Industry Watch June 2013
Transcription
Industry Watch June 2013
Volume 15 • Issue 6 • June 2013 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 Quips & Quotes.....................................2 New Members...................................3, 5 Face to Face with Charles Bowles........4 Medium Duty Corner.............................5 NADA: Retail Market Continues to Set Records; Wholesale Market Changes Course ............................ 6-9 The Brooks Group Sales Tip of the Month.......................9 Moving on Down the Road: Catching Up With Jay Burgess............. 9 Industry News Briefs..................... 10-12 Industry Events Calendar.................. 13 From Where We Sit............................ 15 The UTA… Members Supporting Members! “Selling for Success” Training Update T here’s exciting news from UTA’s training committee! The UTA regional training initiative “Selling for Success” continues to be an overwhelmingly popular and substantive offering for our members. Positive reviews from attendees just keep coming, and nearly every day members tell me they’re interested in additional training events. March’s training in Atlanta was filled to capacity. April’s Dallas training saw our largest attendance ever, and the training for Chicago in June is now completely sold out! So by popular demand, the UTA Board has added two more training events. Registration will soon be open for Los Angeles, September 16th and 17th , and again in Dallas, October 14th and 15th. The addition of these seminars is exciting news. I firmly believe training initiatives like the UTA has commissioned George Papp Training and Consulting to provide will take your sales staff and dealership to the next level. Selling for Success will teach your associates how to: ■■ Prepare for the sales day ■■ Prospect for success ■■ Control sales opportunities ■■ And overcome objections It’s easy to understand why the “Selling for Success” seminars are such a success. The two-day seminars are all about sales, and how to sell trucks. They focus on implementing a sound daily selling routine that meets your dealership’s demands. Our instructor, George Papp, has designed Selling for Success as a high-energy learning experience. George has over 30 years of successful selling and management experience within our industry, and has built his career around implementing effective sales strategies. Please take advantage of these two upcoming seminars, and thank you for your support of UTA’s training initiatives. SHARE YOUR NEWS with the UTA Industry Watch. Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp and Jay Burgess 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] The Very Best of Success! The price for these career-changing seminars is only $595 for non-UTA members and includes a 1 year UTA Professional Membership. Already a UTA member? Then your cost is only $495. Ken Kosic UTA Training Committee Member [email protected] Learn more about the UTA by going to www.uta.org If you have questions about training or UTA membership contact: Ken Kosic at 816.809.0497 George Papp at 913.538.5508 UTA Industry Watch 2013 BOARD OF DIRECTORS http://www.uta.org/directory GOVERNING BOARD: President...................... Rick Clark Vice President..............Ken Kosic Treasurer................... Tom Pfeiler Secretary................Sheri Aaberg President Emeritus ........................... Marty Crawford COMMITTEE CHAIRPERSONS: Affiliates & Benefits.... Bryan Boyd Convention.................Sheri Aaberg & Rick Clark UTA Jerome Nerman Family Foundation Scholarship ...................Tim Ronan, Jay Burgess & Brock Frederick Elections................ George Barnett Marketing........................ Rick Clark Medium Duty..............Amy Shahan Membership........... John Cosgrove, Kenny Doonan & Bryan Boyd Training.............................Ken Kosic & Brock Frederick Dealer Group........... Mike Thurston & Bobby Williams UTA.org Website......Bobby Williams Always bear in mind that your own resolution to succeed is more important that any one thing. ~ Abraham Lincoln 2 June 2013 Board News and Views I t’s hard to believe that seven months have gone by since we all met in New Orleans, which turned out to be a great convention. Many new vendors displayed their products for the first time, and the UTA has many of those vendors already signed up for our next convention in Orlando in November. The Disney World setting guarantees something for everybody, as we all know the weather is so great! Be sure to sign up now so you can get everyone on the tours of their choice, and enjoy golf as it was meant to be. We are already registering for the convention through the UTA website (www.uta.org), so don’t wait until the last minute to sign up. We have found that the earlier you book airline tickets, the cheaper they will be. You probably remember last year’s UTA fundraisers in New Orleans. The generous support generated enough money to give away 10 $5000 ($50,000 total!) scholarships to deserving students, selected by an independent college in the Midwest. The annual Jerome Nerman Kansas City Golf Tournament, June 26-27, is the cornerstone of our annual scholarship giving fund. We already have many signed up for the Kansas City midyear reception and golf outing. Time is short, so if you have not signed up already please check your calendars and see if you can join all of us for a great reception, fantastic golf, and a fun time. Remember, all of this is in support of your scholarship fund that helps others. Last month, John Cosgrove’s Board News and Views article on CNG was fantastic and spot on. If you missed it, it’s available to UTA members on our website. The ISL 12G coming out this fall, which generates 400 HP and 1450 torque, will change many fleets’ buying habits as the stations become available along their routes. We are getting ready to deliver our first new Peterbilts with the ISL 9G CNG engines in beverage tractors. The bottom line is that the CNG train is coming, and all of us have the opportunity to attend local CNG meetings to learn about CNG’s advantages. It won’t be long before we see these trucks on the used truck side as well. I just quoted five new 12L CNG tractors that will pay for the $40,000 upgrade in 15 months in fuel savings, and then make the payment on the truck. Think about it! Your UTA training committee chairman, Ken Kosic, has done a fantastic job setting up UTA training events. The recent Selling for Success seminars in Atlanta and Dallas were sold out, and the reviews were fantastic. As I write this, the newest training is scheduled for Chicago, June 10-11. This seminar is also sold out. With all three events sell outs you can be assured that the training is on target. Be sure to see Ken Kosic’s Selling for Success update elsewhere in this newsletter for the details on