Volume 18 • Issue 4 • April 2016 1.877.GETS.UTA • www.uta.org Used Truck Association Chartered May 16, 1988 Published by the Used Truck Association 325 Country Club Drive, Suite A Stockbridge, GA 30281 SHARE YOUR NEWS with the UTA Industry Watch. Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Grace Management 325 Country Club Drive, Suite A Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected]Twitter: @usedtruckassoc To Your Success! UTA Training Update T he year’s first “Selling for Success” training session took place in February in Fontana, CA. I’m very excited to report that we had a full class attending from independent and franchised dealerships near and far. Attendee reviews were outstanding. ey gave the session high marks for course content, corporate presentations, and professionalism. A special thanks to the presenter, George Papp, who’s been the UTA’s exclusive sales and management instructor for the past five years. George has walked in both a new and used truck salesperson’s shoes. Amazingly, he synthesizes his thirty+ years of extensive sales experience into one focus: developing truck sales as a career choice. His goal is simple, but so important—to improve sales performance and consistency. George’s presentations cover key subjects such as preparation for the sale, attitude, prospecting, selling value, and most importantly developing and retaining customers. Informative and relevant presentations from our corporate sponsors— Eaton, Cummins, Michelin, and Peterbilt— are also part of these sessions. e presentations help everyone keep up with our fast-changing industry. ey also allow attendees to understand and be better prepared to sell the features and benefits educated buyers demand to know about regarding today’s engine technology, transmission advancements, and tire science. Fontana’s training session ended with a tour of the Michelin retread facility plant. Talk about exciting and hands on! ere is definitely more to tires than their just being round and black. Please remember that the “Selling For Success” 2016 class schedule is now accepting registrations online at UTA.org for these upcoming sessions: ■ Philadelphia, PA: April 18-19 ■ Indianapolis, IN: July 18-20 (Cummins Engine Plant Tour) ■ Charlotte, NC: September 19-21 (Eaton Transmission Plant Tour) ■ Dallas, TX: October 24-26 (Peterbilt Truck Plant Tour) I expect these classes will fill early, so please make arrangements to attend. ere will also be a “Managing for Success” seminar added to this year’s schedule. It will be a one-day seminar held along with the UTA Jerome Nerman Golf Tournament in Kansas City. is seminar is designed for owners, general managers, and sales managers. It will address all aspects of the hiring process, coaching techniques, time management, and the importance of incorporating a “selling process” into your organization. Capping off the day will be a discussion on “Today’s Values,” led by Chris Visser, Senior Analyst and Product Manager, ATD/NADA. e date for this seminar date is Wednesday June 22, 2016. e event will be held at Harrah’s Casino in North Kansas City. Online registration will be available at UTA.org. anks to UTA members and our corporate sponsors for your support and contributions over the years for our “Selling for Success” and “Managing for Success” training initiatives. Time +Talent and Education = A Successful Career in Truck Sales. e Very Best of Success! Ken Kosic Sr. UTA Training Committee Table of Contents Board News and Views ...................... 2 Quips & Quotes ......................................2 New Members ........................................3 Face to Face with Marty Crawford .... 4 Industry Events Calendar ......................5 Optimizing for Fuel Economy ........... 6 What’s a “Tweet”?............................. 7 Meet Todd Coppaken – UTA’s New Young Member Group Chair .......... 7 NADA Update................................ 8-10 The Brooks Group Sales Tip of the Month .....................10 2015 Convention Photos .................. 11 Industry News Briefs ................... 12-13 From Where We Sit .......................... 14 The UTA… Members Supporting Members!
Transcript
Volume 18 • Issue 4 • April 20161.877.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 Scheppc/o Grace Management 325 Country Club Drive, Suite AStockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)Fax: [email protected]: @usedtruckassoc
To Your Success! UTA Training Update
The year’s first “Selling for Success” training session took place in February in Fontana, CA. I’m very excited to report that we had a full class attending from independent and
franchised dealerships near and far. Attendee reviews were outstanding. They gave the session high marks for course content, corporate presentations, and professionalism. A special thanks to the presenter, George Papp, who’s been the UTA’s exclusive sales and management instructor for the past five years.
George has walked in both a new and used truck salesperson’s shoes. Amazingly, he synthesizes his thirty+ years of extensive sales experience into one focus: developing truck sales as a career choice. His goal is simple, but so important—to improve sales performance and consistency. George’s presentations cover key subjects such as preparation for the sale, attitude, prospecting, selling value, and most importantly developing and retaining customers.
Informative and relevant presentations from our corporate sponsors— Eaton, Cummins, Michelin, and Peterbilt— are also part of these sessions. The presentations help everyone keep up with our fast-changing industry. They also allow attendees to understand and be better prepared to sell the features and benefits educated buyers demand to know about regarding today’s engine technology, transmission advancements, and tire science.
Fontana’s training session ended with a tour of the Michelin retread facility plant. Talk about exciting and hands on! There is definitely more to tires than their just being round and black.
Please remember that the “Selling For Success” 2016 class schedule is now accepting registrations online at UTA.org for these upcoming sessions:
■ Philadelphia, PA: April 18-19
■ Indianapolis, IN: July 18-20 (Cummins Engine Plant Tour)
■ Charlotte, NC: September 19-21 (Eaton Transmission Plant Tour)
■ Dallas, TX: October 24-26 (Peterbilt Truck Plant Tour)
I expect these classes will fill early, so please make arrangements to attend. There will also be a “Managing for Success” seminar added to this year’s schedule. It will be a one-day seminar held along with the UTA Jerome Nerman Golf Tournament in Kansas City. This seminar is designed for owners, general managers, and sales managers. It will address all aspects of the hiring process, coaching techniques, time management, and the importance of incorporating a “selling process” into your organization. Capping off the day will be a discussion on “Today’s Values,” led by Chris Visser, Senior Analyst and Product Manager, ATD/NADA. The date for this seminar date is Wednesday June 22, 2016. The event will be held at Harrah’s Casino in North Kansas City. Online registration will be available at UTA.org.
