Industry Watch May 2016 - Used Truck Association
Transcription
Industry Watch May 2016 - Used Truck Association
Volume 18 • Issue 5 • May 2016 1.877.GETS.UTA • www.uta.org Used Truck Association Chartered May 16, 1988 Published by the Used Truck Association 325 Country Club Drive, Suite A Stockbridge, GA 30281 Table of Contents Board News and Views...................... 2, 6 Quips & Quotes....................................... 2 New Members......................................3-6 Industry Events Calendar....................... 7 Face to Face with Pete Monize.............. 8 Google is Watching You!....................... 9 The Brooks Group Sales Tip of the Month........................ 9 Moving on Down the Road: Catching Up with Terry Williams..... 10 Bottom-line Advances in Vehicle Technologies..........................11 NADA Update....................................12-13 Industry News Briefs........................ 14-15 2015 Convention Photos................. 16-17 From Where We Sit.............................. 18 The UTA… Members Supporting Members! Nearly 350 Attend UTA’s Latest Webinar Training Chair Calls it a “Huge Success” N early 350 people attended UTA’s most recent free webinar, held Thursday, April 14th, and presented by Daimler Truck Marketing. The Detroit DT12 Automated Manual Transmission (AMT), and groundbreaking Detroit Intelligent Powertrain Management (IPM) System were the topics. UTA and Daimler felt going into the webinar that there was tremendous interest in the AMT and IPM, and the attendance figures proved it. The technology behind the IPM, for example, maximizes efficiency by pinpointing a truck’s location, and assessing the upcoming terrain for a mile ahead. The IPM then adjusts cruise control, pre-selects gears and eCoast, and brakes the engine as warranted. The webinar gave truck sales professionals the tools needed to confidently sell trucks equipped with the transmission. The hour-long webinar covered: ■■ How to demonstrate trucks with this transmission ■■ What a DT12 Automated Manual Transmission can do for your customers ■■ How truck salespeople can best sell the features and benefits of this transmission—to help them sell more trucks with greater rewards for themselves, and their customers. “The presentation by Tom Lehman, Daimler Trucks Marketing, was excellent,” said Ken Kosic, UTA’s Training Committee Chair. “Tom presented a lot of useful material about the use, durability, and popularity of the transmission.” SHARE YOUR NEWS with the UTA Industry Watch. Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Grace Management 325 Country Club Drive, Suite A Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected] Twitter: @usedtruckassoc “A broad range of industry members attended, from retail, wholesale buyers, to sales and general managers from both new and used dealerships,” Ken continued. “The webinar was a huge success!” This was the UTA’s first webinar of 2016, and we greatly appreciate Daimler and Tom Lehman stepping up to present it. The next UTA webinar is slated for Wednesday, June 8th at 2:00 p.m. (CST). Ken said the topic will be Safety Systems and their operation, and the webinar will be presented with Meritor WACBO. For more information, visit http://uta.org/uta-training-webinars/, or contact Ken Kosic at [email protected]. n UTA Industry Watch 2016 BOARD OF DIRECTORS http://www.uta.org/directory GOVERNING BOARD: President............ Mike McColgan Vice President........ Bryan Haupt Treasurer.............. John Cosgrove Secretary.............. Amanda Kent President Emeritus.......Rick Clark COMMITTEE CHAIRPERSONS: Affiliates ...................... Bryan Haupt Convention.....................Hal Dickson Co-Chair Craig Kendall Elections....................Charles Cathey Finance....................... John Cosgrove Marketing & Website....... Rick Clark Co-Chair Amanda Kent UTA Development.........Mike Roney Co-Chair Jody Johnson Scholarship......................Dean Jeske Training.............................. Ken Kosic Co-Chair Amy Shahan Board News and Views by Mike Roney Creating More Value for the Membership T he first thing I noticed when I joined the UTA was how focused the Association was in bringing outstanding value to its membership. That was over 10 years ago with a membership looking to surpass 500. That commitment to adding more value has brought the membership numbers to over 1,000 members and growing! Such growth is fantastic, and brings with it some exciting challenges for the UTA. During this year’s first board meeting in Savannah, GA, (which will be a great location for November’s convention), we realized something important. If the membership continues growing at the same pace, the Association must expand with it. The challenge was how? Executive Board Members reminded us not to forget what got us here. Whatever ideas we have, the litmus test must be “does it add or create VALUE for the membership?” The premise is based in Sales 101. “Stop talking and listen to what the membership wants.” So we developed the UTA Development Committee. Now what is the value in that? The Development Committee’s Purpose The goal behind this structure is to create a large “Think Tank” for the membership. It would begin by asking members what they wanted, and to submit those ideas to the Board. This process will enhance and create more value returning to the membership. It is also a collective effort to increase membership by promoting that value. It should also expose Young Members to the UTA’s structure to ensure a seamless flow of future UTA leaders. There are three subcommittees under the Development Committee’s umbrella. They each have specific duties apart from the Development Committee’s overall goal. Young Members Committee This committee is responsible for creating a forum for all young members to share their ideas, and learn about the UTA. They achieve this by participating in various Board Committee tasks. Yes, the cutoff is over 40 years old. If you don’t remember what it was like to get up from the couch, adjust the TV’s rabbit ears, and change the channel manually with a dial, you are a Young Members candidate. Dealer Group Committee The Dealer Group is responsible for creating Convention workshops based on the members’ needs, and running the Individual UTA Member Award process. All members are encouraged to be on this group, and be part of the monthly teleconference. Membership Committee Good, better, best. Never let it rest. ‘Til your good is better and your best is best. This committee is charged with growing the Membership though social media, advertising, and networking with current members. All members are encouraged to be part of this committee. ~St. Jerome Board News and Views continued on page 6 2 May 2016 www.UTA.org UTA Industry Watch New Members It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new (or just returning) members in this newsletter. New members have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you enjoy about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you! Ron Bowman and I have the great fortune of working for a company that understands that key point.” Pennsylvania Truck Centers, Inc. 310 Mifflin Dr. Wrightsville, PA 17368 www.patruck.com/index.php [email protected] Alvin Bryant, Sales Professional Interstate Truck Source 29085 Smith Road Romulus, MI 48174 www.interstatetrucksource.com (734) 991-3998 (w) [email protected] Back in 1977, when disco was king and a lot of people weren’t happy about it, Al started in the trucking industry. He began in safety compliance. Now that he is a UTA member, Al’s looking forward to networking with other sales reps, and following current trends in the industry. His favorite part of his job is working with customers to help them solve their equipment issues. Other things he really likes: helping customers save money, boost their bottom lines, and retain drivers with the right equipment. Asked what he might like to do if he wasn’t in the truck business, Al said he hadn’t really thought about it. But, at this point he’d like to be “a corporate attorney.” Manny Carril, National Sales Manager Liberty Motor Club P.O. Box 225 Dayton, TN 37321 www.libertymotorclub.com (423) 309-5620 (w) [email protected] “Manager for an emergency road side provider,” was how Manny started out in trucking in 2010. As a new UTA member, Manny says his company