the two seminars just added in Dallas and Los Angeles. If you have somebody who could use a little training, be sure to get them signed up! Soon, your UTA Board will discuss the next area in which to provide training. We think training new technicians is critical to the health of our industry! Many of our older techs are retiring, and we need to attract younger folks with proper training to cover and expand our service to our industry. Please email any of the board members and share your thoughts and ideas to ensure we are on the right track. On behalf of the Board, I look forward to seeing you in Kansas City and Orlando. Kenny Doonan, Co-Chair Membership Committee [email protected] 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 members in this newsletter. New members have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you enjoy about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you! If you’d like a copy of the new member brochure handed out at the convention, please contact David Grace at [email protected] or 770-389-6528 ext. 404. Nadene Evans, Director of Marketing Marc Grimes, Used Truck Sales Commercial Truck Trader 150 Granby Street Norfolk, VA 23510 Commercial Truck Trader www.CommercialTruckTrader.com (757) 351-8702 (w) [email protected] Price International, Inc. 5033 Hwy. 271 Tyler, TX 75708 www.price-international.com (800) 658-1100 (w) (903) 312-4045 (c) [email protected] Nadene got her start in the truck business at Commercial Truck Trader, in 2010. She certainly seems to like what she does for a living. “I am fortunate to be working with both truck dealers and also truck buyers,” she said about her good fortune. “I feel it gives me a nice, big picture of both sides of the buying cycle.” Marc’s job with Price International is his first job in truck sales. He told us he comes from a background in finished lubricants; selling engine oils, gear oil, transmission fluid, and greases to the truck and transportation industry. “In addition to the transportation industry, we offered a vast array of industrial lubricants marketed to manufacturing, metal working, and oil field production,” he said. “So, I have not been involved with selling trucks until now, but am very excited to continue to be around trucks.” She joined the UTA to gain a better understanding of the relationships dealers have with each other. “As Used Dealers, I know that you all have challenges that the OEM folks don’t face. Learning the ways in which dealers co-exist to support and help each other move units helps me tailor Commercial Truck Trader products to better meet those needs,” Nadene said. The best part of her job? “When a Dealer calls us with success stories because of their relationship with us! When we find custom solutions to help dealers move units, I get warm fuzzies,” she said. Maybe it was partly the summer warmth beckoning, but Nadene said she would love to have her own Ice Cream Store, if she wasn’t in the truck business. “Sounds silly, but where else would you find a bunch of happy people every day?” she asked. Few people may realize it but in addition to her other interests Nadene loves to play the flute. Finally, like so many of us, Nadene said she’s looking forward to seeing everyone in Orlando for the upcoming UTA Convention. “And yes, we’ll be setting up the slot car race track again,” she added. www.UTA.org He’s joined the UTA hoping to build lasting relationships with other members, and gain knowledge from other professionals in our industry. Marc may be new to the industry but he’s already passionate about trucking and the company he works for. For example, he says the best part of his job are the people he works with. “Around a third of our employees have been with this company for over 20 years,” Marc said. “Several have been here over 30 years with a couple approaching 40 years. To me that says a great deal about the company you are working for when so many people want to stay for their entire working careers.” Marc’s long been passionate about the outdoors. “All my life I have had a love for the outdoors,” he said. “The first ten years of my working career I sold fishing tackle and boats. More often than not, I would be on the water as much as six days a week. It was a great deal of fun, but a very seasonal business and a hard way to make a living. If I didn’t have to depend on that income, I would like to be back in that business.” Most recently Marc’s become involved with competitive archery. “Primarily 3D archery, which can be compared to golf with a bow I guess,” he said. “It has become very addictive!,” he added. Randy Hackler, Sales Wholesale Trucks of America 6501 E. Commerce Ave, Suite 140 Kansas City, MO 64120 www.wholesaletrucksofamerica.com (816) 472-7775 (w) Kyle Krug, Sales Executive 3901 Roswell Road, Ste. 120 Marietta, GA 30062 www.dekra-na.com (770) 354-1468 (w) [email protected] Kyle comes to us from the automotive business where he got his start in 1995. In 2013 he started in the heavy truck industry. He comes to UTA seeking industry knowledge and a better understanding of the issues we face. The best part of his job, Kyle says, is talking with industry leaders and sharing with them solutions that are challenging them. Many trucks industry members are avid golfers and so is Kyle. In fact, if he could do just anything he says, “I would be a golf course superintendent in Jupiter, Florida. Why? Jupiter, Florida is why!” New Members continued on page 5 June 2013 3 UTA Industry Watch Charles Bowles U TA member Charles Bowles is the general manager for Commercial Truck Trader (www.commercialtrucktrader.com), the industry leader in online truck sales. For the past seven years, he has also been a member of UTA. But, much of his career was spent only on the periphery of truck dealerships, as the newspaper’s advertising salesman trying to get contracts for ad space for his paper. Charles found that job to be quite instructive. “I spent a great deal of time learning how dealerships work just by sitting and listening,” he said. “If you’ve ever sold advertising you know, it’s a sit-and-wait job. It seems Charles had a lot of time to wait for the executives who made purchasing decisions to be available to meet with a salesman. “During those long waiting periods, I would spend time talking to the sales folks, the finance people and the parts and service guys,” he explained. “I really learned a lot that way.” Charles spent 20 years working for newspapers before he switched into the world of used trucks. During those decades he’d learned a lot about the industry, and not just from the insiders he chatted with. His work showed him the great value a good dealership brings to the community. “You would be surprised at how much impact a local dealership can have on a community,” he said. “The dealer was always a focal point of the