2018 - national automobile dealers association
TRANSCRIPT
2018ANNUAL FINANCIAL PROFILE OF AMERICA’S FRANCHISED NEW-TRUCK DEALERSHIPS
ATD DATA 2018 | atd.org 1
OverviewATD Data—the annual financial profile of new-truck dealerships—presents an overview of franchised new medium- and heavy-duty truck dealerships. Highlights for 2018 include:
• Franchised truck dealers sold 487,848 medium- and heavy-duty trucks.
• Total new-truck dealership sales topped $105 billion.
• Truck dealerships employed more than 144,000 people.
• Truck dealerships wrote nearly 12 million repair orders, and had more than $32 billion in service and parts sales.
Here you will find several metrics to help better understand America’s franchised medium- and heavy-duty truck dealers.
Truck dealers continue to contribute to their communities with jobs that pay well and offer the ability for advancement. In the past year the majority of truck dealership employees saw their incomes rise.
Connected trucks will help reduce downtime and lead to faster shipments. With new and advanced communication technologies, commercial vehicle drivers can receive up-to-date information regarding which dealerships in the area have the parts and availability to service their vehicles the fastest. Truck drivers will no longer have to stop and wait while they find out if a dealer has a part they need. Real-time communication between the service center and the driver will reduce downtime and get drivers back on the road faster than ever before.
Having enough staff to meet customer demand helps truck dealers minimize downtime for their clients. Demand remains high for technical positions in the service department as dealerships help maintain these commercial vehicles—which are such a vital part of the U.S. transportation infrastructure.
Looking forward, e-commerce will continue to be a driver of trends in the trucking business as trucking companies adapt to the changing demands of the online shopper. New services are emerging to assist in the last-mile delivery of these goods, and this demand will influence the mix of vehicles in the future.
America’s new-truck dealers experienced a stellar year in 2018, with high demand for Class 8 trucks leading to near-record sales numbers and order backlogs extending well into 2019. We expect 2019 will be another solid year for new truck sales and new truck dealerships.
CONTENTS
Truck Dealerships ............................................................................ 2
Dealership Financial Trends .............................................................. 6
New-Truck Department ..................................................................... 9
Used-Truck Department ................................................................. 11
Service and Parts Department ......................................................... 12
Body Shop Department .................................................................. 14
Dealership Advertising ................................................................... 15
Employment ................................................................................. 16
