Used Truck Association UTA Dealer/Vendor Award …uta.org/wp-content/uploads/2015/03/UTA-July-2012.pdf · knowledge and resources they need to suceed. ... Treasurer Tom Pfeiler Secretary

Volume 14 • Issue 7 • July 20121.877.gets.uta • www.uta.org

Used Truck AssociationChartered May 16, 1988

Published by the Used Truck Association325 Country Club Drive, Suite A

Stockbridge, GA 30281

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

UTA Dealer/ Vendor Award Nominations Are Due!

The UTA Dealer Group is extremely excited to again present the Dealer Member and Vendor

Member of the Year awards at the UTA Convention in November.

Specifically, we will present awards recognizing people in our organization who stand out and define the UTA Code of Ethics: Honesty, Integrity, Professionalism, Value, Excellence, Keeping Promises, Complete Satisfaction, and Relationships. There will be six dealer member awards given to individuals who work for a dealership and are current UTA members. They will be comprised of three OEM dealer member awards, and three non-OEM dealer awards presented in three regions: East, Central, and West. There will also be one vendor member award.

Any UTA member can nominate any other UTA member in any region. It is now up to you to get involved. Give some thought to who deserves recognition. Who stands out as a special member of the UTA and our community?

The nomination process is easy and the application can be found online at UTA.org. Nominations are due September 1st so time is short. Fill out the nominations and email them to myself or any UTA board member. Keep in mind UTA board members do not qualify, but any other UTA member does qualify even if he or she works with a board member at their company.

Once again, the main criteria for the award is based on the Code of Ethics. Additional criteria are listed on the nomination form.

We have some amazing members with unique qualities and stories to be shared. I look forward to sharing these stories in November. Remember to include a brief statement on the application telling us about your amazing nominee.

Sincerely,

Mike ThurstonUTA Dealer Group [email protected]

Table of Contents

Board News & Views ...........................2

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

Face to Face with Jim Rys .....................4

Industry Events Calendar .....................5

Bryan’s Spotlight .....................................6

Moving on Down the Road: Catching Up With Trevor Pasmann ...7

The Brooks Group Sales Tip of the Month ......................7

Average Pricing Remains High While Volume Decreases ..............8-9

Industry News Briefs .................... 10-11

From Where We Sit ........................... 14

The UTA… Members Supporting Members!

DealeRMember of the Year

VendoRMember of the Year

Click here to go to the Nomination Application Download page now!

http://uta.org/news_events/member_of_the_year/

UTA Industry Watch

2 July 2012 www.UTA.org

Board News and ViewsBe Prepared

John Wooden, the greatest college basketball coach of all time who led UCLA to ten national championships in twelve years, had many sayings he lived by and shared with his players.

Perhaps his most famous was, “Failure to prepare is preparing to fail.” Coach Wooden had a real knack for communicating the obvious in a profound way.

The U.S. Open Golf Tournament has recently been played and no one expected Casey Martin to be part of it. You may remember Casey from his court battle with the United States Golf Association when he sued to be able to use a golf cart due to a birth defect in his right leg. He eventually won the case and played in 41 tournaments and made the cut in 19 of them. In 2006, after several years in the mini tours, he became the golf coach at Oregon. It appeared that Casey’s days on the PGA tour were over.

Which they were, until this year, when at the age of 40, he qualified for the 2012 U.S. Open. Anyone familiar with golf knows how difficult this is, but for someone with a bum leg who hasn’t competed for six years, it is almost miraculous. Yes, he did drive a cart and he didn’t make the cut, but he only missed it by one shot. Casey fought through the pain and competed at the highest level of golf against the greatest players in the world.

This is an Olympic year and there are many stories of success as we approach the games. One such story is Holley Mangold. Holley is the sister of All Pro Center Nick Mangold of the New York Jets and she played offensive line in high school for the football team. Now Holley is headed to London as a member of the United States weightlifting team. She was originally projected to compete in the 2016 Olympics, but she has developed so quickly that she will be in London in 2012. Holley was first in the U.S. Olympic Trials in the Clean and Jerk competition with a lift of 319 pounds. She place second in the Snatch with a lift of 242 pounds. Amazing.

Holley was recently featured on the HBO show “Real Sports” and what really stood out about her was how comfortable she is with herself. Holley is 5’8” and well over 300 pounds, but she is active, outgoing, confident, and a unique personality. It’s clear she is not trying to impress anyone and she lives life to the fullest. I would bet that she goes on to be successful in the rest of her life regardless of what happens in this year’s Olympics.

So what does all of this have to do with the Used Truck Industry? Well, there’s a lot to learn from each of the people mentioned above. Coach Wooden’s message seems obvious but are we really doing everything we can to be prepared for whatever our customers may need? Are we keeping up with new truck technology to provide peace of mind to the used truck buyers? Are we training our sales force to succeed? In a nutshell, are we preparing to succeed or failing to prepare?

