Industry Watch August 2014

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..................................... 5, 7
Face to Face with Charles Cathey......... 6
Moving On Down the Road:
Catching up with Mike Mounsey.....7
A Letter to the Sponsors of
UTA Jerome Nerman Family
Foundation Kansas City
Golf Tournament..............................8
Industry Events Calendar......................10
The Brooks Group
Sales Tip of the Month......................10
UTA Q&A: NADA’s Chris Visser.......... 12
Wreath Across America..................... 14
Risk Insights................................... 16-17
NADA Update ..............................18-21
Industry News Briefs.....................22-23
2013 UTA Convention Photos.......26-27
From Where We Sit............................28
The UTA…
Members Supporting Members!
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]
Volume 16 • Issue 8 • August 2014
For the Love of Trucking
Written by Angelique Pierce, Daimler Trucks Remarketing/SelecTrucks
W
e all have things we love—places we love to go and things we love to do. Some people
like to surround themselves in the adventures of the outdoors, while others can spend
entire days lost reading a good book. Then there are those who we call “foodies,” who find great
joy in cooking meals and tasting new foods. No matter what your pleasure, there is a common
thread that keeps you going back for more—Passion!
That same passion is found in those of us in the trucking industry because we recognize how
vital it is to our country. It’s that desire that drove and continues to drive women to join men in
the effort to grow the trucking business—an industry that has a major impact on the progress
and sustainability of our great nation.
There are countless stories, past and present, of women making the choice for trucking. The
contributions these women have made date back to WWI, when women drove trucks to help
haul military equipment. There’s also the story of Annie Box Neal from whom the phrase
“riding shotgun” originated. From the Old West, Annie was well-known for sitting next to her
husband on his rig, holding a shotgun for security as they transported gold bullion through the
Tucson, AZ region.
Maybe you have heard of Lillie McGee Drennan who, in 1929, became the first woman truck
driver to earn a CDL. She later became the sole owner of Drenne Truck Line, the first trucking
company owned by a woman.
In 2011, the Women in Trucking (WIT) Association was started to raise awareness of the
transportation industry as a career option for women. With Ellen Voie leading as President and
CEO, WIT recently launched the “I HEART Trucking” campaign, which has the goal of getting
drivers—both women and men—to talk about what they love about their jobs.
Also, Anne Ferro has headed the U.S. Federal Motor Carrier Safety Administration (FMCSA)
since 2009. Under her leadership, Anne created a new culture of safety in the commercial
trucking and bus industries. But women’s contributions to trucking are not confined to the U.S.
In March 2014, Noelene Watson (Managing Director of Don Watson Transport) was named the
new chairperson of the Australian Trucking Association. She is the first woman to hold that
position, and has strived to improve the image of professional drivers, and improve the health of
truck drivers.
Finally, we certainly cannot forget the thousands of women who work in the trucking industry
today, especially those who further the efforts of the Used Truck Association (UTA). That
includes our very own, Sheri Aaberg and Amy Shahan, who have contributed to our industry
through their considerable experience in the trucking business, and years of service as UTA
members and board members.
There are women in trucking who drive and those who don’t.
There are women who run trucking companies, manage inventory, or structure financing deals. There are still other women who
make trucks, sell trucks, or fix trucks. But whatever their role,
women are doing what they do for the love of trucking—the
industry that is the engine behind our country’s economy. n
UTA Industry Watch
2014 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
................................Brock Frederick
Convention..................Hal Dickson,
Sheri Aaberg
Dealer Group.......... Mike Thurston,
Bobby Williams
Elections................ George Barnett
Finance.......................... Tom Pfeiler
Board News and Views
In July, I had the privilege of hosting the UTA board in Chicago for a Navistar event
announcing the Diamond Renewed program. When my company was beginning to plan the
event it was interesting to hear who we should invite. The list quickly started to come together.
When the UTA Board of Directors, value guide books, finance companies, and other groups
were mentioned there was a quick yes to everyone. Then the fun began.
I was asked for a list of who was on the board. Immediately, people asked why I was going to
invite a Pete Dealer, a Volvo guy, an MHC person, Mack corporate, and probably the worst of
them all (sorry Tom), the dreaded Freightliner guy! When I started to explain (for at least the
fourth time) that they are the people who we need to get in front of, and get the word out to,
something really hit me.
When was the last time a
Volvo, Mack, Freightliner,
Kenworth, Pete, and
International guy all had a
dinner or drink together?
That group would be more
difficult to bring together
than Middle East peace. I
started then to appreciate
even more how great the
Used Truck industry really
is. We may all have our
own affiliations, but at the
same time we cross paths
and have a common
interest and a common
product: USED TRUCKS! Not Freightliner used trucks or Paccar used trucks, but just used
trucks.
Medium Duty..............Amy Shahan
It was great seeing most of the board come in for the day event, and really trying to get the most
from it. Everyone was trying to figure out how to increase their productivity and sales through
the process we outlined.
Membership........... John Cosgrove,
Kenny Doonan
I’d like to say thanks to all of the members who attended, and I know some of you had to answer
the same types of questions I got asked (like why the heck are you going to Navistar?). I look
forward to seeing everyone in Arizona for another USED TRUCK event!
Marketing........................ Rick Clark
Training............................Ken Kosic,
Brock Frederick
UTA Jerome Nerman Family
Foundation Scholarship
..................................... Jay Burgess,
Brock Frederick
Brock Frederick
[email protected]
UTA.org Website......Bobby Williams
Wreaths Across America
....................................Bobby Williams
The jungle is dark but full
of diamonds…
~Arthur Miller
2 August 2014
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.
Kregg Baur
Mike Fulghum, Owner
Central California Truck and Trailer Sales
4244 S. Bagley Ave.
Fresno, CA 93725
http://www.wtrucksales.net
(916) 300-3822 (w)
[email protected]
Southern Truck Sales
16915 East Fwy.
Channelview, TX 77530
http://www.southerntrucksales.com
(281) 452-2151 (w)
[email protected]
Matt Crossman, Corporate GSM
Joe Gelfo
MHC Kenworth
11120 Tomahawk Creek Pkwy
Leawood, KS 66211
www.mhctruck.com
(816) 242-6261 (w)
[email protected]
Truck Master Warranty
1524 Bloomingdale Ave
Valrico, FL 33596
http://www.truckmasterwarranty.com
(800) 326-5204 (w)
[email protected]
Matt just started in the business last year,
working on the wholesale/buying side.
When asked what he liked best about his
current job he had no problem coming up
with an answer. “I love traveling around
to our locations and working hands-on
with the guys to help build sales,” he
said. “I also enjoy my work here at the
office trying to develop new systems and
policies to make our sales guys’ jobs
easier and increase sales.”
Matt’s looking forward to developing more
contacts in the industry now that he’s a
UTA member.
Rick Dodson, VP Used Trucks
Hunter Truck Sales
480 Pittsburgh Road
Butler, PA 16002
http://www.huntertrucksales.com
(724) 586-5710 (w)
[email protected]
Paul Friesen, Manager
All Truck Sales
1st Ave Court #1
Greeley, CO 80631
http://www.alltrucksalesco.com
(970) 352-5550 (w)
[email protected]
John Riley George, Sales Representative
The Larson Group/Peterbilt of St. Louis
2350 Sauget Industrial Parkway
Sauget, IL 62206
http://tlgtrucks.com
(618) 798-0325 (w)
[email protected]
“My grandfather and
father both have run
trucks my whole life.
I have worked on,
washed and drove
them since I was very
young,” said new UTA
member John Riley
George. His first
professional job in the
business was driving
a delivery truck while in college.
John explained his reason for becoming a
UTA member succinctly. “I hope to make
new contacts with whom I can share ideas,
work together to help each other out, and
ultimately sell more trucks.”
While some sales people feel they can sell
pretty much anything, John sees trucks as
his passion and can’t see himself selling
anything else. “Working around trucks and
the business end has always interested me,
doing this job fits that really well,” he noted.
But when we asked what he might do outside
of the truck business, John mentioned the
cattle buying business as a possibility or
“something with financials.”