hopes to increase its network and open up new business opportunities, “while cultivating relationship with clients, vendors, and customers.” Manny enjoys his job because his company is able to help clients “further grow their relationships with current customers,” he said. “This industry is all about relationships www.UTA.org Manny asked that his profile include his company’s Facebook page, facebook.com/ libertymotorclub, and his own Twitter handle: @mccarril. Charlie Cayce Westrux 214 Main Street, #506 El Segundo, CA 90245 (310) 322-2121 (w) [email protected] Alain Chaidac 2200 E. Steel Road Colton, CA 92324 (909) 554-5284 (w) Chris Clarke, Manager, North American Remarketing ARI 4001 Leadenhall Road Mount Laurel, NJ 08054 (856)778-1500 (w) www.airfleet.com [email protected] Another of our industry veterans, Chris has been in Vehicle Remarketing for over 25 years. His first job in the business was in Truck and Trailer Leasing/Sales and Repair. Almost all new UTA members hope to increase their knowledge base and expertise, and develop more industry contacts. Chris is hoping for those things as well. His favorite part of his job now is working with a diverse group of clients, and industry professionals “in a unique and rapidly changing industry.” Shane Davis, President Why has Shane joined us now? “We would like to find potential client partners who see value in our services,” he said. Shane noted that his company currently works with transportation companies to collect on past due balances, remarket inventory that has been repossessed, collect deficiency balances, and so on. “Helping our client partners to recover money and/or assets on distressed accounts is very rewarding,” he adds. Besides the trucking business, Shane said he also loves hunting. “My six sons and I hunt deer and process our own meat,” he explained. Shane’s interests extend far and wide though. We learned that Shane has always wanted to pursue acting…or do stand-up comedy! (Perhaps he’ll entertain us at an upcoming Convention!) Finally, Shane explained that his company “believes everything they do has a greater purpose behind it,” he said. “We collect money on behalf of our client partners so that they can give another small business their chance, we have had built in volunteer work from the day we were founded, and we are a company run with integrity. We are transparent, fair, and we get excellent results!” Seth Dilorenzo Universal Truck Sales 2845 Long Lake Road Roseville, MN 55113 (651) 639-0017 (w) [email protected] Jeff Dossey Westrux International 2200 E. Steel Road Colton, CA 92324 (909) 554-5284 (w) [email protected] Dedicated Commercial Recovery Inc. 2355 Hwy 36 West, Suite 400 Roseville, MN 55113 www.dedicatedcri.com (844) 351-3945 (w) [email protected] While he only officially joined the industry in 2015, Shane’s roots go back further than that. Five years ago he worked for a company that did collections and remarketing for all equipment finance including trucks and trailers. New Members continued on page 4 May 2016 3 UTA Industry Watch New Members continued from page 3 Dan Duran, Sales Executive Westrux International 2200 E. Steel Road Colton, CA 92324 www.westrux.com (949) 505-2138 (w) [email protected] Dan’s only been in our business for three years, beginning as a Service Advisor in 2013. He’s hoping to meet locals in the same trade. As a new UTA member, Dan says he’d also like to learn from others who have been and still are in the field, and develop friendships and connections with both people and companies to further grow in the trucking industry. Dan says the fact that he can provide and take care of his family, is what he loves most about his job. He feels he’s fortunate to have a schedule where he doesn’t always need to be at the office to fulfill his duties. That gives him the chance spend more time with both his wife and son. Dan says candidly that if he wasn’t selling trucks he really didn’t know what other type of business he’d be in. “I thank this job a lot for all the things I’ve been able to accomplish so far,” he told us. “It’s allowed me to look into a whole other side of how people work and make a living, which in turn has had me thinking of opening a transport company myself. Not so that I can stop selling, but to further my success.” Like other UTA members, Dan really enjoys racing motorsports, particularly cars. “The adrenaline in racing...and tuning cars, pushing their limits, is a great passion I have,” he said. This PACCAR Manager says she can envision herself in Property Management, if she wasn’t in the truck business. She and her husband have several rental properties, and she’s enjoyed growing that business over the last 10 years. Another interest of Cori’s is competitive soccer, which she’s had a passion for since she was a kid. Finally, Cori says she’s looking forward to being more involved in the UTA, meeting and learning about other members and their businesses, and also helping them with their Fleet needs. Mike Hunnicutt [email protected] William Kostner, Used Truck Sales Manager Central Valley Truck Center 8730 Golden State Avenue Bakersfield, CA 93308 www.centralvalleytruckcenter.com (661) 529-8403 (w) [email protected] Bill Kostner’s been in the business for about 20 years now, getting his start as a Service Manager in 1997. He’s looking forward to “relationship building” as a new UTA member, and also helping his company gain the recognition it deserves “as a dealership with a solid used truck department.” Bill likes that he’s no longer managing a large body of people, as he’s done in the past. Right now, Bill’s managing one lot person, and six salespeople who he works with internally. Other thoughts Dan? “I really value and take in all the knowledge I get from others in this field. I appreciate it very much. I hope to meet you all at one point.” Bill was a CPA for 10 years when he got out of college, and he enjoyed working in the accounting profession—especially tax prep. Were he to leave the truck business he can see himself going back to that field. Cori Gleason, Sales Manager As a young man, Bill used to race Motocross, and to this day he still enjoys riding his motorcycle. PACCAR Leasing Company 9620 S. 76th Ave Hickory Hills, IL 60431 www.paclease.com (708) 833-1508 (w) (708) 430-9336 (c) [email protected] Cori began as a management trainee in Truck Leasing, back in 2002. She’s hoping to gain additional visibility for PACCAR Leasing’s used truck inventory now that she’s joined us here. Cori says she likes the day-to-day customer interaction her job provides. She also likes being able to meet new and interesting people day in- day out. 4 May 2016 In wrapping up, Bill said he’d like to meet many of his fellow UTA members. That would give him the chance to “share ideas and thoughts, and get to know them personally and professionally,” he said. Sonny Lasam Truck & Equipment Corp. 3640 S. Main St. P. O. Box 2520 Harrisonburg, VA 22801 www.truckequip-va.com (540)-773-7093 (w) [email protected] Simone Ledenac 401 Trucksource Inc. 4293 County Rd. #46 Maidstone, ON Canada (519) 737-6956 (w) [email protected] Melissa Middleton, Center Manager SelecTrucks of Louisville 4341 Sanita Ct. Louisville, KY 40213 www.selectrucksoflouisville.com (502) 238-5919 (w) [email protected] Melissa first worked as a Lot Inventory Manager in 2002. In 2005, she became a Truck Finance Manager before moving to her current job as Center Manager in 2014. David Pugsley McKay’s Truck Center Ltd. www.mackaystruckcenter.ca (902) 895-0511 (w) [email protected] Eddie Prince, Truck Sales Coordinator Melton Truck & Trailer Sales 1091 N. 161st E. Ave. Tulsa, OK 74116 www.meltontrucksales.com (918) 270-9429 (w) [email protected] Eddie Prince is another newcomer to our industry for May. He started out in trucking in 2015, in truck and trailer sales. It’s more than likely you’ll see Eddie at UTA events, as he’s hoping to network with other UTA members, and learn more about the industry. Eddie’s job enables him to work with a variety of industry professionals. “I work with everyone from mechanics to lenders to owner-ops, start-ups, and dealerships,” he said. “The variety of people I get to work with, along with our company culture at Melton is very enjoyable, he added. While he’s new to trucking, Eddie’s been in four different industries in his professional life. But “trucking is the most