9802 [email protected]

n

New Members continued from page 3.

If the only prayer you said in your whole life was,“thank you,” that would suffice.

~ Meister Eckart


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

A Look at 2011 to DateHigher prices; Higher-miles set the paceBy Chris Visser, Senior Analyst and Product Manager, ATD/NADA Official Commercial Truck Guide

With the complete third quarter of 2011 in the database, now is a good time for a year-over-year review.

A quick rundown of the retail numbers tells us that sleeper tractors on average are bringing 23.8 percent more money in Q3 2011 than the same period a year ago. Mileage for that group has increased 11.5 percent, while age has increased 3.4 percent. That market took a breather in the spring, likely due to uncertainty about new global economic and political developments and the Japanese disaster. But buyers jumped right back in once it became clear that domestic industry wasn’t going to be substantially affected by these factors. Welcome to a brave new world in which six-year-old sleeper tractors with 540,000 miles sell for nearly $50K.

Four-year-old sleepers are bringing an even more dramatic 41.8 percent more retail dollars in Q3 2011 vs. Q3 2010, while mileage for that group has increased 5.8 percent. These 2008 trucks are commanding high prices, but they are not solely responsible for the steep market increases overall. Trucks from 2008 have fluctuated in the low- to mid-$60K range since February, as mileage has ticked steadily upward. It is probable that this price level is encouraging some buyers to make the jump to a new truck, especially given ever-increasing mileage.

On the wholesale side, the story is substantially different. We have previously stated that the wholesale market overall is hitting a price ceiling as the mileage of the average sleeper tractor nears 650,000. September further supported that theory, as mileage jumped up by over 60K and price plum-meted $6K. On a quarter vs. quarter basis, though, 2011 is still absolutely crushing 2010, with selling prices 47 percent higher. Mileage, interestingly, is less than one percent higher. Again, the takeaway is that the market has most likely established an upper limit on pricing for trucks with mileage in the low- to mid-600’s.

The wholesale market is also up by a huge margin for four-year-old trucks. Trucks from 2008 commanded 62.5 per-cent more money in Q3 2011 than that period last year, although pricing has been steadily declining since the high mark set in January. Mileage was actually lower in September than in January, so there may be some price hesitation in the wholesale market for this model year based on the perfor-mance of the retail market.

As for dealers, they sold 16.8 percent fewer retail trucks per dealership quarter vs. quarter. In the current market, this figure fluctuates depending on the number of trucks entering the secondary market, and the extent to which fleets are selling their own equipment. With this in mind, sales per dealership have increased every month since May, hitting a 2011 high point in September. Seeing as new truck orders and sales have increased every month since July, it would be logical that trade-ins are accounting for some of this increase in inventory.

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In sum, buyers are establishing a comfort level with higher-mileage trucks. The retail market overall still has plenty of headroom, although the safe bet is for average-mileage 2008 model year trucks to stay where they are rather than increase. On the wholesale side, prices remain healthy as long as trucks are comfortably under 650,000 miles. Basically, none of the factors that we look at – from general economic statistics to focused market data – suggest that the market will do anything other than trend steadily upwards as the used truck undersupply becomes more dire going forward. n


www.nada.com/b2b

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Quarter 2, 2011 GVW Used Trucks

3 51,246

4 16,713

5 8,644

6 16,096

7 13,571

8 67,181


3 38,810

4 11,619

5 6,515

6 12,664

7 14,725

8 68,725


3 52,243

4 17,392

5 8,780

6 14,954

7 15,299

8 72,863


3 36,514

4 10,843

5 6,379

6 12,963

7 11,992

8 68,727

Polk Data Used Truck Sales


Industry News BriefsATRI Survey Ranks Top Trucking Industry IssuesFor the third year in a row the economy tops the list of trucking industry concerns, according to the latest ATRI (American Transportation Research Institute) survey. Proposed changes to federal commercial driver Hours-of-Service (HOS) regulations are the second most pressing issue.

Here are the top issues the survey identified, along with a brief explanation from the survey report.

1. The Economy. There continues to be a high degree of uncertainty in how certain issues will unfold, including the European debt crisis and a stagnant job market.

2. Proposed changes to Hours of Service Regulations. The HOS rules are again in play as the industry awaits a final rule from the Federal Motor Carrier Safety Administration (FMCSA) following proposed changes issued last December.

3. The Driver Shortage (moving up from the 5th spot in the last survey). Reasons for a shortage of qualified drivers include the growing economy as well as baby boomer retirements and CSA implementation.

4. Compliance, Safety, Accountability (CSA) (moving down two notches from 4th). Despite the industry’s increasingly improving understanding of CSA and its importance, the impacts of CSA remain a significant issue for many in the trucking industry.