Patrick Manzi Senior Economist, NADA
ATD DATA 2018 | atd.org 2
Truck Dealerships
Average Truck Dealership Profile
2016 2017 2018
Total sales $37,802,721 $42,970,504 $47,020,926
Total gross1 $5,980,931 $6,909,855 $7,401,348
As % of total sales 15.8% 16.1% 15.7%
Total expense $5,054,417 $5,640,921 $6,023,749
As % of total sales 13.4% 13.1% 12.8%
As % of total gross 84.5% 81.6% 81.4%
Total operating profit $926,514 $1,268,933 $1,377,764
As % of total sales 2.5% 3.0% 2.9%
As % of total gross 15.5% 18.4% 18.6%
Net profit before tax $854,374 $1,247,408 $1,388,147
As % of total sales 2.3% 2.9% 3.0%
As % of total gross 14.3% 18.1% 18.8%
New-truck department2
New-truck department total sales $21,743,722 $24,811,639 $27,697,017
New-truck department sales as % of total sales 57.5% 57.7% 58.9%
New-truck department gross as % of total gross 12.9% 16.2% 18.0%
New Class 8 truck selling price (retail) $119,574 $118,287 $117,426
Gross as % of selling price 3.6% 4.3% 4.6%
Retail gross profit per new Class 8 truck retailed $4,257 $5,124 $5,408
Retail net profit per new Class 8 truck retailed $654 $1,410 $1,432
F&I income as % of new-truck sales 0.6% 0.5% 0.4%
F&I penetration (new) 20.1% 21.4% 12.7%
1 Gross profit includes cost of goods sold, but not SG&A or advertising.2 Excludes F&I sales unless otherwise noted.
ATD DATA 2018 | atd.org 3
Truck Dealerships (continued)
Average Truck Dealership Profile (continued)
2016 2017 2018
Used-truck department2
Used-truck department sales $2,459,473 $2,989,203 $3,336,302
Used-truck department sales as % of total sales 6.5% 7.0% 7.1%
Used-truck department gross as % of total gross 1.5% 3.1% 3.2%
Used Class 8 truck selling price (retail) $47,217 $47,562 $47,901
Gross as % of selling price 3.7% 7.1% 7.1%
Retail gross profit per used Class 8 truck retailed $1,743 $3,385 $3,412
Retail net profit per used Class 8 truck retailed ($4,032) ($1,176) ($655)
F&I income as % of used-truck sales 1.5% 1.3% 0.7%
F&I penetration (used) 18.7% 12.7% 0.3%
Used- to new-unit truck ratio (retail only) 35.8% 38.3% 36.1%
Service, parts and body shop department
Service, parts and body shop sales $12,682,986 $14,351,781 $14,866,869
Service, parts and body shop sales as % of total sales 33.6% 33.4% 31.6%
Service, parts and body shop gross as % of total gross 82.6% 79.8% 77.8%
Warranty (% of total service, parts and body shop sales) 10.9% 10.1% 10.2%
Advertising expense3 $157,099 $149,338 $78,652
As % of total sales 0.4% 0.3% 0.2%
Per new truck retailed $1,080 $911 $408
Rent and equivalent $500,000 $613,329 $619,482
As % of total sales 1.3% 1.4% 1.3%
Per new truck retailed $3,439 $3,740 $3,210
Floor plan interest $106,016 $105,999 $144,276
As % of total sales 0.3% 0.2% 0.3%
Per new vehicle retailed $729 $646 $748
Source: NADA
2 Excludes F&I sales unless otherwise noted.3 Advertising expense includes advertising and sales promotion less advertising rebates. Some advertising data are reported in one account that includes sales promotion and is already less advertising rebates.
ATD DATA 2018 | atd.org 4
Truck Dealerships (continued)
Alabama 45
Alaska 11
Arizona 27
Arkansas 27
California 160
Colorado 33
Connecticut 24
Delaware 6
Florida 98
Georgia 60
Hawaii 7
Idaho 22
Illinois 78
Indiana 61
Iowa 52
Kansas 35
Kentucky 24
Louisiana 50
Maine 17
Maryland 50
Massachusetts 50
Michigan 55
Minnesota 49
Mississippi 31
Missouri 57
Montana 17
New-Truck Dealerships by State, 2018
Total U.S. Rooftop Count by Year
Nebraska 30
Nevada 12
New Hampshire 14
New Jersey 58
New Mexico 16
New York 85
North Carolina 71
North Dakota 14