Thanks to UTA members and our corporate sponsors for your support and contributions over the years for our “Selling for Success” and “Managing for Success” training initiatives. Time +Talent and Education = A Successful Career in Truck Sales.
The Very Best of Success!
Ken Kosic Sr. UTA Training Committee
Table of ContentsBoard News and Views ......................2
New Members ........................................3
Face to Face with Marty Crawford .... 4
Industry Events Calendar ......................5
Optimizing for Fuel Economy ...........6
What’s a “Tweet”? .............................7
Meet Todd Coppaken – UTA’s New Young Member Group Chair ..........7
NADA Update ................................8-10
The Brooks Group Sales Tip of the Month .....................10
2015 Convention Photos .................. 11
Industry News Briefs ................... 12-13
From Where We Sit ..........................14
The UTA… Members Supporting Members!
UTA Industry Watch
2 www.UTA.orgApril 2016
Springing Ahead to the UTA Elections
The year is moving right along at a steady pace. As I write this, winter is moving out, making way for the greatest time of the year! Before you know it we’ll be in Savannah at
this year’s annual UTA Convention.
An enormous amount of preparation is required to ensure the UTA Convention is a memorable, successful, and fun occasion. Dealers and vendors make a very significant contribution to our organization, our industry, and our annual convention as well. Accordingly, we recognize the Dealer Member of the Year and the Vendor Member of the Year at the convention. Please start to think about who you feel deserves these honors as the nominations will begin soon. The UTA has a high set of standards, including the “UTA Code of Ethics,” which establishes our member-ship as the finest of any Association in our great land.
This is a very important year of elections. We will nominate and elect the leaders of this Great Country. We will also nominate and elect UTA’s leaders, in our Board of Directors. In addition, we will nominate and select the recipient of the 2016 Marvin F. Gordon Lifetime Achievement Award.
The position of UTA Board Member is an extremely important one. The UTA Board of Directors shape the values of our Association, and the benefits that are provided for the membership. Board Members devote an enormous amount of their time, energy, and talents to accomplish the results that our members deserve and expect. The Board of Directors nomination form is posted on the UTA website. Please carefully consider the importance of the position, and nominate your choice for the Board of Directors.
The Marvin F. Gordon Lifetime Achievement Award is the highest honor that the UTA gives to an individual who has made a significant contribution(s) to our industry. This individual represents the caliber of personal ethics and behavior that exemplifies the UTA Code of Ethics to the highest degree. Please carefully consider the importance of this award, and nominate your choice for a candidate who fulfills this criteria. This nomination form is also posted on the UTA website.
As we enter the great season of Spring, I wish you the very best, and hope you will enjoy the beauty that this season always brings.
Marketing & Website ...... Rick Clark Co-Chair Amanda Kent
UTA Development.........Mike Roney Co-Chair Jody Johnson
Scholarship .....................Dean Jeske
Training ............................. Ken Kosic Co-Chair Amy Shahan
UTA Industry Watch
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New Members
It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new (or just returning) members in this newsletter. New members have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you enjoy about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you!
James Blount, Vice President Terry Truck SalesP.O. Box 1334 Gainesville, TX 76240(940) 641-0814 (w) [email protected]
James has only officially been in the industry for about a year. But he comes from a background as an insurance adjustor, and in that role he frequently dealt with people in the truck business.
As a new UTA member, he’s looking forward to meeting the “movers and shakers” in the industry to learn all he can.
Jim Conrad Taylor & Martin, Inc. P.O. Box 349 Fremont, NE 68026 (402) 727-6183 (w)(402) 721-4500 (c) [email protected]
John Costa, President Mid-Ontario Truck Centre 2400 Kirby Road Maple, ON Canada L6A 4R6 (289) 553-2400 (w) [email protected]
Starting out in the truck business as a mechanic in 1994, all the way to President of Mid-Ontario Truck Center today, John’s traveled far in his career. Through his current job he gets to meet new people, which he really enjoys.
John’s now a UTA member largely for the chance to gain further “knowledge and connections,” he told us. When asked what other fields he might explore if he ever left trucking, John mentioned construction. “I like working with my hands,” he added.
When he’s not on the job, John enjoys fixing and working on old cars and trucks. He’s now rebuilding a 1960 B-model Mack.
Jeremy Humpal, Sales Manager Sheehan Mack Sales & Equipment, Inc. 901 E. 60th Street North Sioux Falls, SD 57104 (605) 336-2000 (w) [email protected]
Jeremy joined the industry in 2004 starting in sales, the same field he’s in now. He became familiar with the UTA through a company he worked with earlier in his career.
When Jeremy joined Sheehan Mack Sales & Equipment he learned that the company didn’t employ anyone who belonged to the UTA. That’s when he became a member. “This a good association to be a part of,” he told us, and “I wanted Sheehan Mack to belong.”
Thanks Jeremy and welcome aboard!
Wesley Moats, Used Truck SalesTruck Enterprises Inc. 18216 Maugans Ave. Hagerstown, Maryland 21740 www.truckenterprises.com/pages/truck-enterprises-hagerstown-inc(301) 739-5577 (w)[email protected]
Wes joined our industry in 2015. Before that he was project manager for an overhead door company. Now we were not sure what he meant by “overhead door,” but Wes said to just think of garage doors.
A few months ago Wes was looking for a new position when he spoke with an old friend, Tim Berkley. Tim’s the Used Truck Manager at Truck Enterprises. An industry veteran, Tim offered Wes not only a job, but an education in trucks. Now Wes says he’s “learning a lot real quick. “
He’s joined the UTA to learn even more!
Glen Murtagh, General Sales ManagerSurgenor Truck Group511 Upper Dwyer Hill Rd Ottawa Almonte, ON K0A1A0 www.surgenortruck.com (613) 769-0418 (w)[email protected]
One of our true industry veterans, Glen’s been in trucking since 1972. He got his start as a parts and service salesman for a White Truck dealer in Ottawa.
