the used truck association industrywatch · our 20th convention is rich with keynote speakers, an...
TRANSCRIPT
INDUSTRYThe Used Truck Association
Volume 21 • Issue 7 • July 2019
1.877.GETS.UTA • WWW.UTA.ORG
WATCHChartered May 16, 1988
2 Board and Committees 2 Quips & Quotes 3 Board News & Views 4 Training Committee Update 5 Convention 2019 Update 5 UTA Events Calendar 5 Industry Events Calendar 6 Annual Golf Outing Draws Record Crowd 8 Face to Face with Alan Strickler 9 Convention Committee Update:
Two New Convention Workshops Tackle the Trade-in Process
9 Surviving Business Slowdowns 10 How Will the Trade War Between
China and the U.S. Impact the Trucking Industry?
11 Women In Trucking: Trucking Isn’t So Different
12 Welcome New Members 14 The View from the UTA’s
Young Members Group 15 Book Excerpt: 8 Steps to High
Performance 16 Industry News Briefs 19 Brooks Tip of the Month 20 JD Power Valuation Services Update 21 Photos from the 2018 Convention 22 From Where We Sit
Contents
continued on page 4
UTA Mid-Year UpdateBy Rick Clark
Good morning or whenever you have made time to read the Used Truck Association’s Industry Watch newsletter. Now that we’re midway through 2019, I’d like to provide a few
updates from your Board of Directors.
This past November the board decided to add Class 8 OEM representatives to our Executive Advisors. It works like this: If there’s already a representative from a particular Class 8 OEM represented, it’s unnecessary for another person from that OEM to serve on the board. If an OEM
is not represented, however, we will solicit nominations from that OEM to join the executive committee. Once a representative is then actually elected, he or she will serve a one-year term.
In 2018, everyone on the Board was a representative from a Class 8 OEM, except for Bo Johnson of the Kenworth Truck Company. Bo has done an outstanding job in this position as Kenworth representative, and also for his input and the values he has brought to the UTA. This year, Brock Freder-ick from Navistar will leave the board, as his term will end. If someone else from Navistar doesn’t run for the board or does and loses in the election, we as a board will have some-one from Navistar join the UTA executive committee. Hopefully, it will be Brock Freder-ick considering his tremendous dedication to our association.
Although collectivity the Class 8 OEMs are our largest sponsors throughout the year,
SHARE YOUR NEWS with 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]
Twitter: @usedtruckassocFacebook: Used Truck Association
Management: Misty Reis, [email protected]
Art Direction/Graphic Design: Laura Carter, [email protected]
Rick Clark PresidentBobby Williams Vice PresidentMichael Cox Treasurer Brandon Hess Secretary Marty Crawford President EmeritusJay BurgessKelly ColdironHal Dickson Brock FrederickAnthony Gansle Craig KendallMike RoneyDoug ShieldsTerry WilliamsJody Johnson — Alternate
Executive Advisors Charles CatheyJohn CosgroveDean JeskeBo JohnsonRonnie JordanRobert Yost
2019 USED TRUCK ASSOCIATIONBOARD OF DIRECTORS & COMMITTEESwww.uta.org/directory
“Sales are contingent upon the attitude of salesman, not the attitude of the prospect.”
— William Clement Stone
Convention Committee Chair – Hal Dickson Co-Chair – Terry Williams Co-Chair – Rick Clark
Dealer Group & Preferred Partners Chair – Bobby Williams Co-Chair – Anthony Gansle
Elections Committee Chair – Doug Shields Co-Chair – Charles Cathey
Finance Committee Chair – Michael Cox Co-Chair – Ronnie Jordan Co-Chair – Craig Kendall
Marketing & Website Committee Chair – Craig Kendall Co-Chair – Rick Clark Co-Chair – Terry Williams
Membership Committee Chair – Mike Roney Co-Chair – Kelly Coldiron Co-Chair – John Cosgrove
Scholarship Committee Chair – Brandon Hess Co-Chair – Jay Burgess Co Chair – Dean Jeske
Training Committee Chair – Jody Johnson Co-Chair – Brock Frederick
Young Members Group Chair – Mike Roney
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Finding the Right Salesperson
Who is your ideal sales candidate? Think about it. Is it the top sales rep at your competition who you’re trying to get to work for you? Is it someone who has jumped around from
dealership to dealership over the years? Is it someone who comes from a trucking background? Is it someone who doesn’t know what a truck is? Believe it or not, all these answers can be correct.
One of my biggest challenges as a manager is hiring the best people for my team. Finding that right fit is important for growth and stability. You need to have someone who is eager and aggressive. But this person must also fit it with your current sales staff. This may mean carefully walking a fine line —that is, of course, unless the staff needs a shakeup. I’ve been fortunate enough to gather many opinions from people far more knowledgeable and experienced than me, and I’ve learned there’s certainly more than one way to approach the hiring process.
I had a job at a dealership with a showroom floor capable of holding Class 8 trucks. A tip I picked up from the New Truck Manager was to make the prospective employee wait 10 minutes before approaching him. At this dealership there really wasn’t a place to wait so the purpose of making
them wait was to see if they looked around at the trucks and showed interest. This manager thought one of the most important qualities a candidate
should have is a genuine interest in trucks. Having interest in the product you’re selling is very important to forging a successful career.
Another manager told me that former athletes and veterans possess the best traits for a salesperson. Athletes and vets under-stand the concept of working as a team, understand the chain of command, and they’re “coachable.” These are important qualities for team building, especially with someone who may be less familiar with the product you are selling. Can the person respect other sales reps’ clients? Can the person listen to instructions while building a customer base? Can he use the results achieved from a day’s work to self-motivate and set individual goals for success? These are all traits commonly found in athletes and vets.
INDUSTRY VETERANS. Many of us are in this category. Industry vets have sold trucks before. In theory, that should make the training process easier. They want to stay in the industry, which is a plus. They’ve found a home in the truck business. It’s what they know and even love. The most important question for industry veterans is why they’re asking us for a job. Is it the company they previously worked for, or is it them? There is a lot to be said for adding an industry veteran to your team, however, teaching them to sell the way you want them to sell can be challenging. The flip side is you are most likely going to get a faster return on your investment.
INDUSTRY NEWBIES. Newbies know nothing about the industry. These candidates will probably require the most coaching/training. Are they someone who has been in sales looking for a new career path, or is it someone fresh out of school looking to start their career? While these candi-dates require a lot of training and will need more of your time, bringing in an industry newcomer and training them to do things the way you want them to can also be the most rewarding long term. It is also the best way to grow our industry since you’re adding people from the outside.
You probably know your team better than anyone else, which means you can probably zero in on the type of new hire that best fits your needs. Either type of applicant can be successful. And they both have their faults. I believe in finding a candidate who would work well with my team, and who is also aggressive enough to grow my business. It is walking a tightrope, but the good news is there is more than one way to skin this cat. n
Brandon Hess Scholarship Committee Chair
3
Rick Clark UTA President [email protected]
they bring more to the UTA table than just revenue. They also bring an understanding of the current new and used truck marketplace, as well as unique perspectives on what the future may hold. In addition, they bring training and education, and serve as a single point of contact for answers to questions unavailable anywhere else.
Today, power-trains are more captive in the OEM chassis. But if you are a competitor, or an independent truck dealer, how can you obtain information about a captive engine, transmission, rear-axle or after-treatment? That’s simple— go to www.UTA.org and contact any of the Class 8 OEM representatives on the UTA board. The person that you contact may not have an immediate answer, however they will find that answer for you and get back to you.