Ohio 92
Oklahoma 30
Oregon 35
Pennsylvania 119
Rhode Island 7
South Carolina 28
South Dakota 14
Tennessee 50
Texas 181
Utah 17
Vermont 11
Virginia 54
Washington 52
West Virginia 14
Wisconsin 79
Wyoming 11
Total U.S. 2,240
TOTAL NEW-TRUCK DEALERSHIPS
2,240
Source: NADA
2017 2018201520142013201220110
500
1,000
1,500
2,000
2,500
2016
Source: NADA
ATD DATA 2018 | atd.org 5
Section Title
Share of Owners by Number of Dealerships Operated
Number of dealerships 2011 2012 2013 2014 2015 2016 2017 2018
1-5 96.4% 95.8% 95.8% 95.6% 95.5% 95.3% 95.3% 94.7%
6-10 2.9% 3.3% 3.3% 3.3% 3.3% 3.3% 3.3% 3.8%
11-25 0.5% 0.8% 0.8% 1.0% 1.1% 1.3% 1.2% 1.3%
26-50 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Greater than 50 0.1% 0.1% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
Source: NADA
Truck Dealerships (continued)
ATD DATA 2018 | atd.org 6
Dealership Financial Trends
StateAll
dealerships ($ millions)
Alabama $2,116
Alaska $517
Arizona $1,270
Arkansas $1,270
California $7,523
Colorado $1,552
Connecticut $1,129
Delaware $282
Florida $4,608
Georgia $2,821
Hawaii $329
Idaho $1,034
Illinois $3,668
Indiana $2,868
Iowa $2,445
Kansas $1,646
Kentucky $1,129
Louisiana $2,351
Maine $799
Maryland $2,351
Massachusetts $2,351
Michigan $2,586
Minnesota $2,304
Mississippi $1,458
Missouri $2,680
Montana $799
StateAll
dealerships ($ millions)
Nebraska $1,411
Nevada $564
New Hampshire $658
New Jersey $2,727
New Mexico $752
New York $3,997
North Carolina $3,338
North Dakota $658
Ohio $4,326
Oklahoma $1,411
Oregon $1,646
Pennsylvania $5,595
Rhode Island $329
South Carolina $1,317
South Dakota $658
Tennessee $2,351
Texas $8,511
Utah $799
Vermont $517
Virginia $2,539
Washington $2,445
West Virginia $658
Wisconsin $3,715
Wyoming $517
Total U.S. $105,327
Total Sales by State, 2018
Source: NADA
ATD DATA 2018 | atd.org 7
Dealership Financial Trends (continued)
10
20
30
40
$50
60
70
80
$110
90
100
2011 2012 2013 2014 2015 2016
All dealerships, in billions of dollars (left scale)Average per dealership, in millions of dollars (right scale)
2017 2018
Total Sales of New-Truck Dealerships by Year
20182017
Usedtrucks
8.6%
59.5%New trucks
Service and parts31.9%
Used trucks
8.2%
58.3%New trucks
33.5%Service and parts
Share of Total Dealership Sales Dollars, 2017 vs. 2018
Source: NADA
Source: NADA
ATD DATA 2018 | atd.org 8
Dealership Financial Trends (continued)
0
.5
1.0
$1.5
Average dealership, in millions of dollars, including F&I
2011 2012 2013 2014 2015 2016 2017 2018
New-Truck Department Gross Profit by Year
Source: NADA
0
21
345
$6
2011 2012 2013 2014 2015 2016 2017 2018
Average dealership, in millions of dollars
Service, Parts and Body Shop Department Gross Profit by Year
Source: NADA
0
10050
200150
300250
2011 2012 2013 2014 2015 2016 20182017
Average dealership, in thousands of dollars, including F&I
$350
Used-Truck Department Gross Profit by Year
Source: NADA
ATD DATA 2018 | atd.org 9
New-Truck DepartmentAverage Number of Units Sold and Selling Price by Year, Class 8
Year New trucks sold Average retail selling price
2011 123 $112,397
2012 111 $123,064
2013 137 $112,539
2014 135 $128,383
2015 188 $120,348
2016 145 $119,574
2017 164 $118,287
2018 193 $117,426
Source: NADA
SOLD
$117,426 AVERAGE SELLING PRICE OF
NEW TRUCKS SOLD(by new-truck dealerships)
Market Share by Manufacturer, 2018
Source: WardsAuto
32.4
24.3
14.0
8.4
6.7
6.1
3.4
3.3
1.0
0.3
36.3
14.9
14.8
13.7
10.7
7.4
2.3
0.0
Source: Wards-auto
C L A S S 8 C L A S S E S 4 - 7
VOLVO
MACK
WESTERN STAR
DODGE
ISUZU
HINO
GM
KENWORTH
0.7
1.0
All figures are year-to-date.