community, sponsoring teams and being active in local charities. Besides employing people, local truck dealers are a real driving force in the areas that they serve.” This realization struck a chord with Charles, because he and his wife enjoy volunteering within their community and helping others. It seemed a perfect match. The year 2013 has proven to be Commercial Truck Trader’s best year yet, according to Charles, and he attributes this success to the time he has spent listening to and talking to the dealers and visitors who populate his site. “My job is twofold,” Charles explained. The first part must be to drive a good experience for site visitors who want to shop. The second part is to generate good results for the dealers who have listed trucks for sale. “Sometimes that can be likened to walking a tightrope,” Charles said, “because there are times when those interests may be perceived to be competing. But, when we step back for a minute and look at the challenge, it always comes down to this: building a site that is good for the user will be a great site for the dealers, because it is a genuine marketplace.” Charles attributes much of this year’s growth and success to a few enhancements they’ve made to the site. The company has recently added transactional functionality to the site, allowing customers and dealers the security of using Commercial Truck Trader’s trusted brand and safety features. “In addition to the new transactional products, we have added a very sophisticated and efficient auction product that enables dealers to easily and 4 June 2013 cheaply send vehicles to huge online auctions,” Charles explained. When we asked Charles what he might tell a younger person just starting out in the industry, his answer didn’t surprise us. “A young person thinking of starting out in our business has to understand that truck sales is a sophisticated business,” he said. “That requires people to be real students of the industry. We’re not simply selling trucks; rather, we are selling specific solutions and developing long-lasting relationships.” From the very beginning of his career, as he sat at dealerships listening and learning, Charles knew it was all about people and relationships. In his spare time, he enjoys spending time with his wife of 31 years, Anne Glenn Tinsley. Charles explained to us that he understands completely why his wife chose to keep her maiden name all those years ago. “Who would want to have Bowles as your last name?” he asked rhetorically. “It’s embarrassing when the hostess at a restaurant says in a loud voice, heard by everyone, ‘Bowels, party of two, Bowels.’ I then have to pipe up, ‘It’s Bowles, not Bowels.’” But aside from such minor inconveniences life seems good for Charles. Charles and his dog Bailey get up early for a 4-mile run each morning and return home to make Glenn her breakfast. The couple have two grown children, Emma and Charles IV, a social worker and a cop, respectively. That both of the children selected helping professions isn’t surprising, perhaps. Charles and Glenn spend much of their free time helping out at local charities and support work to help their local homeless community. “It’s very rewarding,” Charles says, “Glenn’s drive to help others is what motivates me.” Charles also enjoys hiking and camping. He and a friend have hiked many parts of the Appalachian Trail. “We often go off for days at a time,” he said. “It’s always a blast!” n www.UTA.org UTA Industry Watch New Members continued from page 3 Mike McDonald, Used Truck Director Kevin Robinson, Finance Manager Lorri Strong, CFO Nutmeg International Trucks, Inc. NUTM-C2827 P.O. Box 370 Medfield, MA 02052 www.nutmegtrucks.com (860) 308-6599 (w) [email protected] Jordan Truck Sales 1460 Bankhead Hwy. Carrollton, GA 30116 www.jordantrucksales.com (770) 836-1700 ext. 105 (w) [email protected] Strong Industries, Inc. 13617 Ralph Culver Houston, TX 77086 (281) 847-9304 (w) [email protected] Kevin’s been around a while, first working as a sales and operations manager for Barnes Van Lines. Then for 10 years he was in household goods moving and storage. That brought him to the job he started this year with Jordan Truck Sales. For Kevin, UTA seemed like a good organization to join as he’s hoping to make “connections with industry leaders to gain knowledge of best practices and industry trends.” But Kevin’s interested in teaching too, and might well choose that field if he ever left trucks. “Teaching is a profession I would enjoy from the aspect of working with young people to help them discover their gifts and to get them thinking about how they can use those talents in a career.” SouthwestRE, Inc. 2400 Louisiana Blvd., AFC-4 Albuquerque, NM 87110 www.southwestre.com (505) 348-5613 (w) (505) 304-3277 (c) [email protected] Back in 1996 Mike got his start in trucking working for a company called CH Robinson, which was a third-party freight broker. His job was to coordinate pickup and delivery of produce in California, and deliver it back to Massachusetts. “I spoke with companies and truck drivers all day long,” he said. Mike says the best part of his job are “the relationships I have made over the last 18 years.” He’s joined the UTA hoping to make solid contacts with other members with whom he can buy and sell trucks. If not for trucks Mike says he might be buying and selling real estate, which he’s done before. He enjoys developing properties. Mike plays Ice Hockey once a week “with a great group of guys,” something he’s done for years. He also enjoys his 1993 Harley Davidson. Shervin Rashti, COO Maxim Commercial Capital, LLC 11620 Wilshire Blvd., Suite 540 Los Angeles, CA 90025 www.maximcc.com (213) 480-4840 ext. (w) [email protected] A family man too, Kevin says he loves spending time with his daughter and son. He’s “trying to take advantage of every opportunity as one is about to graduate and leave for college and the other is about to be a freshman in high school,” he said. When not at work or with his family he also enjoys golf and fishing. Kevin had some thoughts to share with other UTA members. “Find a reason every day to be thankful because this life is journey. Our attitude determines our altitude and while we can’t always control the things going on around us we can control how we respond.” Dean Taylor, Sales Manager Volunteer International, Inc. 626 Airways Blvd. Jackson, TN 38301 www.volunteerinternationalinc.com (731) 422-3411 (w) (731) 695-2181 (c) [email protected] Carmen Torres, Vice-President, Marketing & Sales Daniel Vreeland, President Big Rig Trucks & Trailers 3060 Hwy. 101 S. Greer, SC 29651 www.bigrigtt.com (864) 848-7000 (w) [email protected] Ana Wall, Remarketing Coordinator, Dealer Sales Volvo Trucks North America 7900 National Service Road Greensboro, NC 27409 (336) 393-2071 [email protected] “Tips You Can Count On” Spring was late in