Matthew Niebauer Legacy Truck Centers, Inc. 3900 Depot Road Erie, PA 16510 (814) 898-8396 (w) [email protected]
Brian Sabourin, President Berk’s InterTruck LTD McCullough RoadNanaimo BC Canada 9S4M8 www.berksintertruck.com (250) 758-5217 (w) (250) 758-1444 (c) [email protected]
Jeff Stykemain, President/Sales Manager Stykemain Trucks Inc. 18688 County Road Defiance, OH 43512www.stykemaintrucks.com (419) 782-9950 (w) (419) 784-3655 (c)[email protected]
Dan Williams, Sales Manager Peterbilt of Wyoming 4113 W Yellowstone Hwy Casper, WY 82604 www.peterbiltofwyoming.com (800) 696-2960 (w) [email protected]
Dan began in the truck business in 1992, working in outside parts sales. He joined the UTA for the networking opportunities that membership brings.
In his current job Dan gets to travel a lot as well as meet new people, which he really likes.
If he left the industry for some reason Dan said he could see himself in real estate. He’s also “passionate about hunting, fishing, and classic cars.”
John WilsonWesley Champion Truck & Trailer, Inc. 1321 E. Interstate 20 Odessa, TX 79766 (432) 332-2621 (w) [email protected]
UTA Industry Watch
4 www.UTA.orgApril 2016
Marty CrawfordOf all the relationships Marty has built, all the dealers he’s helped, the trucks he’s sold, and the successful deals he’s executed, his proudest moment still comes from the organization he joined at its inception. “Winning the UTA Lifetime Achievement Award many years later has proved to be the proudest moment of my career,” he told us. “To be recognized in this way by the UTA Board and members was a very humbling experience.” With such devotion to the organization, it’s no wonder Marty has the wisdom to share a unique perspective about the challenges that lie ahead for the organization.
“As we grow, we will have to continue to encompass our more diverse membership,” he said. “When I got on the UTA Board, we had 50 members. We all knew each other. Now we have over 1,000 members and the UTA has to stay connected to the needs of all of our members.” Marty also noted that the UTA has always been so challenged and has always worked to provide better benefits to its members.
Marty’s advice to younger people just starting out in the industry was moving. “If you can’t sell it through telling the truth, don’t sell it,” he said. Make the calls, follow up, and return all calls. “Sounds simple,” he admitted, “but a lot of salespeople don’t do it.”
Marty and his wife, Marietta, have been married for 36 years. They have four children and eight grandchildren. “We live close to our daughter and two of our grandchildren,” Marty told us. “We have two other grand-daughters living with us and attending college in North Texas.” We asked Marty what he enjoys doing in his spare time, and he said, “When I’m not working, I enjoy spending time with family and friends and enjoying Texas!” n
Marty, Regional Sales Manager for Volvo Trucks, NA, was a charter
member of the UTA, but his association with the group actually goes back even further than that. “I became a member of the National Used Truck Association (NUTA) in 1993,” he told us. “In those days, the UTA would meet at the Annual Blue Book Conference.” In 1996, he was chosen to serve on the UTA board, and he continues to serve in an advisory capacity today.
When Marty took his first job as a truck salesman for Waters Truck & Tractor in Columbus, MS in 1987, he had very little experience in the truck industry. “I was raised on a small farm in Mississippi, but I was never around any ‘over-the-road’ trucks,” he said. He stayed with Waters Truck & Tractor for 12 years. He also worked for Arrow Truck Sales at their Atlanta, GA office, where he stayed for eight years before joining Volvo Trucks, NA in Ft. Worth, TX nearly six years ago.
In his current position as Regional Sales Manager of Truck Remarketing, Marty is responsible for working throughout the Western US. “My duties include remarketing the trucks coming off lease and from trade packages for Volvo Trucks, NA and Mack Trucks, Inc.,” he explained. His customers include OEM and independent dealers with valid truck dealer licenses. We asked him about the roots of his success, and he spoke of building strong relationships.
“The wholesale side of the used truck industry is built on relationships and trust,” Marty explained. “When you are selling a truck that you have never seen to a person you have never met, you have to build trust and communicate the truck’s condition accurately. I try to do this on every deal.” Of course, working in the industry for so long has allowed Marty to make many connec-tions and many trusting relationships. That’s still the part of his job he enjoys the most.
“I like matching the trucks we have to the dealers I work with,” he said. “After you work with your dealers for a while, you know what types of trucks they sell in their region. I enjoy connecting the dots! I love it when a deal comes together.” Marty also enjoys visiting his dealers at their dealerships to get a first-hand look at what their operations look like, and to see them in action on their own turf. “I like to see their lot layout and their display areas,” he explained. “It gives me a better under-
standing of what they can market in their area.”
UTA Industry Watch
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Industry Events CalendarAPRIL14-16 • Truck WorldToronto International Centre • Mississauga CAN www.truckworld.ca
18-20 • UTA Sponsored Training Seminar: Selling for SuccessCourtyard Philadelphia Airport • Philadelphia, PAwww.uta.org
19-22 • NAFA Fleet Management Association2016 Institute and Expo • Austin, TXwww.nafainstitute.org/
22-24 • 75 Chrome Shop Truck Show 2016419 E State Road 44 • Wildwood, FLwww.75chromeshop.com
JUNE5-7 • Transportation Marketing & Sales Association Logistics Marketing & Sales Leadership Conference The Ritz Carlton • Fort Lauderdale, FL www.tmsatoday.org/conference
22 • UTA Sponsored Training Seminar: Management SeminarHarrah’s North Kansas City • Kansas City, MOwww.uta.org
22-23 • 11th Annual Jerome Nerman Family Foundation Kansas City Golf OpenReception: Harrah’s North Kansas City Course: Shoal Creek Golf Course • Kansas City, MOwww.uta.org
24-26 • Texas Trucking ShowGeorge R. Brown Convention Center • Houston, TXwww.texastruckingshow.com/
JULY18-20 • UTA Sponsored Training Seminar: Selling for SuccessCourtyard Indianapolis Airport • Indianapolis, INwww.uta.org
AUGUST9-13 • American Trucking Association’s National Truck Driving Championships and National Step Van Driving ChampionshipsIndianapolis, IN www.trucking.org/
SEPTEMBER19-21 • UTA Sponsored Training Seminar: Selling for SuccessCourtyard Charlotte Airport North • Charlotte, NCwww.uta.org
28-30 • ACT Research North America Commercial Vehicle & Transportation Industries Review & Outlook: 2016-2020Columbus, Ind.www.actresearch.net
OCTOBER1-4 • American Trucking Associations Management Conference & ExhibitionMandalay Bay Resort & Casino • Las Vegas, NVwww.trucking.org
22-23 • California Trucking ShowOntario Convention Center • Ontario, CAwww.californiatruckingshow.com
24-26 • UTA Sponsored Training Seminar: Selling for SuccessCourtyard Dallas DFW Airport North/Irving • Dallas, TXwww.uta.org
With today’s rapidly evolving technology, Class 8 trucks continue to grow more sophisticated and advanced. With
this progress there are more opportunities for optimization to maximize fuel economy, performance, and uptime. Getting the right truck spec for your business and operational requirements is funda-mental to a healthy bottom line. That’s especially true when buying or selling a pre-owned truck.