The UTA’s Board of Directors elections are now underway. If you’re a corporate UTA member please vote. Charles Cathey and Doug Shields have done an excellent job of running the election committee for 2019. They oversee the nominations and election (voting) process not only for the board but also for the Life Time Achievement award.
This year we’re celebrating the 20th anniversary of our annual convention. We expect another attendance record, with more than 900 attendees expected. For our Wednesday night “Meet and Greet” we will basically take over the entire Renaissance Indian Wells hotel. We have reserved a large pool area including what I call “The Green.” That’s where trucks will be positioned and displayed with their representatives who will answer all your questions about their vehicles. Our 20th convention is rich with keynote speakers, an industry leadership panel, an economic overview panel, and an OEM engine panel covering current technology, after-treatment updates, and new tech ECM readers. We always stress education so when you return to your business you can bring that knowledge, and positively impact both your business and your employees.
Please start looking at your flight options as soon as possible. There are several ways to fly to Palm Springs, so getting there is fairly easy.
Have a good summer and I hope to see you in November! n
The training committee would like to let you know that Cummins will be presenting a webinar for UTA members on Thursday, August 22nd at 2:00 pm e.s.t. We would like for
you to join us for this educational presentation. Mark Ulrich, Director of Customer Support, will be discussing EPA 13 and EPA 17 aftertreatment systems and maintenance on Cummins
powered vehicles. Mark will discuss how the systems work and tips for maximizing the life of the
aftertreatment system. Finally, he will be able to answer questions regarding current Cummins engines. So please mark you calendars. We will be sending out an email blast to remind you. n
TRAININGCOMMITTEE
UPDATE
UTA Mid-Year Update continued from page 1
4
Convention 2019 Update Indian Wells Golf Resort’s Summer Renovation Plan for VUE Grille and Bar
Guests at Indian Wells Golf Resort: Get ready for a new Vue. Over the course of the summer season, a $1 million remodel project
will see the popular drink, dine and party space enjoying a full makeover. “We’re very excited here,” says IWGR General Manager Steve Rosen. “I think the additions we’re making this summer will contribute not only to efficiencies but, from the perspective of our customers, it will truly lend itself to our spectacular views.” A three-fold plan will provide an opportunity for Vue to enhance its bustling banquet business, with a kitchen redesign and reconfiguration. “With the success we’ve had with banquet and restaurant increases, there’s a need to restructure the flow of the kitchen as well as modernize our equipment,” Rosen said. “It will give us the ability to be more produc-tive.” The redesign of Vue’s dining spaces is a key part of the project. “In the dining room, we’re creating an area for private dining space,” Rosen said, adding that new glass enclosures will enhance the intimacy for private parties. “And it will have the best views in the valley.” Guests looking to saddle up for a refreshment will find a reconfiguration of Vue’s bar upon the re-opening in early September. “We’ll create a more efficient, rectangular-shaped model that presents much better views overlooking the mountains and golf areas,” says Rosen, noting that barstools will double in seating. “And we’ll also be able to expand our capabilities by opening the windows. So we’ll now have an indoor-outdoor bar, which will include seating on the outdoor side of the patio.” As summertime guests enjoy the resort’s food truck and beverage cart offerings during the project – along with banquet opportunities in IWGR’s pavilion space – post-Labor Day patrons can look forward to Vue flavors anew. “Our chef is in process of redesign-ing the menu in order to consolidate a few things,” Rosen said. “The concept will remain consistent with the farm-to-table, gastropub feel, but there will be a new spin on a few items.” n
From The Indian Wells Golf Resort Newsletter for Summer 2019
5
AUGUST14 - 17 • National Truck Driving ChampionshipsSponsored by American Trucking AssociationsPittsburgh, PA
SEPTEMBER9 - 10 • UTA Training Seminar: Selling for Success (George Papp Training) St.Louis, MO
30 - October 2 • Accelerate! Conference & Expo (Women In Trucking)Sheraton Dallas. Dallas, TX
OCTOBER9 - 11 • Annual NTDA Convention, The National Trailer Dealers Association The Breakers. West Palm Beach, FL
16 - 18 • CVTA Fall Conference Sponsored by Commercial Vehicle Training AssociationHyatt Regency Indianapolis. Indianapolis, IN
28 - 31 • North American Commercial Vehicle ShowGeorgia World Congress Center. Atlanta, GA
NOVEMBER6 - 9 • 20th Annual UTA ConventionRenaissance Indian Wells. Palm Springs, CA
Industry Events Calendar
SEPTEMBER9 - 10 • UTA Training Seminar: Selling for Success (George Papp Training) St.Louis, MO
NOVEMBER6-9 • 20th Annual UTA ConventionRenaissance Indian Wells Palm Springs, CA
UTA Events Calendar
Annual Golf Outing Draws Record Crowd
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A record crowd showed up for the UTA’s 14th annual Jerome Nerman Family Golf Open held in N. Kansas City, MO from June 19-20. As a result, the UTA will award ten $2500
scholarships this year!
Once again, the Open was held at Staley Farms Golf Course, a venue that always scores a hole-in-one.
A total of 142 people attended the Welcome Reception held at Harrah’s North Kansas City. Even more impressive was that 110 golfers played in tournament!
This year’s Tournament Winners are:
First Place Bryan Exposito
John Pfister Greg Bloss
Second Place Courtney Dowell
Dave MarrahChris SimonAndy Glass
Third Place Rocky CardenJames Barker
Jeff Bloss Drew Martin
Longest Drive, Women: Michelle Ober
Closest to the PinHole #3: Zack Bailey
Longest Drive, Men: Mike Lane
Closest to the PinHole #14: Matt Vanthournout
We should also add that Craig Kendall holed a shot on the 18th green from 60 to 70 yards!
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Thank you to all of our Sponsors and Participants who took time from their busy schedules to help make the Outing a success once again. Let’s not forget that attendees dropped everything to ensure they were there to sponsor the Golf Outing, despite the logistical challenges and schedule challenges required for busy people to head to Kansas City in mid-June.
“Thanks to the help and support of the UTA and its membership, and our generous sponsors this fundraiser can always be counted on to help the kids further their educations through the scholar-ships provided,” said Brandon Hess, one of the Outing’s coordinators.
Don’t forget that we are now accepting applications for scholarships on behalf of the UTA Jerome Nerman Family and UTA’s membership. As mentioned, the UTA is proud to once again offer ten $2,500 scholar-ships to someone sponsored by a UTA member in good standing. (This is a one-time award for further education at an accredited degree granting institu-tion.) Please visit the following link for rules and regulations, as well as the application online. n
Unofficial “Marty Crawfod Scenic Route” Last Place Award: John Mueller, Tim Reynolds, Chris Bouchard, Ty Morrison
2019 Marty Crawford Chicken Leg Award Winner: Dennis Tidwell
WITH
Alan StricklerAlan is the Corporate Buyer
for Harrison Truck Centers in Des Moines, IA. He’s a long-standing member of the UTA, having joined the association in 2008. In his current position, Alan searches out and buys used trucks for seven different locations of
Harrison Truck Centers. He started his career in truck sales at the age of 19 when he joined the staff of Parks & Brant Ford, in Centerville, IA. Throughout the years, he’s also worked for Ruan Truck Sales and McKenna Truck Center (Volvo/Hino), both also located in Des Moines.
Alan reports that his favorite part of his job is meeting and building relationships with other dealers and individuals within the indus-try. He noted that he now wishes
he’d understood the importance of these friendships earlier in his career. The rewards of these friendships came to him as he spent more time within the indus-try, and he treasures them today. He also wishes he’d learned the importance of asking the “right questions” a bit earlier. Still, those types of insights are not usually bestowed upon the very young. Today Alan looks back at his career with pride, noting the moment he received the 2017 UTA OEM Dealer of the Year Award as one of his proudest moments. He also takes great pride in buying and selling large groups of equipment in a timely manner. Alan will tell you that his success in the industry has been the result of hard work and careful networking.