5. Fuel Issues (e.g., diesel prices). Fuel prices continued their roller coaster trend over the past year, and that volatility is reflected in the ranking of fuel issues in the survey.

6. Congestion. The study noted that congestion did not make the top ten list in 2009 and 2010 due to the recession. But it has reemerged as a standalone issue in 2011.

7. Transportation Funding. This once again is a standalone issue as the need for reauthorizing the two-year delayed highway bill became more pressing.

8. Tort Reform. Tort Reform and related legal issues returned to the top ten list in 2011 for the first time since 2008. Tort Reform seeks to minimize the harm to industry caused by excessive civil judgments, whereby financial liability far exceeds negligence.

9. Onboard Truck Technologies. The impetus for opportunities arise from onboard safety technology benefits, while concerns generally stem from efforts by the U.S. and Canada to mandate the use of both Electronic Logging Devices (ELDs) for HOS compliance, and speed limiters/governors for speed management.

10. Truck Size and Weight. Increased flexibility in truck size and weight is viewed as having the potential to reduce congestion and fuel consumption, mitigate environmental issues, and may positively impact the driver shortage.

The survey not only ranks and describes the issues but also offers proposed strategies for dealing with them, also in ranked order. For a copy of the survey, visit ATRI’s website at http://www.atri-online.org/. n

Net Class 8 Orders Up in September: FTR Associates While the economy’s future may be murky, for now truck orders are looking good. FTR Associate’s preliminary data shows September Class 8 truck total net orders for all major North American OEM’s at 23,465, the second consecutive month where orders increased. September orders increased 12 percent over August, and are 56 percent higher than the same month a year ago. While orders have improved, the annualized order rate for the six-month period through September remains significantly less than earlier this year.

Eric Starks, President of FTR commented “The orders were at the high end of expectations. Given the level of order activity, it appears that truckers are not very concerned about a slowing economy. This is a good sign that things are not falling apart. The next three months will set the stage for 2012 as we will be entering traditionally strong order months. As the shipping season winds down, truckers will assess their position and place orders for delivery in late Q1 and Q2 so that they are prepared for next year’s shipping season.”

Final data for September is available from FTR as part of its North American Commercial Truck & Trailer Outlook service. Contact FTR Associates at [email protected] or 1-888-988-1699 ext. 1 for more details. n

ACT Concurs: September Orders Up North American heavy and medium GVW 5-8 commercial vehicle preliminary net orders for September were up month-to-month, at levels that exceeded expectations, according to market research firm ACT. The data publisher pegged the number of heavy-duty Class 8 trucks sold at 23,800 units; 13,800 for medium classes 5-7.

“The strength in orders is indicative of healthy underlying fundamen-tals in the heavy truck market,” said Kenny Vieth, ACT’s president and senior analyst. “Fleet equipment is old, trucker profitability is good, and used truck values are strong; barring an economic collapse these factors should support continued strength in Class 8 orders, Vieth added.

Note: In a update to the report issued later in October, ACT said sales for September were mixed, varying with channel. They fell in the retail channel; gained ground in the auction and wholesale markets. ACT VP Steve Tam said most of the month’s boost was due to the solid performance of the auction segment. Also, average selling prices for total used Classes 3-8 fell month-over-month. “Both age and mileage numbers are expected to increase throughout 2011,” he added.

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


Heavy-Duty Truck Engine Quality and Satisfac-tion Levels Up: J.D. PowerInternational Ranks Highest in Engine Satisfaction

As changes in emission standards led to technology changes, engine-related problems in heavy-duty trucks increased. But things are improving. A new study from J.D. Power and Associates found heavy-duty truck engine quality has improved from 2010. The study measures satisfaction among primary maintainers with engines and transmissions in heavy-duty (Class 8) trucks that are one model-year old.

The J.D. Power and Associates “2011 U.S. Heavy-Duty Truck Engine and Transmission StudySM” measured satisfaction on eight key factors: engine reliability and dependability; engine warranty; acceleration when fully loaded; electronic control module; accessibility to components for service or maintenance; vibration at idle; maintaining speeds on grades; and average fuel economy.

The 2011 study found 42 percent of heavy-duty truck engine owners (that are one model-year old) had some type of engine-related problem, down from 46 percent in 2010. However, this is still much higher than 2004’s historically low average, when 26 percent of owners of truck engines that were two model-years old said they had problems. This low level of problems occurred before two rounds of emissions standards revisions were implemented.

The most common engine problems reported were issues with the exhaust gas recirculation (EGR) valve (cited by 23 percent of owners), and electronic control module calibration (21 percent).

Also in 2011, engine problems fell to an average of 66 problems per 100 vehicles (PP100) from 72 PP100 in 2010. As a result, satisfaction with engines has increased by 22 points to an average of 739 (on a 1,000-point scale).