Through my nearly 20 years in trucking and the many relationships I’ve made with industry experts, I’ve learned how to optimize vehicles for a wide range of applications and customer needs. Now I’d like to share some of what I’ve learned about “Spec’ing for Success.” This is the first of a three-part series that will focus on optimizing for fuel economy. Future articles will look at optimizing for performance, and provide a general overview of new and emerging technologies impacting our industry.
When looking at the costs to own and operate a truck, driver wages and fuel rank among the top three factors. Whether fuel costs are $4 a gallon or $2 a gallon, it’s still a top factor. So, how do we best spec a truck for fuel economy?
The top five factors that influence fuel economy, in order of most to least are: Driver Influence, Aerodynamics, Weather (not much you can do about this one), Vehicle Speed, and Idle Time. Let’s examine these in greater detail.
Driver InfluenceDriver influence accounts for up to 30 percent of a vehicle’s fuel economy. Whether your driver is more like “Speed Racer” or “Jed Clampett,” he or she has a huge impact on fuel economy. Of course, training can greatly help improve driver habits, and thus raise fuel efficiency. Several ways to improve driver performance via the vehicle include:
■ Spec’ing an automated/automatic transmission, that can be programmed to shift at more fuel efficient RPMs and eliminate human error;
■ Limiting top engine speeds; and
■ Utilizing onboard driver coaching tools available on many newer trucks.
Aerodynamics Aerodynamics influences up to 15 percent of a vehicle’s fuel economy performance. Vehicle drag (the lower, the better) is influenced mainly by speed and how “slippery” (aerodynamic) the truck is. If the majority of your application and route operates below 55-60 mph, having a highly aerodynamic truck may not have as much influence as one where the truck mostly runs above 60 mph.
It’s also important to understand that aerodynamic components work as a system to push air around a truck and across the trailer. Basic aerodynamic features should include a roof fairing, side chassis fairings, and side skirts all working together to push air around your truck. More advanced devices may include:
■ A bumper dam, which pushes air under the truck;
■ Closeouts in the wheel well, which keeps air from dragging in this area; and
■ A closeout across the trailer gap preventing air from swirling in the space between your truck and trailer.
Understanding the application is also important. For example, bulk haul and open deck applications may not completely benefit from the advanced aerodynamic devices as much as a van or reefer application. Customers can ask their sales truck representative to learn about the full range of available aero options offered with a particular truck model. Or, they can check with their peers who may have similar operations to see what is working for them.
Vehicle Speed and Idle Time
Vehicle speed and idle time each have up to a 10 percent impact on fuel economy. When it comes to vehicle speed, a general guideline to estimate impact is that for every two mph you slow down, you can gain about one percent in fuel economy. For example, if I change my average speed from 65 to 63 mph during a 500 mile route, I’ll gain one percent in fuel economy and only lose about 14 minutes in total travel time. Vehicle speed can be controlled in the engine settings, through cruise control settings, and improving driver habits.
Reducing idle time will improve fuel economy as well – going from 30 to 10 percent idle time can yield up to four percent improved fuel economy. APUs and battery-based no-idle solutions are great ways to keep drivers comfortable while minimizing fuel use. When choosing between an APU or a battery system, there are pros and cons to both. Each provides climate control and improved electrical performance for creature comfort. APUs are fuel powered and only partially offset the effects of idling. Also, as many of you have experienced, used trucks often are sold with non-functioning APUs that require investment to get operational again. Battery-based systems do not use fuel and have lower maintenance requirements. But they may not perform to capacity as battery power is depleted (however, this can be offset with an auto-start system that recharges the batteries as needed).
Other truck components that have a significant impact on fuel economy, but are sometimes overlooked, are the powertrain and tires. Powertrains are more sophisticated than ever and can be programmed to optimize driver performance and fuel economy, spec’d for down speeding (operating the engine at lower RPMs to improve fuel economy), lubricated with higher efficiency transmission and axle oils, and geared for faster axle ratios. There are more tire choices than ever providing an optimized balance between tread life and fuel economy through special rubber blends and more sophisticated designs. Many tire manufacturers have optimization calculators on their websites that allow fleets to match application, miles, (through tread depth), and fuel economy (adjusting coefficient of rolling resistance) to help maximize a fleet’s cost of ownership by choosing the right tire.
Whether you’re buying your next truck or trying to sell it, understanding the vehicle’s specs and their influence on fuel economy is essential. Take time to evaluate your truck’s aerodynamics, powertrain settings, and tires to maximize its fuel economy. Additionally, make sure whoever is in the driver’s seat knows how to operate the vehicle to get the most MPGs. n
Anthony Gansle is the Marketing Segment Manager for Peterbilt Motors
UTA Industry Watch
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What’s a “Tweet”?by Carmenda Laymon
Facebook. There’s also “Retweeting,” which is the same as “sharing” what someone else wrote (or they share yours). Retweets can go viral when you include hashtags (#), especially for those of you attending a major event. #MATS2016: Mid-America Trucking Show, or #WorkTrucks16: The Work Truck Show are two recent truck shows that just ended. If you missed them just type the corresponding # in the search column, and you can see all those who tweeted even if you don’t follow them.