many parts of the country. Still have that Medium duty truck with a box on it? There is time to change it to a landscape body or flatbed. Customers are looking for that equipment! Signed, ~ The Medium Duty Counselor www.UTA.org June 2013 5 UTA Industry Watch Retail Market Continues to Set Records; Wholesale Market Chris Visser, Senior Analyst and Product Manager, Commercial Trucks Monthly Retail Sales Volume by Model Year: Sleeper Tractors Under 1M Miles Summary The overall value of the retail sleeper tractor market set a new record high for a second month in a row. An increasing number of newer model year tractors entering the market combined with continued strong demand for sub-600,000 mile trucks are the main factors behind recent gains. The steep drop in wholesale pricing that started in December of last year turned around a bit in April, thanks to a slightly newer, lowermileage mix of trucks sold. We continue to view the auction channel generally as a market for trucks with over 600,000 miles. A competitive pricing comparison reveals the relative value the marketplace assigns specific makes and models. 400 2 per. Mov. Avg.(2006) 2 per. Mov. Avg.(2007) 2 per. Mov. Avg.(2008) 2 per. Mov. Avg.(2009) 2 per. Mov. Avg.(2010) 2 per. Mov. Avg.(2011) 350 300 250 200 150 100 50 Sleeper Tractors – Retail Retail sales data submitted by dealers and OEM’s to NADA shows that the average price paid for a sleeper tractor in April was $51,391. This is the second month in a row to set a 5+ year record high. This result is $599 (or 1.2 percent) higher than March’s, and $1694 (or 3.3 percent) higher than last April (see “Average Retail Price and Mileage” graph). 12 Fe b M ar Ap r M ay Ju n Ju l Au g Se p Oc t No v De Ja c n-‐ 13 Fe b M ar Ap r The domestic economy continues to shrug off the effects of sequestration and budgetary dysfunction. We forecast status quo for the remainder of the year. 0 Ja n-‐ Retail sales volume has not changed appreciably, while wholesale volume continues to trend notably upwards. Source: ATD/NADA Average Retail Price by Model Year -‐ All Sleeper Tractors Under 1M Miles Adjusted for Mileage $100,000 2006 2007 2008 2009 2010 2011 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $10,000 540000 $0 520000 $45,000 500000 480000 $40,000 460000 440000 $35,000 420000 400000 Mar Jul Sep Mar May Nov Jan-‐12 Jul Sep Mar May Nov Jan-‐11 Jul Sep Mar May Jan-‐10 Nov Source: ATD/NADA $30,000 Jan-‐13 Price Mileage Mileage was slightly higher than last month, at 529,183. This figure is 4483 (or 0.8 percent) higher than March’s, but 18,091 (or 3.3 percent) lower than last April. After a high point of 557,364 in July of 2012, average mileage has been trending downwards. Sleeper Tractors – Wholesale April’s wholesale data depicted a break from the relentless trend of cheaper, older, higher-mileage trucks seen in recent months. Specifically, the average sleeper tractor in the wholesale market in April sold for $29,389, had mileage of 686,308, and was 86 months old. Compared to last month, April’s results were $5658 (or 19.3 percent) higher on price, 56,977 (or 7.7 percent) lower on mileage, and 7 months (or 7.5 percent) younger. Year-over-year, April 2013’s results were $1202 (or 3.9 percent) lower on price, 45,328 (or 6.6 percent) higher on mileage, and 5 months (or 5.8 percent) older. See “Average Wholesale Price” graph for detail. Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles As for age, April’s average was 78. This figure is right in line with recent months – 1 month older than March, and 4 months older than last April. Age was therefore not a factor in April’s record pricing. $45,000 The last two months in particular have seen a notable decrease in mileage mix, mainly due to an increasing number of 2009 and 2010 model year trucks entering the marketplace. These trucks are now 4 to 5 years old, the age at which fleets typically trade them in. This factor likely explains their increased availability. Pricing has remained strong for these model years, indicating that demand continues to outweigh supply. See the “Retail Sales Volume by Model Year” and “Retail Selling Price by Model Year” graphs for detail. $30,000 6 June 2013 Source: ATD/NADA 12 Fe b M ar Ap r M ay Ju n Ju l Au g Se p Oc t No v De Ja c n-‐ 13 Fe b M ar Ap r $20,000 560000 n-‐ $50,000 $30,000 580000 Ja $55,000 750000 $40,000 700000 $35,000 650000 $25,000 600000 $20,000 550000 $15,000 500000 $10,000 $5,000 $0 2 per. Mov. Avg.(Price) Source: ATD/NADA 2 per. Mov. Avg.(Mileage) 450000 400000 Jan-‐10 Mar May Jul Sep Nov Jan-‐11 Mar May Jul Sep Nov Jan-‐12 Mar May Jul Sep Nov Jan-‐13 Mar Average Retail Price and Mileage -‐ All Sleeper Tractors Under 1M Miles www.UTA.org UTA Industry Watch Changes Course Adjusted for Mileage $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 3 per. Mov. Avg.(Cascadia) $20,000 3 per. Mov. Avg.(ProStar) 3 per. Mov. Avg.(386) $10,000 3 per. Mov. Avg.(VNL 730/780) Source: ATD/NADA Apr Feb Mar Dec Nov Oct Sep Aug Jul Jun May Apr Jan-‐13 100% Feb $0 Mar Percentage of Sleeper Tractors Sold with Over 600,000 Miles: Retail vs. Wholesale Average Retail Selling Price of Selected Models Jan-‐12 Despite this reversal, average wholesale mileage is still substantially higher than at any time in the past five years. More than 75 percent of trucks sold through this channel show over 600,000 miles. Keep in mind, though, that macro averages can paint a misleading picture. Sales data shows that selling prices for trucks in specific mileage ranges have not changed appreciably in over a year. So the lower value of the market as a whole is driven by additional higher-mileage trucks contributing to the overall average, not a devaluation of individual trucks. In other words, even though there are more higher-mileage trucks sold at auction than a year ago, an individual truck is still worth about the same. See the “Percentage of Sleeper Tractors Sold” and “Average Wholesale Selling Price by Mileage Range” graphs for detail. 90% Average Retail Selling Price of Selected Models 80% Adjusted for Mileage 70% $80,000 60% 50% 2 per. Mov. Avg.(Retail) $70,000 40% 2 per. Mov. Avg.(Wholesale) $60,000 30% $50,000 20% $40,000 10% 3 per. Mov. Avg.(T660/600) $30,000 Source: ATD/NADA 0% 3 per. Mov. Avg.(VNL 630/670) Ja n-‐ 12 Fe b M ar Ap r M ay Ju n Ju l Au g Se p Oc t No v De Ja c n-‐ 13 Fe b M ar Ap r $20,000 3 per. Mov. Avg.(387) $10,000 3 per. Mov. Avg.