When he’s not at work John enjoys the
outdoors, whether it’s “being on the river,
in a tree-stand, sitting around a campfire
playing music on the river, or riding my
side by side.”
While John has been around trucks his
whole life, he’s only 23 years old, and says
he’s always open to learning from the old
pros to make himself more successful.
Warren Green, Used Equipment Sales
Representative-Midwest
Paccar Financial Corp
9620 S 76th Avenue
Hickory Hills, IL 60457
(708) 430-9182 (w)
[email protected]
Michael Griffis, General Manager
Commercial Truck Sales
605 S Loop 12
Irving, TX 75060
http://www.ctstrucksales.com
(972) 438-4743 (w)
[email protected]
Ken Kosic
Rush Truck Center
11525 S. Rogers Rd
Olathe, KS 66062
http://rushtruckcenter.com
(816) 985-8262 (w)
[email protected]
Michael Malcolm, President
Mike Malcolm Enterprises, Inc.
1975 Westpointe Circle
Orlando, FL 32835
(407) 341-3040 (w)
[email protected]
New Members continued on page 7
www.UTA.org
August 2014 5
UTA Industry Watch
Charles Cathey
S
ince 2005, Charles has been the Editor
of Heavy Duty Truck Data and
Commercial Trailer Data for the Black Book
Heavy Duty Truck and Trailer Guide*. The
monthly publication reports on the used truck
values and data for approximately 4,000
Class 4 and Class 8 trucks, tractors, straight
trucks, and commercial trailers in the used
truck and transportation industry. “My main
responsibility is to determine and report
wholesale values for the above equipment,”
Charles said. “I do this by monitoring
auction activity, attending live heavy duty
auctions, watching simulcast auctions, and
studying other monthly wholesale truck and
commercial trailer values I receive via various
electronic channels.” Charles has been a UTA
member since 2005 when he joined Black Book,
but, of course, he’d begun to build his expertise
in the trucking industry long before that.
Charles’ career spans back more than 40 years
to 1971 when he took a job as salesman for
Nalley Motor Trucks (Peterbilt, Brockkway,
and heavy duty Chevy trucks.) “I was hired
as a salesman, but I was basically a pledge for
the first six months to a year, always at the
beck and call of other (senior) salesmen,”
Charles recalls. “It was a tremendous
learning experience, seeing how the best
salesmen stayed the best.” Charles stayed
with Nalley Motor Trucks for 17 years. Along
the way he also worked for Volvo-GMC
Trucks of Atlanta, now Vanguard Truck
Center, the Volvo, Mack, and Isuzu dealer in
Forest Park, GA. In the early 90s Charles
took his career into a different direction
when he moved into the leasing business by
joining LeasePlan. The company leases
heavy trucks, medium duty trucks, and also
light trucks and cars.
Throughout the years, Charles has been
building his expertise he has always kept the
people he works with and serves in the
forefront. As a matter of fact, in his current
job, the people are what he still enjoys most.
“The people I work with at the office and the
customers and the business related contacts I
work with,” was the answer Charles gave
when we asked what he enjoys most about
his job. “When I’m in the office and get a
phone call or an email from a customer or
someone with a truck question, whether it’s
value-related or not, I get a kick out of calling
them and answering their questions,” he said.
Like so many others in this industry his first
truck sale popped to mind when we asked
what he looks back on with pride. “It was a
brand new 1970 Chevrolet C65 with a
transferred London-Log body (12’ length
logs) which I sold for $6,900 dollars and got
paid $500 commission,” he recalled. Among
his other fond memories was getting called
on by Peterbilt to see if he would be
interested in providing all the trucks and
drivers for the filming of the movie Smokey
and the Bandit. “The movie was primarily
filmed around the Atlanta area,” Charles
6 August 2014
explained. “I got nine of my customers to
help me and for about four or five weeks
that’s pretty much all I did. It was a blast,
and it was very cool being on the movie set.
It was quite an experience.” Charles came to
be good friends Jerry Reed, and he rubbed
elbows with Burt Reynolds, Sally Field, and
the Great One, Jackie Gleason, too.
Early in his career, Charles had already
learned to treat his customers as though they
were the stars. “Never, ever, ever take anyone
for granted,” he said. “After a few years of
selling and being pretty successful at it, I
tended to pre-qualify and ‘crystal ball’
prospective customers. Unless you know for
dead solid positive that they are not for real,
treat them as an A+++ customer.” Charles
shared this wisdom for younger people just
starting out in the industry and added that it
is important for those following behind to
learn from the experiences and advice of the
older veteran members of the industry and
to continue their learning beyond experience,
too. “Accept all offers from your employers
to attend training seminars,” he advised.
Whether the subject is sales, time management, or any other work-related training, he
encourages attending all trainings and other
higher education opportunities employers
are willing to support.
As a long-time resident of Atlanta, Charles is
happy to have raised his three sons in a
single hometown. Growing up, his family
moved so frequently that by the time he
graduated high school, Charles had lived in
nine cities. He determined his kids would
graduate from the same school system where
they began their educations. Today, Charles
is enjoying the company of his two young
grandsons and his granddaughter. All of his
adult life, he has been active in sports; playing
softball, golfing, hunting, and fishing. “My new
sport is trying to keep up with the grandsons,”
he said. “There is very little ‘sitting down’
time when we are together!” n
www.UTA.org
UTA Industry Watch
New Members continued from page 5
Molly Meloy
Scott Osborn
River Valley Capital Corp
14868 West Ridge Lane
Dubuque, IA 52003
http://www.rivervalleycapital.com
(563) 584-9800 (w)
[email protected]
TruckGuard/U.S Dealer Systems, Inc.
526 Sugar Maple Court
Cincinnati, OH 45255
(513) 325-6856 (w)
[email protected]
Jim Moeller
CSM Companies Headquarters
5100 Eastpark Blvd., Suite 210
Madison, WI 53718
http://www.csmcompaniesinc.com
(608) 241-5616 (w)
[email protected]
Mike Napier, Western Regional
Buyer/Wholesale
Rush Truck Center/Utah
964 South 3800 West
Salt Lake City, UT 84104
www.rushsaltlakecity.com
(801) 514-0159 (w)
[email protected]
Mike’s been in the
business since 1992,
spending the entire time
with Rush Truck Center.
His first job was fueling
and washing trucks.
Many of the people we
interview say that
meeting other people
from all around the country is one of the
things they like best about their work. On
that point Mike’s no exception. Then he
added: “It’s better than breaking my
knuckles as I did in the shop as a mechanic
for many years.”
Baseball is one of his passions, and Mike he
wasn’t in the truck industry he can
envision himself playing shortstop for the
St. Louis Cardinals! He coached little league
baseball for 20 years and also loves camping
and being outdoors in the summer. “I hate
winter,” Mike said, “but the number one
passion I have in life is my family.”
Drew Wirstrom, Sales
SouthWest International - Triple C Used
Trucks
3600 Irving Blvd
Dallas, TX 75247
www.southwestinternational.com
www.triplecusedtrucks.com
(214) 689-1540 (w)
[email protected]
Let’s welcome
Drew to our
business­—he
just joined
earlier this
year. Drew
had been in
the sub-prime
lending
industry for
14 years, and
was ready to
take on a new challenge.
“Knowledge and brotherhood,” are the two
things Drew mentioned he’s looking for
from his UTA membership.
As a newcomer to the business he enjoys
learning new things and the “constant
change.”
“I would love to be a rancher,” Drew said,
when asked what else he could see himself
doing. “I love being outside in the country,
hunting, fishing, and working cattle.”
Moving on Down the
Road: Catching Up
with Mike Mounsey
Just about six months ago long-time UTA
member Mike Mounsey returned to the
Larson Group, a Peterbilt dealer network in
Springfield, MO as the Regional Sales
Specialist. His job includes supporting sales
and managing inventory for the truck
departments in the company’s St. Louis,
Louisville, and Cincinnati locations. The
Larson Group’s network spans six states, and
Mike is responsible for the stores east of the
Mississippi River. In between his positions
with the Larson Group, Mike spent some
time working for MHK Kenworth in
Nashville, TN. Mike referred to his return to
the Larson Group as “coming home,” and
he’s happy to be back.