When we lose a big sale or customer, do we give up or continue on like Casey Martin? Casey couldn’t compete at the highest level on a regular basis but because he stayed in the game he was able to play in this year’s United States Open. Are you staying in the game? Maybe business hasn’t been booming but if you provide great service and close smaller accounts, you will keep going and give yourself a chance at landing the big deal. You just have to keep pushing forward, especially when times are tough. And stay positive.

Holley teaches us to be ourselves. Customers will usually recognize when you are trying to be someone you’re not and it can cause more harm than good. We sometimes forget that none of us are perfect and people will relate to our shortcomings or quirks more than they will to the idealized person we put forward. Be yourself, be honest and be passionate about your business. And, be sure to show your customers how you can help them. That is what they really care about.

The Used Truck Association Board has produced some great training videos to help our members understand the new emmission systems and to help salespeople with walk arounds. We have ressurected the old Medium Duty committee and will be providing needed information in this area. We are busy with the upcoming convention where there will be many informative workshops and roundtables. In short, we are trying to help our members be prepared with the

knowledge and resources they need to suceed. Please let us know if there is anything else we can do to help your business. We’d love to hear from you. And remember, be prepared, stay in the game, and be yourself. Do that and you’ll be successful in whatever you do. n

George Barnett Election [email protected]

President Rick Clark

Vice President Bobby Williams

Treasurer Tom Pfeiler

Secretary Sheri Aaberg

President Emeritus Marty Crawford

Affiliates & Benefits Committee Chairman

Bryan Boyd

Convention Committee Chairmen Sheri Aaberg & Tim Ormsby

UTA Jerome Nerman Family Foundation Scholarship Committee

Chairman Tim Ronan

Elections Committee Chairman George Barnett

Marketing Committee Chairmen Jay Burgess & Rick Clark

Medium Duty Committee Chairman Tom Pfeiler

Membership Committee Chairmen John Cosgrove & Kenny Doonan

Training Committee Chairman Ken Kosic

UTA Dealer Group Committee Chairmen

Mike Thurston & Bryan Haupt

UTA.org Website Committee Chairman Bobby Williams

2012 Board of Directors

Front, L to R: Kenny Doonan, Tim Ormsby, Tim Ronan, George Barnett, Marty Crawford, Mike ThurstonBack, L to R: Bryan Boyd, Bryan Haupt, Sheri Aaberg, Tom Pfeiler, Rick Clark, Lara Haag, John Cosgrove, Bobby Williams, Ken Kosic, Jay Burgess - alternate (not pictured)

UTA Industry Watch

3July 2012www.UTA.org

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

If you’d like a copy of the new member brochure handed out at the convention, please contact David Grace at [email protected] or 770-389-6528 ext. 404.

Greg Althardt, CPA CliftonLarsonAllen, LLP Manager, National Truck and Trailer Dealership Group Leader600 Washington Ave, Suite 1800 St. Louis, MO 63101 www.cliftonlarsonallen.com (314) 925-4361 (W) (618) 973-0425 (C) [email protected]

Greg got his start with his current firm in 2002 when he concentrated on things like completing physical inventories (running down trucks and parts), and doing truck dealer audits.

He now leads the truck and trailer dealership group, and especially likes “getting the opportunity to help dealerships achieve success,” he said.

There’s no doubt he loves his current job but we all have dreams. In Greg’s case, if not for trucks he imagines he’d still be in transportation--as a commercial airline pilot. “I have always been fascinated by aviation and planes,” Greg said.

Greg’s other interests include traveling and spending time with his family. Besides that he’s “a sports nut” and loves to watch the Cardinals, Blues, and Rams.

Greg also had a message for his fellow UTA members. “Please feel free to bounce any business, accounting, tax, or FET issues off of me, I want to be an asset to the membership.”

Michael Clark, Regional Wholesale ManagerSelecTrucks of America 2225 North DuPont Hwy. New Castle, DE 19720 www.selectrucks.com (803) 367-2058 (W) [email protected]

Carl Walker, Used Truck Sales ManagerRush Truck Centers 5500 Linwood Steiner Rd. Theodore, AL 36582 www.rushofmobile.com (251) 459-7300 (W) (251) 421-4690 (C)[email protected]

“Last minute Charlie strikes again,” Carl said in an email to us about questions we had sent him. That gave us pause and made us smile. We didn’t even mind that our deadline had passed!

Carl got his start in trucking in 1998 as a driver. The road is still with him, as the thing he likes best about his job now is the travel.

When he’s not traveling to work he may be on the way to a favorite fishing spot as fishing is his favorite past time.

Carl, keep that sense of humor going--it’s a great thing for people working with the public to have, wouldn’t you say?

Chuck Werner, General Manager Manheim, Indianapolis 3110 S. Post Rd. Indianapolis, IN 46239 www.manheim.com (317) 862-8622 (W)(260) 450-2979 (C) [email protected]

I love leading people!, says Chuck Werner of Manheim, Indianapolis. “I love it when people exceed their own expectations for themselves and become more than they thought they could be.”