(T2000) Source: ATD/NADA Apr Feb Mar Jan-‐13 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Average Wholesale Selling Price by Mileage Range (Sleeper Tractors) $50,000 Feb Jan-‐12 $0 $45,000 Avg. Retail Selling Price of Selected Models $40,000 Adjusted for Mileage $35,000 $80,000 $30,000 $70,000 $25,000 $60,000 $20,000 $50,000 $30,000 NADA regularly publishes updates on the macro value of the retail market. That data just scratches the surface of what we maintain behind the scenes. In this issue, we provide a look at some of the more granular data that we use to set the values published in our products. The “Retail Selling Price of 3-6YO Sleeper Tractors” graphs show the moving 3-month average selling price for sleeper tractors by model, adjusted for mileage. Specs have been pruned to include only those trucks with large-bore vendor or larger OEM engines (this means no ISM’s, ISX 11.9’s, C13’s, D11’s, or MP7’s). Results have been split into 3 graphs for ease of reading. 3 per. Mov. Avg.(Century) 3 per. Mov. Avg.(Columbia) Apr Feb Dec Nov Oct Sep Aug Jul Jun Apr Mar Feb Mar Source: ATD/NADA $0 Jan-‐13 $10,000 May Special Study: Model vs. Model Retail Pricing 3 per. Mov. Avg.(CX) $20,000 Jan-‐12 Apr Mar Feb Dec Oct Nov Source: ATD/NADA Sep Jul $40,000 Aug Jun May Jan-‐12 $0 Apr $5,000 Feb $10,000 Mar 2 per. Mov. Avg.(500-‐599K) 2 per. Mov. Avg.(600-‐699K) 2 per. Mov. Avg.(700-‐799K) 2 per. Mov. Avg.(800-‐899K) Jan-‐13 $15,000 From the first two graphs, you can see that the “top tier” of pricing is represented by the Freightliner Cascadia, Volvo VNL 730/780, and Peterbilt 386. The Kenworth T660 made a comeback of sorts in late 2012 to join that group as well. These models are generally considered to feature good fuel economy, current technology, and freedom from engine-related issues. The 730/780 is not necessarily a leader in fuel economy, but its typically high level of content and large sleeper area are positives for buyers in a specific segment of the market. NADA continued on page 8 www.UTA.org June 2013 7 UTA Industry Watch NADA continued from page 7 The “second tier” is roughly represented by trucks averaging around the $50,000 mark, including the Kenworth T2000, Peterbilt 387, and Volvo VNL 630/670. These trucks are generally considered reliable and proven. The T2000 and 387 have been out of production for multiple model years, which can potentially negatively impact selling prices. In addition, their wide cabs are excellent for driver comfort, but do not necessarily provide market-leading fuel economy. The Freightliner Century Class and Columbia and Mack CX returned the lowest selling prices on average, although they have come back in the past two quarters to bring their average closer to the rest of the group. Mack has traditionally been known as much for vocational, construction, and local delivery daycabs as for sleepers, so the CX’s performance is impressive for this segment. As for the Freightliners, the main factor here is the inclusion of the Mercedes MBE4000 engine in the mix. Trucks equipped with available Cummins or Detroit engines typically bring more money than those equipped with the Mercedes, so eliminating that variable would positively impact the averages. Keep in mind that values published in ATD/NADA products provide adds and deducts for these engines, so our “base” values position the Century and Columbia more competitively than what is shown in the graph. As for Cabovers, aside from a high outlier in September of last year followed by a low outlier in November, pricing has not changed notably since January, 2012. Volume has been relatively steady since the 3rd quarter of last year, when the number of trucks sold decreased from previous months. Steady pricing on lower volume suggests that segment is not yet in recovery. See “Average Wholesale Selling Price: 4-7 Year Old Cabovers” graph for detail. Average Wholesale Selling Price: 4-‐7 Year-‐Old Class 3-‐4 Cabovers Adjusted for Mileage 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 Sources: ATD/NADA and Auc2onNet 0 40909 41275 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Feb Mar Apr The wild card in this analysis is the International ProStar. Selling prices for MaxxForce-equipped trucks are literally all over the map, and this factor seems to have somewhat illogically spilled over to pricing for ISX-equipped models as well. There are a select few dealers who appear to be selling ProStars at competitive prices. However, there are also many dealers who are not. It appears the market is still establishing a comfort level with this model, and we will continue to investigate other potential causes of this dealer vs. dealer disparity. In the meantime, the averages shown reflect data we have received. With all these vehicles exposed to (and participating in) a wide variety of economic segments, it is difficult to explain monthly changes in price. However, one possible explanation for April’s lower pricing for Conventionals is that dealers and end users focused on purchasing trucks in the first quarter, in advance of the Spring building and contracting season. As for volume, cyclical fleet trades could be one reason for the recent uptick. Medium Duty Cabovers and Conventionals Sales Volume After a promising first quarter, April’s wholesale results show a mild decrease in wholesale pricing for our sample population of Class 4 to 6 Conventionals. Volume was down as well. See “Average Wholesale Selling Price – 4 to7 Year Old Conventionals” graph for detail. April’s retail sales per dealership were identical to March’s, at 6.3 trucks per rooftop. This result is down 0.3 (or 4.5 percent) from last April. 2012’s 12-month average was 6.0 trucks per rooftop, and 2013 to date is 6.2. See “Average Number of Used Trucks Sold” graph for detail. Average Wholesale Selling Price: 4-‐7 Year-‐Old Conven:onals by GVW Class Adjusted for Mileage $25,000 Average Number of Used Trucks Sold per Roo8op (NADA Repor;ng Dealers) 8 Source: ATD/NADA 7 $20,000 6 $15,000 5 All classes were down substantially in volume vs. March. The biggest hit was in Class 6, with a 54.6 percent decrease month-over-month. However, this figure is compared to an unusually strong March. Tough monthover-month comparisons were true for Classes 4 and 5 as well. If March is excluded, April’s volume was comparable to other recent months. 8 June 2013 Mar Nov Jan-‐13 Jul Sep Mar May Nov Jan-‐12 Jul Sep Mar May Nov Jan-‐11 Jul Sep Mar May Nov 0 Jan-‐10 2 Fe b M ar Ap r M ay Ju n Ju l Au g Se p Oc t No v De Ja c n-‐ 13 Fe b M ar Ap r n-‐ 1 Ja Specifically, compared to March, Class 4 was down $538 (or 3.8 percent), Class 5 was down $978 (or 5.4 percent), and Class 6 was down $924 (or 5.7 percent). Compared to last April, Class 4 was down $909 (or 6.2 percent), Class 5 was down $853 (or 4.7 percent), and Class 6 was down a notable $4433 (or 22.4 percent). 1 Jul 2 per. Mov. Avg.(Class 6) Sep Sources: ATD/NADA and Auc2onNet $0 Wholesale 2 Mar 2 per. Mov. Avg.(Class 5) Retail 3 May 2 per. Mov. Avg.