enjoyable,” he said. “I can’t imagine being in another business at this point.” Granted it was lunchtime, but when Eddie told us about his other interests we got really hungry. “I love to cook in the kitchen as well as do bbq/smoker cooking,” he said. “I love to find interesting recipes and make them my own.” And during football season Eddie’s house is “the gathering spot,” he said. “Virtually every weekend is like one big tailgate with www.UTA.org UTA Industry Watch friends and family.” Eddie’s other interests include participating in food drives and food bank donation. Eddie wanted everyone to know he looks forward to his UTA membership, and can’t wait to meet and talk with many more members of the trucking industry. and meeting these leaders I hope to understand the industry, learn from their early missteps, and eventually offer others my assistance.” Westrux International 2200 E. Steel Road Colton, CA 92324 www.westrux.com (562) 404-7231 (w) [email protected] It’s clear Meir is a man happy in his work. “When you run your own company you have the freedom to make the decisions you feel are right without all the red tape that comes with working for a larger company,” he shared. “At the same time it forces you to think two and three times before acting, because at the end it’s my name on the bottom line and I will be held responsible.” Meir added that he of course enjoys buying trucks, “especially those damaged or non road-worthy.” Adding: “we have the passion and we do it every day!” This month we’re welcoming a striking mix of industry vets and newcomers to the UTA. Sandra is one of the newcomers, just joining our industry in 2015. It’s no secret that many Trucking people also love cars, and for Meir it’s classic cars, especially. “I love the opportunity to just stroll around car shows, talk to the experts, and visit the auctions,” he said. Sandra says she became a UTA member to “get the opportunity to collaborate with colleagues and market my company to the best of my ability.” Outside of the job, Meir said that community assistance is a cause very close to his heart. He’s worked with underprivileged and special needs children and adults. “It’s a moving but humbling experience to try and help others, and watch others succeed whatever their goals and abilities,” he said. Sandra Resendez, New and Used Truck Sales About her current job, Sandra says she most enjoys being able to provide excellent customer service and quality vehicles to her customers. While Sandra is new to trucking, she’s been in the workforce for many years. “I was a Respiratory Therapist for about 20 years,” she tells us. “The last ten years I specialized in Neonatal Intensive Care.” Then Sandra decided to change career paths. Besides being in commercial truck sales, Sandra is also a Realtor. “I enjoy sales and helping people acquire what they need,” she added. Sandra’s outside interests include traveling, gardening, and the arts. Besides his company and foundation, Shawn’s passions include his relationship with God, his family, and his church. Aaron Soupiset, Sales Associate Eddie Rosales Sal Rossie www.UTA.org Shawn hopes to one day focus more of his time on the foundation in Haiti of which he’s the executive director. “We are working to free children from slavery, along with working to help improve the livelihood of many other children who are in terrible situations in that impoverished country,” he said. “Service Technician,” Aaron replied, when asked about that first job in trucking back in 1999. I. Meir Resnick, President Asked about his goals for his UTA membership, Meir had no trouble coming up with an answer. “Knowledge! Joining a network of industry experts and professionals allows me to tap a well spring of knowledge and to learn from the best,” he said. “By speaking with Both Shawn and Dedicated’s President, Shane Davis, are new members this month. They also share common backgrounds. Like Shane, Shawn worked with a company handling collections and remarketing prior to his current position. Both men have joined the UTA to find potential client partners who see value in their company’s services. Westrux International 2200 E. Steel Road Colton, CA 92324 (909) 554-5284 (w) [email protected] We were inspired by her closing thoughts. “Let’s knock the ball out of the park with our customer service and truck sales!” When he got his start in trucking in 2013, Meir worked with a salvage company purchasing trucks from fleet managers for resale. Dedicated Commercial Recovery Inc. 2355 Hwy 36 West, Suite 400 Roseville, MN 55113 (844) 351-3945 (w) [email protected] Wichita Kenworth 5115 N. Broadway P.O. Box 4226 Wichita, KS 67204 www.wichitakenworth.com (620) 253-6037 (w) [email protected] Luis Rodriguez Westrux International 2200 E. Steel Road Colton, CA 92324 (909) 554-5284 (w) [email protected] Hazel Lane Auto Sales Inc. 181 South Franklin Ave. Valley Stream, NY 11581 www.hazellaneautosales.com (516) 634-6351 (w) [email protected] Shawn Smith, CEO Gabrielli Truck Sales 153-20 S. Conduit Ave Jamaica, NY 11434 (718) 977-7348 (w) [email protected] Adam Samarin Westrux International E. Steel Road Colton, CA 92324 (909) 554-5284 (w) [email protected] Aaron has high aspirations and he thinks the UTA can help there. He’s joined us for “the knowledge and expertise of our members—to make me a top-tier salesman,” he said. He’s got a great shot at meeting that goal because Aaron thrives on meeting new people and making customers happy. Aaron’s also into offshore boat racing. “I love the water, boats, and speed,” he told us. He’s also passionate about “anything guns.” Adding: “I load all of my own ammunition, hunt, sport shoot, and teach my kids to respect and love firearms and our second amendment.” Dave Stohl TransEdge Truck Center 1407 Bulldog Drive Allentown, PA 18104 utssales.com New Members continued on page 6 May 2016 5 UTA Industry Watch New Members continued from page 5 Dustin Streff James Thurman 9317 Fairview Drive West Des Moines, IA 50266 (515) 261-6329 (w) [email protected] Steven York Liberty Motor Club LLC P.O. Box 225 Dayton, TN 37321 (888) 997-2054 (w) [email protected] Russell Swartz, MO Drive-Away Manager Group One, Inc. MO Drive-Away 1445 East Taney Kansas City, MO 64116 www.grouponeinc.net (913) 777-6527 (w) [email protected] [email protected] Dan Zorger Quality Companies 9702 E 30th Street Indianapolis, IN 46229 (317) 972-7094 (w) [email protected] Fernando Villenueva Westrux International 2200 E. Steel Road Colton, CA 92324 (909) 554-5284 (w) [email protected] Trucking industry vet Russ Swartz got his start back in 1975, as a truck driver in the log business. He tells us he knew even as a child that one day he’d be in the trucking industry. Russ says he enjoys serving the trucking industry and “being connected to the largest work force in the United States.” Russ says the only real passions and commitments he has outside of work are the connections with his church, of which he’s been a member for 20 years. “We are committed to offering the best service possible at a reasonable price for all of your drive-away needs,” Russ added. Let’s welcome Russ to the UTA now as he looks forward to connecting with vendors/customers who share his same goals. Matthew Warren Jordan Truck Sales 1460 Bankhead Hwy Carrollton, GA 30116 (770) 836-1700 (w) [email protected] Jimmy Wilkerson 135 Old Hwy 49 S Richland, MS 39218 www.oldriver.com (601) 664-1410 (w) (769) 243-7091 (c) [email protected] Board News and Views continued from page 2 These subcommittees are also channels for members to learn what tools are available to them. They also continue enhancing and creating more access to information that advances individual members’ businesses. You can access all the information available to you at our website, www.uta.org 2016 UTA Development Committee Mike Roney, Board Chair Warner Truck Center/ Used Truck City [email protected] Jody Johnson, Co-Chair WESTRUX [email protected] Todd Coppaken, Young Member Committee Chair Image Truck Partners [email protected] Glen Hughes, Dealer Group Committee Chair RWC Group [email protected] Shelley Warren, Membership Committee Chair IIAA Auction [email protected] The UTA Development Committee and its subcommittees are committed to listening, looking, and implementing new ideas and tools to enhance and create more value for all UTA members. We look forward to hearing what we