Chuck’s a relative newcomer to the truck industry. He got his start in 2008, when he moved to Ft. Wayne, Indiana to become Assistant General Manager at Manheim Ft.

Wayne. But his roots in the auction business go back another decade or so to 1997.

Chuck’s looking forward to networking with UTA members. “I am looking forward to meeting new people, building relationships, and learning about the industry from the veteran members,” he said.

We asked Chuck what he might be doing if not for the trucking industry and his answer got us thinking about lunch. “If I wasn’t in the Truck/Auction business I would love to be an owner/operator of a Chick-fil-A,” he said. “I agree with the company’s philosophy and business practices.”

Dave Wildey, Used Truck Sales ManagerTEC of California, Inc. 15000 Firestone Blvd La Mirada, CA 90638 www.tectrucksla.com (714) 521-9806 (W) (562) 244-8143 (C) [email protected]

As we mentioned in May when we first ran his profile, David began his truck career in 1981 when he became a parts-man at Carmenita Truck Center in Santa Fe, CA. Even after all these years he can’t imagine a job he’d rather have. That may be because he really enjoys connecting his customers with just the truck they need. He came to the UTA to share knowledge about today’s truck market and industry.

In his spare time, you’ll find David with a fishing rod in his hand! (Note: we’re running Dave’s profile again since we have the correct picture of Dave now.) n

UTA Industry Watch


Jim Rysinventory including Autocar Spotters, Benlee Trailers, and Cora’s Trailers.

In the midst of all this growth and expan-sion, Jim still savors his daily ritual of a morning sales meeting. When we asked him about his favorite part of his job, he simply said, “mornings.” That’s when he meets with his sales team to discuss the day’s opportu-nities. He well understands the challenges facing younger salespeople today, and he’s still using that advice he both gives and takes, continued support for sales education and growth. Success will require ongoing training and educational opportunities and hard work in building a sales network of customers. His staff will have to stay on top of arranging financing and finding good equipment. To top it off, Jim recommends, “Stay active in your community, supporting trucking.” All this seems to come to a tall order, but Jim is the living proof of the success that his advice can bring.

When we asked him to look back at some proud moments throughout his career, of course, opening his independent dealership was at the top of the list. Other proud moments came when the dealership was awarded the ITA Dealer of the Year in 2007. As we mentioned, there are the anniversaries to celebrate, including the 25th, and just last year, the dealership topped $15 million in sales.

Jim has been married for more than 40 years to his childhood sweetheart, he told us. He also said he is lucky to have his wonderful brother as a partner in the House of Trucks. He has a great sister-in-law and brother-in-law, and two nieces. In his spare time, Jim works with the Special Olympics Committee and he is a Down’s Syndrome sponsor. We’ll end with a mention of the one Jim holds special. “My special guy is a snoodle named, what else, Mack!”. n

Long-standing UTA member Jim Rys is the President and founder of The House of

Trucks, Inc., in Willowbrook, IL. Jim designed his dealership to provide late model, low mileage reconditioned tractors with factory or extended warranties. Customers would be able to purchase trucks that looked and ran like brand new at lower, more affordable prices. Now the company has been thriving for more than 25 years and expanded into new markets, too. But, that’s getting way ahead of ourselves in this story.

Jim began his independent dealership after gathering experience working for others. His first job in trucking was as a parts driver for Ford Heavy Trucks. He also spent 14 years in Ford Truck Sales. Along the way, he took the advice he still offers to younger people starting their careers. “Take advice from successful people. Never stop learning and growing in your education of sales and sales

management,” he said. All along the path that led him to open his own shop, he lived by this advice.

In the 27 years since opening the House of Trucks, Jim has served the Chicago trucking industry and become a vital part of the local trucking community. He has participated with the Midwest Trucking Activities and served on the board of the Illinois Trucking Association (ITA). “Trucking has allowed me to create a family of friendships and people to support and help along the way,” he told us.

We asked Jim to share some secrets of his own success. “I have great employees who believe in our concept, ‘the customer is our number one priority,’” he said. “Hard work stands behind what we sell.” Customer satisfaction is the reason for the House of Truck’s success, and a key part of the

company’s mission statement. “Customer satisfaction is not a goal…it’s our guarantee” reads the statement. That satisfaction translates not only to sales and inventory, but also to every other part of the operation. Remarket-ing, storage, appraisals, finance, insurance, and some new inventory, too, all offer potential customers support with their trucks, from purchase to reselling that purchase when it’s time for an upgrade.