Mike’s new job gives him a little taste of
everything. “I assist the sales managers in
each store with trade values, wholesale
buying and selling, advertising, and
reconditioning guidance, among other
things,” Mike explained. “I try to be a
resource to support truck sales in any way
possible.”
“The opportunities with the Larson Group
are endless,” he said about his new job. He
enjoys the freedom the company gives him
to do his job, and he appreciates that Larson
management trusts their employees to take
care of their customers in ways that bring
them back. “I’d like to make people aware
that with the size of the Larson Group, we
are always buying and selling wholesale,” he
said, “so please stay in touch and let’s do
some business!” n
Other interests…”I am a Marine,” Drew
said. I was a founding member of a Veterans
Board at my previous company. We started a
charity and implemented a strategy to
recruit and employ veterans.”
Finally, Mike said he’s looking forward to
meeting and working with as many UTA
members as possible.
www.UTA.org
August 2014 7
UTA Industry Watch
A Letter to the Sponsors of the UTA Jerome Nerman
Family Foundation Kansas City Golf Tournament
Mr. Sponsor
123 Any Street
Any town, US, 32154
Dear Sponsor:
I wanted to express my deepest gratitude for your sponsorship of our UTA
Jerome Nerman Family Foundation annual golf tournament this past June. It
says a lot of a company like yours to step up and support the worthy scholarship program that the Nerman family has established.
The UTA Board of Directors and I work hard every year to make sure this great
scholarship program is fully funded by generous people just like you. I
appreciate your giving back to our community. Generously giving financial
assistance to students in their pursuit of higher education, is an investment in
all of our futures. These are all great young men and women who have excelled
in every aspect of their young lives, but who without our help may not become
all they can be.
The Board of Directors of the Used Truck Association believes, with all of our
hearts, that this scholarship program is a very big deal. Without your generosity, it would not be possible. So please, when you or your employees come ask
to play in the Golf Tournament and sponsor this scholarship program,
remember what it does for our community.
Also remember that this year we will award a scholarship to a deserving young
man or woman who is attending the Universal Technical Institute. Universal
Technical Institute, Inc. provides technical education training nationwide for
students seeking careers as professional automotive, diesel, collision repair,
motorcycle, or marine technicians.
Please read about the winners that we will announce in November at our
banquet. If you can use any of these young men or
women at your place of work, please contact them.
Again, I say thank you for your support! I look
forward to hearing from you again next year!
Sincerely,
Jay D. Burgess
Chairman, Scholarship Committee
2014 Sponsors
Adesa
Arrow Truck Sales
Best Used Trucks
Black Book
Bolt Insurance Agency
CAG Truck Capital
Doonan Truck & Equipment of
Witchita
Fleet Lease Disposal
Insurance Auto Auctions
J & J Driveaway
Mission Financial Service
National Truck Protection
Navistar
Next Truck
Next Truck Sales
Pyle Equipment Auctioneers
Ritchie Bros Auctioneers
RoadRunner
Truck Center of America
TruckGuard
TruckMovers.com
Vander Haag’s
Wholesale Trucks of America
8 August 2014
www.UTA.org
UTA Industry Watch
Industry Events Calendar
AUGUST
OCTOBER
8-9 • Waupun Truck-N-Show
1-3 • 24th Annual NTDA Convention 2014
Waupun Community Center • Waupun, WI
http://waupuntrucknshow.com
LaQuinta Resort & Club and PGA West • La Quinta, CA
www.ntda.org
15-17 • Eau Claire Big Rig Truck Show
4-7 • ATA Management Conference & Exhibition
Chippewa Valley Technical College • Eau Claire, WI
www.eauclairebigrigtruckshow.com
San Diego Convention Center & Marriott Hotel
San Diego, CA
www.truckline.com
20-21 • Commercial Vehicle Outlook Conference
Dallas Convention Center • Dallas, TX
www.cvoconline.com
21-23 • The Great American Trucking Show 2014
Dallas Convention Center • Dallas, TX
http://www.gatsonline.com
29-30 • Green Fleet Conference & Expo
Renaissance Schaumburg Convention Center
Schaumburg, IL
www.greenfleetconference.com
NOVEMBER
5-7 • 15th Annual UTA Convention
SEPTEMBER
5-6 • Big Iron Classic
Talking Stick Resort & Casino • Scottsdale, AZ
www.uta.org
Mantorville, MN
www.bigironclassic.com
22-23 • UTA Sponsored Training Seminar
Selling for Success
Phoenix, AZ
www.uta.org
march 2015
26-28 • Mid-America Trucking Show 2015
Kentucky Fair & Exposition Center • Louisville, KY
www.truckingshow.com
A sales team will never perform any better
than the way they are led and managed...
10 August 2014
www.UTA.org
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UTA Industry Watch
UTA Q & A: NADA’s Chris Visser
I
ndustry Watch readers know Chris Visser as the author of each month’s
NADA Update. In this first in a new series of interviews with industry
experts, we caught up with Chris to learn more about his background,
and his thoughts about what’s ahead for the used truck business.
Industry Watch: Please tell us a bit about your background as it
relates to the trucking industry.
Visser: Before I started in this industry I had oil in my veins, coming
from a long line of motorheads. My grandfather was into sports cars
in the ‘50s, and my Dad is an amateur car restorer, and rebuilt about a
dozen cars starting in the late ‘60s. He still owns his favorite, a ’66 Vette
that he bought damaged in 1976, and restored over the next year or so.
As for how I began in the trucking industry, I started as an analyst with
the NADA Used Car Guide in 1997, a couple of years out of college.
About a year later, I had an opportunity to work on the “Commercial
Truck Guide”—with more autonomy and responsibility than I had in
my previous role. I jumped at the chance.
Initially, we hired a consultant to help with market intelligence. The
name of that individual should be recognizable to anyone in the used
truck industry, especially the UTA: Marvin Gordon. Marvin helped to
bring me up to speed on the ins and outs of the used truck market, and
went out of his way to introduce me to many of his contacts, which
proved invaluable. Marvin loved to travel, even in his later years, and
he showed me how face-to-face interaction is critical to getting
business done…more so in this industry than in many others.
My day-to-day tasks have evolved in step with technology. In the late-‘90s,
we were still receiving faxed sales reports and manually entering data
into a spreadsheet. Some dealers didn’t even have e-mail. Our valuation
products consisted of the printed book and a CD-ROM application.
Today, I’m pretty sure our fax machine has cobwebs on it, and our sales
data is automatically processed into a database. Our customers can access
values on the web and on their phones, and we can help build websites
with our developer’s tools and raw data. On the back end, I’ve worked
with my counterparts at the Used Car Guide to develop sophisticated
analytical tools and processing applications that have created internal
and external opportunities.
In the 16 years I’ve been managing the Commercial Truck Guide, I’ve had
the good fortune to interact with used truck dealers through the ATD’s
Dealer Academy, OEM events, and of course the UTA. I’m proud to have
been a part of the first UTA Convention in 2000, and have attended every
one since except for 2013 (I decided it would be more fun to go with my
Dad and brother to the SEMA show in Vegas for Dad’s 65th birthday).
Industry Watch: Your bio identifies you as NADA’s Senior Analyst and
Product Manager, Commercial Trucks. What exactly are your duties?
Visser: My primary responsibility is to analyze incoming retail and
wholesale sales data from dealers, auctions, and OEMs, and translate that
data into NADA’s monthly value forecasts. I also represent the Commercial
Truck Guide at industry panels, seminars, and events. In addition, I write
our twice-weekly Commercial Truck Blog and monthly Guidelines
market update, and film our monthly video market update. I also initiate
and manage business relationships involving commercial vehicle data,
which includes preparing unique reports for individual clients.
dealers who report retail and
wholesale sales to us monthly. We
also work with OEMs to collect data
from their used truck operations. In
addition, NADA’s relationship with
the National Auto Auction
Association provides us with an
automated feed of every truck sold
by Manheim and ADESA. All of this
data is processed into our monthly
sales database, which I use to
perform monthly analysis. I also
monitor auctions not included in our automatic feed – I find some of
these to be useful for smaller-volume vehicles like construction trucks.