For those just starting out in the industry, Alan recom-mends they not lose their faith in themselves as they struggle to gain their footing in the industry. “Don’t give up on yourself,” he said. “Not every day will be bright, but the sun will come up again!” Looking forward, Alan sees the greatest challenges ahead summed up in
just one word, “Change!” “Electric trucks,” he posits? What will they mean within the industry? “Will manual transmissions be a deficit or an add-on, because they will become rare,” he wonders.
Aside from work, Alan still loves to be surrounded by motor vehicles. “I love older cars, and trucks,” he exclaimed! He and his wife, Irene, have been married for 48 years, and they own a 1956 Ford F100 Custom, a 1964 Ford Galaxy, and a 1985 Chevy Monte with 54,000 miles. “I also collect Dealer Promo cars and trucks,” he added. Alan and Irene have been blessed with two sons, Kurt and Jamie. Kurt and his family live in Des Moines, and Pastor Jamie Strickler lives with his family in Charleston, WV. Together, they’ve given their parents five grandchildren to cherish and adore! n
CONVENTIONCOMMITTEE
UPDATE
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Surviving Business SlowdownsAfter some great and profit-
able years in the truck market it seems that we are about
to move into a slower sales cycle. We have been there before and most of us have been able to get through it. The signs I see are a 1500 HP Bugatti Chiron; a $96,000 Ford F450 pick up;
and a housing market in Califor-nia that only millionaires can afford. Why do a I see these as signs? Do you remember the Hummer? How about the Interna-tional XT? And 80-20 house loans? They were the rage before things started to go wrong.
In addition, the American Trucking Association (ATA) announced that the Truck Tonnage Index fell 2.3 percent in March, following another decrease in February. In talking to fellow dealers it seems that there were fewer customers
Ricardo Rodriguez-Long Asset Management
US 395 Motors
looking for equipment in May. It is certainly true that nothing ever stays the same, and in our truck-ing world we learn to work around all obstacles all the time. Previous slowdowns have taught us to shift strategies, find new opportunities and run a lean operation. Cash needs to continue flowing to cover your expenses. Don’t wait for that “home run” sale, it is time to review your aging inventory. But also time to review your office supplies cost, your vendors and storage facility too. Can “cloud technology” save you money? Can a vendor provide service for less than it costs you? Review your marketing budget and make sure not to cut it. Apple, due to its innovative products, has a strategy that assumes about every three years one of their products will be obsolete or lost completely to a competitor. Think of that. What would you do if there was a totally new engine every three years? How would you prepare just in case the next one fails? How would you face the customer, how would you encourage your people? You can’t close the doors.
I see on the news that technology (robotics, Artificial Intelligence, autonomous vehicles) is seemingly taking over. But the reality is that we are still far away from that. And for that reason you should not forget about your team. They should be aware of your new strategies and understand them. They are your biggest asset and need to remain confident in front of your customers. Customer service is what prevails when there’s a temporary businesses slowdown.
Find the time to review your processes from A to Z and use a magnifying glass to go over your P&Ls. Rushing and reacting to the daily obstacles is an easy trap to fall into, but the solution to staying profitable and maintaining a good cash flow may be hidden from plain site. There are things that should be done all the time, unfortunately human beings suffer from amne-sia and history repeats itself. You know what to do, don’t wait to the last minute and be “surprised.” n
Two New Convention Workshops Tackle the Trade-in Process
UTA’s annual convention always provides attendees
many opportunities to network, and to learn about the latest industry developments. For example, this year’s 20th anniversary gathering, being held November 6-9 at the Marriot Renaissance, in Indian Wells, CA includes the popular Vendor Expo. The Expo is where attendees can see the latest prod-ucts available from the industry's top vendors.
Timely workshops—led by industry experts sharing insights and information— are another fantastic learning opportunity. Workshops enable experts and dealers alike to discuss the latest trends and issues affecting the industry. Several of this year’s workshops go right to the
CONVENTIONCOMMITTEE
UPDATE bottom line: The trade-in process.
One workshop will delve into current and emerging engine technologies for Class 8 truck engines. These technologies include diag-nostic tools for used truck dealers to assess engines at the moment of trade-in. The trade-in process for the engine after-treatment system is another area where mistakes can be costly and significant. A second workshop will address these systems, discussing best practices for trade-in inspections and the latest inspection tools. The two workshops are scheduled for November 7th.
"Used truck dealers make their money at trade-in, when they purchase their trucks," said Bobby Williams, UTA's Dealer Group Chair. "That's why it's essential to know just what you're buying, which is where these two work-shops can really help." n
9
How Will the Trade War Between China and the U.S. Impact the Trucking Industry?
president shocked the financial markets by increasing tariffs to Mexico. In addition, threats were made that taxes would only continue to rise until Mexico began to work with the U.S. to minimize illegal immigration at the border. Analysts stated that these height-ened tariffs could send both the U.S. and its closest ally into “economic and diplomatic crisis.”
Fortunately, just nine days after announcing these tariffs, the president tweeted that Mexico and the U.S. had come to an agreement, and the higher taxes would not go into effect. While Mexico has agreed to limit immi-gration at the southwest border, the results of this have yet to be seen. Only time will tell if this agreement will stand. However, for now, it seems the tariffs that would have resulted in increased prices on goods imported from Mexico, including a possible extra $15 million in taxes for the U.S. food chain Chipotle, will not be put into effect.
Understanding the Tariffs
The president’s tariffs have been placed on billions of dollars’ worth of goods in a variety of countries, with China receiving the brunt of the taxes. He has stated since before the 2016 election that he believes China has unfair trade tactics in place. Additionally, President Trump believes that placing higher tariffs on imported goods will encourage more manufacturers to come to the U.S. This will, in turn, boost the U.S. economy and create jobs for Americans.
Will the Trade War Affect the Trucking Industry?
Regarding how the trade war may affect the U.S. trucking industry, Vice President of Trucking Re-search for FTR Transportation Intelligence Avery Vise, has a
positive outlook. Vise states he does not expect the president’s new tariffs to have much of an effect on American trucking. It is projected that many price increas-es will be absorbed by the origi-nal manufacturer of the goods for competitive reasons. This means the higher prices will not transfer to the consumer.
Vise also mentions that if tariffs are applied to Mexico after all, it could mean consumers would seek products from other areas due to considerable price increas-es. This, in turn, could result in declined freight volumes. How-ever, there are currently no longer plans to increase Mexican tariffs.
An Uncertain Future
When it comes to the U.S.-China trade war, there is no projected end in sight. Trucking is the primary form of transportation for foreign goods arriving in West Coast ports from China. The trade war has caused a dramatic drop in the number of ocean shipments coming from China, meaning fewer trucks are needed to haul freight. This has caused a drop in the demand for truckers at these ports. While West Coast demand may continue to fall, trucking needs could increase on the East Coast. With products from China becoming too expensive, it is projected that businesses will find new sources for the goods they need. This may mean ports in Savannah, New Jersey, and New York could need additional truck-ers as goods start coming in from other places. Therefore, the need for truckers will not diminish. It may simply shift to a new location.