To support this lifelong relationship with his custom-ers, Jim recently expanded both his dealership and his inventory line. He added staff to his sales, finance, and remarketing departments and expanded his shop. He also added some new truck

UTA Industry Watch


OCTOBER5 - 6 • Charlotte Diesel Super ShowConcord, NC Charlotte Motor Speedway zMax Dragwaywww.dieselsupershow.com

7 - 10 • ATA Management Conference & Exhibition Las Vegas, NVhttp://truckinginfo.com/industry-events/event_detail.asp?ID=1823

NOVEMBER

MARCH 18 - 20 • ACT’s Commercial Vehicle Industry Review & Forecast Columbus, IN Location TBD www.actresearch.net

AUGUST7-11 • National Truck Driving Championships Minneapolis , MN Minneapolis Convention Centerwww.truckline.com

23-25 • Great American Trucking Show Dallas, TX Dallas Convention Center www.gatsonline.com/great-american-trucking-show-faq/

SEPTEMBER9-10 • NMFTA Annual Meeting Alexandria, VAHilton Alexandriahttp://www.nmfta.org/Pages/NewsandEvents.aspx

16-22 • National Truck Driver Appreciation Week Sponsored by American Trucking Associations (ATA) Location TBDwww.truckline.com

28-29 • 22nd Annual Antique and Working Truck Show Cookeville, TN Hyder-Burks Ag Pavilion http://www.aths.org/

Industry Events Calendar

KC Golf Outing Highlights Coming Next Month

UTA Industry Watch


UTA A f f i l ia te s4 State Trucks, Inc.Chrome Shop MafiaHALO Branded SolutionsHTAEW.comManheim Heavy Duty Truck and Equipment AuctionsMy Little SalesmanNational Truck ProtectionNextTruckPremium 2000+ Medium and Heavy Duty Warranty R.L. POLKRamsey MediaWorks LLCRevolution Payment Systems

RigDig Truck History Reports SOARR.com (Interstate Online Software)Tired IronThe Truck Blue BookTruck Marketing InstituteTrucker to TruckerVehicle Inspection Pros

RigDig Truck History Reports The RigDig team launched RigDig Truck History Reports in the summer of 2011 because dealers, fleets, and owner-operators told us there was a huge need for more information about the history of used trucks. Specifically, dealers wanted to know more about the trucks they had on their lots, and they wanted to be able to give their buyers more peace-of-mind when they drove off in a “new” used truck. Fleets wanted to know more about the trucks they were bringing on, and owner-operators were looking for a way to make smarter buying decisions.

Thankfully, Randall-Reilly Publishing (our parent company) has been in the trucking business for a long time, so we had a lot of information and experience with which to work. Founded in 1934, Randall-Reilly publishes some of the best known publications in the trucking industry, such as Successful Dealer, Commercial Carrier Journal, Truckers News, and Overdrive.

With this wealth of knowledge, Randall-Reilly’s information division got to work. We’re fortunate to have some of the best and brightest people in the industry working on RigDig. In our Charlotte, NC office (where most of the work on RigDig is done) we have about 60 full-time staff members working hard every day to ensure that RigDig is the best product in the marketplace.

The RigDig team spent months interviewing dealers, fleets and owner-operators to determine what information they’d find most valuable in a used truck history report. Based on their input, we created RigDig Truck History Reports from the most trusted information sources available. NMVTIS, the National Motor Vehicle Title Information System, provides us with both title information and brand information that may have been reported on the truck, such as “salvage,” “flood,” odometer issues, and so on. RigDig Reports contain federally-recordable accident information from the Federal Motor Carrier Safety Administration, including roll-over accidents, tow-aways, injuries, and fatalities. RigDig also collects highway and weigh station inspection information from the US DOT, so we can tell you a truck’s inspection history as well as the carriers under which they may have operated. We can provide their total number of trucks, their US DOT number, and the cargo they typically haul. Finally, we also collect UCC lien information, so if there has been UCC finance activity reported on the truck, we can tell you that too.

Since launching, feedback for RigDig has been overwhelmingly positive. Dealers love that they can check out all the trucks on their lot, the trucks they

buy wholesale, and the trucks that they bring in on trade. Dealers have also been integrating RigDig Truck History Reports into their sales process.

Why not give that clean RigDig Report to a buyer to give them more confidence in their purchase? We can also help dealers save money. Our reports are inexpensive, so we always suggest running a RigDig Report before paying for an inspection or travelling to see a truck in person. Maybe you’ll decide that the truck just isn’t worth your time.

We tried to make RigDig Reports easy to use, too. Once you have the VIN number for a truck you’d like to know more about, all you have to do is go to www.RigDig.com and enter it into our system. You can buy a single report or a three-pack of reports, but for dealers, we suggest buying a subscription plan. Buying a plan really does save a ton of money in the long run. From there, getting your report only takes a matter of seconds. You can even run our reports from your Smartphone or tablet. This is great for those dealers who buy lots of trucks at auction!

It may sound bold, but it’s our hope that RigDig will help change the landscape of the used truck market for the better. Dealers can know more about their inventory and sell more, fleet owners will take on safer trucks, and owner-operators will have more confidence in their purchases.

The UTA is built on a great foundation of strong ethics and values, and we hope that RigDig Truck History Reports embody those same values. As a UTA affiliate member, we are dedicated to helping dealers save money, make money, and build trusting relationships with their buyers. Feel free to call us or email us with any questions. l

MarkYour

Calendars!

13th AnnualConvention

November 7-10

Hyatt Regency

New Orleans

UTA Industry Watch


MarkYour

Calendars!