Twitter is great for keeping up with the news and celebrity life. Twitter would have been crazy during the OJ Simpson trial. And if you have a name like @Kardashian or @Bieber that the world just can’t get enough of (BLAH!!!), then Twitter is amazing. But for the average person our Tweets Twitter away before most of our followers see them. Until then just put the @ in front of big names to “tag,” and it will make you feel special.
The key is to post often and get retweeted if you want to make an impact on Twitter. Good luck and happy tweeting. Make sure to follow me at @CarmendaLaymon.
After a few years of working in print advertising, Carmenda Laymon realized the only way to go was to find some niche on the Internet, and it happened to be Social Media. She is now celebrating her 6th year in business and has been in the Trucking industry for over 10 years. Her words of advice: “it’s not going away, it’s getting bigger, take the plunge and make it happen.” n
Meet Todd Coppaken – UTA’s New Young Member’s Group Chair
Todd Coppaken, President of Image Truck Partners, may be young but his career is off to a great start. And recently, he was elected
the Young Member’s Group (YMG) representative to the UTA Board.
A lifelong resident of Kansas City, Todd went west to attend Arizona State University. After graduating, he returned home to work for his family’s wholesale auto parts company. Since the company has always been a part of Todd’s life, he’s had the chance to learn about everything from how the warehouse operates to strategic management.
When the company was sold he spent the next three years, working for the acquiring company. “During that time, I gained invaluable business experience while managing both inside and outside sales forces for the company,” Todd said. “Shortly thereafter, I discovered my new profes-sional passion: the used truck and trailer industry.”
So although he’s only been in the industry for three years, Todd’s found a home. “From day one, I have gravitated to the culture of our industry, and the wonderful mix of people who were not only kind enough to do business with me, but also share their years of experience,” Todd noted. He considers an active UTA membership an important part of his involvement with the truck industry.
Last year, Todd helped launch UTA’s webinar series. The turnout for the series has been fantastic, and Todd found getting a chance to help so many others in the industry rewarding. At the same time, he’s also enjoyed learning more about the equipment that powers our business.
Outside of his UTA responsibilities, Todd is President of Image Truck Partners (ITP). ITP is a wholesale-only dealership, which he operates with his father, Ron Coppaken. “Not everyone has the chance to work with a parent and for those who do, it does not always come easy,” Todd said. But he counts himself lucky. “I have a father who I love working with, and he loves working with me!”
Todd sees UTA’s YMG as a springboard that creates active participants and future leaders for UTA, “all while representing the voice of our industry’s next generation.” He also feels it’s the YMG’s responsibility to help the under-40 crowd fully realize they have skills that can help the UTA evolve. “More importantly, the YMG can also help provide a stable future for our association in the long term.” HIs goal is to develop various ways to educate UTA members and “find ways to plug their talents into the different committees.”
Todd invites anyone who has been wondering about how to get more involved in the YMG to call him. “I am hoping to grow the YMG this year, and we are going to need people with all kinds of backgrounds. So if you are coming from finance, marketing, web design, or sales we can use your help and need to have your voices heard.”
You can reach Todd at (913) 432-8111 x102 or at [email protected]. n
It used to be a sound a bird made, but now it’s become a worldwide phenomenon. When you tweet it’s in real time, unlike Facebook,
LinkedIn and Google +, which only show the most popular and relevant content. On Twitter though, you see it all when it happens, but only if you’re online when it’s happening.
Here’s how Twitter works: you get 140 characters to “Tweet” what you want to say. Along with your Tweet you can add a few pictures. Responses are also kept to 140 characters. If you need to “tweet” more it’s best to do it in a direct message to that follower, as you can on
UTA Industry Watch
8 www.UTA.orgApril 2016
Looking at the larger wholesale market overall (all sleeper tractors with dealer-to-dealer sales included), the environment was more stable. The average selling price of all sleeper tractors of model years 2013-2011 was essentially equal from January to February, at $38,671 vs $38,805, respectively. In the 3-5 year-old segment (model years 2014-2012), trucks lost an average of 2.4 percent of their value from January to February, with February coming in at $48,117. Year-over-year, trucks three to five years of age are bringing an average of 13 percent less money.
See the “Average Sleeper Tractor Pricing by Model Year (all Wholesale)” graph for detail.
Our prediction of roughly 4 percent devaluation per month in wholesale channels should hold true through the second quarter.
Sleeper Tractors – RetailDepreciation in the retail channel is catching up to the auction channel. Following January’s 8.1 percent year-over-year decline in pricing, aerodynamic sleeper tractors three to five years of age lost another 12.9 percent of their value in February. Year-over-year, sleepers in this age cohort brought 14.4 percent less money in the first two months of 2016. March data is still incoming as of this writing in early April, but preliminary results point to a relaxation in devaluation. We expect March to show less of a drop from February.
One caveat –the ProStar’s impact on the overall average was outsized in the first quarter. That model performed unexpectedly well in January thanks to a number of sales of ISX-equipped trucks of model year 2014. Three-year-old ProStars with ISX power are performing comparably to other models. Unfortunately, there were no sales of 2014’s reported in February, dropping that model’s average back to a more typical level. Excluding the ProStar, first quarter depreciation averaged an estimated 8.5 percent, and the year-over-year comparison should show the first quarter of 2016 trailing the same period of 2015 by 13.5 percent. Still substantial declines.
Most other models also declined fairly substantially. PACCAR MX-powered Kenworth T660’s and Peterbilt 587’s did not perform particularly well in the first quarter. Conversely, Freightliner Cascadias and Volvo 670’s lost less value than the competition, most likely due to the smaller volume of those models running through auction lanes in the early part of the year.
In general, it is likely that dealers are accepting lower offers for their retail units in order to move aging inventory. The steep devaluation in wholesale pricing of the third and fourth quarter of 2015 spilled over to the retail channel in the first quarter of 2016.