Despite trade tensions and threats of higher tariffs, the future of the trucking industry still looks bright. Trucking will continue to remain a vital part of the U.S. economy, which means owner operators will always be needed. n
At the beginning of 2019, there was a wide range of
speculation as to how new tariffs against China would affect the U.S. economy, the price of goods, and trucking demands. Now that the year is half over, tensions are heating up even more. As a trade
war between the U.S. and China wages on, other countries are becoming concerned about the possible implications to their own economies. Also, in the U.S., the trade war affects the commercial trucking industry. Here is what you need to know about the trade war between the U.S. and China.
Tariffs Against China and Mexico
In 2018, the U.S. put in place three rounds of tariffs against China. These tariffs covered more than $250 billion worth of Chi-nese exports, including technology, tires, purses, and railway equip-ment. Accusing the U.S. of starting “the largest trade war in econom-ic history,” Beijing retaliated with over $110 billion in tariffs against U.S. goods. This included tariffs on medical equipment, coal para-phernalia, chemicals, and soybeans.
The U.S. is not only aiming tariffs at China. In fact, the World Trade Organization (WTO) has stated this may be the worst global trade crisis since 1947. On May 30, the
Author Credit: Mission Financial Services and
Hannah Karlson/Jade West
Mission Financial Services has been in the finance industry
since the early 1950s. The company entered the commercial
lending market in 2000, and Mission Financial is now a direct lender for dealership-generated
contracts and loans directly to the owner/operator.
10
Continued on page 20
11
I was recently reading a trade journal when I found an article
entitled The Seven Percent.* It was about the lack of women in the industry and how the num-bers aren’t moving fast enough.
The statistics showed that there is currently a significant operator shortage. More than 320,000 new operators will be needed within the next 10 years. To add to the deficit, the average operator is about 46 years old, and more than 40 percent are over 50.
The article described the lack of women in the profession as crucial. Although women account-ed for nearly 13 percent of stu-dents, only seven percent of them ended up working in the field.
Sound familiar? At first glance, you might assume this data is about the trucking industry, but you would be wrong—it’s about pilots.
Women In Trucking: Trucking Isn’t So Different!
Ellen Voie CAE President/CEO
Women In Trucking Association, Inc. (920) 312-1350
There are some glaring differ-ences between pilots and profes-sional drivers, but it appears that they are needed, wanted, and valued in both industries.
Let’s look at the similarities. Women comprise just under eight percent of professional drivers. For pilots, that number is an overall seven percent. That’s broken down into commercial (airline and business jet) pilots (who comprise only 4.3 percent) and private pilots, or general aviation
pilots who do not earn a living flying an airplane. They comprise 6.1 percent. In the Air Force only about six percent of pilots are female. The category that drives up the total per-centage are student pilots, of which nearly 13 percent are women.
In the trucking industry, we don’t count “student CDL holders” in our per-centages, but student pilots could take years to
turn that status into a sport or private pilot certificate, so they are considered in the totals.
There is a massive turnover for professional drivers who have completed their CDL training and have been hired by a carrier. One study found that 77 percent of new drivers leave the industry in the first three months. These drivers are not considered stu-dents anymore, as they have finished their schooling and have been hired by a trucking company.
In the air, eighty percent of student pilots drop out of training. That’s pretty close to the trucking
drop out (turnover) rate, but the pilots had not attained that final certification.
For professional drivers, time away from home and lifestyle changes are often the reasons cited for leaving. Lifestyle includes the driver’s relationship with his or her carrier and expectations from either side not being met.
For pilots, it’s often a lack of money or time to complete train-ing. But for some, it’s the inability to overcome the things you need to learn in the event of an emer-gency, such as learning stalls and avoiding spins.
For both pilots and professional drivers, medical problems stop many from proceeding. Both require physicals from FAA or DOT approved medical examiners, who are looking at your health as a transportation operator using the highways or airways.
In the article I referenced earlier, The Seven Percent, there were many interviews with women who described harassment and assault from their male colleagues as deterrents. In trucking, there are also tales of women being harassed by their male peers. It’s unfortunate that in 2019 we’re still dealing with (a few) Nean-derthal men working in transpor-tation careers.
The first female professional driver, according to Wikipedia, was Luella Bates, who obtained a driver’s license and drove a truck in 1920. The first woman to receive a commercial driver’s license, however, was Lillie McGee in 1929. The airlines were
Kyle Beltz Stoops Freightliner 1910 West Thompson Road Indianapolis, IN 46217(317) 430-4404 [email protected]
Tracy Bickerstaff12000 Hwy 191 Midland, TX 79707 (432) 258-0924 [email protected]
Lynette Bolt, Operations Manager J & J Driveaway Solutions, LLC 7270 West 162nd Street Overland, KS 66085Facebook: J&J Driveaway Systems, LLC @jjdriveawaysystemswww.jjdriveaway.com (913) [email protected]
Before joining the trucking industry in 2008 Lynette worked as an administrative assistant at a diesel truck shop in Twin Falls, ID. She also handled inventory counts and invoicing of all customers. From there she worked as a service writer and also in a job where she gained more hands on experience around trucks, doing write ups, and again invoicing, orders, and related tasks.
In 2016 Lynette became the decking dis-patcher at J&J. Now, just two years later, she’s worked her way up to operations manager.
Lynette enjoys her job explaining that she has “a passion for trucks and a great relationship with most, if not all drivers employed by J&J. I work hard for them, and in turn they work even harder for me.” As the operations manager she trains dispatchers, assists with moves, helps customers as needed, and, of course, manages her staff.
When she’s not working Lynette spends all her spare time with her daughter and boyfriend. She also travels to Idaho every year to see her other two children who live with their father, and also see her parents.
“I look forward to seeing what the possibilities of this industry truly are,” Lynette added. “I am always willing to learn something new about people and what they do.”
Michael BurrP.O. Box 526 Vestal, NY [email protected]
Ginny Cole, Marketing Consultant and Territory ManagerNextTruck (A Division of the Cosby Harrison Company)174 4th Street P.O. Box 509 Crossville, TN 38557www.nexttruckonline.com Facebook: www.facebook.com/NextTruck(931) 260-8310 [email protected]
Ginny joined our industry in 2015 coming from a background in heavy equipment.
She views the network-ing opportunities that UTA offers as a huge benefit of membership. “The networking possibilities are endless with UTA. I have already seen some of the benefits of being part of this group, and am excited to be “officially official,” she said.
Trucking is very much a people business, which suits Ginny just fine. “It has been said that I could talk to a wall, and I believe it to be true,” she shared. “I LOVE people. Put me in a room with 15 folks and I will tell you their birthdays and kids names by the end of the night. I have met some of the most incredible people through this industry. I have wondered where some of these people have been all my life and I am blessed to call them my friends.” Ginny sees the traveling as another job perk. “I also love to travel and being able to incorporate that with work, makes it not feel like work at all,” she said.
Ginny likes to stay active outside of working hours. Her interests include “food, lounging at the beach or the lake, playing with my best girl (dog) Spade, football games & spa days, working out, and spending time with family and friends.”
When asked for other thoughts she’d like to share, Ginny became a bit philosophical, while sharing her big plans for the coming months. “I’ve always wanted to make a difference in people’s lives. I have found over the last two years that my way to do so has been through fitness. It’s always been a hobby until I became certified to teach Spin (Indoor
Cycling).” Ginny added: “I am thankful to have a supportive Fiancé who comes to my classes, and puts up with my nonsense… And there’s a lot of nonsense! We will be married in September.”