FRE IGHTL INER FORD
FREIGHTL INER
INTERNAT IONAL
Commercial vehicle sales were stellar in 2018. On the whole, sales of Class 4-8 trucks were up 17.5% compared to 2017. Class 4-7 truck sales were up 6.5% and Class 8 truck sales were up by a whopping 17.5% compared to 2017. Throughout most of the year, manufacturers struggled to keep up with customer demand for Class 8 trucks, and order backlogs continue to extend well out into 2019. This strong demand also increased the price and scarcity of used Class 8 trucks. A one-time boost to economic growth from new tax laws and strong freight demand helped push Class 8 truck sales to their best sales year since 2006. We expect economic growth to cool slightly in 2019, but expanding construction and manufacturing sectors will spur demand for freight hauling. Additionally, consumer demand for online shopping will only continue to increase, leading to more sales of commercial trucks for both regional and last-mile delivery. We remain concerned about potential tariffs on imported autos and auto parts, which could increase costs on some trucks and cause ripple effects to consumer demand throughout the economy. On the whole, our outlook for truck sales in 2019 is positive. For 2019, we expect sales of medium- and heavy-duty trucks to come in at or slightly above their 2018 levels.
U.S. Medium- and Heavy-Duty Vehicle Sales
Dec 2018 Y/Y Change (%) Jan-Dec YTD Change (%)
Medium Duty 22,045 4.1% 237,303 6.5%
Heavy Duty 26,083 16.7% 250,545 30.3%
Total 48,128 10.6% 487,848 17.5%
Market Share (%)
0.5
0.1
MITSUBISHI FUSO
1.3
KENWORTH0.3
0.4
1.8
1.0
BEATTRUCKJanuary 2019
Patrick Manzi, Senior Economist | Boyi Xu, Economist
INTERNAT IONAL2.3
AMERICAN TRUCK DEALERSatd.org
0.1
0.0
YTD Change (%)
YTDChange (%)
MarketShare (%)
0.4
PETERBILT
0.2
0.6
0.0
PETERBILT1.1
OTHER0.1
ATD DATA 2018 | atd.org 10
New-Truck Department (continued)
Total New-Truck Sales By Year, Class
Year Class 4 Class 5 Class 6 Class 7 Class 8 Total
2011 10,459 42,483 40,677 41,212 171,358 306,189
2012 9,638 54,133 39,791 46,854 194,715 345,131
2013 11,631 59,939 47,475 47,524 184,784 351,353
2014 13,374 67,084 51,578 54,092 220,301 406,429
2015 14,362 72,286 55,118 58,888 248,804 449,458
2016 14,238 72,252 61,287 59,917 192,664 400,358
2017 18,690 79,025 63,454 61,621 192,252 415,042
2018 20,502 81,347 71,626 63,828 250,545 487,848
Source: WardsAuto
Gross Margin as Percentage of Selling Price by Year
201620152014201320122011 2017 2018
New vehicles retailed
3
4
5%
4.5
3.5
Source: NADA
ATD DATA 2018 | atd.org 11
Used-Truck Department
Average Used Units Sold per Dealership, Class 8
0
10
20
30
40
50
80
60
70
In thousands
201620152014201320122011 2017 2018
Average Retail Selling Price of Used Trucks Sold by New-Truck Dealerships, by Year
In thousands
2017 201820152014201320122011 2016
30
40
50
$60
SOLD
$47,901AVERAGE RETAIL SELLING
PRICE OF USED TRUCKS SOLD(by new-truck dealerships)
Source: NADA
Source: NADA
70AVERAGE USED TRUCKS SOLD(per dealership)
ATD DATA 2018 | atd.org 12
Service and Parts Department
Service labor sales (in billions of dollars)
0
2
3
4
5
1
InternalWarrantyCustomermechanical
$6
Dealerships’ Total Service and Parts Sales, 2018
Service labor sales (in billions of dollars)
Parts sales (in billions of dollars)
0
10
5
$15
WholesaleCounterBody ShopInternalWarrantyCustomer mechanical
Dealerships’ Total Service andParts Sales, 2018 (in billions of dollars)
Service labor sales
Customer mechanical $5.03
Warranty 1.44
Internal 0.69