13th AnnualConvention

November 7-10

Hyatt Regency

New Orleans

Questioning skills — go three deep! The more information you discover the stronger your solution will be.Universal 3-deep questions:

•That’sinteresting,tellmemore.•Whydoyousaythat?•Whyisthatimportanttoyou?•Helpmetounderstand.•Whatimpactwillthathaveon____?

Moving on Down the Road: Catching Up with Trevor Pasmann

Trevor has been at his “new” job for more than two years now. We checked in with him to see how his job is working out and how he is enjoying his new role. “Kenworth Sales Company

is top notch,” Trevor told us. As the Corporate Used Truck Manager, he is responsible for the company’s used truck operation. “I really enjoy the Kenworth product line,” he said. “In addition, I have a great team of employees and coworkers, which makes for a very successful and enjoyable work environment.”

But then Trevor admits he’s been fortunate to work for some great companies over the years. After spending a few years serving as a Utah state trooper, Trevor moved into truck sales in 1997 when he joined a Volvo dealership as a salesman. He spent eight years there, moving up to the position of Used Truck Manager before he left the company in 2005. He then spent three years as the wholesale manager at Bennett’s TruckSource. Trevor finds his current job and his previous position share important similarities. “Both Kenworth Sales and Bennett’s TruckSource conduct business with very high levels of ethics and integrity,” Trevor said. “Both companies are UTA members and adhere to the UTA’s Code of Ethics.” Trevor’s previous job and his current one also share common characteristics. They both involve purchasing/trading used trucks, wholesale sales, reconditioning sales, and retail. But there is also a very strong distinction between the two.

“The biggest difference was going from an independent used truck dealer to a multiple-location OEM, full-line dealership,” Trevor explained. “At Bennett’s TruckSource the niche focus is on buying and selling used trucks. At Kenworth Sales Company, used truck sales are merely a component of a full-line dealership experience, along with; new truck sales, parts, service, finance, rental and leasing, and body shop services.” After catching up with Trevor, we’re very happy to report that he is well and thriving and enjoying his job with Kenworth Sales. n

You miss 100 percent of the shots you don’t take.~Wayne Gretzky

UTA Industry Watch


$30,000

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Avg. Retail Selling Price: All Sleeper Tractors between 450-‐550K Mi.

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Price Mileage

Average Retail Price and Mileage -‐ All Sleeper Tractors Under 1M Miles

Average Pricing Remains High while Volume DecreasesBy Chris Visser, Senior Analyst and Product Manager, ATD/NADA Official Commercial Truck Guide

(1)

(2)

Average retail and wholesale pricing for class 8 sleeper tractors remains at a historically high plateau. May’s retail number was

essentially equal to April’s, although mileage was lower. The wholesale market exhibited some consistency in May, with average price and mileage similar to April’s. For the fourth year in a row, May was a weak month for retail sales per dealership.

The average retail price of a sleeper tractor sold in May was $48,738. Average mileage was 538,073. Price was nearly identical to April’s result of $48,809, while mileage was lower than April’s 554,402 figure. The mileage drop of 16,329 is mild, but it does cross back under the 550,000 mile barrier. Year-over-year, this month’s result is 8.6% ahead of May, 2011 on price, while mileage is 4.2% higher. The market continues to tolerate prices in the high-$40’s for trucks with mileage in the low to mid-500’s.

As a reality check, look at the average prices for trucks in the 450-550,000 mile range. These trucks have not changed by any appreciable amount vs. April. We continue to view the retail market as steady at a high level.

Four-year-old sleepers continue to bring strong money despite being the first full model year equipped with DPF’s. May’s average price of $69,580 was comfortably ahead of April’s $65,759 result, while May’s average mileage of 435,311 was slightly lower than April’s 444,918 result. Year-over-year, May, 2012’s pricing was a fat 10.1% higher than May, 2011, while mileage was 5.2% higher. The market continues to place a premium on late-model, relatively low-mileage trucks – DPF or no DPF.

On the wholesale side, volatility in average price and mileage subsided for one month. The average wholesale price paid for a sleeper tractor in May was $32,597. Average mileage was 633,327. This result com-pares favorably to April’s average price of $30,591 and mileage of 640,980. Year-over-year, May, 2012’s average price blew away May, 2011’s by 20.6%. However, May, 2011’s average mileage was 5.5% higher, and on the wrong side of the 650,000 mile barrier. Still, current pricing is strong by any measure. Expect this trend to continue for trucks with under 650,000 miles.

This month, we will also take a look at medium duty trucks. Starting with conventionals, the graph shows that there has been a near-perfect negative correlation between price and mileage since January of this year. This means that the market has established a ceiling on what trucks of a given mileage are worth. We currently estimate that pricing meets resistance at roughly the 135,000 mile level. Trucks with mileage under that level should trend higher than average on price, and the opposite should be true for trucks with mileage over that level.