See the “Average Retail Selling Price of Selected 3-5 Year-Old Sleeper Tractors” graph for detail.
Depreciation in the retail channel is catching up to devaluation in the auction lanes. Dealers are more aggressively reducing
pricing to move aging inventory. Medium duty segments are generally outperforming 2015, with pricing stable despite higher volume. A special study looks at pricing of automated vs. manual transmissions in the Class 8 sleeper segment.
Sleeper Tractors – Auction/WholesaleIn the first quarter of 2016, the volume of our benchmark group of sleeper tractors sold was lower than the previous quarter by 37.5 percent. March was a high-volume month, with 500 of these trucks sold through the nation’s two largest no-reserve auction companies. March was second only to December 2015 for volume.
That said, only one of our benchmark models was responsible for the vast majority of trucks auctioned in March. As such, directional movement looks higher than it actually was for the market as a whole.
See the “Volume of the Three Most Common Sleeper Tractors…” graph for detail.
Pricing for our benchmark truck was up in the first quarter for trucks of model year 2011, and down for trucks of model years 2012 and 2013, for a net quarter-over-quarter movement of -2.5 percent. Specific quarterly performance was as follows:MY2013: $42,253 average; $6,363 (or 13.1 percent) lower than 4Q 2015MY2012: $39,536 average; $1,726 (or 4.2 percent) lower than 4Q 2015MY2011: $37,040 average; $3,839 (or 11.6 percent) higher than 4Q 2015
In March, pricing for these three model years essentially equalized in the low $37,000 range – an unusual phenomenon that suggests the market is still finding a comfort level with the higher volume of trucks coming off trade.
See the “Average Selling Price: Benchmark Sleeper Tractor…” graph for detail.
NADA Update: Retail Depreciation Catching Up to WholesaleChris Visser, Senior Analyst and Product Manager, Commercial Trucks • Twitter: @NADAUsedCarGde
Looking at volume of AMT’s in the used truck marketplace, that configuration was still the minority in the 3-5 year-old segment. Trucks reported sold with AMT’s ranged from 1 percent to 27 percent by make, with Volvo’s iShift representing the high end. The Volvo number may seem low given the vast majority of D13-powered Volvos are built with the iShift. Keep in mind, though, the model years covered in this study were 2013-2011. Also, fleets are the main buyers of AMT-equipped trucks, and sales of their trucks don’t necessarily make it into our traditional data collection stream. So the actual number of AMT-equipped trucks on the road is likely higher than our sales data suggests.
See the “Percentage of 3-5 Year-Old Trucks Equipped with AMT’s…” graph for detail.
We recognize the pricing dynamic for AMT’s is changing rapidly, with the newest trucks generally seeing the strongest pricing. We will continue to monitor selling prices and update our published values accordingly.
Medium Duty TrucksIn the first two months of 2016, Class 6 conventionals continued to outperform year-prior results. 4-7 year-old units averaged $24,335 in the first two months of this year, which is $919 (or 3.9 percent) higher than last year. Average mileage of this cohort averaged 136,747, which is a substantial 38,629 (or 22.0 percent) lower than 2015.
Looking at retail sales volume, February came in slightly higher than January, at 4.8 trucks per rooftop compared to 4.6. Preliminary March data points to a moderate month-over-month increase, to about 5.2 trucks per rooftop. This result would put 2016 to date 0.2 truck behind 2015. Dealers have started to reduce prices more aggressively, and volume of trucks sold should increase accordingly.
See “Number of Trucks Retailed per Dealership Rooftop” graph for detail.
Special Study – Automated vs. Manual Transmission ValuesIn recent years, Automated Manual Transmissions (AMT’s) have steadily increased in popularity in the Class 8 highway aerodynamic segment. Currently, the industry-wide installation rate is roughly 20 percent across the board for non-proprietary transmission/engine combinations, with a few selected proprietary makes approaching 90 percent. In the used market, AMT’s were traditionally a deduction compared to a manual 10-speed, as perceptions of reliability and increased cost of operation limited demand. However, improved perception of the newest products, plus widespread acceptance of certain proprietary AMT’s, may be changing that equation.
To investigate this issue, we compiled calendar year 2015 retail sales data for 3-5 year-old trucks by model, engine, and transmission/engine combination. We then adjusted for mileage and calculated the difference in price for each configuration.
The results show that in calendar year 2015, a traditional manual transmis-sion still brought more money than an automated, except in the case of Volvo, whose proprietary iShift transmission averaged 8 percent more money over a manual when coupled to a D13. Note that the propri-etary Detroit DT12 transmission was too new to show up in our data for Freightliner, so that make’s results are represented mainly by the Eaton Ultrashift Plus.
See the “Average Retail Selling Price of 3-5 Year-Old Trucks Equipped with Automated vs. Manual Transmissions” graph for detail.
NADA Update: Retail Depreciation Catching Up to WholesaleChris Visser, Senior Analyst and Product Manager, Commercial Trucks • Twitter: @NADAUsedCarGde
NADA continued on page 10
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Class 6 trucks sold in 2016 are trending younger than those sold in 2015, which partially explains the higher average selling price of our benchmark group. However, volume is up notably, which adds a positive factor to 2016 pricing performance.
Class 4 conventionals are mildly trailing 2015 in price. 4-7 year-old units averaged $19,038 in the first two months of the year, which is $792 (or 4.0 percent) lower than last year. Average mileage is up moderately in 2016, at 119,151, as opposed to 107,791 in the same period of 2015. This 11,960 (or 10.5 percent) difference likely explains the difference in price.
As with Class 6, the volume of Class 4 trucks reported sold is substan-tially higher in 2016. We consider Class 4 segment performance similar to 2015, with more pressure upward than downward.
See the “Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW Class” graph for detail.
Class 3 and 4 cabovers are outperforming 2015, with pricing moder-ately higher despite substantially higher volume. Our benchmark group of 4-7 year-old units brought an average of $17,900 in the first two months of the year, which is $930 (or 5.5 percent) higher than the same period of 2015.
www.nada.com/b2b
Reprinted with permission from the ATD/NADA Official Commercial Truck Guide®
See the “Average Wholesale Selling Price; 4-7 Year-Old Class 3-4 Cabovers” graph for detail.