Frank Gonzalez V&F Truck Sales & Equipment LLC 21238 U.S. Highway 281 San Benito, TX 78586(956) 456-1833 [email protected]
Michael Hardin Housby Mack Inc 4747 NE 14th Street Des Moines, IA 50313 [email protected]
Kyle Howard The Upper Room Group, LLC 4432 Brittany Drive Lisle, IL 60532 (773) 575-7792 [email protected]
John Kline CIT Group, Inc. 2120 Liebler Rd. Troy, IL 62294(618) 931-4300 [email protected]
Tyson Law TAB Bank 4185 Harrison Blvd Ogden, UT 84403 (801) 624-5603 [email protected]
Tom Lucas Capital Volvo Truck & Trailer 1814 Berkley Ave. Mobile, AL 36610 [email protected]
Heather Miller J & J Driveaway Solutions, LLC 7270 West 162nd Street Overland Park, KS [email protected]
12
Robert Pagliaro, Vice President New Business Development–North America Auto Driveaway 1 East 22nd Street, Suite 107 Lombard, IL 60148autodriveaway.comFacebook: @autodriveawaysystems (314) [email protected]
An industry vet, Robert traces his start in the truck business to 1998 when he began selling for the Truck Rental Division of Enterprise Holdings. Before that he worked in Enterprise’s car rental business for 27 years.
Robert, along with so many people in our business, really loves the truck industry. So it’s only fitting that he joined the UTA. “I am looking forward to working with all the great individuals who make up this wonderful organization and industry,” Robert shared. “I have worked in the Fleet industry for 21 years and I am never disappointed by the support and energy of the people who are involved with the trucking industry. I hope to cultivate and strengthen relationships with our members.” Robert is hoping to achieve long-term and mutually beneficial partnerships.
The part of his job that he most enjoys is working with his contacts, which are across North America. “They are not only peers, colleagues, and customers, they are family,” Robert said.
When he’s off the clock Robert loves spending time with his wife of 29 years and his four daughters, Megan, Ashlyn, Brittin, and Sheldon. He’s an avid WWII enthusiast. He collects professionally built WWII models, prints, and photographs signed by WWII veterans, and WWII memorabilia. He’s also an avid golfer.
Robert had some parting thoughts to share with other UTA members: “Technology is changing the world but let’s not forget the importance of turning our phones, TVs, tablets, and computers off and engaging with family and friends in a deep and meaningful way. After all, they are the most important parts of our lives, that will be with us forever.”
Spencer Radabaugh, Account Execu-tive Kunkel & Associates 401 Data Court Dubuque, IA 52003Facebook: www.facebook.com/KunkelInsurance/www.kunkel-inc.com(563) 587-7580 [email protected]
Spencer came to the trucking business from a background in Sports Management (he spent 2010-2012 with the Dubuque Fighting Saints). From 2012 to 2014 he worked in Telematics, for dealerships and trucking companies. His first job in that field was with Spireon.
As a new UTA member Spencer is looking forward to the up-to-date news and insights members share about the used truck business, as well as the many networking opportunities that are available.
In his current job Spencer enjoys learning about the different aspects of transportation operations in detail. His job also gives him an insider’s view of how trucking companies “work,” and the areas of the business that need to be focused on.
Given his work background we were not surprised to learn that Spencer’s really into sports when he’s off the clock. He’s a big baseball fan, but says he “enjoys just about every sport.” When he can find the time Spencer also enjoys fishing and hunting.
Asked what he’d like to share with other UTA members, Spencer said he’s looking forward to meeting some different people, and speaking with them about how they got involved in the industry.
Marissa Schulte, Sales & Decking Dispatch J&J Driveaway Systems, LLC S. Hagan StreetOlathe, KS 66062www.jjdriveaway.comFacebook: jjdriveawaysystems(913) 378-2664 [email protected]
Marissa came to trucking from the real estate business in 2018. Her job with J&J is her first in trucking.
The networking opportunities are primarily what drew her to the UTA.
An important part of her job at J&J is building relationships with her drivers and customers, which she really enjoys. She also enjoys “proactively meeting her drivers’ needs while taking care of her customers’ needs.”
Outside of work Marissa spends time with her two daughters enjoying the many activities that Kansas City offers. Bruce Shecterie Kriete Truck Center N4650 Bangor Ind. Pkwy. LaCrosse, WI [email protected]
Nathan SteffyHess Auctioneers 1451 River Rd. P.O. Box 10 Marietta, PA 17547(717) 406-7010 [email protected]
David Stehr Kriete Truck Center 3722 Commercial Ave. Madison, WI [email protected]
David Vaqn Akkeren Kriete Truck Center 4717 S. Taylor Drive Sheboygan, WI [email protected]
continued on page 17
13
The VIEW from the UTA’s YOUNG MEMBERS GROUP
Industry Watch: Zack, what was your first impression of the UTA’s Young Members Group?
ZB: I would say the first impression I had of the Young Members Group was a bit of intimidation. What I mean by that is while I’m a “younger member,” I’m also very new to the industry. I’ve only been in trucking for about two years. When you go to UTA events you notice all these “clicks and groups.” I’ve also noticed that while everyone knows just about everyone else, it’s the younger guys who are in the outer circle. As an industry green horn I’ve joined the Young Members Group so we all can join forces as members of the trucking industry’s next generation. So everyone who is now in that outer circle can form bonds and relationships with one another. I completely understand that most of the UTA’s members have been doing this for 10,15, even 20+ years. The younger members don’t want to step on their toes. We hope to form our own strong bonds, so when the time comes for the torch to be handed down, we have our relationships already in place. Hopefully, we will also have already done business with one another.
Industry Watch: What do you think younger members can contribute to the UTA?
ZB: I believe the Young Members Group will create strong relationships for years to come. Through the Group we can share our ideas and thoughts about the industry among like-minded people in our age group. I also expect us to implement new ideas, new strategies, and new age concepts in an industry that’s been around since way before our time. This way we can take the industry from what it has been for the past 100 years, and move it toward the future--where our minds and imaginations are the only things stopping us.
Technology is more advanced than ever, more available, and easier to use. We need to start using these tools day in/day out. This group will brainstorm ideas with a different viewpoint of the present world, and implement new concepts in an ever-changing industry. We understand that one day we’ll be the board members, and the owners and dealers. We want to ensure that when the time comes we’ve already been transitioning from “what was” to “what could be” in this truly never-ending industry.
I never realized the importance of trucking before I started working for Roadrunner Driveaway. I’ve noticed that if we all don’t come together and speak for one another, truck drivers might one day be a thing of the past. The Young Members Group will ensure those wheels never stop turning!
Editor’s Note: Welcome to the first of what we hope will be many columns written by members of the UTA Young Members Group. This month we’re featuring Zack Bailey, of Roadrunner Driveaway. Zack works in Sales/Dispatch.
ZACK BAILEY of Roadrunner Driveaway
14
Reprinted by permission of Harvard Business Review
Press, 8 Steps to High Performance by Marc Effron.
Copyright 2018. All rights reserved.
8 Steps to High PerformanceBuild Your External Networkby Marc Effron
Editor’s Note: This is the second of two excerpts from the book Leading Change by John P. Kotter. In this book the author presents his now-legendary eight-step process for managing change with positive results. In the first excerpt (in April’s newsletter) the author described the number one error people make when trying to bring change to an organization (allowing too much complacency). In this excerpt he describes when it’s necessary to pick up the level of urgency and how to do that.
You will be a higher performer when you build strong
networks inside and outside your organization. That strong network gives you more access to valuable information (what’s happening in the industry; who’s important to know), more resources (more
proverbial neighbors to borrow a cup of sugar from), and more people who can actively sponsor and support your career.
Extroverts more naturally, easily, and frequently form relationships of every kind. But since the size and strength of your network will help your perfor-mance, even intro-verts need to engage in (or fake) those network- building behaviors.