Given the relatively steady number of trucks sold each month combined with the logical relationship between price and mileage, we consider the medium duty conventional market steady. We expect this segment to trend flat to upwards.

Moving over to cabovers, since early 2011, average pricing has fluctuated from a high of $11,468 to a low of $8089. From that low to high point, mileage has only fluctuated by about 7300 – from 126,247 to 133,541.

One factor at work here is the relatively low sales volume of these trucks. Most months are under 200 units, which doesn’t provide a lot of smoothing out of month-to-month variation in age or condition. Another factor is the occasional large influx of trade-ins from rental companies hitting the auction lanes at the same time. Those trucks could have an outsized

impact on a monthly average. Based on this relatively opaque data, we will refrain from making judgments about the cabover market until a clearer price/mileage relationship starts to form.

Moving over to sales volume, retail sales per dealership dropped notably from April to May. May’s result of 5.6 was one full truck lower than April. This result is 0.2 trucks, or 3.4% higher than last May.

Interestingly, May has been a weak month for the past four years. In both 2010 and 2011, sales volume rebounded in June. Another factor here is that one of our large dealer groups failed to report sales this month. That group typically posts sales per dealership higher than the average, which could explain a tenth or two of the decline. As such, we are minimally concerned about May’s result. With pricing showing no signs of downward movement, May’s lower volume is not a reliable indication of shifting demand.

As we stated last month, we do not expect any notable changes in the used truck market for the remainder of the year. Fundamentally, the domestic economy will likely remain sluggish until after the Presidential Election, and the returning supply of used trucks continues to support high pricing. n

UTA Industry Watch


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Average Wholesale Price: All Class 3-‐7 Cabovers Under 350,000 Miles

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Average Wholesale Price: All Medium Duty Conven:onals Under 400,000 Mi.

Source: NADA

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Dec

Jan-‐11

Feb

Mar

Apr

May

Jun Jul

Aug

Sep

Oct

Nov

Dec

Jan-‐12

Feb

Mar

Apr

May



Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles

(5)

(6)

(7)

www.nada.com/b2b

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

(4)

250000

300000

350000

400000

450000

500000

550000

$25,000

$35,000

$45,000

$55,000

$65,000

$75,000

$85,000

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

Price Mileage

Average Retail Price and Mileage: 4 Year Old Sleeper Tractors

Source: NADA

(3)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Jan-‐09

Mar May

Jul

Sep

Nov

Jan-‐10

Mar May

Jul

Sep

Nov

Jan-‐11

Mar May

Jul

Sep

Nov

Jan-‐12

Mar May

Retail

Wholesale

Average Number of Sales Per Roo3op (NADA Repor7ng Dealers)

2007MY 2008MY 2009MY

UTA Industry Watch


Industry News Briefs

ACT Research: Class 8 Used Truck Volumes Down, Pricing Up in AprilVolumes dropped but prices rose in April, a shift from the trends of the prior two months in the Used Class 8 truck market. ACT reported these findings in the latest release of its State of the Industry: U.S. Classes 3-8 Used Trucks.

“The average retail selling prices for a used Class 8 truck was $51,217 in April, up 8 percent month over month and 16 percent year over year,” said Steve Tam, vice president-commercial vehicle sector with ACT. “The appreciation in prices supports our expectations for the longer term,” he added. “We believe year-over-year pricing growth will continue, but at a slower pace, as more trade-ins become available.”

ACT’s report provides data on the average used price for the top-sell-ing Class 8 model for each of the major truck OEMs – Freightliner (Daimler); Kenworth and Peterbilt (Paccar); International (Navistar); and Volvo and Mack (Volvo).

For more information on ACT visit http://www.actresearch.net. n

U.S. Supply Chain and Logistics Continues Slow ReboundTrucking rates up 5 to 15 percent in 2011

U.S. business logistics costs in 2011 rose to $1.28 trillion, according to the latest “State of Logistics Report®”, released by The Council of Supply Chain Management Professionals (CSCMP). The numbers represent a 6.6 percent increase from last year, and account for 8.5 percent of U.S. gross domestic product (GDP).

The report tracks and measures costs associated with moving freight through the U.S. supply chain. With overall revenue 15.3 percent higher than 2010, the report’s authors noted that railroads gained market share, especially in intermodal, and did not have the capacity problems the trucking sector faced. Trucking companies are also using intermodal rail help to help offset driver shortage impacts, and the cost of acquiring and maintaining new equipment. Despite tightening capacity, and an overall decline in volume, trucking rates rose 5 to 15 percent in 2011.

Inventory carrying costs in 2011 continued their rising trend and overall inventories have returned to pre-recession levels, which CSCMP feels could be a cause for concern for the economy.

The growth has occurred among wholesalers and manufacturers while retail inventories remained flat, indicating that inventory management processes have changed.

For more information about the “State of Logistics Report®” visit http://cscmp.org/memberonly/state.asp. n

DOT Issues Blueprint for Ending Distracted Driving Handheld cellphone users who talk or text while driving had better pay attention. The U.S. Department of Transportation has released a “Blueprint for Ending Distracted Driving,” which provides a compre-hensive strategy addressing “the growing and dangerous practice of using handheld cell phones behind the wheel.”