can do for you. Mike Roney, Board Chair UTA Development Committee [email protected] 6 May 2016 www.UTA.org UTA Industry Watch Industry Events Calendar JUNE SEPTEMBER 5-7 • Transportation Marketing & Sales Association Logistics Marketing & Sales Leadership Conference 15-16 • Commercial Vehicle Safety Alliance The Ritz Carlton • Fort Lauderdale, FL www.tmsatoday.org/conference Annual Conference & Exhibition • Little Rock, AR www.cvsa.org/events/events_list_2015.php 19-21 • UTA Sponsored Training Seminar: Selling for Success 22 • UTA Sponsored Training Seminar: Management Seminar Courtyard Charlotte Airport North • Charlotte, NC www.uta.org 22-23 • 11th Annual Jerome Nerman Family Foundation Kansas City Golf Open 19-22 • American Trucking Associations Technology & Maintenance Council Fall Meeting & National Technician Skills Competition Harrah’s North Kansas City • Kansas City, MO www.uta.org Reception: Harrah’s North Kansas City Course: Shoal Creek Golf Course • Kansas City, MO http://uta.org/2016/01/20/uta-2016jerome-nerman-family-foundationgolf-open/ 24-26 • Texas Trucking Show George R. Brown Convention Center • Houston, TX www.texastruckingshow.com JULY 18-20 • UTA Sponsored Training Seminar: Selling for Success Courtyard Indianapolis Airport • Indianapolis, IN www.uta.org 19-21 • Supply Chain Technology Conference & Expo Navy Pier • Chicago, IL www.sctechshow.com AUGUST 9-13 • American Trucking Association’s National Truck Driving Championships and National Step Van Driving Championships Indianapolis, IN www.trucking.org/ www.UTA.org Raleigh, NC http://www.trucking.org/ 28-30 • ACT Research North America Commercial Vehicle & Transportation Industries Review & Outlook: 2016-2020 Columbus, IN www.actresearch.net OCTOBER 1-4 • American Trucking Associations Management Conference & Exhibition Mandalay Bay Resort & Casino • Las Vegas, NV www.trucking.org 22-23 • California Trucking Show Ontario Convention Center • Ontario, CA www.californiatruckingshow.com 24-26 • UTA Sponsored Training Seminar: Selling for Success Courtyard Dallas DFW Airport North/Irving • Dallas, TX www.uta.org NOVEMBER 9-12 • 17th Annual UTA Convention Westin Savannah Harbor • Savannah, GA www.uta.org/2016/01/19/uta-2016-convention-in-savannah/ May 2016 7 UTA Industry Watch Pete Monize “L ife is good!” Pete replied when we asked him about his life outside of work. With just that phrase, it’s plain to see that Pete is a “glass-half-full” kind of a guy. He joined the UTA in 1998. His career in the trucking industry began when he took a position as a truck sales associate with Arrow Trucks Sales, Inc., in Columbus, OH. Today, Pete is a Senior Vice President with Volvo Trucks in Greensboro, NC. Pete and his team are responsible for managing all aspects of the truck remarketing assets for both Volvo and Mack. By that he means everything. “Our operation touches all aspects of the truck deal, not only truck sales,” he explained. Among the long list of responsibilities his group supports, you’ll find a robust selection. “We are active in residual value, risk management, dealer used truck development, used truck training, and inbound truck inspection processing,” Pete said. But, in addition to these responsibilities the team also takes on arranging financing, marketing, and maintaining both customer service and industry relations. Pete, like so many other successful managers, credits his team with a good deal of his success. “I credit my success with the support I’ve always received from my coworkers,” he said. “This always encourages me to be cooperative.” Pete told us he always looks at his work in terms of what the whole team is trying to achieve. “That gives me great pride in my work and its contribution to the group’s efforts.” It also explains some of what he most loves about his job. “I think any job must be fun and challenging,” Pete noted. “We laugh a lot and take great pride in running a successful business.” 8 May 2016 As any cheerful optimist will tell you, Pete knows that life and careers are capricious. When we asked him what he wished he’d learned earlier in his career his reply was brief. “Everything can change in the blink of an eye,” he said. With that in mind, his best advice to younger people just starting out in the industry is, “Save for retirement starting with your first paycheck!” That’s great advice that many young people just starting out don’t even consider! Pete’s proudest moments, once again, are couched in the success of his coworkers and colleagues. “I am most proud of watching my teammates grow both personally and professionally,” he said. A special highlight of his career was watching both Marty Crawford and Mike McColgan receive the Marvin F. Gordon Lifetime Achievement Award. Looking forward, Pete sees changing demographics and technology as potential disrupters in the market for buying and selling used trucks. Once again, he looks at that challenge from the sunny side up. “We must have a continuous improvement mindset to successfully navigate the future,” he said. Outside of his work life, Pete and his wife enjoy the company of their two grown sons. They’ve also built something of a small menagerie. “We have two rescue dogs, three rescue cats, two horses, and one turtle,” he told us. “We live an active life style outside of the office!” n www.UTA.org UTA Industry Watch GOOGLE IS WATCHING YOU! by Carmenda Laymon A s everyone knows, GOOGLE is the place to be. Everyone uses it for everything. It’s attached to YouTube and LinkedIn, and if your business cannot be found it’s because you’re not there or haven’t claimed your page yet. Wait? You have to “claim your page” on Google? Of course you do! More than likely, if you have a business, it’s on Google, but it may be unclaimed. This means anybody can go onto Google and says it’s theirs without you ever knowing it. That seems pretty scary right? It should be. The great thing is it’s easy for you to claim the page yourself. Step 1. Google your business name. Step 2. Look to see if it says “Own this business?” (See picture.) Step 3. If it does, click on it and go through the steps to verify it. Step 4. Add your logo and company photos (just like Facebook). Step 5. Make sure all your information is correct, check your reviews, and then you can post daily, weekly, or monthly. People listen! I have many conversations with clients daily about Google and Google+. They are not going away. So make sure you’re doing everything you can for your business to be on there, and at the top! I personally LOVE Google+. It is the best and fastest way to get your business listed and heading up the ladder to page one on Google. Oh, if you have a Gmail account, you may already be on Google+ and not even know it. Questions? Google me. I show up all over the place or shoot me an email at [email protected]. n After a few years of working in print advertising, Carmenda Laymon realized the only way to go was to find some niche on the Internet, and it happened to be Social Media. She is now celebrating her 6th year in business and has been in the Trucking industry for over 10 years. Her words of advice: “it’s not going away, it’s getting bigger, take the plunge and make it happen.” Sales Managers must have the responsibility to perform, as well as the authority to act and then be willing to be held accountable for their own actions and results. www.UTA.org May 2016 9 UTA Industry Watch Movin’ on Down the Road: Catching Up with Terry Williams U TA member Terry Williams recently left Bruckner Truck Sales after “three very good years,” as their corporate sales lead manager. He’s now working for Dominion Enterprises as strategic relations manager in their commercial products group. In his new role Terry develops and implements “top level marketing strategies across the commercial vehicle landscape supporting customer acquisition and marketing equipment.” He works with OEMs, major partners, and third parties “to develop plans for a single model, ongoing branding for a product line, the overall success of the network or just a website,” he said. “The scope of Dominion Enterprises’ marketing capabilities is vast,” Terry added. “I look forward to working with clients to explore their needs and how we can work together to surpass their expectations.” Terry’s new employer is in some ways comparable to his old one. “Both are leaders in their core businesses, leaders in