“It’s encouraging to see that the number and frequency of problems is improving,” said Brent Gruber, senior manager of the commercial vehicle practice at J.D. Power and Associates. “With the new technology required to meet emissions standards, today’s engines simply are more problematic than the previous generation. So, while it’s possible that manufacturers can continue to improve the quality of the engines, it’s unlikely that they’ll quickly get back to the pre-2004 levels.”

Gruber notes that the most recent emissions standards revision took place in 2010. How those changes will affect quality and customer satisfaction will be reflected in the 2012 J.D. Power study.

“Given the quality issues that arose from new emissions requirements in 2004 and 2007, the 2010 emissions standards will likely create another round of challenges for engine manufacturers,” said Gruber. “The manufacturers that best handle the integration of these new standards will have a distinct competitive advantage.”

Upcoming emissions and fuel efficiency standards recently announced by the U.S. government will put more pressure on engine manufacturers for the next several years, Gruber added.

“Although engine manufacturers are facing yet another mandate, we expect that the change in improved fuel efficiency will result in higher satisfaction and loyalty for the engine brands,” he said.

The study finds that, among owners who report average fuel consumption of 5.0 to 5.9 miles per gallon, satisfaction with fuel economy averages 5.9 on a 10-point scale and 58 percent of these owners indicate that they “definitely will” or “probably will” specify the same engine brand in their next heavy-duty truck. However, among owners who report an average

fuel consumption of six miles per gallon or more, satisfaction with fuel economy increases to 7.1 and intended engine loyalty increases to 66 percent.

Navistar’s International MaxxForce engines rank highest in customer satisfaction with a score of 760, performing particularly well in four of eight factors: engine reliability and dependability, engine warranty, vibration at idle, and average fuel economy.

Overall satisfaction with heavy-duty truck transmissions averages 820 in 2011, up two points from 2010. Although transmissions are typically not problematic during the first year of ownership, satisfaction among owners who have at least one transmission-related problem averages 123 index points lower than among owners who did not have problems (829 vs. 706).

Although they represent less than one-third of all transmissions, satisfaction with fully automatic transmissions is higher, on average, than satisfaction with more prevalent manual transmissions (824 vs. 819).

The 2011 U.S. Heavy-Duty Truck Engine and Transmission Study is based on the responses of 1,651 primary maintainers of Class 8 heavy-duty trucks that are one model-year-old. The study was fielded between February and May 2011. n

Carriers Capacity Plans Fall Along with Economic OutlookLatest TCP national carrier survey disappoints

Despite the good numbers from FTR and ACT, the trucking industry is apparently not immune from the malaise affecting the rest of the economy. Consider TCP’s most recent Business Expectations Survey. Its 3rd quarter survey found that only five percent of carriers plan to add 16 percent or more capacity in the next year, down from 29 percent from six months ago.

Now, 73 percent of carriers plan say they either don’t plan to add any capacity, or they plan to add five percent or less. The lower volume and rate expectations have understandably “injected a lack of confidence in equipment investment,” Transport Capital Partners said in a recent release. “The possibility of a double dip (recession), high volatility in the stock market, lack of political leadership, and uncertain regulatory and tax policies all play into this,” says Richard Mikes, TCP Partner and survey director. “Last quarter’s survey showed that carriers were split 50/50 as to whether profits were sufficient to justify new equipment. The continued poor economic news is likely to dampen new truck orders over the next year unless freight demand picks up,” added Lana Batts, TCP Partner.

The carriers planning to add capacity has continued to shift toward company equipment, and away from contractors almost every quarter since a year ago, from 13.5 percent to 26.2 percent now. Likewise, fewer carriers (4.7 percent) say they’re adding capacity by buying used trucks this quarter, likely reflecting the scarce supply, higher mileage on used trucks, and 20 to 30 percent higher prices. Mikes points out: “It appears contractors still are a constraint, used equipment is scarce, and pressure is mounting to refresh fleets more than to grow fleets.”

More information on truck life cycles is available at TCP’s website: http://www.transportcap.com/advisory.html. n

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Truck Blue Book Conference 2012 will be held at the PGA National Resort, Florida, May 15-16, 2012

www.truckbluebook.com/conference

The most effective way to handle an objection is with a question.

Examples:“Why do you say that?” or “What is your concern?” or “Help me understand, why does that concern you?”

Sales Tip of the Month

Moving on Down the Road: Checking in with Randy Hackler

Moving on from a company you’ve been

with for 18 years, and starting over in a new city, with a new company, would be challenging for anyone. But Randy Hackler, formerly General Manager/Used Trucks with Prairie International Trucks of Springfield, IL, is just happy to be back on his feet. Remarkably, his job search took only three months, and he had two offers to choose from. In this economy, that’s some achievement.