This wealth of data gives us actionable information about where all
segments of the retail and wholesale markets stand at a given time.
Industry Watch: What are the most important trends that you see in
the industry?
Visser: Right now, the increased supply of 2011 to 2012 model-year trucks
is the biggest factor influencing used truck market dynamics. The
extremely tight supply of low-mileage iron has relaxed mildly in the past
four months, so I’m watching market movement very closely to see how
pricing trends are changing when viewed in terms of mileage and age,
and of course by individual model. Pricing will remain strong because
demand will continue to outstrip supply through the end of the year—but
2010 to 2013 model year trucks should depreciate mildly in that period.
Industry Watch: What should used truck dealers be doing to
maximize their chances for success over the next 12 months or so?
Visser: The days of increasing values for three- to- five-year-old trucks
are likely behind us, so dealers should expect pricing to trend mildly
downward. Dealers may want to spend additional time looking at values
of incoming trades and inventory. Overall, dealers can expect to move
increased volumes of iron that will still be high-priced in historical
terms, which is the definition of a “healthy market.”
On the other end of the price spectrum, the practice of overhauling
and reconditioning older, pre-DPF trucks has increased over the past
year. Demand for that niche remains strong in regions with less-strict
emissions regulations. If a dealer has a process for efficiently getting
this work done, there is likely profit to be made.
Industry Watch: Aside from your NADA update what other reports, etc.,
does NADA provide that UTA members should be sure to check out?
Visser: Our main product is the ATD/NADA Official Commercial
Truck Guide®, which provides subscribers with used retail, loan, and
wholesale values­—as well as MSRP, GVW, and GCW data—for most
makes and models of trucks and trailers back to the 2000 model year.
That product is available, in print, web/smartphone, and data formats.
We also provide custom analysis and reports to clients on request.
In terms of what everyone can access for free, our Commercial Truck
Blog is updated twice weekly, and our Guidelines market report is
published monthly. Both of these publications provide a look at where
NADA sees various segments of the market currently.
Industry Watch: Industry Watch features your NADA update each
month. Tell us a bit about how the data is compiled for that report.
All of our products and publications can be accessed via our homepage
at www.nada.com/b2b.
Visser: Over the years, NADA has cultivated a network of over 200
Thanks Chris! n
12 August 2014
www.UTA.org
UTA Industry Watch
Wreaths Across America
Cobb Wants to Cover Arlington and Her Truck
T
his year marks the 150th anniversary
of Arlington National Cemetery. In
support of WreathsAcrossAmerica.org,
Jennifer Jo Cobb Racing has teamed up with
The Used Truck Association (UTA.org/
Driven2Honor) to encourage fans to join
their fundraiser group to sponsor a remembrance wreath for a fallen veteran at
Arlington. The cost is just $15 each. All
proceeds go to Wreaths Across America
(WAA) as a charitable donation.
For every wreath sponsored between now
and Veteran’s Day through the UTA website
or at a JJCR appearance, Cobb will personally sign the name of each donor on a wreath
decal and place it on her truck. “We felt it
was appropriate to kick this off on the 4th of
July and we’re going to offer this opportunity
through Veteran’s Day weekend. We will add
the donation wreath decals to each truck I
will race in the NASCAR Camping World
Truck Series between now and the race on
November 7 at Phoenix International
Raceway,” says Cobb. “I’d love to meet our
goal to cover Arlington as well as cover our
#10 Driven2Honor race truck with remembrance wreath decals and names of donors.” “We’re happy to once again be part of this
with Jennifer and UTA,” says Dave Pack,
Vice President of Marketing & Personal
Relations of Trucker Fan Racing, the
organization overseeing the promotion. “We
want to honor our veterans at Arlington and
build on what we did last year. We’re
confident as Jennifer’s season progresses and
more and more wreath decals with donor
names appear on her race truck, people and
the media will ask questions and want to be
part of it. We want to cover Arlington and
Jen’s truck by season’s end. And that’s what
it’s all about!”
Approximately half of Arlington National
Cemetery was covered last year and Cobb
and the UTA announced in February a goal
to cover the remaining grave sites at
Arlington with remembrance wreaths
through WAA. Approximately 100,000 more
donors are needed to cover Arlington than
the number who participated in 2013. Wreaths Across America Day is December
13th. WAA is a non-profit 501(c)3 charity in
Columbia Falls, Maine that delivered over
540,000 such wreaths in all fifty states last
year to veteran cemeteries including 142,700
at Arlington. Patriotic fans who sponsor a
14 August 2014
wreath will also be recognized with a
personal thank you on the Jennifer Jo Cobb
Racing Facebook page as well as the
honorary wreath decal. To learn more, go to
www.uta.org/driven2honor or to sponsor a
wreath go to www.uta.org/driven2honor/
join_our_group.
Update: Currently the fundraiser is going
very well. Pictures of Jennifer’s race truck
are posted and they’re filling her Jennifer Jo
Cobb Racing Facebook page. Decals reflect a
remembrance wreath image, Wreaths Across
America logo and our UTA.org/
Driven2Honor weblink. There are plans for
Jennifer and her race truck to be available at
The UTA Convention in Phoenix prior to
her race that weekend at PIR. Details are
forthcoming.
More race updates can be found on Twitter:
@jenjocobb and www.facebook.com/
JJCRacing n
www.UTA.org
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UTA Industry Watch
Risk Insights
The Growing Risk of Employment Practices Liability for Small Businesses
E
mployment practices liability claims
involve work-related suits stemming
from allegations of discrimination, harassment, wrongful termination, wage-and-hour
disputes, retaliation, and other issues. These
may seem the type of claims only larger
companies face. But this is far from true and
just as with any industry, independent and
franchise truck dealerships – big and small
– are exposed to workplace lawsuits. In fact,
small operations as with any size firm face
an increasingly higher level of employment
liability risks due to a tougher regulatory
landscape over the last several years.
For example, legislation such as the
Americans With Disabilities Act (ADA),
which was enacted in 1990, prohibits, under
certain circumstances, discrimination based
on disability in the workplace, in the same
way the Civil Rights Act of 1964 made
discrimination based on race, religion, sex,
national origin, and other characteristics
illegal. In 2009, the ADA Amendments Act
of 2008 (ADAAA) became law and made a
number of significant changes to the
definition of “disability” under the original
legislation. Ultimately, it’s now easier for an
individual seeking protection under the
ADA to establish that he or she has a
disability within the meaning of the statute.
An Aggressive Stance by the EEOC
Moreover, the Equal Employment
Opportunity Commission (EEOC) in 2012
stepped up its game with its Strategic
Economic Plan (SEP) to undertake a more
proactive approach to “stop and remedy
unlawful discrimination.” Under the SEP,
the focus of the EEOC is to coordinate its
programs to “have a sustainable impact in
reducing and deterring discriminatory
practices in the workplace.” Its priorities
over the last couple of years have been to
eliminate barriers in recruitment and hiring;
protect immigrant, migrant and other
vulnerable workers; address emerging and
developing employment discrimination issues;
enforce equal pay laws; preserve access to the
legal system; and prevent harassment
through systemic enforcement and targeted
outreach. As a result, we have been seeing a
rise in several types of claims, including
discrimination and retaliation cases.
16 August 2014
Quick Steps to Prevent
Employment Practices Claims
■■
n Maintain
a clear, up-to-date and
well-written employee handbook.
n Document
n Establish
employee supervision.
grievance procedures.
n Distribute
written discrimination
and sexual harassment policies.
n Establish
prudent hiring,
performance and termination
guidelines.
n Understand
and comply with
the requirements for ADA and
FMLA and other federal and state
regulations.
n Secure
coverage with Employment
Practices Liability Insurance.
n Be
sure to consult with an
insurance professional to ensure
that your business is covered
properly.