The Blueprint outlines steps “stakeholders”—from lawmakers and safety organizations to families and younger drivers—can take to reduce the risks that distracted driving poses. DOT also announced $2.4 million in funding for California and Delaware to expand the Department’s “Phone in One Hand, Ticket in the Other” pilot enforcement campaign to reduce distracted driving.

“Distracted driving is an epidemic. While we’ve made progress in the past three years by raising awareness about this risky behavior, the simple fact is people are continuing to be killed and injured — and we can put an end to it,” said U.S. Transportation Secretary Ray LaHood. “Personal responsibility for putting down that cell phone is a good first step — but we need everyone to do their part, whether it’s helping pass strong laws, educating our youngest and most vulnerable drivers, or starting their own campaign to end distracted driving.”

The Blueprint outlines a plan that: ■ Encourages states without distracted driving laws to enact and enforce this legislation.

■ Challenges the auto industry to adopt new and future guidelines for technology to reduce the potential for distraction on devices built or brought into vehicles.

■ Partners with driver education professionals to incorporate new curriculum materials to educate novice drivers about driver distraction and its consequences. Data from the National Highway Traffic Safety Administration (NHTSA) show drivers under the age of 25 are two to three times more likely than older drivers to send text messages or emails while driving.

■ Provides all stakeholders with actions they can take that go beyond personal responsibility to helping end distracted driving nationwide.

For more information visit www.distraction.gov. n

UTA Industry Watch


Cost Savings Tops 2012 Concerns for U.S. Commercial Fleets Forty-six percent of fleet managers say cost savings tops their list of concerns for 2012, according to a recent survey GE Capital Fleet Services conducted. After cost savings came on-time delivery and service, driver safety, and resource productivity (all 15 percent).

“Whether identifying ways to reduce maintenance spend or fine-tune vehicle replacement strategies, we continue to experience a high demand from customers on how best to optimize their fleets and drive out cost,” said Mark Hayes, chief marketing officer of GE Capital Fleet Services.

The survey found that in the next 12 months, 57 percent of fleet managers plan to have incorporated alternative fuel vehicles into their fleets. Not only that, compared to last year, fewer managers say they have no plans to incorporate alternative fuel vehicles over the next 12 months (30 percent today down from 34 percent).

Other key findings from the survey include: Analytics: Thirty-eight percent use analytics tools to identify ways to “improve operational efficiencies,” and 24 percent say analytics have aided their buying decisions. Vehicle replacement: Only 7 percent of respondents do not plan to pursue a vehicle replacement program in the next 12 months. Leasing versus owning: Forty-eight percent said the majority of the fleets they manage are leased, equal to the percentage whose fleets are company owned.

For more information about the survey visit www.gefleet.com. n

CSA 2010 remains a concern for carriers and shippers: TCP Survey Both carriers and some of their shippers are concerned about CSA scores, according to Transport Capital Partners’ (TCP) most recent “Business Expectations Survey.” Over 72 percent

of carriers said some of their customers are concerned about CSA scores, with 21 percent saying there’s no concern.

“CSA continues to be a major concern for the carriers, especially over the last few months as FMCSA has inadequately responded to the concerns of carriers,” notes Lana Batts, TCP Partner. Last quarter, TCP found that 65 percent of carriers surveyed using three or more methods to comply with the regulations.

While 33 percent of the larger carriers surveyed use electronic logs (elogs) on all their trucks, over 55 percent of the smaller carriers don’t use elogs. The disparity shows how difficult it will be for FMCSA to use elogs to enforce Hours of Service regulations. “Larger carriers have been more rapid in adoption and appear equipped to implement required training of drivers and support staff through their operations. For smaller carriers these changes can be much more of a burden,” Batts said.

Carriers are also concerned about the cost of implementing CSA regulations. Seventy-five percent peg the yearly cost of compliance per driver at $500 or more, and 35 percent say costs top $1,000 per driver. “Carriers are clearly frustrated with the level of costs and complexity emanating from the feds, while at the same time half of them tell us they are not getting adequate returns, and face escalating driver costs and an uncertain economy,” TCP Partner Richard Mikes noted. n

Navistar Announces Loss, Management ChangesNavistar reported a loss of $172 million, or $2.50 per diluted share, for the second quarter ended April 30, 2012. At the same time the company announced a management reorganization to “drive improved execution around integration strategy.” Looking ahead, Navistar projects significant profit improvement in the second half of 2012.

“Certainly, our first half performance was unacceptable. It included a warranty reserve to repair early 2010 and 2011 vehicles,” said Daniel C. Ustian, Navistar chairman, president and chief executive officer. “We were also affected by speculation surrounding our engine certification for our Class 8 engine, which is why we are working tirelessly with the U.S. EPA to get resolution.