In step two, you learned that some behaviors will help you become known and others will help
sustain your success over time. The same is true for your net-works. A smaller, tighter network that’s more related to your posi-tion at work (i.e., your IT or fi-nance peers) helps you to develop credibility within your organiza-tion. That internal network is essential to your success at work but, because it’s insular, it’s not likely to improve your image in the profession, increase how many executive recruiters know you, or accelerate your career advancement.
Your broad networks extend your reach to people who can advance your career, connect you with important contacts, and informally coach you to success. You can build those networks through personal connections made at events, conferences, professional association gatherings, coffees, lunches, and dinners.
Extroverts may just need a great plan to develop their network; introverts need a plan and some-thing that compels them to over-come their fears of connecting. For introverts like me, there are a few thoughts to keep in mind:
» Everyone loves to talk about themselves. You don’t need to worry if you can’t engage in an hour of witty discussion filled with fascinating stories about your unique interests. People are naturally egocentric and often happy to share those details about themselves instead. Your job is to memorize five questions that will keep any conversation going (where are they from originally, where did they work before their current employer, vacation plans for this year, what they like to do outside of work, etc.).
» People want to help you (if it’s easy or in their self-interest).People connect partly for the political benefits, and an essential part of politics is to return favors (remember the norm of reciprocity). If you wonder why anyone would want to network with you, they may see you as someone who can help them today or tomor-row, they may be building their own network, they may just be
nice people, or they may actively want to help others succeed. You should use that powerful psychology to your benefit. Make the connection easy for them. Go to their office or a coffee shop near them, sched-ule the meeting for no more than thirty minutes, and re-quest nothing from them except to stay in touch in the future.
» They notice you less than you think (and that’s good). There’s a concern that makes us self-conscious and less willing to put ourselves in networking situations. The spotlight effect is a psychological phenomenon in which we believe that others notice our actions and appear-ance far more than they actu-ally do. If you’re nervous that you might say or do something embarrassing in a long conver-sation with a new colleague or networking contact, realize that others don’t notice unique things about us nearly as much as we think. And, if you do something silly like forget a critical name in a conversation, research tells us that people don’t harshly judge mistakes that they can imagine making themselves.
» Extroverts have more relation-ships, but not more meaningful relationships. Extroverts’ social networks are larger, but they don’t have any deeper connec-tions with their contacts than introverts do.
There are many networking tactics you can apply, but I recom-mend you start your efforts with a strong foundation and strategy for building your connections. n
15
May Used Class 8 Sales Down; Prices Up: ACT For the second straight month the number of used Class 8 trucks sold dropped, over the previous month’s tally. In fact, May’s numbers fell (same dealer sales) 14 percent month-over-month, and 22 percent as compared to May 2018, according to ACT Research. But there was some sunshine among the clouds too. A year-versus- year comparison also showed that aver-age prices rose five percent. (Also, average miles fell one percent, and average age rose seven percent.)
“A spring slowdown is not uncommon, and sales generally increase a bit in the summer, but with the headwinds in the freight market, that is unlikely,” said ACT VP Steve Tam. “Those who watch the industry closely have been expecting the strong pricing environment to soften this year, and based on preliminary May data, it appears as though that transition may have started,” Tam added. He continued: “In the context of lower unit sales and rising inventory levels, the slowing price appreciation is a strong indication that demand for used trucks is waning. Given a similar story in the freight market, the development makes sense.” n
New Medium and Heavy Duty Truck Sales Also DownSales of new medium duty and heavy duty trucks also fell in May, ACT reported. Preliminary net order data showed 10,800 units sold in May—down 27 percent from April. More significantly the tally is down 70 percent from May 2018.
“Fraying freight market and rate conditions along with a still-large Class 8 order backlog contributed to the worst NA Class 8 net order perfor-mance since July of 2016,” said ACT President Kenny Vieth. Vieth added: “May saw NA Class 8 orders fall below the 15,900 units averaged through the year’s first trimester, and year-to-date Class 8 net orders have contracted 64 percent compared to the first five months of 2018.”
The medium-duty market also fell but not as much, Vieth noted. “While the US manufacturing/freight economy has been droopy since late 2018, the medium-duty market continues to benefit from the underlying strength in the consumer economy,” he said. “In May, NA Classes 5-7 net orders were 19,300 units, down 21 percent year-over-year and 19 percent from April. One has to look back 22 months to find a weaker medium-duty order month on an actual basis or just two months when looking at the data on a seasonally adjusted basis,” he added. n
April’s Trucking Condi-tions Index Improves Moderately, Remains in Negative TerritoryNeed proof that Trucking is a cyclical business? Just compare 2019 to 2018. Back in February of 2018, FTR’s Trucking Condition Index (TCI) stood at an all-time high of 15.41, riding the wave of a strong economy. (The TCI is a measure of the overall health of the trucking industry and tracks five conditions: Freight volumes, Freight rates, fleet capacity, fuel price, and financing.) Moving ahead to April 2019, the index stood at -0.64. While that is a slight improvement over March’s reading, it’s still in negative territory. Furthermore, FTR is forecasting mildly negative readings through 2019 and into 2020.
“Not that long ago, it seemed inconceivable that the good times in trucking would end, but here we are back down to Earth,” said Avery Vise, FTR’s VP of trucking. “Growth in manufacturing–the most signifi-cant driver of trucking activity–has subsided, and residential construc-tion remains stagnant. However, there are some near-term positives, such as lower diesel prices. Also, carriers are responding to flagging demand by ending their hiring spree, which could set the stage for firmer capacity utilization down the road,” Vise added. n
Volvo Puts Vera to WorkVolvo announced the next step in the evolution of Vera, its fully electric, autonomous truck. Now ready to be tested in a “real” application, the trucks will move containers from a DFDS logistics center in Gothenburg to an APM terminal in the port “enabling a connected system for a continuous flow of goods, from DFDS for distribution across the world.”
Volvo Trucks first announced Vera in 2018 describing it as its “first electric, connected and autonomous solution, designed for repetitive assignments in logistics centres, factories and ports.” The truck is espe-cially well suited to short distances, “transporting large volumes of goods with high precision.”
“Now we have the opportunity to implement Vera in an ideal setting and further develop her potential for other similar operations,” said Mikael Karlsson, Vice President Autonomous Solutions at Volvo Trucks. n
16
Volvo, Mack Offer Factory Warranties for Pre-Owned Trucks
Mack Trucks Unveils “History of Refuse Exhibit” at Mack Trucks Historical Museum
News Continued on page 20
Volvo Trucks recently introduced its Volvo Certified program, headlined by the factory-backed Volvo Certified Warranty for pre-owned trucks. The company said the warranty program’s engine and transmission coverage is modeled after its Engine Plan 2 Protection Plan for new trucks. Volvo Certified models, the company stated, “offer customers the oppor-tunity to own a fully inspected, reconditioned and warrantied Volvo truck at a significant savings.”
Volvo operates the program through its internal systems, “removing the need for third-party vendors to process warranty claims and providing pre-owned truck customers with the same seam-less experience that is expected when purchasing a new truck.”
In a media release, the company explained that Qualified Class 8 Volvo Certified trucks, which are four model years or newer with 450,000 miles or less, undergo a comprehensive 150-point inspec-tion and reconditioning process, and are DOT safety compliant. The trucks also come with up to 24 months and 250,000 miles of coverage and are backed by
Volvo’s nationwide service net-work of more than 400 dealers.
For its part, Mack Trucks launched a program identical to Volvo’s. The Mack Certified Used Truck program features “a unique, fully integrated factory-backed warranty managed through Mack systems.” As with Volvo’s program, Mack’s program eliminates the need to work through third parties.