Total service labor $7.17
Parts sales
Customer mechanical $4.44
Warranty 1.91
Internal 0.96
Body shop 0.52
Counter 14.66
Wholesale 2.41
Other 0.37
Total parts $24.80
Source: NADA
Parts sales (in billions of dollars)
$32.84 billionSERVICE AND PARTS SALES
(for all truck dealerships)
15
20
25
30
35
201620152014201320122011
In billions of dollars
2017 2018
Dealerships’ Total Service and Parts Sales by Year
Source: NADA
Source: NADA
ATD DATA 2018 | atd.org 13
Service and Parts Department (continued)
Profile of Dealerships’ Service and Parts Operations, 2018
Average dealership All dealers
Total service and parts sales $14,497,638 $32,474,708,687
Service and parts gross profit as % of service and parts sales 36.3%
Dealership net profit as % of service and parts sales 9.6%
Total number of repair orders written 5,345 11,972,480
Service and parts sales per customer repair order $4,347
Service and parts sales per warranty repair order $10,864
Parts sales per service labor sale $3.53
Number of technicians (including body shop) 23 52,037
Number of technicians (excluding body shop) 20 44,158
Total parts inventory $272,617 $610,662,782
Customer mechanical labor rate $121
Source: NADA
$14.50 millionSERVICE AND PARTS SALES
(per truck dealership)
52,037TECHNICIANS
(including body shop)
12 millionREPAIR ORDERS
WRITTEN
ATD DATA 2018 | atd.org 14
Body Shop Department
Dealerships Operating On-Site Body Shops by Year
30
50%
2017 201820152014201320122011
40
35
45
Percent of total dealership population
2016
Average Dealership Body Shop Sales by Year
Average dealership body shop sales, in thousands of dollars (left scale)Body shop sales per repair order, in dollars (right scale)
200 600
$400 $1,800
2017 201820152014201320122011
250 900
300 1,200
350 1,500
2016
Source: NADA
Source: NADA
ATD DATA 2018 | atd.org 15
Dealership Advertising
Advertising Expenditure by Year
0
300
$400
2017 201820152014201320122011
200
100
50
140
$170
110
80
2016
Total dealerships, in millions of dollars (left scale) Average per dealership, in thousands of dollars (right scale)
Average Dealership Advertising per Class 8 New Unit Sold, by Year
400
$1,200
2017 201820152014201320122011
In dollars
800
600
1,000
2016
Source: NADA
Source: NADA
ATD DATA 2018 | atd.org 16
Dealership Employment by Position, 2018
Employment
Estimated Number of Dealership Employees by Year
5.7%
New- and used-trucksalespeople
Technicians
Supervisors,others
Other service and parts employees
36.1%
39.3%
18.9%
Total of all dealerships, in thousands (left scale)Average number per dealership (right scale)
201140
50
60
70
100
120
110
150
140
130
2012 2013 2014 2015 2017 20182016
Alabama 2,893
Alaska 707
Arizona 1,736
Arkansas 1,736
California 10,287
Colorado 2,122
Connecticut 1,543
Delaware 386
Florida 6,301
Georgia 3,858
Hawaii 450
Idaho 1,414
Illinois 5,015
Indiana 3,922
Iowa 3,343
Kansas 2,250
Kentucky 1,543
Louisiana 3,215
Maine 1,093
Maryland 3,215
Massachusetts 3,215
Michigan 3,536
Minnesota 3,150
Mississippi 1,993
Missouri 3,665
Montana 1,093
Estimated Dealership Employment by State, 2018
Nebraska 1,929
Nevada 772
New Hampshire 900
New Jersey 3,729
New Mexico 1,029
New York 5,465
North Carolina 4,565
North Dakota 900
Ohio 5,915
Oklahoma 1,929
Oregon 2,250
Pennsylvania 7,651
Rhode Island 450
South Carolina 1,800
South Dakota 900
Tennessee 3,215
Texas 11,637
Utah 1,093
Vermont 707
Virginia 3,472
Washington 3,343
West Virginia 900
Wisconsin 5,079
Wyoming 707
Total U.S. 144,017
Source: NADA
Source: NADA
Source: NADA