the markets they serve, employee-centric, and have ‘on-point’ management,” Terry told us. “At Bruckner’s I was working a great deal with end users reacting as necessary, now I will create and strategize with marketing and sales teams to best create those opportunities for end users to interact with dealers. I will now also be working with earth moving and agriculture equipment OEMs and dealers.” Terry’s new position has greatly enhanced his life, aside from the new work challenges. For one thing, he’s back in Kansas City, MO with his two sons. It’s also allowed Terry to work from home for the first time. “Frankly it has been awesome avoiding drive time traffic,” said the new remote worker. But working from home often means working alone. To offset that, Terry plans to work in lunch meetings, so he can socialize. “The coffee pot chatter is pretty dull right now,” he said. Terry’s new job will bring him in closer contact with the UTA. He’s already volunteered to work with NADA’s Chris Visser on a valuation committee. He also plans to run for the Board this fall. Finally, Terry said he’s also looking forward to seeing everyone this June in Kansas City for the Educational Endowment Golf Tournament. He also has a warning for Marty Crawford: “I am after the Chicken Leg Award!,” he chuckled. n Register NOW at www.UTA.org 10 May 2016 www.UTA.org UTA Industry Watch Bottom-line Advances in Vehicle Technologies Anthony Gansle K eeping pace with new technologies can be overwhelming. But if you’re an early adopter the latest technologies may provide a competitive edge. Conversely, take a chance too early or select the wrong new “game changer,” and it may prove unreliable or not live up to its expected ROI. Whether it’s the smartphone in your pocket or the business system software your company uses, selecting the right technologies— and using them to their full potential--makes all the difference. When it comes to commercial vehicle technologies, the stakes can be very high. From an OEM’s perspective, the testing and validation process for launching new technologies is comprehensive and exhaustive. Not only must the technology be reliable and thoroughly proven, it must provide real value for fleets and drivers. Helping your customers understand the latest truck technologies – both the value they bring and how to utilize them–can make you an invaluable resource, helping build customer loyalty and repeat business. In this article, I’ll examine new and emerging truck technologies in four key areas: fuel economy improvements, vehicle diagnostics, safety, and automated truck systems. Fuel Economy Improvements Predictive Cruise Control integrates GPS, terrain maps, cruise control, and advanced software to improve fuel economy by as much as four percent. Here’s how it works. A driver is about to enter a mountainous part of his route and sets the cruise control. As the vehicle approaches a steep incline, GPS and terrain maps anticipate the grade and the truck automatically selects the most fuel-efficient gear and optimum RPM to go through it. After cresting the grade, the truck decelerates and uses its momentum to coast down the other side, burning less fuel. This is a great example of several technologies – each useful by itself – integrated to work together as a new technology. Chances are you have customers affected by the industrywide driver shortage. Either they can’t find enough drivers or the drivers they recruit are raising cost per mile through inexperience or poor driving habits. One of my favorite areas of technology growth is the industry’s rapid adoption of automated/automatic transmissions. Where once AMTs were considered a detriment to resale value, now they are a great selling feature and add to the resale price. This is technology that can meet or beat many drivers in fuel economy performance – and that’s a bottom-line benefit for your customers. It’s also one of the best ways I know to help a new driver jump into a truck and be successful right away, improving your customers’ efforts to recruit and retain drivers. Vehicle Diagnostics I’m always amazed at some of the stories I hear from drivers and customers about the guesswork that goes into determining what a particular fault code means and what actions to take. Shops can waste valuable, billable time following the wrong theory or strategy. Remote vehicle diagnostic technology is eliminating that guesswork and improving customer uptime. A fault light comes on the in-dash display and – automatically and instantly – the fleet manager, the breakdown supervisor and the dealership shop are all alerted to what caused the fault and the recommended steps needed to resolve it. Knowing the issue and its severity also helps customers make better informed decisions if the vehicle needs to be serviced immediately or if the driver can continue his delivery. Further, it makes that customerdealer conversation on what to do next so much easier: you know the issue, you likely know what’s needed to fix it and everything can be discussed ahead of the service experience to streamline the process. When you sell your next vehicle, help your customer understand the benefits of vehicle diagnostic systems. They will be excited about the benefits it offers. www.UTA.org Safety Safety is a priority for every carrier. Truck safety technologies not only save lives, they make sound financial sense. No customer wants higher insurance premiums and serious accidents can financially devastate a company. Three of the safety technologies I often highlight are disc brakes, electronic stability control, and collision avoidance systems. Disc brake benefits are obvious. Large trucks take longer to brake and disc brakes reduce that time. Many recent studies and our own cost of ownership calculations show that they can also be less expensive to maintain over the life of the truck. Electronic stability control (ESC) systems help prevent a vehicle from losing control or rolling over. They monitor vehicle systems and driver intent and intervene before the driver even realizes a loss-of-control or rollover situation exists, preventing them from happening. Many OEMs are standardizing either disc brakes, ESC or both, so check the truck specs and highlight these key safety features to your customers. Collision mitigation systems have advanced rapidly. The features of these systems vary among suppliers and OEMs but typically they help maintain safe driving distances, recognize upcoming objects, and alert the driver or even engage the brakes to avoid a collision. Advancements in these types of systems have introduced forward facing cameras that can alert the driver to unintended lane changes (perhaps if the driver is drowsy), improve the ability to detect objects (is it a soda can or a car in the path of the truck), and alert the driver if they are going too fast for the current conditions. These types of systems are coming down in cost and increasing in popularity as the technology evolves, so consider them when you make your next purchase. Automated Truck Technologies Truly autonomous vehicles are still at least a few years away, but many of the technologies that they will use exist today, and are rapidly improving. Where lane assist technology today alerts drivers to unintentional lane changes, next-generation versions will recognize the situation and gently ease the truck back into the lane. Platooning is a technology that allows multiple tractor-trailers to follow each other very closely, yet safely, improving fuel economy for all vehicles in the platoon. Systems onboard the trailing vehicles can talk to the lead vehicle and understand when the vehicle will make a speed change, for example. They then react accordingly to maintain the optimized following distances and the aerodynamic advantages they provide, reducing drag. One other technology worth mentioning is auto-docking. If you have driven a truck, you know it can be tough backing into a dock. Automated truck technologies will have the ability to take the truck to the correct dock and automatically guide it to the dock doors. Not all of the technologies I’ve mentioned have reached the used truck market. But if they have not yet, they soon will. When selling your next truck, make it a point to highlight the safety systems the truck is equipped with and explain the advantages to your customers. These are technologies