(Class 4) $5,000 4 Jan-‐09 $10,000 On the wholesale side, 2013 is seeing notable increases in number of trucks sold (see “Total Wholesale Sales” graph). April built on March’s healthy increase to come in at 3879 – a 620 (or 16.0 percent) increase. Year-over-year, April was 652 (or 16.8 percent) higher. April’s result pushed the year-to-date monthly average to 3248, compared to 2012’s average of 2856. We attribute the increase to the aforementioned shift of Class 8 trucks with over 600,000 miles into the wholesale channels, as well as higher numbers of medium duty trucks and vans sold. www.UTA.org UTA Industry Watch Total Wholesale Sales Reported to NADA 6000 5000 Moving on Down the Road: Catching Up With Jay Burgess 4000 3000 2000 1000 Source: ATD/NADA Jan-‐10 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-‐11 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-‐12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-‐13 Feb Mar Apr 0 Conclusion Going forward, we expect Class 8 retail pricing to remain strong. Increased numbers of 2009 and 2010 model year trucks coming off lease should provide the market with some of the lower-mileage iron it demands, although not in the numbers necessary to push pricing downward notably. The auction channel seems to be absorbing the influx of higher-mileage trucks without a negative micro impact on pricing, and we will monitor this channel closely for any change. New truck orders are in their 3rd quarter of relative strength, still not reflecting expansion, but notably higher than same-period 2012. In general, economic fundamentals remain strong enough to support mild positive movement in most measures. The housing market and consumer spending are two critical factors that have come on-line in recent months. The economy continues to shrug off the political dysfunction that has resulted in budgetary uncertainty. Sequestration has so far turned out to be less of a factor at a macro level than feared, and we do not forecast a major shift in fundamentals based on that variable. n Reprinted with permission from the ATD/ NADA Official Commercial Truck Guide® www.nada.com/b2b UTA’s own Jay Burgess recently made a move himself and naturally we wanted to give you all the details. In April, after four years with Insurance Auto Auction’s (IAA) sister company, Adesa Auctions, Jay moved on to a position with IAA. He’s now working as National Accounts Manager for IAA’s Specialty Division. While he’s still learning he says he’s having a great time doing so. Jay filled us in a bit on his new job. “My job will be to find trucks and equipment for our auction, “ he said. “Although IAAI’s main focus has always been selling salvaged and damaged trucks and equipment, I will be focusing on building a ‘clean title’ sale. We will offer good running trucks, trailers, and equipment on-line from all over the country to a buyer base all over the world. Our vision is to have each of these trucks inspected by a third-party inspection company so all of our buyers will be comfortable with their purchase.” Jay’s new job shares some similarities with his most recent position. “We’re still an auction,” he said. “But we do everything on-line vs. live and in person.” One thing new that Jay will be doing is working catastrophes or “CATS,” as he says they’re called in the business. “When something terrible happens in the U.S. such as a hurricane, tornado, or flood, insurance companies move very quickly,” he said. “The insurance companies rely on companies such as IAAI to take care of their customers. We will go in and remove their cars, trucks, or any equipment the customer has insured, and sell it all over the world to get the very best money for the insurance company.” Jay extended an invitation to his fellow UTA members to “explore the profit opportunities provided by IAAI.” (You can check out their website at www.iaai.com.) He added that he will be contacting UTA members very soon “with a way to buy ‘clean title’ good-running inspected trucks the IAAI way!” How you are perceived by your clients is essential to your sales career. Are you seen as the product pusher, business expert or trusted advisor? www.UTA.org Finally Jay asked that UTA members continue to support Adesa Auctions. “They are a great company and I want to thank them for all of the opportunities they provided for me.” n June 2013 9 UTA Industry Watch Industry News Briefs FTR’s TCI Measure Tops 13 Percent for March FTR’s Trucking Conditions Index came in at 13.12 for March, which is quite good since anything over 10 is considered favorable. Such readings suggest “volumes, prices, and margins are likely to be in a solidly favorable range for trucking companies,” according to FTR. (The TCI summarizes “a full collection of industry metrics,” FTR says.) FTR sounded a note of caution stating that conditions for truckers are now only “mildly favorable.” But because the TCI is not just a snapshot, but also a measure of what FTR figures indicate is ahead, the index keeps rising. FTR feels that continuing modest volume growth, coupled with the effects of new trucking regulations, including the Hours of Service revision scheduled to begin July 1st, “will cause trucking rates to firm up substantially in the coming months, improving carrier profitability.” Speaking to the effects of the revised Hours of Service Regulations, barring an injunction, FTR estimates that overall productivity will drop about three percent due to the changes. But FTR said this number will vary widely “depending on the characteristics of each carrier and shipper. Removal of three percent of trucking capacity should be enough to start rates on a solid upward trajectory. If regulators continue to roll out the additional regulatory changes already in the pipeline and freight continues to grow at even a moderate pace, tight conditions could continue for several years.” n FTR Sees Rebound in April’s Class 8 Orders FTR Associates was even more positive about recent order trends. Their figures showed April’s Class 8 truck net orders at 23,026, or six percent above March’s numbers. FTR also noted that Class 8 truck orders have been above 20,000 for five straight months “with April orders 37 percent improved from a year ago.” While FTR found that there was a dip in March orders, “the last three months annualize to 270,400 units,” the research firm said. Their preliminary numbers cover all major North American OEMs. “Orders continue to remain at a healthy level, coming in at the high end of our expectations. This bodes well for a continuation of the modest growth in equipment sales during 2013,” said Jonathan Starks, FTR’s director, transportation analysis. However, FTR once again, added a note of caution. “Despite this, our optimism is tempered by the weakness seen in much of the economic data over the last month and by our discussions with fleets. There is no desire to add equipment in the near-term and merely replacing equipment doesn’t create additional equipment demand beyond our current expectations,” Starks added. n Peterbilt Names Nashville Dealer 2012 Medium Duty Dealer of the Year