The Use of Background Checks
Another issue at the forefront of employment practices that impacts business owners
are background checks when hiring
employees. Many employers use background
checks to screen applicants. And, while
employers are permitted, under certain
circumstances, to rely on the information
about an applicant or employee from a
criminal history and/or consumer report in
making employment decisions, employers
must take certain precautions to ensure they
do not violate federal laws. Indeed, earlier
this year in March, the EEOC and the U.S.
Federal Trade Commission (FTC) issued
guidance documents on how their agencies’
respective laws apply to background checks
performed for employment purposes.
Among the guidelines, employers must:
■■
■■
Tell an applicant or employee of his or her
right to a description of the nature and
scope of investigative reports conducted by
third-party providers.
Get an applicant’s or employee’s written
permission to perform a background check.
This can be part of the document you use to
notify the person that you will get the report.
■■
Certify to the company from which you
are getting the report that you notified the
applicant and got his or her permission to
get a background report; complied with all
of the Fair Credit Reporting Act requirements; and won’t discriminate against the
applicant or employee, or otherwise misuse
the information in violation of federal or
state equal opportunity laws or regulations.
Before you take an adverse employment
action (not hiring an applicant or firing an
employee), you must give the applicant or
employee a notice that includes a copy of the
consumer report you relied on to make your
decision and a copy of A Summary of Your
Rights Under the Fair Credit Reporting Act.
A Rise in Wage-and-Hour Disputes
Wage-and-hour disputes are also a rising
concern for employers. According to recent
numbers released by law firm Seyfarth Shaw
after analyzing reports by the Federal
Judicial Center, federal wage-and-hour
lawsuits filed under the Fair Labor Standards
Act (FSLA) reached a record high in 2013 to
2014. Between April 1, 2013 and March 31,
2014, there were 8,126 federal wage-andhour lawsuits filed, indicating nearly a five
percent increase from the comparable period
a year ago, when 7,764 cases were filed.
Furthermore, this trend is likely to continue
with the minimum wage debate and rising
rates, which is putting greater emphasis on
wage-and-hour laws and the availability of
overtime pay.
As you can see, the employment practices
landscape is continually evolving and
becoming more difficult for business owners
to navigate if one doesn’t keep updated on
regulatory changes. This can impact your
livelihood should your business be hit with
an employee-related lawsuit. The attorney
costs alone to defend a case can add up
significantly. It’s critical to have someone
within the organization or an outside resource
who understands the laws and their impact
on employment practices, and can implement
robust Best Practices when it comes to hiring
practices and employee relations, including
fostering a zero tolerance policy on discrimination throughout the company.
In addition, in the event of a lawsuit,
Employment Practices Liability Insurance
(EPLI) is must-have coverage in today’s
litigious environment. EPLI insurance
safeguards one’s business against the high
www.UTA.org
UTA Industry Watch
cost of lawsuits due to discrimination,
harassment, wrongful termination, and
other potentially devastating charges. It can
cover your business for the cost of legal
defense, settlements, and other court fees
when your business is sued for violating a
person’s or group’s civil rights or failing to
provide a fair, acceptable environment for
them to perform their work. What’s more, it
covers claims brought against your business
by former, current, or prospective employees.
Register NOW for
The 15th Annual
UTA 2014 Convention
EPLI coverage should be a component of an
independent and franchise truck dealership’s
insurance program. Be sure that your program
is comprised of Employment Practices
Liability coverage, and take care to ensure
that you have the appropriate Garage Liability
and other specific industry coverages. Check
out when your renewal is set to come due so
that you can have a professional assessment
of your insurance program scheduled ahead
of time to ensure you, your employees, and
your assets are covered. n
Each month in this column, BOLT Insurance
provides UTA members with insights into the
various exposures and risks they face. If you
have any questions regarding a particular
coverage issue or a story involving any type of
claim you’d like to share with BOLT
Insurance, please contact Brian Lawlor at
860-777-2671 or via email at
[email protected].
www.UTA.org
Come to AZ
to Network
from A to Z
The 15th Annual UTA Convention
November 5-7, 2014
n
Scottsdale, AZ
August 2014 17
UTA Industry Watch
NADA Update
Chris Visser, Senior Analyst and Product Manager, Commercial Trucks
The influx of late-model sleeper tractors coming off trade continued in
June, pushing our universal retail average down about three percent
from May. Specifically, the average sleeper tractor retailed in June for
$57,138, had 521,586 miles, and was 78 months old. Compared to last
month, pricing was down $1,748 (or 3.0 percent), mileage was up
14,640 (or 2.9 percent), and age was three months older. Year-overyear, June 2014’s pricing was up $4,314 (or 8.2 percent), mileage was
down 10,755 (or 2.0 percent), and age was three months older. See
“Average Retail Price and Mileage” graph for detail.
At the halfway point of 2014, the number of lower-mileage sleeper tractors
reported sold at auction or dealer-to-dealer is notably higher than last year.
Whereas this dynamic is represented by the under-400,000-mile cohort in
the retail channel, that cohort moves up to 500K in the wholesale channel.
In terms of age, we’re talking about 3-5 year-old trucks. See “Average
Wholesale Price and Number of Trucks Sold” graph for detail.
Average Wholesale Price and Number of Trucks Sold by Mileage Range Sleeper Tractors, CY2013 vs. YTD2014 400 350 300 $50,000 250 $40,000 580,000 150 YTD2014 Vol. 100 $10,000 CY2013 Vol. 50 0 $50,000 1500 $40,000 Source: ATD/NADA Mileage Range 90
0-­‐
99
9K
80
0-­‐
89
9K
70
0-­‐
79
9K
60
0-­‐
69
9K
50
0-­‐
59
9K
40
0-­‐
49
9K
30
0-­‐
39
9K
0 20
0-­‐
29
9K
10
0-­‐
19
9K
$0 9K
99
0-­‐
9K
89
0-­‐
80
70
0-­‐
79
9K
9K
69
0-­‐
59
60
90
750,000 650,000 600,000 550,000 500,000 450,000 400,000 Source: NADA and AucFonNet 18 August 2014
2 per. Mov. Avg.(Mileage) 700,000 Jan-­‐12 500 $10,000 2 per. Mov. Avg.(Price) $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Mileage $20,000 Price 1000 $30,000 0-­‐
Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles Jan-­‐14 $60,000 2000 Nov CY2013 Vol. Sep 2500 YTD2014 Vol. $70,000 Jul CY2013 Price $80,000 3000 May YTD2014 Price $90,000 Mar $100,000 Specifically, the average sleeper tractor sold wholesale in June brought
$40,491, had 615,771 miles, and was 77 months old. Compared to May,
pricing was down $4,343 (or 9.7 percent), mileage was up 49,998 (or 8.8
percent), and age was four months older. Year-over-year results remain
extremely favorable, with June 2014 pricing coming in $15,740 (or 63.6
percent) higher, mileage 72,216 (or 10.5 percent) lower, and age eight
months newer. See “Average Wholesale Price and Mileage” graph for detail.
Jan-­‐13 Average Retail Price and Number of Trucks Sold by Mileage Range Sleeper Tractors, CY2013 vs. YTD2014 Fortunately, pricing for newer trucks on an individual basis has still not
been notably impacted. Depreciation has been very mild both in terms
of model year and mileage range, with no across-the-board changes.
However, there was enough downward movement in the market
overall to push our universal average down month-over-month.
Nov Drilling deeper, we see that this influx of late-model trucks is represented
primarily by those with fewer than 400,000 miles. In fact, the number
of trucks with that mileage sold in the first half of 2014 is already
greater than in all of 2013. These trucks are still early in their usable
lifespan, and they’re also half the price of a new truck. As such,
demand for this cohort will remain strong, limiting depreciation. See
“Average Retail Price and Number of Trucks Sold” graph for detail.