that provide proven ROI and can bolster your customers’ bottom lines. And that always helps make a sale. n Anthony Gansle is the Marketing Segment Manager for Peterbilt Motors. You can reach him at (940) 591-4016, or [email protected]. May 2016 11 UTA Industry Watch NADA Update: Depreciation Moderating in Early Second Quarter Chris Visser, Senior Analyst and Product Manager, Commercial Trucks • Twitter: @NADAUsedCarGde Preliminary April data points to more stable Class 8 selling prices in retail, wholesale, and auction channels. Seasonal improvements combined with increased demand spurred by lower price levels are the likely factors behind the moderation. volume is – that group decreased in price 7.7 percent from February to March on average. However, a large group of 2011 ProStars had an outsized influence on that result. Excluding the ProStar, trucks of model years 2013-2011 were essentially flat month-over-month. Sleeper Tractors – Auction/Wholesale See the “Average Sleeper Tractor Pricing by Model Year…” graph for detail. In the auction channel, our benchmark group of the three highestvolume sleeper tractors of model years 2011-2013 saw a substantial drop in volume in April. Pricing was mixed. Compared to March, there were 336 (or 67.2 percent) fewer of these trucks sold through the nation’s two largest no-reserve auction houses. Pricing of our benchmark model dropped an average of $1,667 (or 4.5 percent) in this period. Results were mixed, with newer trucks performing better than older. Specific performance was as follows: MY2013: $40,907 average; $3,907 (or 9.6 percent) higher than March MY2012: $30,600 average; $6,944 (or 18.5 percent) lower than March MY2011: $35,357 average; $1,963 (or 5.3 percent) lower than March The market corrected a bit in April following a steep February to March decrease in pricing for 2013 examples of our benchmark truck. As for the 2012 model year, volume decreased substantially in April, but this has been the highest-volume model year overall since the oversupply situation began in mid-2015. Pricing still suffers as a result. Trucks of model year 2011 look to have stabilized a bit, as that age cohort has begun the downside of its trade cycle. See the “Volume of the Three Most Common Sleeper Tractors Sold…” and “Average Selling Price: Benchmark Sleeper Tractor…” graphs for detail. VolumeoftheThreeMostCommonSleeperTractorsSoldthroughtheTwoLargest NationwideNo-ReserveAuctions 2per.Mov. Avg.(2007) $80,000 2per.Mov. Avg.(2008) $70,000 2per.Mov. Avg.(2009) $60,000 2per.Mov. Avg.(2010) $50,000 2per.Mov. Avg.(2011) $40,000 2per.Mov. Avg.(2012) $30,000 2per.Mov. Avg.(2013) $20,000 $10,000 $0 Source:ATD/NADAOfficialCommercialTruckGuide Despite the apparent incremental improvement in market conditions, we still expect depreciation to average roughly 4 percent per month by year’s end. Sleeper Tractors – Retail As in the auction and wholesale channels, depreciation in the retail channel moderated going into the second quarter. Sleeper tractors three to five years of age lost an average of 2.5 percent of their value from February to March, and we estimate another similar loss from March to April. See the “Average Retail Selling Price: Three to Five Year-Old Sleeper Tractors” graph for detail. 800 700 AverageRetailSellingPrice:ThreetoFiveYear-OldSleeperTractors 600 AdjustedforMileage 500 $100,000 400 $90,000 300 $80,000 200 $70,000 100 $60,000 Aug-15 Sep Oct Nov Dec Jan-16 Feb Mar Apr Source: ATD/NADAOfficialCommercialTruckGuide AverageSellingPrice:BenchmarkSleeperTractorSoldthroughtheTwoLargestNationwide No-ReserveAuctionCompanies $50,000 $40,000 $30,000 4YO $20,000 5YO $10,000 3-5YOAvg. $0 $70,000 $60,000 $50,000 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar 0 AverageSleeper TractorPricing byModelYear (All Wholesale) $90,000 Source:ATD/NADAOfficialCommercialTruckGuide $40,000 $30,000 2011 $20,000 2012 $10,000 $0 2013 Aug-15 Sep Oct Nov Dec Jan-16 Feb Mar Apr Source: ATD/NADAOfficialCommercialTruckGuide Looking at the larger wholesale market overall (all sleeper tractors with dealer-to-dealer sales included), pricing for three to five year-old sleeper tractors firmed up going into the second quarter. That cohort averaged a 2.2 percent increase from February to March. Looking at trucks of model year 2013-2011 – where the majority of the auction 12 May 2016 Trucks of the high-volume 2013-2011 model years lost an average of 4.7 percent of their value from February to March, and we also predict a similar drop from March to April. Retail pricing continues to decrease, and perhaps as a result, buyers are entering the market in incrementally greater numbers. Looking at individual models, there was a move towards the average in March, with the exceptions of the Freightliner Cascadia and Volvo 730/780. In the case of the Cascadia, the influx of off-lease units appears to have peaked in December of 2015, and April’s volume was notably low compared to recent months. As such, it is possible that this model is seeing a mild improvement based on moderating supply. As for the Volvo 730/780, this has not been a particularly high-volume www.UTA.org UTA Industry Watch model, and retail pricing continues to reflect that positioning. The International ProStar’s average suffers for yet another month due to no 2014 models reported sold – so there are no three-year-old models included in this model’s average. See the “Average Selling Price of Selected 3-5 Year-Old Sleeper Tractors” graph for detail. AverageRetailSellingPrice:ThreetoFiveYear-OldSleeperTractors AdjustedforMileage See the “Average Wholesale Selling Price; 4-7 Year-Old Class 3-4 Cabovers” graph for detail. Average WholesaleSellingPrice:4-7Year-OldClass3-4Cabovers Adjusted forMileage $25,000 $100,000 $20,000 $90,000 $80,000 $15,000 $70,000 $10,000 $60,000 $50,000 $30,000 4YO $20,000 5YO $10,000 3-5YOAvg. $0 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar Source:ATD/NADA OfficialCommercialTruckGuide Source:ATD/NADAOfficialCommercialTruckGuide AverageRetailSellingPriceofSelected3-5Year-OldSleeperTractors AdjustedforMileage $100,000 386 $90,000 387/587 $80,000 Cascadia $70,000 ProStar(ISX+MF) $60,000 T660 T700 $50,000 VNL630/670 $40,000 VNL730/780 $30,000 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar $5,000 $40,000 MarketAverage $20,000 Class 4 conventionals narrowed the year-over-year price deficit in the first quarter, with our benchmark group of 4-7 year-old trucks coming in at an average of $19,406. This figure is only $227 (or 1.2 percent) lower than the first quarter of 2015. Mileage and volume were both moderately higher in 2016, which points to an improving market. 4-7 year-old Class 6 conventionals were essentially equal in the year-overyear comparison, with the first quarter averaging $23,351. This figure is only $150 (or 0.6 percent) off 2015’s same-period average. Average mileage is notably lower in 2016, at an average of 137,590 – 39,810 (or 19.7 percent) than the first quarter of 2015. However, volume has been higher in 2016. We consider this market stable, with no clear upward or downward pressure. See the “Average Wholesale Selling Price: 4-7 Year Old Conventionals by GVW Class” graph for detail. $10,000 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar $0 Average WholesaleSellingPrice:4-7Year-OldConventionalsbyGVWClass Source:ATD/NADAOfficialCommercialTruckGuide Adjusted forMileage Looking at retail sales volume, there was an incremental increase from February to March, from 4.8 to 4.9 trucks sold per rooftop. The first quarter of 2016 trailed the first quarter of 2015 by 0.2 trucks. We expect minor improvements in volume in upcoming months, as better weather and lower pricing bolster demand. See “Number of Trucks Retailed per Dealership Rooftop” graph for detail. NumberofTrucksRetailedperDealershipRooftop $30,000 $25,000 $20,000 $15,000 $10,000 $0 7 6 2per.Mov.Avg.(Class 4Price) $5,000 2per.Mov.Avg.(Class 6Price) Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar $0 quarter, which is $893 (or 4.9 percent) higher than the same period of 2015. Lower average mileage is partly responsible for the difference, but market conditions are incrementally better for this segment. Source:ATD/NADAOfficialCommercialTruckGuide 5 Most medium duty segments are showing stable to higher pricing with a higher volume of trucks sold. We consider these factors a net positive. 