Peterbilt Motors Company named Rush Peterbilt Truck Center – Nashville its 2012 Medium Duty Dealer of the Year during its annual Dealer Meeting. “Rush Peterbilt Truck Center – Nashville led the sale and support of the full lineup of Peterbilt medium-duty vehicles with record-breaking results,” said Bill Kozek, Peterbilt General Manager and PACCAR Vice President. “They embraced the versatility and superior performance of our medium-duty trucks and tractors by focusing on a wide range of market segments and customers.” Peterbilt presented the award to Dealer Principals Marvin and Rusty Rush during the event held at the PACCAR MX Engine manufacturing facility in Columbus, MS. “We strive to exceed customer expectations and Peterbilt’s medium-duty lineup is an integral component of our goal to be a complete solutions provider across all commercial vehicle applications,” said Rusty Rush. “This award is the result of the hard work and unwavering discipline of our medium duty sales team, as well as the dedication and expertise of all employees who deliver unparalleled customer satisfaction,” Rush added. n Photo Caption: (L-R) Robert Woodall, Peterbilt Director of Sales and Marketing; Rusty Rush, Rush Enterprise, Inc.; Marvin Rush, Rush Enterprise, Inc.; and Bill Kozek, Peterbilt General Manager and PACCAR Vice President. 10 June 2013 www.UTA.org UTA Industry Watch April’s Orders Once Again on Track: ACT The stability in the marketplace that we’ve all been waiting for seems to have finally arrived. According to ACT Research, April was the third month in a row where year-to-year comparisons showed growth in Class 8 orders. Classes 5 to 7 also continued their upward trend. Class 8 preliminary net orders came in at 23,300 continuing the order trend that began last October. Over the intervening seven months, ACT reports, orders came in at between 20,100 units and April’s expected 23,300 units. Similarly, Classes 5-7’s 15,800 preliminary net orders were also in keeping with the recent trend in orders. While final numbers were not available at the time of this writing, preliminary net order numbers are typically accurate to within five percent of the final tallies. “April’s Class 8 preliminary net orders were up sequentially and year over year,” said Kenny Vieth, president and senior analyst, ACT Research. “April was the third consecutive month of positive y/y comparisons. While April’s Classes 5-7 volume was down from year-ago levels, the 3-month order average is running slightly ahead of the year-ago comparison,” he added. n Navistar Starts Shipping MaxxForce 13-Liter With SCR Ahead of schedule, Navistar, Inc. began shipping its first International® ProStar® units powered by its SCR-based MaxxForce 13 engine. The first units started shipping April 26, from manufacturing plants in Escobedo, Mexico and Springfield, OH. Earlier in April, the U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) awarded Navistar certification for the SCR-based 13-liter engine. “Delivering our 13-liter engine ahead of schedule is another important milestone for Navistar and completes our transition to SCR-based heavy-duty engine offerings,” said Troy Clarke, Navistar president and chief executive officer. “We continue to receive great customer feedback on the refined 13-liter engines we’re delivering today. And, customers will continue to see outstanding levels of quality, reliability, and uptime with our 13-liter engine combined with the proven Cummins SCR aftertreatment system.” Navistar introduced its first SCR-based commercial trucks for the U.S. and Canadian markets in December 2012 when it launched its International® ProStar® with the Cummins ISX 15-liter engine. The company said its remaining International heavy-duty truck models will move to SCR-based clean engine technology “in a phased launch in the coming months based on volume and customer demand.” n Peterbilt Names Quebec Dealer Tops in Parts and Service It must have been a busy but rewarding meeting for some attendees of Peterbilt’s recent Dealer Meeting. Highlighting its achievement in exceeding goals and customer satisfaction excellence, Peterbilt named Camions Excellence Peterbilt – Laval best in aftermarket performance in 2012. The Quebec-based dealership earned Peterbilt’s North American Parts and Service Dealer of the Year Award. Nicole and Dany Lussier, Dealer Principals accepted the award. “We are committed to providing every customer with the best possible service and support throughout the life of their vehicles,” said Nicole Lussier. “We invest in the technologies, tools and personnel that set us apart and allow us to help customers maximize their uptime and minimize their costs.” Peterbilt said the dealership achieved top scores in each of its Standards of Excellence categories. “They had the highest parts and service financial score and achieved an excellent absorption rate,” Peterbilt stated in its release about the award. “The service area of Camions Excellence Peterbilt – Laval is always full and they are well known as the best shop in the area,” Peterbilt GM Bill Kozek said. “They embrace all available training, the full parts catalogs of TRP and PACCAR Parts, and the MX-13 engine. They have a fiercely loyal customer base who knows that they will be treated professionally, fairly and quickly.” “The team at Camions Excellence Peterbilt – Laval is known for superior support of Peterbilt trucks and the PACCAR MX-13 engine,” said Darrin Siver, PACCAR Vice President and PACCAR Parts general manager. “They maintain an outstanding parts inventory and are dedicated to excellent customer service.” n www.UTA.org Darrin Siver, PACCAR Parts General Manager and PACCAR Vice President; Nicole Lussier, Camions Excellence Peterbilt – Laval; Dany Lussier, Camions Excellence Peterbilt – Laval; Bill Kozek, Peterbilt General Manager and PACCAR Vice President; and Tony McQuary, PACCAR Parts General Sales Manager. Industry News Briefs continued on page 12 June 2013 11 UTA Industry Watch Industry News Briefs continued from page 11 Private Fleets More Willing to Boost Capacity Private fleets are now adding capacity with additional units faster than for-hire fleets, according to the “Q2 2013 Fleet Sentiment Survey” from CK Commercial Vehicle Research (www.ckcvr.com). Half of the private fleets said they were adding capacity with the power units they expected to purchase (over the next quarter). They designated an average of over 40 percent of those orders for that purpose. During the same quarter last year, a third of for-hire fleets said they were adding capacity averaging just six percent of power units directed to growing their vehicle population, CKCVR noted. Chris Kemmer, Principal at CKCVR, noted the correlation between responses to the added capacity inquiry and one asking about driver shortage. “Based on what our survey participants