Sep Period Source: ATD/NADA Source: ATD/NADA Interestingly, older, higher-mileage trucks are also more popular in
2014. Increased recon/rebuild business for pre-2007-emissions trucks
is the likely factor here. If an older truck is bought right, it is possible
to turn a profit on the retail end even after an overhaul and reconditioning are completed. Jul ay
M
ar
14
M
No
v n-­‐
Ja
Ju
l Se
p ay
M
ar
13
M
No
v n-­‐
Ja
M
ar
12
M
n-­‐
Ja
Ju
l Se
p 400,000 $30,000 ay
$35,000 430,000 May 460,000 $40,000 Mileage Range Mar $45,000 Mileage 490,000 9K
520,000 $50,000 50
9K
49
9K
40
0-­‐
9K
39
29
0-­‐
19
0-­‐
10
20
9K
$0 550,000 CY2013 Price $20,000 0-­‐
Mileage YTD2014 Price 200 30
Price $55,000 Price 450 $70,000 $30,000 $60,000 Price 500 $80,000 $60,000 Average Retail Price and Mileage: All Sleeper Tractors Under 1M Miles $65,000 $90,000 Mar Sleeper Tractors – Retail
Sleeper Tractors – Wholesale
May Availability of sub-500,000-mile sleeper tractors continues to increase,
with strong demand limiting the rate of depreciation. Sales volume
was relatively strong in June, with the typical late-spring/early-summer
slowdown not present this year. Medium duty segments continue to
gradually improve, returning strong year-over-year comparisons. The
construction sector remains mixed, with selected regions showing
strength. A low supply of 2010 and newer construction trucks
supports strong pricing for that segment.
Given the extremely favorable year-over-year comparisons, we still
consider pricing to be at a historically high level, which is where we
expect it to remain through the end of the year. At the same time, we
are unlikely to see record-breaking pricing again, and we continue to
forecast depreciation for 2013-2010 model year trucks on the order of
roughly 1.5 percent per month.
Price Market Summary
Period www.UTA.org
UTA Industry Watch
Competitive Comparison – 3- and 4-Year-Old Sleepers
Looking at the 2012 model year, the Peterbilt 386 made up some
yardage in June to perform on par with the Kenworth T660, which is
where we would logically expect this model to be. The average mileage
of 386’s reported sold has been consistently above both the T660 and
the overall sleeper average, which likely explains the pricing difference
despite our mileage adjustment.
Volvo’s 730/780 also consistently returns higher-than-average mileage,
although pricing for that model finally pulled away from the 630/670
to a level more in line with expectations. The lower volume of the
730/780 makes monthly fluctuations more likely.
The Freightliner Cascadia continues to perform strongly, giving up
some ground to the 386 in June, but still in the ballpark of the
PACCAR models. It should be noted that the Cascadia is by far the
highest-volume 2012 aerodynamic sleeper model reported sold in 2014
to date, which makes its performance even more impressive.
International’s ProStar continues to be challenged in the marketplace,
with all 2012’s reported sold in June equipped with the MaxxForce. At
this point, most if not all of the MaxxForce’s issues are known, and
approximately 75 percent of trucks in operation so equipped have had
the parts in question replaced. Given these factors, as well as the
introduction of Navistar’s Diamond Certified initiative, we expect the
ProStar’s discount to competing models to gradually close going
forward. See “Average Retail Price – 3-Year-Old” graph for detail.
Medium Duty – Class 3 and 4 Cabovers
2014 has been a mediocre year for Class 3-4 cabovers, with volume
down from last year. At the same time, the average price of our 4-7
year-old benchmark group in 2014 to date is running ahead of
same-period 2013, at $14,551 vs. $13,710, respectively. Average mileage
is higher in the current period, at 116,520 vs. 104,554. Higher pricing
for trucks with higher mileage suggests strength, but the continued
lower volume is an opposing factor.
Moving back to the 2011 model year, the Cascadia maintains its top
position, where it has been since the beginning of the year. Detroit’s
2010-spec engines had one of the smoother rollouts in the industry,
which is undoubtedly a factor behind this model’s positioning. Unlike
the three-year-old cohort, the Cascadia is not the top-volume truck in
the four-year-old group. That distinction belongs to the T660.
We continue to view the market for pre-2012 trucks as saturated, with
newer trucks performing more strongly simply due to limited supply.
At the same time, conditions are mildly better than last year. See the
Class 3-4 cabover graph for detail.
The 730/780 and T700 both gained value in June, performing very
similarly to the Freightliner. Average mileage for the 730/780 has been
right in line with the universal average in 2014, while the T700’s has
been consistently lower. Viewed in this light, the 730/780’s performance is more impressive.
The ProStar performs somewhat better in the four-year-old cohort, with
the vast majority of trucks reported sold in 2014 to date (88 percent)
equipped with ISX power. See the “Average Retail Price – 4-Year-Old”
graphs for detail.
NADA continued on page 12
www.UTA.org
August 2014 19
UTA Industry Watch
NADA continued from page 11
Medium Duty – Class 4 and 6 Conventionals
Wholesale pricing for 4-7 year-old Class 4’s remains stable to mildly
upward, with monthly price swings for this group driven primarily by
changes in average mileage. This cohort returned an average of $15,853
in June, which was a $3,299 (or 17.2 percent) decrease from May, but a
$2,881 (or 22.2 percent) increase over June 2013. Mileage was in line
with recent months, at 102,933— an 11,339 (or 12.4 percent) increase
over May, and a 12,400 (or 10.8 percent) decrease year-over-year. See
the Class 4 conventional graph for detail.
The Class 6 market remains selective. The volume of 4-7 year-old
trucks sold per month is down substantially from 2013, at an average
of 15 this year vs. 42 last year. Trucks with mileage up to roughly the
mid-100K range are performing strongly, but as mileage increases past
that level, strength moderates. As with the Class 4 segment, improving
business confidence increases demand for new equipment at the
expense of older equipment.
Construction Trucks
As of this writing, it looks likely that the U.S. House of Representatives
will pass a short-term highway funding bill that will keep infrastructure construction active through December. The business community
would, of course, prefer a long-term solution instead of a stopgap, so
the current “solution” won’t do much to encourage increased demand
for equipment.
With this in mind, the construction segment continues to eke out a
recovery, with pockets of regional activity supporting mildly better
conditions. Pricing for trucks by mileage range continues to outpace
2013, as does sales volume (see “Construction Trucks by Mileage
Range” graph). The number of 2010 and newer trucks reported sold is
Volume in 2014 to date for this cohort remains lower than calendar year
2013, at an average of 43 trucks sold per month vs. 50, respectively.
However, this difference is partly due to one high-volume outlier month
in 2013 which skewed the average by about 5 trucks per month. As
such, we do not consider the year-over-year difference in volume a
notable factor.
Despite the monthly drop in value, pricing for Class 4’s is up notably
year-over-year, and has followed a clearly-positive trajectory since the
4th quarter of 2013. As such, we view the Class 4 market as moderately
strong. Demand will continue to strengthen in step with the gradual
improvement in the general economy.
As for Class 6’s, wholesale pricing for 4-7 year-old trucks pulled back
for a second month in a row. Mileage was actually lower than average,
so the pullback is unexpected. At the same time, year-over-year comparisons remain extremely positive, so we are not overly concerned with a
one-month change.
Specifically, this group returned an average of $21,270 in June, which was
a $1,780 (or 7.7 percent) decrease from May, but a healthy $5,410 (or 34.1
percent) increase over June 2013. As stated, mileage was on the low
side, at 107,051 – 63,758 (or 37.3 percent) lower than May, and 76,884
(or 41.8 percent) lower than June 2013. See the Class 6 graph for detail.
much lower than the number of 2009 and older trucks, which makes
monthly tracking difficult. This volume dynamic is due primarily to the
low number of 2010 and newer trucks sold new during the recession,
and also the fact that a 5-year-old truck is still likely in service with its
original owner. Overall, the bulk of the used construction market is
represented by 6-9 year-old trucks, and this cohort has not gained or
lost much value in over two years. See the “Average Retail + Wholesale
Selling Price of Construction Trucks” graph for detail.
Basically, the regions with healthy construction activity will continue
to bolster pricing on an average basis. However, it will take a more
notable recovery in the residential and commercial construction sectors
20 August 2014
www.UTA.org
UTA Industry Watch
before we see prices start to increase. As for infrastructure, trade groups
are actively lobbying for a long-term highway bill, but individual
Congressmen are still paranoid about voter reaction to any spending
measure, even one this fundamental. Welcome to politics in 2014.