4 3 Forecast 2 Apr(est.) Feb Mar Dec 16-Jan Oct Nov Sep Jul Aug Jun Apr May Feb Mar Dec Source:ATD/NADAOfficialCommercialTruckGuide Jan-15 Oct Nov Sep Jul Aug Jun Apr May Feb Jan-14 0 Mar 1 Medium Duty Trucks Class 3 and 4 cabovers outperformed 2015 in the first quarter, with pricing moderately higher despite substantially higher volume. Our benchmark group of 4-7 year-old units brought an average of $17,982 in the first www.UTA.org The late spring and early summer months should see incremental improvements in demand, as lower pricing gets some buyers off the fence. The domestic economy is still generally sound, with most macro measures trending incrementally upward. It will be a few months before the uncertainty of the Presidential election season starts to impact business activity. n Reprinted with permission from the ATD/ NADA Official Commercial Truck Guide® www.nada.com/b2b May 2016 13 UTA Industry Watch Industry News Briefs March Extends the Trend— Medium Duty Orders Up; Class 8 Orders Down As winter became spring, the order trend established earlier in the year continued. ACT Research’s March numbers showed Class 8 orders stood at16,354, a decline of 10 percent from February’s total, and down 35 percent compared to March 2015. Medium Duty net orders totaled 13,242, a drop of three percent over February’s tally, but up 10 percent y/y, ACT noted in a release. “Medium and heavy demand trends continue to follow the sectors of the economy that drive their respective cycles,” said Kenny Vieth, ACT’s president. “For medium-duty vehicles, the consumer economy continues to produce good outcomes as job and income growth support healthy demand for big-ticket durable goods and housing. For Class 8, there are too many trucks chasing insufficient freight. Low prices across the commodity spectrum have rolled back investment, cutting demand for machinery. In addition, the strength of the U.S. dollar has made U.S. manufactured goods less competitive in global markets,” Vieth added. He noted that the March net order volume for Class 8 was lower than had been seen since late 2012. n March’s Class 8 Orders Drop Further: FTR FTR also noted March came in like a lamb and remained that way. Preliminary Class 8 orders fell to their lowest level since September 2012 in its estimation. March was the third straight month that net orders had fallen. The tally of 15,800 orders was down 12 percent over February, and down 37 percent year to year. FTR feels that orders will remain under 20,000 units over the next few months until the market “bottoms out.” “Orders were slightly below expectations as the market continues its downward slide,” said Don Ake, FTR’s Vice President of Commercial Vehicles. “Fleets are being very cautious in the current uncertain economic environment. Freight has slowed due to the manufacturing recession, so they have sufficient trucks to meet current demand. Some fleets are also delaying replacing older units until conditions improve. There are very few dealer stock orders, since inventories are sufficient and OEM lead times are short.” Ake continued: “OEMs continue to reduce production rates in response to an expected 26 percent drop in build this year. Inventories remain high and retail sales have moderated, so order rates should remain subdued in the short-term. Manufacturing is expected to improve soon and this is expected to increase freight levels and stabilize truck demand.” n TCI Also Drops February’s Number Reflects Slower Growth: FTR As you might expect FTR’s Trucking Conditions Index (TCI) for February was down, due to slower growth. The 8.27 reading reflected the market research firm’s forecast for “a slowdown in truck loadings from an average of four percent so far in the recovery, to two percent for 2016.” FTR noted, however, that there were positive indicators for the industry, which included high capacity utilization and positive rate assumptions. FTR expects to see the TCI start to steadily rise heading in the 2017 due to “expected regulatory capacity constraints.” The market research firm also noted [the] “TCI will continue to be positive into 2018 save for the risk of recession or the possibility of temporary spikes in fuel prices reacting to weak U.S. production.” 14 May 2016 Rush Enterprises to Close 13 Centers by July Rush Enterprises, with more than 100 dealerships and offices in the U.S., announced a plan for continued consolidation of its Navistar dealerships. Rush announced it has implemented the plan to reduce expenses while still providing “efficient service to its customers in the affected areas of operation.” Given the slowdown in new orders it was no surprise perhaps that Rush, operators of the largest network of commercial dealerships in North America, announced it was consolidating. Its plan will result in the closing of 13 Rush Truck Centers by the end of June, 2016. To date, dealerships in the following locations have been closed: Brazil, IN Helper, UT Kankakee, IL Decatur, GA Ottawa Mount Vernon and Grayslake (IL) Ontario, OR Findlay, OH Statesville, NC In addition, Rush said its two locations in both Augusta and Tifton, GA will be consolidated into a single location in each city on June 1, 2016. (Previously Rush consolidated its Peterbilt location in Alice, TX into its Corpus Christi, location.) “It’s never easy to make the decision to close a Rush Truck Center,” said W.M. “Rusty” Rush, Rush Enterprise’s Chairman. “However, as we acquired dealership groups across the country in recent years, we acquired a number of small dealerships located in close proximity to one another. Many of these dealerships have been in existence for a long time, but with changes in technology and, in certain cases, the local markets, there is no longer an economic justification for the affected dealerships to operate in such close proximity to our other dealerships,” Rush explained. Rush added that he hopes the affected employees would accept jobs in other Rush locations. “The 13 Rush Truck Centers we intend to close contributed approximately $55 million in revenue in 2015,” stated Rush. “We expect that we will be able to retain approximately 55 percent of the revenue from these locations through consolidation into other nearby locations. However, we anticipate that the closures will result in annual expense reductions of approximately $11.0 million. Importantly, we believe these expense reductions will be achieved without any significant reduction in our ability to service customers in our areas of responsibility,” Rush concluded. n “The market has certainly softened in 2016, yet there are still enough positive indicators to keep the freight markets afloat despite the weakness,” said Jonathan Starks, FTR’s Chief Operating Officer. “Freight loads are looking to slow this year, but two percent growth is still a reasonable environment for truck operations. What it doesn’t do is create pressure on capacity, which is what would be needed to improve the rate environment.” Starks added that “a key focus will be whether the manufacturing sector can stabilize and begin to grow again. I believe it will, but it may still be a quarter or two before fleets start to benefit from that activity.” Starks also noted that the rate environment has worsened, “but unless the market sinks further we should expect to see contract rates begin improving in the second half of the year.” n www.UTA.org UTA Industry Watch ATD Names NorCal Kenworth Truck Dealer of the Year The American Truck Dealers (ATD) recently named NorCal Kenworth and Tom Bertolino, dealer principal, its 2016 Truck Dealer of the Year. It made the award at the 53rd annual ATD Convention & Expo in Las Vegas. NorCal Kenworth, based in Sacramento, CA, operates Kenworth dealerships in Anderson, Morgan Hill, Sacramento, and San Leandro, CA. “Since Tom Bertolino – and his business partner Harry Mamizuka – purchased the operation 17 years ago, NorCal Kenworth has significantly increased its sales and market share by providing excellent customer support, building exceptional facilities, and employing a winning team,” said Jason Skoog, Kenworth assistant general manager and PACCAR vice president. “This special ATD recognition for Tom and NorCal Kenworth is well-deserved.” “NorCal Kenworth and its 190 dedicated employees at our four dealerships strive every day to provide quality Kenworth trucks, parts and service to our