Randy’s been in the truck industry for 34 years, so he’s seen his share of different management and corporate styles. Yet he was still struck by the differences between Prairie and his new employer, MHC. While Prairie had little structure, “MHC is a very structured company,” Randy told us recently. “The guy before me had a set of parameters to deal with, and I have the same set.” At his new company Randy is more involved in retail sales than he was at Prairie, and is able to focus his efforts on one branch of the operation, another change from his last job.

Randy is still going through a period of adjustment, which is certainly understandable since we spoke with him just a month or so after he started at MHC. But he’s happy in Kansas City. “I wanted to move here,” Randy said. “I had worked here before at Arrow, plus I have family here. Besides, I’ve always been a Chiefs fan, although that’s hard to do these days,” he said.

With his family and favorite football team on his side, we know it’s just a matter of time until Randy is feeling completely settled in his new job. n


FEBRUARY 20123-6 • ATD/NADA Convention & Expo Las Vegas, NV Las Vegas Convention Center http://www.nadaconventionandexpo.org/ nada2012/public/enter.aspx

20-23 • 12th TMC Annual Conference & Transportation Technology Exhibition Tampa, FL Tampa Convention Center www.truckinginfo.com/industry-events/event_detail.asp?ID=1745

MARCH 20125-8 • The Work Truck Show Indianapolis, IN Indiana Convention Center http://www.ntea.com/ worktruckshow/

22-24 • Mid-America Trucking Show (MATS) Louisville, KYKentucky Exposition Centerwww.truckingshow.com/

APRIL 201219-21 • Truck World Toronto, ONInternational Centrehttp://www.truckworld.ca/

MAY 201214 -17 • Alternative Clean Transportation Expo Long Beach, CA Long Beach Convention Center http://www.actexpo.com/index.html

15-16 • The Truck Blue Book Conference Palm Beach Gardens, FL PGA National Resort and Spahttp://www.truckbluebook.com/conference

Well, by now everyone is back from Scottsdale and settled snug in the comforts of home and office. Just as the UTA’s big gathering comes to a close, Americans in general will begin to prepare for another annual gathering, of the family variety. Thanksgiving is the favorite holiday for many of us. There’s little pressure to outdo last year’s extravaganza. There’s no need to drive ourselves crazy with the thought of this gift or that. Did we give more last year? Does this look like enough? No, all the shopping can be done at the grocery store, and all the gifts arrive wrapped in warm coats and mittens. Of course, if some of those “gifts” are carrying a casserole or a pumpkin pie, no complaints are necessary.

We’ve all had lots of Thanksgivings over the years, and although only a few stand out for either their special joys or (oops) occasional dramas, Thanksgivings all tend to blend into one big memory of warm homes, good food, football, and loved ones. My first family was big, and as the youngest, I have many memories of Mom in the kitchen for days in advance making sure everything was ready for the 30 or so guests who came. Many of them stayed the weekend, and the kids wouldn’t have had it any other way. Brad’s family was much smaller, but they actually had two Thanksgivings. The traditional one on Thursday was followed by another feast on Sunday when special friends gathered to share an annual tradition of one extra Thanksgiving.

Of course, time changes everything. Once the kids came along, grandparents all came to our house. I did the cooking. Brad helped get the house ready, and Grandpa carved the turkey. This year Thanksgiving proves to be different yet again. With grandparents now of dear memory only, the kids are grown and settling into their own lives. Our daughter is married and our son soon will be. This year, both shared with us the fact they need to honor their partners’ families, and they asked if we could either have a very late Thanksgiving or put it off to another day.

What!? Are you even kidding me!? That’s probably how you’re expecting us to react, and I don’t blame you. But, we decided long ago that we were going by the names Papa and Mama of No Drama. Sure, they can come by at 8:00 on Thanksgiving night, even though they may be more likely to get sandwiches, pizza, or something other than an encore traditional dinner. Or we can have Thanksgiving on Friday, or Saturday, or Sunday, and make it with all the trimmings. Will we be sad and lonely on Thursday, November 24th? That’s hard to say in advance. But, I tend to think we’ll be happy knowing that our kids are confident that we understand their changing roles and responsibilities, and want to be their allies. We treasure our son-in-law and our soon-to-be daughter-in-law, and so we want them to honor their own families. That

seems like the best and most direct route to having them honor ours, too.

So have a Happy Thanksgiving everyone. Enjoy your own gathering, however it may unfold. Cherish your loved ones, put up with the ones who make you crazy, and remember, in the long run, Thanksgiv-ing memories tend to blend together over time. The devotion and companionship of loved ones well honored and cherished will last forever. At least that’s the way it seems to us from where we sit.

Deb and Brad Schepp [email protected]

From Where We Sit

Happy Thanksgiving

Used Truck Association How Do You Top The 2011 Convention? T · 2017-05-18 · November 2011 3...

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