“Going forward, we’ve identified a path for delivering strong profits in the second half of 2012,” Ustian said. “Historically, the second half is stronger across our businesses, and we expect to build on this with improved market share in North America, stronger global performance and further cost reductions across all operations. Additionally, we’re making management and operational structure changes to align our organization in a more effective manner to drive these results.”

Management changes: ■ Troy Clarke (now president of Navistar Asia Pacific) becomes Navistar’s President, Truck and Engine.

■ Jack Allen becomes President of North America Truck and Parts, expanding on his current role.

■ Eric Tech (now Engine Group President) expands his role to become President of Global Truck and Engine.

“I am confident that our new management structure will lead to greater planning and execution around our integration strategy, further enabling us to deliver enterprise-wide profitability, leverage assets more effectively, streamline decision making and bring renewed energy to our team,” Ustian said.

Truck Segment ResultsFor the second quarter of 2012, Navistar’s truck segment recorded a loss of $89 million, compared with a $92 million profit during the same reporting period last year. Results included “unfavorable shifts in military product mix reflective of lower military budgets, industry-wide higher commodity and fuel costs, an asset impairment charge of $28 million relating to the company’s decision to idle its Workhorse Custom Chassis business, and a charge for $24 million for certain extended warranty costs.”

Navistar also said that sales increased four percent “due to increased volumes in traditional markets and strong volume in South America.” Also, traditional and worldwide chargeouts were up, partially offset by lower military sales and shifts in military product mix.

Additional information is available at www.Navistar.com/newsroom. n

UTA Industry Watch

12 July 2012 www.UTA.orgDon’t Miss the Excitement This Year in The Big Easy

UTA Industry Watch


need, not want. We know his three children are central to their parents’ lives, but Ivy League educations will depend on scholarship opportuni-ties. Yes, some people would look at this man and see someone whose career hasn’t resulted in the things successful people have in our culture. I’m here to disagree.

During this week’s shopping trip, Chris was advising me to choose a particular variety of melon he’d just gotten in. We started to chat about organic produce versus the usual produce inventory; the good choices and the bad. He then began to tell me about a trip he and his wife took last summer to Alaska. He told me all about the thriving organic produce market that Alaska has. He described the markets they went to and the things he learned from the organic farmers. He explained how, because their growing season is so short, they’ve come to maximize their production. This was a man 100 percent engaged in his work life.

Now, I don’t profess to know the financial standing of Chris and his family. I know he and his wife both work hard, and I would guess this trip to Alaska was something long planned and saved for. I wouldn’t

bet it to be a recurring destination, either. Still, in the midst of his fabulous trip, Chris was excited to learn about the product he’s spent a career bringing to market. No, by many standards snootier than ours, Chris is “just a working guy.” By our standards, here’s a man who is fully engaged with his family, his career choice, and his community. That pretty much looks a whole lot like success from where we sit.

Deb and Brad Schepp [email protected]

The same month we moved into this old house in this small town a Safeway grocery opened in the little shopping center about ½ mile away. In the past 15 years, we’ve done most of our food shopping there. Yes, the prices are a little higher, and since the store is small, there isn’t quite the selection of inventory you might want, but we’re still loyal customers. Part of that is convenience, and part of that is selfishness. We don’t want to have to drive over the mountain any time we may need this thing or that. If we want the store to stay here in the valley, we have to support it with our grocery dollars. Every now and again we make a good run to one of the bigger and fancier markets on the other side of the mountain but, week in and week out, you’ll find us at the Safeway.

This has led to some interesting experiences in shopping, especially for a transplanted city girl. Becky, who bags the groceries, gives and gets a hug each time we shop. Jen in the deli popped out from behind the glass to show us her new tattoo. Our son worked there for a while in high school and college, so each week’s shopping trip includes an update on the plans for his upcoming wedding. The staff has come to know, not only us and our family, but scores of families who routinely shop here. Last winter when a long-time cashier passed away, unexpectedly, Rob put his arm around me as he broke the sad news. He knew that we would feel this loss just as the other store employees did, and he was right. So, we have an extended family, and they bring us food. They also sometimes provide us with profound bits of wisdom.

In this economy, everyone is focusing on keeping their heads above water. We hear about the 99 percent and the 1 percent, and all the others in between. It’s safe to say that most of those folks who work at our local Safeway are members of the 99 percent. That hasn’t kept them from building successful and thriving lives. Take the case of our produce manager, Chris. You’ll find him always eager and ready to let you taste a new variety of pear or recommend a new way to serve avocadoes. He manages his staff as they do their best to maintain a fresh, neat, and orderly department— no small task when dealing with fresh food. By many standards snootier than ours, Chris has topped his career out. There are some things he’s not likely to experience through his job. He’ll most likely never earn enough to belong to an expensive country club. We can only guess the vehicle he drives gets replaced based on

From Where We Sit

Used Truck Association UTA Dealer/Vendor Award …uta.org/wp-content/uploads/2015/03/UTA-July-2012.pdf · knowledge and resources they need to suceed. ... Treasurer Tom Pfeiler Secretary

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