Average Number of Used Trucks Retailed per Roo<op 8.0 7.0 6.0 Count Sales Volume – Retail and Wholesale
As we enter the 3rd quarter of 2014, the number of trucks sold at
auction or dealer-to-dealer remains comfortably ahead of same-period
2013. Through June, NADA collected 20,779 wholesale records,
compared to 19,449 for the same period last year – a difference of
1,330 (or 6.8 percent). We had predicted a roughly five percent
improvement year-over-year, so the year is mildly outperforming our
expectations. See the wholesale volume graph for detail.
5.0 4.0 3.0 2.0 1.0 Jan-­‐12 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-­‐13 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-­‐14 Feb Mar Apr May Jun 0.0 Source: ATD/NADA Period The late spring/early summer period is traditionally weak for retail
volume, but that pattern did not develop this year. Strong activity in
the 3-5 year-old segment, driven by increased supply of off-lease iron,
is responsible for the increased volume. See the retail volume graph for
detail.
Conclusion
The market’s hunger for low-mileage sleeper tractors is evident in the
continued high pricing in the face of increased supply. Trucks will
depreciate at a mild and predictable rate through the end of the year,
with strong demand limiting the rate of decline. Increased numbers of
lower-mileage trucks coming off trade means increased business. It’s
time to make hay while the sun shines. n
As we’ve said, an increased supply of 3-5 year-old trucks, especially
those with under 500,000 miles, is primarily responsible for the
increased volume. A secondary factor is greater interest in older,
higher-mileage trucks­— specifically those with over 800,000 miles.
As for the retail channel, dealers sold an average of 5.8 trucks per
rooftop in June. This figure is 0.2 truck lower than May, but 1.1 trucks
higher than June, 2013. In terms of the year to date, 2014 is running
0.1 truck behind 2013, at 5.9 vs. 6.0.
Reprinted with permission from the ATD/
NADA Official Commercial Truck Guide®
www.nada.com/b2b
“Tips You Can Count On”
Summer Check List for trucks on, or leaving your lot:
1. Clean Batteries
2. Maintain and test A/C
3. Check coolant, radiator, and hoses
4. Check brakes
5. Replace wipers
6. Check fan belts
7. Check tire pressure (air is a gas and will expand when heated
and contract when cooled)
~ The Medium Duty Counselor
www.UTA.org
August 2014 21
UTA Industry Watch
Industry News Briefs
June’s Class 5-8 Orders
Remained Strong: ACT
ACT’s latest figures show that the bloom
remained on the rose in June, with
demand for Class 5-8 vehicles remaining
strong. A total of 41,300 NA commercial vehicles were booked,
according to the company’s preliminary figures. June continued the
trend of stronger sales figures that began last October. Since then,
Class 5-8 net orders have been booked at a 541,900 unit annual rate.
“With seasonal tendencies dampening expectations, NA Class 8 net
orders surprised on the high side in June at 26,600 units,” said Kenny
Vieth, ACT’s President and Senior Analyst. “That volume marked an
improvement of two percent from May and 41 percent compared to
year-ago June. Seasonal adjustment boosts June’s Class 8 order total to
29,200 units/351k SAAR. On that basis, June was the strongest order
month since January. Since October, Class 8 orders have been booked
at a 318,100 unit SAAR.”
While the news was all good for Class 8 vehicles, the numbers showed
a cooling trend for Classes 5-7. April’s orders were the best since 2006,
but they’ve cooled a bit over the record pace set by the last two
months. ACT reported that June’s net orders fell 9 percent from May’s
and 1 percent from year-ago levels to 14,700 units. “Given that June is
typically a soft order month, seasonal adjustment boosts the month’s
MD order intake to 15,600 units/187k SAAR, representing the weakest
order intake (SA) since December,” said Vieth. “Over the past six
months, Classes 5-7 net orders were booked at a 214,600 units SAAR.
Over the past 12 months, actual orders have totaled 209,600 units.” n
“Moderation”
Characterizes FTR’s May TCI
Market researcher FTR’s Trucking
Conditions Index (TCI) for May came in at
5.74, which “reflects some headwinds
affecting truck fleet results,” the company said. Adding: “Modest
recovery growth along with the lack of acceleration in contract rate
increases are accompanied now by increased labor and recruiting
overhead costs.” FTR also said it expected that a near capacity crisis
environment through May eased somewhat in June. While remaining
solidly positive, FTR said its TCI outlook has moderated.
DOT’s Freight Index Hits New High
The amount of freight the for-hire transportation industry carried
rose 0.6 percent in May over April’s figures. The numbers rose for the
fourth straight month, according to the U.S. Department of
Transportation’s Bureau of Transportation Statistics’ (BTS) Freight
Transportation Services Index (TSI)*. May’s index level (120.0) was
26.9 percent above the April 2009 low during the most recent
recession.
“The level of freight shipments in May measured by the Freight TSI
(120.0) reached a new all-time high level of 120.0, exceeding the
previous high of 119.4 in November 2013,” DOT reported. DOT
revised April’s index to 119.3 from 117.6 and also revised higher
previous monthly numbers.
DOT Analysis: Trucking led May’s TSI increase, which grew rapidly
for the fourth straight month. Pipeline and waterborne also saw large
increases. Growth in trucking occurred across different segments of
the trucking sector, including dry van trucks as well as flatbed and
tank trucks. Rail intermodal declined after three months of increases.
The freight index has now risen for four straight months following
January’s bottom (which was largely weather-related and affected the
entire economy, as measured by the GDP decline in the January-toMarch period).
Trend: With four consecutive monthly increases, the index rose 3.4
percent following January’s weather-related low. In May, the index
reached an all-time level (120.0), exceeding the previous all-time high
(119.4) set in November before the winter declines. After dipping to 94.6
in April 2009, the index rose by 26.9 percent in the succeeding 61 months.
*The Freight TSI measures month-to-month changes in freight
shipments by mode of transportation in tons and ton-miles, which are
combined into one index. The index measures the output of the
for-hire freight transportation industry and consists of data from
for-hire trucking, rail, inland waterways, pipelines and air freight. n
“While still robustly positive, the TCI has moderated recently and
reflects some of the challenges currently facing the industry,” said
Jonathan Starks, FTR’s Director of Transportation Analysis. “Capacity
is tight but has moderated from the critical level that we operated in
during and just after the winter months. Freight rates seem to be a tale
of two cities with contract rates very stable and only showing modest
growth, yet spot rate activity has been quite strong since winter hit
and has not let up since then. If economic growth continues to remain
modest then we would expect the status quo to persist for some time;
however, if the economy finally shows a strong growth spurt in 2014
there isn’t sufficient surge capacity in the truck market to be able to
easily accommodate that growth. When combined with the inability
to quickly add more drivers into the industry we would then expect
rate growth to accelerate in both the spot and contract markets.”
For further information email [email protected]. n
22 August 2014
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UTA Industry Watch
Daimler’s “Highway Pilot” Prototype Brings Driverless Trucks
One Step Closer
“The truck of the future is a Mercedes-Benz that drives itself,” according
to Dr. Wolfgang Bernhard, of Daimler’s Board of Management. He was
describing the Mercedes-Benz Future Truck 2025, which premiered in
early July. The truck includes “the extremely intelligent Highway Pilot
assistance system,” Daimer said, “which enables it to drive completely
autonomously at speeds of up to 85 km/h. Daimler Trucks demonstrated the vehicle on a trip along a section of the A14 autobahn near the
city of Magdeburg. The “Future Truck” drove itself in completely
realistic driving situations, according to the company.
Dr. Wolfgang Bernhard, member of Daimler’s Board of Management and
responsible for Daimler Trucks and Buses, presents the Future Truck 2025.
“The Future Truck 2025 is our
response to the major challenges and
opportunities associated with road freight
transport in the future,” said Bernhard. The company
feels that self-driving trucks offer many clear advantages. These
include more efficiency and better safety and connectivity. “This, in
turn, results in a more sustainable transport system to the benefit of
the economy, society and consumers,” Daimler told the media.