A healthy new medium duty market is creating increased trades on the used side, but demand has also increased. It appears these two factors are in equilibrium for the most part. Stable to higher pricing with more inventory to sell is a net positive for dealers in the medium duty business.
ForecastFundamental economic measures are trending upward, with the manufacturing sector showing a degree of strength in March. Export markets are looking somewhat stronger going into the second quarter, which could help solidify manufacturing gains.
The used truck market continues to adjust to increased supply. Losses in the retail market are an unfortunate outcome of a rapid increase in inventory. We expect continued moderate erosion of retail pricing, on the order of 4-5 percent per month. n
A great sales manager is like a great coach. You must place the right player, in the right place, at the right time.
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2015 Convention Tours
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February’s Class 8 Orders Down, M-D Up: ACTClass 8 orders were down again in February, but not as much as they were in January. Similarly, medium-duty vehicle orders rose once again, according to ACT and other market research firms. These movements and volume reflected what was happening with the economy as a whole.
February’s tally overall put orders for Classes 5-8 at 39,500. Class 8 orders came in at 17,900; for Classes 5-7 only, ACT said 21,600 orders were booked.
“Orders for commercial vehicles in February largely mirrored the ongoing U.S. economic narrative,” said Kenny Vieth, ACT’s President. “Healthy consumer-related indicators, such as disposable income, autos, and houses continue to support positive medium-duty demand. At the same time, ongoing weakness in the freight-rich manufacturing sector continues to weigh on heavy-duty demand.”
Class 8 orders continue to fall this year compared to orders for the same period last year. “February’s Class 8 orders fell 43 percent year-over-year against a tough February 2015 comparison,” Vieth noted. “Class 8 orders were in-line with January, however, down just two percent in a shorter and seasonally weaker order month,” said Vieth.
“For medium-duty vehicles, the slow but steady rise in the order trend remained evident in February, with orders rising nine percent compared to a year ago, and 24 percent from January’s tepid intake,” said Vieth. n
FTR Says Order Pattern “Steady” FTR’s take also saw Class 8 numbers moving down again. But FTR feels the market is settling into a more stable pattern, which is good news. But not as good as if the numbers were up, of course.
Mirroring ACT’s numbers, FTR’s Class 8 data came in at 17,650 units for the month, and now “holding fairly steady,” FTR said. FTR also noted the numbers were down 43 percent y/y, but down only two percent from January’s figures. FTR added that orders have averaged 21,000 units over the last three months. “Total orders over the last 12 months have been 254,000, close to the FTR 2016 build forecast,” FTR said in a media release.
“The order patterns are very consistent with the current market situation,” said Don Ake, FTR’s Vice President/Commercial Vehicles.” Fleets are basically finished expanding their truck capacity for this cycle. Purchases are now for replacement demand and the average orders and expected build are right at this level. We should expect orders to stay in a relatively tight range, around the 18,000 to 20,000 unit mark, for the next several months.” Taking a step back, Ake added that as “OEMs have made significant production cuts and now look to be right-sized for the order demand. As long as there is some freight growth, the market should be stable for the next several months.”
Viewing February’s tally in another way, FTR added that “despite the recent downturn in Class 8 demand, February backlogs are still expected to be 14 percent higher than two years ago.” n
Industry News BriefsOverall, February’s Trailer Tallies Sharply Up: FTRLooking at flatbed numbers, FTR found February’s orders up 21 percent over January’s. The numbers were even better than anticipated considering the “sturdy backlogs currently at trailer OEMs,” FTR said. “After strong order activity in late 2015, trailer orders for the past twelve months total 300,000 units.
In particular, while drive van orders were “subdued,” according to FTR, refrigerated units, dumps, and flatbeds were up. “Refrigerated vans were up a healthy 40 percent over January and flatbed orders were the highest they’ve been since October,” the market research firm said.
“The trailer market continues at a strong and steady pace,” said Don Ake, FTR’s VP, Commercial Vehicles. “Orders were fairly impressive considering the robust ordering at the end of 2015. Van orders have slowed, but it’s good to see the increased orders in the other segments. It would appear the trailer market has stabilized for now at a high level,” he added.
About backlogs, Ake noted they were “tremendous” for dry vans and refrigerated vans. “This should support current build rates through Q2 and into Q3. Cancellations were very low, so the backlog looks solid for now. The van market is being driven by pent-up replacement demand. The large fleets are still making good profits and are investing money in upgrading their trailers,” he concluded. n
Pacific Standard Magazine’s Keep on Truckin’ SeriesPacific Standard magazine is featuring a series all about trucking, called Keep on Truckin.’ The series attempts to “create a full-on sensory experience representative of truck driving life in America.” To check it out, visit www.psmag.com/series/keep-on-truckin. n
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Global Medium-Heavy Duty Outlook: Frost & Sullivan Market research powerhouse Frost & Sullivan expects volume to grow in the medium-duty and heavy-duty truck markets by 2.4 percent in 2016,”backed by a strong performance in India and Europe.” The conclusions were part of its recently released study 2016 Outlook of the Global Medium-Heavy Duty Truck Industry.
Frost & Sullivan also had some interesting things to say about OEMs. For example, its recent market outlook listed the top OEMs “to look out for in 2016.” These include Isuzu, Hyundai, Tata Motors, and CNHTC. The number cruncher sees a shift in focus from products to services as part of a “digital transformation.” Some of these service and solution
platforms, which are driving new revenue opportunities, include integrated safety systems, telematics, and big data analytics, all which will play into mobile-based freight aggregation/brokering.
“Capacity utilization challenges will be key,” Frost & Sullivan added. OEMs are realigning product and marketing strategies to “tap into the rapidly expanding mid-market value trucks segment. As profits shrink during a period of challenging market conditions, centralized platform development will be crucial for industry participants.”
Other developments mentioned include autonomous trucks, safety, and alternate power trains. Overall, Frost & Sullivan expects global sales to increase by 60,000 units as the industry “shifts its focus toward freight efficiency.”