are telling us for-hire fleets have a much, much larger problem with a shortage of drivers so adding capacity is hard; the private fleets in our advisory group generally don’t have that issue. They have an incentive to add capacity to be sure their products get shipped and the ability to do so because they can fill the trucks with drivers. We expect the looming Hours of Service regulation implementation adds to the urgency to solidify hauling capacity.” Other highlights from the Q2 2013 Fleet Sentiment Report: ■■ The FSR Buying Index fell to 97.5 from the last quarter’s 103.8 reading. The Buying Index measures the percent of fleets planning to buy medium/heavy duty trucks and trailers along with the expected volume of those orders, for the three months following the inquiry. The decline in Q2 was primarily impacted by softer order plans for trucks. ■■ Most of the fleets responding have sufficient freight demand to meet their fleet capacity. An increasing percentage say they need more equipment. ■■ 42 percent of respondents are now fleet testing a product or technology. ■■ Overall, the environment at the surveyed fleets is “good.” Fifty-one fleets participated in the Q2 2013 Fleet Sentiment Survey. They operate in excess of 35,000 Class 8 trucks and 95,000 trailers. More information about the Fleet Sentiment Report and how to subscribe can be found at http://www.ckcvr.com/FSR.html n The industry’s biggest and best event Valuable Information Face-to-Face Networking Fantastic Tours, Golf and Shopping Dynamic Speakers and MORE! November 6-9, 2013 Orlando, Florida Walt Disney World Swan and Dolphin Resort www.swandolphin.com 12 June 2013 www.UTA.org UTA Industry Watch Industry Events Calendar 2013 JUNE SEPTEMBER 26 – 27 • 8th Annual UTA Kansas City Golf Outing to benefit the UTA Jerome Nerman Family Foundation 27 – 28 • Guilty By Association Truck Show Sponsored by Chrome Shop Mafia Joplin, MO Adams Pointe Conference Center & Golf Club 4 State Trucks I-44, Exit 4 http://chromeshopmafia.com/ events/gbats/ Blue Springs, MO 64014 Marriott Courtyard KC East www.UTA.org Continued June 17 & 18th, 2010 JULY 11 – 13 • Walcott Truckers Jamboree Sponsored by Iowa 80 Truckstop Walcott, IA I-80 Exit 284 www.iowa80truckstop.com/ trucker-jamboree/ AUGUST 22 – 24 • Great American Trucking Show Sponsored by Randall-Reilly Dallas, TX Dallas Convention Center http://www.gatsonline.com/ OCTOBER 14 – 15 • UTA Sponsored Seminar Training: Selling for Success Dallas, TX www.UTA.org 19 – 20 • Golden State Trucking Expo Sponsored by CAP Companies, LLC Pomona, CA Fairplex http://www.goldenstatetruckingexpo.com/directory.html 19 – 22 • 2013 ATA Management Conference & Exhibition Orlando, FL Orlando World Center http://www.trucking.org/mce/Pages/default.aspx SEPTEMBER 10 – 22 • Review & Outlook 2013-2017 Columbus, IN Sponsored by ACT Research www.actresearch.net 16 – 17 • UTA Sponsored Seminar Training: Selling for Success Los Angeles, CA NOVEMBER 6 – 9 • 14th Annual UTA Convention Orlando, FL at The Walt Disney World Swan and Dolphin Resort www.UTA.org www.UTA.org 18 - 19 • 2013 Great Lakes Truck Expo Cleveland, OH Cleveland Medical Mart & Convention Center (CMMCC) http://greatlakestruckexpo.com/ www.UTA.org June 2013 13 UTA Industry Watch 14 June 2013 www.UTA.org NeXt stop ORLANDO...Imagine the Possibilities UTA Industry Watch From Where We Sit Here we are in the happy season of Brides, Dads, and Grads! Nature has burst open to reveal all the beautiful things she’s been working on all winter, and the damp cold spring is finally behind us. It’s time to get out the shorts, start up the grills, and spend this season embracing the happiness of the brides, the achievements of the grads, and the dedication of those dads. Once again, life seems good, rich, and vibrant, except of course for those among us who don’t see it that way. As we head into the frenzied happiness of a long summer stretching out just there beyond Memorial Day weekend, we know deep in our hearts, that some among us don’t look to this gentle season with happiness and enthusiasm. Just today we are struggling with devastating tornadoes in the Oklahoma, and media reports keep making real life look worse. It was only a few weeks ago that the bombing in Boston marred our happy spring. And even beyond these huge tragedies, who among us has not looked ahead at a season known for joy and struggled with the illnesses of loved ones or with their passing? Why do we always seem to need a reason to embrace life’s happiness? Yes, we rejoice for the happy bride, but any bride will tell you that those last few months leading up to the “big day” can be indescribably stressful and even dreadful. Why not rejoice for the couple as they make their plans, help them celebrate the process of getting married, and not just the event? And what about those Grads? We’ve known some who asked relatives not to get too excited until final grades came through. That’s stress! And what about the fractures in families, that can make such milestones so complex? As for Dad? Well, the great ones deserve to be honored every day in ways big and small. Sure, grill him a burger and hand him a beer on Father’s Day, but honor him and treat him as he deserves on ordinary days in October, too, or even February. Sometimes it seems that these big events, happy as they should be, bring to light strong responses of stress, trepidation, and anxiety. Lately it seems that demystifying them, and instead finding the beauty and mystery of every day makes life richer and more rewarding. So, catching a glimpse of a hawk hunting over an open field while you wait in line at the bank drive-in, becomes a memory. Noticing that the sky, as you drive home, is such a crystal blue with the perfect ratio of white clouds floating along, can make a moment in a hectic day seem like it stepped from a child’s storybook. Coming home to rejoice with your family, all of whom are well, happy, and ready to eat a good meal together makes even a long Wednesday look better. Even if the house is a mess, the trash didn’t get out, and everyone forgot to stop for milk, www.UTA.org this moment can be as joyful and full of achievement as any of the special days we cherish so. By all means, celebrate in great joy with the Bride and Groom, hoist up that stellar Grad, and never fail to show your love and devotion to Dad, but at the same time, just think of the world we could have if we did this more than just occasionally. It would be beautiful. At least that’s the way it looks from where we sit. Deb and Brad Schepp [email protected] June 2013 15
Similar documents
Industry Watch September 2012
Table of Contents Board News & Views............................2 New Members.......................................3 Face to Face with Philip Jenkins...........4 The Brooks Group Sales Tip of the ...
More information