“Mack Certified Used trucks are inspected, reconditioned and ready to go to work,” said Mike Furst, Mack Trucks director, leasing and service contracts. “And with the addition of a factory-backed Mack Certified Warranty, customers can rest easy knowing we’ve got their backs should an issue arise.”
Also offering up to 24 months and 250,000 miles of parts and labor coverage on designated components, the Mack Certified Warranty is comparable to the Mack Engine 2 Protection Plan available on new Mack models.
Mack customers who take advan-tage of the program can visit any of Mack’s 440 service points across the U.S. and Canada and follow the same warranty claim
process as they would with new Mack models. All warranty repairs are performed by an autho-rized Mack dealer.
Like Volvo’s program, all Mack Certified used trucks are four model years or newer with less than 450,000 miles. Each truck also undergoes a thorough 150-point
There’s no doubt about it: The refuse industry doesn’t earn much respect. But what a mess we’d have on our hands without it.
In commemoration of the refuse industry, Mack Trucks Historical Museum opened an all-new exhibit entitled “Keeping America Clean: The Evolution of the Waste Industry.” The Exhibit features three classic Mack truck models and an inter-active visitor education display, made possible by both Mack Trucks and Republic Services, a recycling and waste disposal company.
Republic Services provided the three classic Mack truck models for the new exhibit. The Mack models on display include a 1929 Mack AK model with hoist and dump body, a 1951 Mack LF model
with a Heil Colecto-Pak body, and a 1965 Mack B53S model with a Dempster Dumpster body.
While the new exhibit commemo-rates the past, earlier this year Mack and Republic Services announced
they were again working together, this time on the refuse industry’s future. The two companies an-nounced plans to “build and operate a fully electric Mack LR refuse truck to help their fleet achieve zero emissions goals.” n
inspection and reconditioning process and is U.S. Department of Transportation (DOT)-safety compliant. n
17
Sleeper Tractors – RetailJune’s retail data was not yet finalized at the time of this writing. Incoming data points to similar sales volume month-over-month, with depreciation most notable in the 3-4 year-old segments. Download the latest edition of Guidelines from our website (www.nada.com/b2b) for the latest data.
See the “Average Retail Selling Price: 3-5 Year-Old Sleeper Tractors,” “Average Retail Selling Price of Selected 3-5 Year-Old Sleeper Tractors,” and “Number of Trucks Retailed per Dealership Rooftop” graphs for detail.
Looking forward, the tariff war with China appears to have cooled somewhat, but trade and economic policy remain unpredictable. The domestic economy has pulled back from its expansionary phase, and it is not yet clear whether this movement is just a correction or a more fundamental shift. Our forecast for the remainder of the year and 2020 shows pricing notably lower than the 2018 peak.
J.D. Power Valuation Services Update Have We Reached the Tipping Point?
Sentiment about used truck volumes has become negative, and pricing data supports these observations. Medium duty trucks had a
mixed month, with cabovers and lighter-GVW conventionals stable but heavier-GVW conventionals weak.
Sleeper Tractors–AuctionAuction volume pulled back in June, and pricing was notably lower. After more than two years of expansion, it appears the nation may have finally reached and then exceeded the total number of trucks needed to move freight. As is typical in this type of environment, only the lowest-mileage trucks are currently bringing strong money. See below for detail.
» Model year 2016: $35,750 average; $750 (2.1 percent) lower than May
» Model year 2015: $26,750 average; $9,250 (25.7 percent) lower than May
» Model year 2014: $25,600 average; $3,150 (11.0 percent) lower than May
» Model year 2013: $19,000 average; $4,500 (19.1 percent) lower than May
» Model year 2012: $16,475 average; $2,275 (12.1 percent) lower than May
» Model year 2011: $11,975 average; $5,790 (32.6 percent) lower than May
In the first 6 months of 2019, 4-6 year-old examples of our benchmark model brought 1.4 percent less money than in the same period of 2018. This is the first negative year-over-year comparison since the Fall of 2017. The number of 4-6 year-old trucks sold was more in line with recent trends after an unusually high May. Monthly depreciation for this cohort is now averaging 3.3 percent, which is moderately higher than what we were expecting at this point. See the Forecast section below for addi-tional comments.
See the “Average Selling Price: Benchmark Sleeper Tractor…” and “Volume of the Three Most Common Sleeper Tractors…” graphs for detail.
0
100
200
300
400
500
600
Jan-16 Feb
Mar Apr
May Jun Jul
Aug
Sep
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Nov Dec
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Mar Apr
May Jun Jul
Aug
Sep
Oct
Nov Dec
Jan-18 Feb
Mar Apr
May Jun Jul
Aug
Sep
Oct
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Mar Apr
May
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Volume of the Three Most Common Sleeper Tractors (4-6 Year-Old) Sold through the Two Largest Nationwide No-Reserve Auctions
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
Jan-16 Ma
rMay Jul Se
pNovJan-17 Ma
rMay Jul Se
pNovJan-18 Ma
rMay Jul Se
pNovJan-19 Ma
rMay
Average Selling Price: Benchmark Sleeper Tractor Sold through the Two Largest Nationwide No-Reserve Auction Companies
MY2011
MY2012
MY2013
MY2014
MY2015
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Jan-
16 Feb
Mar Ap
rM
ay Jun Jul
Aug
Sep
Oct
Nov De
cJa
n-17 Feb
Mar Ap
rM
ay Jun Jul
Aug
Sep
Oct
Nov De
cJa
n-18 Feb
Mar Ap
rM
ay Jun Jul
Aug
Sep
Oct
Nov De
cJa
n-19 Feb
Mar Ap
rM
ayJu
n (e
st.)
Average Retail Selling Price: 3-5 Year-Old Sleeper TractorsAdjusted for Mileage
4YO
5YO
3-5YO Avg.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Jan-16Mar
May JulSep Nov
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Jan-18Mar
May JulSep Nov
Jan-19Mar
May
Average Retail Selling Price of Selected 3-5 Year-Old Sleeper TractorsAdjusted for Mileage
386
387/587
579
Cascadia
CX
ProStar (ISX+MF)
T660
T680
VNL 630/670
VNL 730/780
Market Average
0
1
2
3
4
5
6
7
Jan-
16 Feb
Mar
Apr
May Jun Jul
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cJa
n-17 Feb
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c18
-Jan Feb
Mar
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May Jun Jul
Aug
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Nov De
c19
-Jan Feb
Mar
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May
Jun
(est
.)
Number of Trucks Retailed per Dealership Rooftop
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
18
See the “Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW Class” graph for detail.
ForecastMay and June’s pricing data point to saturation in the used sleeper market. Dealer sentiment generally supports this assessment. With the macroeconomy no longer in full-on expansion mode, fleets appear to have the trucks they need to move available freight. As such, these companies are most likely no longer looking to expand, and each new truck delivered can be assumed to have a corresponding trade (if not more than one). This shift was predicted, although some of us were surprised at how dramatically the economy accelerated in 2017 and 2018, and were therefore early in our prediction of higher used truck supply. But it appears we’ve reached that point. n
See the “Retail Value Forecast” graph for a look at how we see used truck pricing unfolding over the next four years.
Medium Duty TrucksMedium duty sales volume and pricing were generally stable to lower in June. Cabovers returned lower pricing on higher volume, Class 4 convention-als were stable, and Class 6 conventionals pulled back for another month.
Starting with Class 3–4 cabovers, June’s average pricing came in at $13,898. This figure is $3,280 (22.5 percent) lower than May, and $839 (6.4 percent) higher than June 2018. Compared to May, June’s average age and mileage was closer to trend, which largely explains the drop in average selling price. In the first 6 months of 2019, pricing is running an average of 5.9 percent higher than the same period of 2018. June’s result increased average monthly depreciation to 3.2 percent per month this year—still better than 2018’s 4.3 percent per month figure.