customers. This award is a very special honor for NorCal Kenworth and our employees,” said Bertolino. n Caption: NorCal Kenworth and Tom Bertolino (right), vice president and a dealer principal, received the 2016 Truck Dealer of the Year award from the American Truck Dealers (ATD) at the 53rd annual ATD Convention & Expo. Tom Bertolino and his business partner Harry Mamizuka (left), purchased the operation 17 years ago. European Truck Platooning Challenge Underway If you’re unfamiliar with the term platooning, you’ll soon know all about it. Platooning refers to a procession of “driverless” smart trucks closely following one another. The trucks are each equipped with state-of-the-art driving support systems. The first major platooning demonstration started in late March with “trains” of trucks leaving from several European cities. The first truck determines the speed and route, according to the European Truck Platooning Challenge website. As a result there are shorter gaps between the following trucks, and space for other vehicles is freed. A Wi-Fi connection among the trucks ensures synchronized braking and can prevent sudden jolt/shock effects. This is good news for traffic flows. It also speeds deliveries. Truck platooning can reduce fuel consumption by as much as 10 per cent, while also reducing carbon dioxide emissions. Businesses can realize significant savings as a result. Because the trucks following the lead truck brake immediately, with zero reaction time, platooning can improve traffic safety. Finally, platooning efficiently boosts traffic flows, reducing tail-backs. Meanwhile, the short distance between vehicles means less space taken up on the road. The Netherlands, which now holds the European Union Presidency, initiated the Truck Platooning Challenge. Six brands of automated trucks—DAF Trucks, Daimler Trucks, Iveco, MAN Truck & Bus, Scania, and Volvo Group—have taken part. The platooning trucks have been operating on public roads from several European cities to the Netherlands. The website notes the Challenge’s aim is to bring platooning one step closer to implementation. n “Salute to Women Behind the Wheel” Honors Female Drivers The Women In Trucking (WIT) association recently honored women truck drivers at its annual “Salute to Women Behind the Wheel” celebration. The event occurred at the Mid-America Trucking Show in Louisville, KY. WIT honored about 200 women “for their years of service in the trucking industry,” WIT said in its release about the event. Kari Rihm President/CEO of Rihm Kenworth led things off. Rihm Kenworth, based in Saint Paul, MN, is the nation’s only truck dealership owned 100 percent by a woman. “You are all pioneers paving the way for women across the country and across the world to participate and succeed in a man’s world,” she said. “You are pioneers in a modern sense, and www.UTA.org pioneers in anything always face obstacles while at the same time blaze trails for others to follow.” Ellen Voie, WIT’s President/CEO welcomed the group, comprised of female professional drivers, their families, sponsors and association members. She discussed some of WIT’s recent accomplishments, including the Girl Scout Transportation Patch, ride-alongs with regulators and elected officials, a minority carrier exchange, the WIT app, WIT index, truck stop rating directory, and the group’s work on truck cab design and ergonomics. WIT’s other recognition programs include the Distinguished Woman in Logistics, the Influential Woman in Trucking, and the recently expanded WIT Image Team. n May 2016 15 UTA Industry Watch 16 May 2016 www.UTA.org UTA Industry Watch www.UTA.org May 2016 17 UTA Industry Watch From Where We Sit Well, here we sit on one of the first beautiful, sunny, warm spring days we’ve yet to have. The daffodils are in bloom. The birds are chirping. Bunnies fill the yard, and the bees are happily buzzing around. Those of us who have emerged from one of the darkest, grayest, wettest winters we can remember hardly know how to behave! So, on this wonderful afternoon, we want to talk about the election. “Noooooooooooooooooooo!!!! Please, please, please, we’re begging you!” Anything but that, anything else at all, please!” Relax, Dear Readers, we hear you. We don’t mean that election! We’re on your side! We’ve also seen enough political yammering to last a lifetime. You’re safe here with us. We’re talking about our local election for Burgess and Commissioners that is held in our little valley every four years on the first Monday in April. If you read along with us, you know we adore the old and tiny little town we live in nestled in the heart of a valley that was settled by German immigrants more than 300 years ago. With its incredibly fertile farm land and the beauty of its form, it’s been a favored spot for humans to live ever since. George Washington surveyed it as a young man, and decades later the Confederate soldiers and the Union troops marched through it many times. We live on Main Street, which was once known as the National Pike, since at the time it traversed the entirety of our country and provided the only route to the west. Today there are still plenty of farms, but lots of the folks who live here in town work the same types of office jobs most of the rest of us know. In many ways, living here is much like stepping back in time 50, 60, or more years. seat is safe too. The best thing about this form of government is that it represents Democracy as it was originally intended. Neighbors vote for their leaders, and then those leaders listen to what the neighbors think. The Town Hall meetings are wonderful. For example, concerned that the State-owned highway that is our Main Street had become a speedway, we went to a meeting at Town Hall, and expressed concern. Can’t you get one of those signs that says, ‘Speed Limit: Your Speed?’ we asked. Well, not six weeks later, we found two such signs, one on either entrance to our town. Folks still speed, but our leaders heard our concerns and acted. So, as you can guess, we never miss a chance to vote for our local leaders. It’s the closest thing we’ll ever come to experiencing the Mayberry of Andy Taylor and Barney Fife. Town Hall is just down our street, and the polls are open both before work and after. Voting is simple and so much fun! We told our names to the elderly poll workers and then signed in. Each of us received a paper ballot and a golf pencil. Stepping into our own individual canvas and balsa wood voting booths, we marked our ballots, folded them for secrecy, and then dropped them directly into the ballot box, staunchly protected by a lady of advanced age. Everyone thanked us, Brad grabbed some free-for-the-taking yard refuse bags, and we were on our way. Who wouldn’t want to take a taste of life when things were so simple and straightforward? We got the weekly local paper a few days later, and learned two things. First, one of the commissioners we voted for had lost his seat. He was the head of the committee that created beautiful walking trails of natural habitats for our little bit of wildlife. We walk our dog along one of the trails routinely so we thought he deserved another chance to serve. Oh well, majority rules, and Tony lost to a new commissioner by three votes. The second thing we learned was that 100 years ago that same week, the town came together to select their Burgess and Commissioners. Their names were as common in this valley as the grave markers in our old cemeteries, the names of our streets, and the children who fill up our school rosters! As a matter of fact, our current Burgess and Commissioners also include a few of those old names. How wonderful it is to live in the heart of a historic town and exercise our own little piece of history by casting our own votes! So, we’re not going to even step into the discussion of who deserves your vote or what anyone else should be voting for. We’re simply going to continue to encourage everyone who is eligible to vote! It’s our responsibility, our privilege, and our own little mark on the history of our government. At least that’s the way it looks from where we sit. Deb and Brad Schepp [email protected] Every four years, some of the Commissioner seats are open for new blood. Campaigning is low key, and most of those seated on the Commission stay as long as they like. If the Burgess is well-liked, that 18 May 2016 www.UTA.org