In terms of a launch timetable, Daimler said that depending on when
the “legislative framework” for autonomous driving is created, “the
launch of the Highway Pilot is conceivable by the middle of the next
decade.” Daimler feels that the environment is conducive to a quick
timetable. “We believe the chances of success are good, because
autonomous driving combines the ability to achieve business and
technology objectives with the creation of benefits for society and the
environment,” Daimler said in its release.
Daimer was quick to point out that the advent of driverless trucks will
not put truckers out of work. “The Highway Pilot system will significantly
upgrade the job profile of truck drivers,” Daimler said. “It will not
only free them from having to perform monotonous tasks; it will also
give them more time for tasks that were previously handled by office
workers at shipping companies. In other words, it will be possible for
truckers to advance to new positions as transport managers, making
truck driving a more attractive profession. Autonomous driving could
thus help to resolve the shortage of truck drivers.” n
Navistar Ships Vocational Vehicles With More Fuel Efficient Engines
Navistar, Inc. has begun customer shipments of its first International®
DuraStar® and International® WorkStar® vehicles with the company’s
9- and 10-liter engines with Selective Catalytic Reduction (SCR)
emissions technology. Navistar’s testing shows these products are
“delivering up to eight percent in fuel economy improvement over the
previous generation.”
“Our field test customers are seeing positive results–with our new
trucks registering significant fuel economy improvements,” said Bill
Kozek, president, North America Truck and Parts, Navistar. “Our
vocational trucks with 9- and 10-liter engines are also experiencing
fewer active regenerations while still delivering the durability and
power that customers expect from International trucks.”
Built on Navistar’s proven I-6 platform, the company’s 9- and 10-liter
engines bring 9.3-liter displacement and 860-1,150 lb.-ft. torque in a
weight-saving medium-duty package. The company conducted field
tests in extreme environments found in Alaska, Colorado, and Arizona.
These tests included a variety of vocational duty cycles from garbage
packing and utility trucks, to dump trucks and sewer pumpers.
“We’ve run our DuraStar with the 9-liter for around 40,000 miles
during the last two months,” said Robbie Easley, owner, Easley
Trucking. “We haul mail and the 9-liter has performed well on the
steep hills our trucks climb daily. This truck runs between Phoenix
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and Yuma, Arizona— one
of the hottest environments you can find, and it
hasn’t missed a beat.”
The International
DuraStar is available with
the 9-liter engine from 275
hp 860 lb.-ft torque up to
330 hp 950 lb.-ft torque.
The International
WorkStar is available with
9- and 10-liter engines
from 275 hp 860 lb.-ft
torque up to 350 hp 1,150
lb.-ft torque. All
International® vocational
trucks feature the
International Diamond
Logic® electrical system,
which Navistar says helps vocational operations work smarter, faster
and safer, while also preventing drivers from inadvertently damaging
valuable equipment.
Additional information is available at www.Navistar.com. n
August 2014 23
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UTA Industry Watch
26 August 2014
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August 2014 27
UTA Industry Watch
From Where We Sit
Summer is in full swing in our little part of
the world, and the living is easy, for sure! That
snowpack we kept reminding neighbors about
in that last, never-ending, dreary winter has
done for the farmers what snowpacks have
always done for framers. The fields are lush,
the fresh produce is abundantly affordable,
and life is looking good. If Shakespeare were
still here with us, he’d probably be writing
about some Midsummer dream or another.
Here in our neck of the woods, we’ve spent the
month celebrating July 4th and commemorating the 150th anniversary of the Civil War
event that saved our town.
In July 1864 Confederate General Jubal Early came back through our
town with his army. He’d stopped by before, since we live nestled
between Harper’s Ferry, the Battle of Antietam, and Gettysburg, PA.
But, this time Gen. Early stopped by with something particular in
mind. He needed money, horses, and supplies for his ragtag army. He
rode into town and commanded the local farmers and business
owners to pay him $5,000. If the ransom wasn’t secured by a certain
time, he’d simply burn our town and everything in it. There was every
reason to believe this threat, since towns in our surrounding area had
already been put to the flame. Fortunately, the General settled with
the down-payment of $1,500 our townspeople were able to gather, and
the promise to have the rest soon. He and his troops took what they
could; horses, crops, and animals, plus the money and left. They must
have been busy after that, because they never did come back for the
balance.
Our little town is very proud of its Civil War history. Our citizens saw
troops from both armies travel back and forth through our valley on
multiple occasions. A battle took place on top of our western mountain
just before both armies could get to Antietam for the main event. Most
surprisingly, the woman who saved the Union flag was not old Mrs.
Barbara Fritchie, as we’ve all been taught, but Miss Nancy Crouse, a
teenager who then lived down the street and placed herself in harm’s
way to protect the Stars and Stripes. (That was part of the reenactment
we just enjoyed in commemoration, too.) This little town was so supportive
of the Union cause, that an Officer of the Army of the Potomac
nicknamed it, “Little Boston!” And “little” it must have been, since 150
years later we still have only about 2,000 citizens right here in town.
Anyway, those of us who live here now consider ourselves lucky. Not
only did our forebears preserve our beautiful little town and save her
from the torch, they went back to their businesses at the end of the
war, and continued to do what all people do; build a community and
raise their families. Now, our bustling little old town is full of fun,
family activities, and great schools. Fourth of July is celebrated here as
it has been in small American towns since the beginning. Luckily, our
town is home to a county sponsored park. Just behind the schools
you’ll find a fishing pond, picnic pavilions, ball fields and courts of
every type, playgrounds, and walking trails. Lots of things are held in
the park throughout the year, but none we love more than the July 4th
celebration!
It lasts mostly all day. In the afternoon are activities, games, crafts,
and contests for the kids. Families hang out, grill food, play Frisbee,
and gather with friends and neighbors. There are country music
concerts featuring local musicians, and enough carnival type food to
give any all-American kid a bellyache. As the sun sets, the crowd is
filled with excitement about the fireworks display. Now, crazy as it
28 August 2014
sounds our little town puts on the BEST
fireworks show anywhere around. It’s free,
it’s loud, it lasts a long time, and the
“oooohs” and “ahhhhs” abound in time with
the elaborate and colorful show. Why do we
have such a great display? Well, I guess
someone put that extra $3,500 Gen. Early
never came back for into good investments
that we all now get to spend on fireworks,
because these are expensive!
This year, something new got added to the
show. We were reclining in the warm, damp
grass, when the show got started. Within a
minute or two, we saw a plane on the
horizon. Isn’t that cool when you’re on a plane and see fireworks in the
distance? Yeah, we thought so, too. Then the plane flew closer. It was
flying incredibly low. It came right into the fireworks display. It
stopped moving, just hovering in the air. It was silent, so it sure wasn’t
a helicopter. As the crowd started asking each other about it, we
noticed another one arriving, and then two more flew in. They were
drones! The fireworks company was using drones! Were they for
capturing images up close to the display? Were they for helping
synchronize the blasts? Who knows?
We sat in wonder as much about the drones as we did about the fireworks.
The company must have known we’d been surprised, and maybe
alarmed by the sight of their drones. They actually gave us three grand
finales to make up for anyone being unsettled by new technology. We
only found one like that in the crowd, and he’d been enjoying his part
of the picnic from the beer cooler. He grew panicked that he was being
watched from above, and ran straight back to the safety of his car;
poor thing. The rest of us just wondered. We talked about witnessing
the first commercial use of a drone. We speculated about what this will
mean in the future. Will drones be used for delivery? Will drones bring
us yet even more forms of advertising? Will this technology be used
for good or ill? Then we wondered what Nancy Crouse thought the
first time she saw electricity, or the telephone,
or the earliest automobile. It wouldn’t be
surprising to us if she had some of those very
same thoughts and concerns. We’re going
with the excitement of seeing what’s possible
next as technology and history still continue
to wrap themselves together. At least that’s
the way it looks from where we sit.
Deb and Brad Schepp
[email protected]
www.UTA.org