See the “Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 Cabovers” graph for detail.
Looking at conventionals, Class 4’s averaged $23,496 in June. This figure is $183 (0.8 percent) higher than May, and $6,998 (42.0 percent) higher than June 2018. For 2019 to date, pricing is running an average of 12.1 percent higher than the same period of 2018. The past two months’ relatively strong results brought average monthly depreciation for the year down to essentially zero, compared to 2.3 percent in the same period of last year.
Class 6’s averaged $18,575 in June. This figure is $2,327 (11.1 percent) lower than May, and $3,208 (14.7 percent) higher than June 2018. Average mileage this month was lower than the trend, and volume was lower as well. In the first 6 months of 2019, average pricing for our 4-7 year-old cohort is running an average of 13.2 percent higher than the same period of 2018. Depreciation in 2019 to date is up to 2.3 percent per month.
-25%
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0%
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20%
2015 2016 2017 2018 2019(f) 2020(f) 2021(f) 2022(f)
Retail Value ForecastPercent Change Year-over-Year
3YO Truck
4YO Truck
5YO Truck
$0
$5,000
$10,000
$15,000
$20,000
$25,000
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Jan-
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l
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NovJa
n-17 Mar
May Ju
l
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NovJa
n-18 Mar
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l
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NovJa
n-19 Mar
May
2 per. Mov. Avg. (Class 4 Price)
2 per. Mov. Avg. (Class 6 Price)
Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW ClassAdjusted for Mileage
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Jan-16 Ma
rMay Jul Se
pNovJan-17 Ma
rMay Jul Se
pNov18-Jan
Mar
May Jul Se
pNov19-Jan
Mar
May
Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 CaboversAdjusted for Mileage
Chris Visser, Senior Analyst and Product Manager Commercial Vehicles
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
Source: J.D. Power Valuation Services
19
A nonresponsive sales manager quickly loses the respect of
salespeople. These are organizations where projects, ideas,
feedback, promises, and even solicited input or details
never seem to get implemented. Instead, they go into a
black hole. Avoid this at all costs.
News continued from page 17
Freedom Truck Finance Partners with NTP to Offer Extended Warranties Freedom Truck Finance, LLC (FTF), recently an-nounced a new partnership with National Truck Protec-tion® Co., Inc. (NTP®) offering extended warranties.
Effective immediately, Freedom Truck Finance will offer an NTP extended warranty plan for purchase to owner-operators. This plan consists of a financial package cover-ing repair costs on major truck equipment including the engine, after-treatment, injectors, and more. Freedom Truck Finance noted in a media release that “these critical components could cost a small business several thousands of dollars to repair without a warranty.”
“At Freedom Truck Finance, we are always looking for ways to enhance both our dealer and customer experience,” said the company’s Chief Operating Officer, Pete Siciliano. “With the addition of NTP as our warranty partner, our dealers will benefit from NTP’s world-class training, and dealer support; and our customers will have critical protection to ease the burden of unforeseen me-chanical expenses.”
National Truck Protection’s strength is in claims and component failure data and has resulted in the company attaining an “industry-leading position” with the major OEMs, independent dealer groups, and the top leasing companies in the US and Canada. “We share the same business objective—to take care of the independent owner-operator, who is truly the lifeblood of the trucking industry,” said Wade Bontrager, CEO at National Truck Protection Co. Inc., (NTP’s parent company).
Along with its offerings in technology-driven systems, lending services, and its relationship-based customer service, Freedom Truck Finance feels it is now positioned to direct its borrowers to “an ideal truck warranty group” in National Truck Protection.
"In times of economic stress, a used truck warranty can serve as a safety net to assist indepen-dent owner-operators. Freedom Truck Finance values its new warranty partnership with Na-tional Truck Protection Co®., Inc. and looks forward to assisting our mutual customers,” the company added. n
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right behind, as the first woman to earn her pilot’s license was Mary Nicholson, who passed her certificate in 1929. In 1934, Helen Richey became the first woman in the United States to fly for a commercial airline. She was later pushed out of the union!
I’m always intrigued by the similari-ties between women in various modes of transportation. Female pilots and female professional drivers have a great deal in common as both con-tinue to remain under the 10 percent mark.
At Women In Trucking Association, we’re working hard to change this. We’ll be watching for higher numbers in the future as we advance our mission to increase the percentage of women working in our industry. For more information or to join, visit www.womenintrucking.org. n
*AOPA Pilot Magazine, April 2019
Women In Trucking continued from page 11
A GLIMPSE OF THE MAGIC FROM THE 2018 CONVENTION
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Deb and Brad [email protected]
We sit to write this last little piece of the newsletter on the day after
Father’s Day. It’s been a lovely weekend here, and the promise of summer has arrived
with ripe blueberries and gentle breezes, scented by honeysuckle. Father’s Day is a rather peculiar celebration in our estimate. It comes a bit more than a month later than Mother’s Day and with much less fanfare and anticipation. Sure, we know of the traditional cookouts and family gatherings to pay our respects to dads both old and new, but let’s be honest; it’s not the big event Mother’s Day claims to be. It’s almost as though some time after Mother’s Day became a tradition, someone said, “Oh yeah, and let’s just tack on a Sunday in the next month to buy Dad a new shirt and grill him some burgers. We’ll call it Father’s Day.”
This isn’t a new thought for us. Throughout our decades as par-ents, we’ve often chuckled at the Father’s Day preparations. In the days we bought cards for our own fathers, we were always surprised at the level of alienation written
into those greetings. Examples include, but are not limited to, “Sorry I don’t tell you often enough…” “We may not always say what we feel…” “Even when we’re far apart…” By now you get the idea we’re sure. We annually struggled to find a card that just said, “Thanks, Dad, we love you, and hope you have a great Father’s Day!” See, it’s not that hard.
Maybe we’re jaded because we were fortu-nate enough to have had better-than-average fathers. We say “better-than-average” refer-ring to the stereotype our culture places on fathers. You know what we mean; the bum-bling but loveable character who never seems to know exactly how the home or the family runs day in and day out and can easily be outsmarted by kids and moms alike. Well, our better-than-average dads did have some of those characteristics, but that’s beside the
point. They both managed to keep us fed, safe, dry, and warm. We had what we needed and a great deal of what we wanted, but we also had more. We had the company of men who, flaws and all, were there for us every day, falling short some days and soaring high others, just like everyone else we’ve known.
We admit we raised our own children in-formed, both for better and worse, by the relationships we had with our own fathers. Their father has been a combination of both his father and his father-in-law, and that’s made him a wiser, kinder, stronger, and more open father than those who’ve gone before him. Now we are watching our own children be fathers and mothers. It’s an absolute thrill to see which parts of our experiences and parental choices they select to apply to their task of raising their children to adulthood. They are making us very proud in their effort, and it’s a thrill to see how differently their generation is attending to the task.
Please keep in mind that we don’t hold much account in holidays such as Mother’s Day and Father’s Day. We grant you, it’s very sweet when children are young to help them create surprises for their parents. We loved that part of life, too. And we don’t argue that when you are fortunate enough to have elderly parents, it’s a delight to treat them to a special day in their honor. But, we stick with the idea that a better tribute to parents of all ages is to honor them daily, for the values they gave us, the wisdom they shared with us, the challenges they presented to us because of their human frailties, and all the other things that parents have been offering their children since the species began. Holding them close in our hearts, remembering the lessons they shared with us, and honoring the lives they gave us is an exercise best attended to every day. At least, that’s the way it looks from where we sit. n