For further details, or to order the full report, visit www.frost.com and enter 2016 Global Trucking in the search box. n
Professional Drivers Honored at FMCSA HeadquartersGroups Present Agency a Poster Recognizing Drivers with Millions of Safe Miles
Organizations representing the truck and bus industries recently presented the Federal Motor Carrier Safety Administration (FCMSA) a poster, honoring 76 professional drivers for their millions of miles of accident-free driving.
“We present this poster on behalf of the truck and bus industries recognizing these tremendous professional drivers,” Sean McNally, American Trucking Associations’ vice president of public affairs, said
in a ceremony at FMCSA head-quarters. “There are four million professional drivers on the road and these men and women are the pinnacle of their profession. We hope this will hang in the foyer so visitors and staff of FMCSA can be reminded that they have many safety partners here, but none more important than our professional men and women who are behind the wheel of our trucks and buses.”
Other organizations represented at the ceremony the Owner Operator Independent Drivers Association, the American Moving and Storage Association, the American Bus Association, and the United Motorcoach Association. n
Insights from UTA’s Twitter FeedThe UTA has been on Twitter now for several months. Thanks to Twitter Analytics we’ve learned some interesting things about who’s following our association on Twitter, and which of our tweets are getting the most attention.
UTA has sent out over 1,200 tweets; is following over 400 companies, associations, and individuals; and has about 325 followers. Here are some of the things we’ve learned based on this Twitter activity.
The industry loves reading about dealers and drivers who recently won significant awards. These include driver/dealer of the year awardees and so on. We’re also a very patriotic industry, as you must know. Tweets mentioning the military generally got a lot of attention. There’s also a lot of interest in autonomous trucks. And a tweet about how truckers inspire songs and artwork based on an article in Pacific Standard magazine was among our top tweets.
Top UTA Tweets ■ TCA, Overdrive and Truckers News announce 2015 Company Driver of the Year, Owner-Operator of the Year
■ More on driverless trucks...The Army U.S. Army Truck Test Could Accelerate Autonomous Driving
■ Truckers inspire pop songs, industrial art ■ Trade-in values keeping truck buyers out of the market ■ Fleet truck order intentions better than industry expectations ■ AC-cabins for truck drivers among measures to reduce accidents ■ Our 11th Annual Kansas City Golf Open means great golf, good times with friends, and raising money for scholarships
Other social media platforms where UTA has a presence include Facebook, and LinkedIn.
If you’re not on Twitter, both as an individual and as a representative of your company, maybe it’s time to check it out. Twitter is a great tool for getting a fix on what’s going on in fields that you find interesting. The key is to follow people who are posting things (usually links to articles) that interest you. Like everything else about social media this is something you can refine over time.
We welcome your thoughts about what UTA should be tweeting about. Contact your editors at editor@uta. org. And be sure to follow the UTA on Twitter at @usedtruckassoc. n
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share, and that’s all part of the service our family provides. The healthiest and strongest of them remain curious, eager to learn, and willing to adapt. It’s almost a universal characteristic among a hugely diverse group of people. It was a privilege to visit with a few of them in that single afternoon we spent together.
One man came into the office with his walker and a young man to aid him in driving. He was cheerful and friendly as he came through the door. In introducing him, our niece mentioned that he was a veteran of World War II. “How old do you think I am?” he asked. We already knew,
because our family had told us about him, but we played along. “Oh, I’d say, 87,” we replied. He was happy to announce how wrong we were, since he was 101! We spent some time talking about his service in the War. He said he’d served in North Africa and then in Italy. When we asked if he was at Anzio, he explained by the time his group got to the city, there was very little left of it. He certainly must have had countless experiences, memories, heartaches, and joys in his lifetime, but there he was eager for the latest technology that could help him, and more than willing to tease a couple of “youngsters” along the way. We thanked him for saving the world for us, and he went on with his appointment.
We also met a “younger” woman who was a mere 90 years old. She was there for an adjustment to her device. Having been a patient for many years, our family knew her well, and we were happy to meet her. She’d driven herself and maneuvered her wheeled walker without trouble or assistance. When our niece asked her if she was using the app on her iPhone to change the settings on her hearing aid, she replied, “Of course I am!” She quickly reached a carefully manicured hand into her purse and brought out the phone. Then she shared with us the different scenarios during which she uses the different settings. Now, honestly, we know people our own age who disdain the latest tech-nology! How ashamed they’d be to see someone at this age besting them. It made us wonder if she texts her grandchildren, but decorum kept us from asking.
So many people look askance at the oldest among us. We’re so glad that we’re not among them. It’s one thing to be positive and curious when you’re young. It’s quite another thing to remain that way once the years have built one on top of another, and life has chipped away
many of the things the young hold dear. Now, we’re not going to lie. We’re hoping for a long span of time to be ahead of us. If we are granted our wishes for an extended old age, we plan to stay positive, connected, and most of all curious. That seems like the best choice. At least it does from where we sit.
They, those amorphous, “theys”, say curiosity killed the cat. Well, we’ve lived with cats for most of our lives, and curious as those critters have been, not a one has met death at the hands of curiosity. Not even close. As writers we pride ourselves on curiosity. It’s a vital tool in our toolbox, and we can’t imagine life without it. As an added bonus, when the kids were middle-school and high-school aged it drove them nuts! “Do you have to ask the guy at the dry cleaners how that machine picks out your clothes from all the others in those bags? Can’t you just let the guy with the tow truck do his thing without asking him all about how his job works?” It must have been excruciatingly torturous, judging from the eyes that rolled and the lips that curled. Oh well, the griping never stopped either one of us, and now that the kids are living on their own, we have no filters at all.
We recently found absolute proof that curiosity actually helps humans, no matter what their age. Having traveled to visit our family in Florida, we had the fascinating experience of observing our relatives in their office for an afternoon. They’ve spent the last 50 plus years fitting hearing aids to thousands of people who are hearing impaired or even deaf. As you might guess a good many of their patients are elderly. Every last one of them has a fascinating story to
