industry watch august 2014

Volume 16 • Issue 8 • August 20141.877.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]

Table of ContentsBoard News and Views .......................2

Quips & Quotes .......................................2

New Members .................................... 5, 7

Face to Face with Charles Cathey ........ 6

Moving On Down the Road: Catching up with Mike Mounsey ....7

A Letter to the Sponsors of UTA Jerome Nerman Family Foundation Kansas City Golf Tournament .............................8

Industry Events Calendar .....................10

The Brooks Group Sales Tip of the Month .....................10

UTA Q&A: NADA’s Chris Visser ......... 12

Wreath Across America .................... 14

Risk Insights ..................................16-17

NADA Update .............................18-21

Industry News Briefs ....................22-23

2013 UTA Convention Photos ......26-27

From Where We Sit ...........................28

The UTA… Members Supporting Members!

For the Love of TruckingWritten by Angelique Pierce, Daimler Trucks Remarketing/SelecTrucks

We all have things we love—places we love to go and things we love to do. Some people like to surround themselves in the adventures of the outdoors, while others can spend

entire days lost reading a good book. Then there are those who we call “foodies,” who find great joy in cooking meals and tasting new foods. No matter what your pleasure, there is a common thread that keeps you going back for more—Passion!

That same passion is found in those of us in the trucking industry because we recognize how vital it is to our country. It’s that desire that drove and continues to drive women to join men in the effort to grow the trucking business—an industry that has a major impact on the progress and sustainability of our great nation.

There are countless stories, past and present, of women making the choice for trucking. The contributions these women have made date back to WWI, when women drove trucks to help haul military equipment. There’s also the story of Annie Box Neal from whom the phrase “riding shotgun” originated. From the Old West, Annie was well-known for sitting next to her husband on his rig, holding a shotgun for security as they transported gold bullion through the Tucson, AZ region.

Maybe you have heard of Lillie McGee Drennan who, in 1929, became the first woman truck driver to earn a CDL. She later became the sole owner of Drenne Truck Line, the first trucking company owned by a woman.

In 2011, the Women in Trucking (WIT) Association was started to raise awareness of the transportation industry as a career option for women. With Ellen Voie leading as President and CEO, WIT recently launched the “I HEART Trucking” campaign, which has the goal of getting drivers—both women and men—to talk about what they love about their jobs.

Also, Anne Ferro has headed the U.S. Federal Motor Carrier Safety Administration (FMCSA) since 2009. Under her leadership, Anne created a new culture of safety in the commercial trucking and bus industries. But women’s contributions to trucking are not confined to the U.S. In March 2014, Noelene Watson (Managing Director of Don Watson Transport) was named the new chairperson of the Australian Trucking Association. She is the first woman to hold that position, and has strived to improve the image of professional drivers, and improve the health of truck drivers.

Finally, we certainly cannot forget the thousands of women who work in the trucking industry today, especially those who further the efforts of the Used Truck Association (UTA). That includes our very own, Sheri Aaberg and Amy Shahan, who have contributed to our industry through their considerable experience in the trucking business, and years of service as UTA members and board members.

There are women in trucking who drive and those who don’t. There are women who run trucking companies, manage inven-tory, or structure financing deals. There are still other women who make trucks, sell trucks, or fix trucks. But whatever their role, women are doing what they do for the love of trucking—the industry that is the engine behind our country’s economy. n

UTA Industry Watch

2 www.UTA.orgAugust 2014

Board News and Views

http://www.uta.org/directory

governing boArd:

President ..................... Rick Clark

vice President..............Ken Kosic

Treasurer .................. Tom Pfeiler

Secretary ...............Sheri Aaberg

President emeritus

........................... Marty Crawford

CoMMiTTee ChAirPerSonS:

Affiliates & benefits ................................Brock Frederick

Convention .................Hal Dickson, Sheri Aaberg

dealer group .........Mike Thurston, Bobby Williams

elections ............... George Barnett

Finance ......................... Tom Pfeiler

Marketing ....................... Rick Clark

Medium duty .............Amy Shahan

Membership .......... John Cosgrove, Kenny Doonan

Training ...........................Ken Kosic, Brock Frederick

UTA Jerome nerman Family Foundation Scholarship ..................................... Jay Burgess, Brock Frederick

UTA.org Website .....Bobby Williams

Wreaths Across America ....................................Bobby Williams

2014 boArd oF direCTorS

The jungle is dark but full of diamonds…

~Arthur Miller

In July, I had the privilege of hosting the UTA board in Chicago for a Navistar event announcing the Diamond Renewed program. When my company was beginning to plan the event it was interesting to hear who we should invite. The list quickly started to come together. When the UTA Board of Directors, value guide books, finance companies, and other groups were mentioned there was a quick yes to everyone. Then the fun began.

I was asked for a list of who was on the board. Immediately, people asked why I was going to invite a Pete Dealer, a Volvo guy, an MHC person, Mack corporate, and probably the worst of them all (sorry Tom), the dreaded Freightliner guy! When I started to explain (for at least the fourth time) that they are the people who we need to get in front of, and get the word out to, something really hit me.

When was the last time a Volvo, Mack, Freightliner, Kenworth, Pete, and International guy all had a dinner or drink together? That group would be more difficult to bring together than Middle East peace. I started then to appreciate even more how great the Used Truck industry really is. We may all have our own affiliations, but at the same time we cross paths and have a common interest and a common product: USED TRUCKS! Not Freightliner used trucks or Paccar used trucks, but just used trucks.

It was great seeing most of the board come in for the day event, and really trying to get the most from it. Everyone was trying to figure out how to increase their productivity and sales through the process we outlined.

I’d like to say thanks to all of the members who attended, and I know some of you had to answer the same types of questions I got asked (like why the heck are you going to Navistar?). I look forward to seeing everyone in Arizona for another USED TRUCK event!

Brock [email protected]

UTA Industry Watch

5www.UTA.org August 2014

New Members continued on page 7

Kregg BaurCentral California Truck and Trailer Sales4244 S. Bagley Ave.Fresno, CA 93725http://www.wtrucksales.net(916) 300-3822 (w)[email protected]

Matt Crossman, Corporate GSMMHC Kenworth11120 Tomahawk Creek PkwyLeawood, KS 66211www.mhctruck.com (816) 242-6261 (w)[email protected]

Matt just started in the business last year, working on the wholesale/buying side. When asked what he liked best about his current job he had no problem coming up with an answer. “I love traveling around to our locations and working hands-on with the guys to help build sales,” he said. “I also enjoy my work here at the office trying to develop new systems and policies to make our sales guys’ jobs easier and increase sales.”

Matt’s looking forward to developing more contacts in the industry now that he’s a UTA member.

Rick Dodson, VP Used TrucksHunter Truck Sales480 Pittsburgh RoadButler, PA 16002http://www.huntertrucksales.com(724) 586-5710 (w)[email protected]

Paul Friesen, ManagerAll Truck Sales1st Ave Court #1Greeley, CO 80631http://www.alltrucksalesco.com(970) 352-5550 (w)[email protected]

New Members

It’s always a treat to welcome new members to the Used Truck Association. Each month we profile our new members in this newsletter. New members have the opportunity to complete a bio and send a photo so our current members can learn more about you. We hope to learn not just how to reach you, but what you enjoy about the work you do, why you joined the UTA, and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you!

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

Mike Fulghum, OwnerSouthern Truck Sales16915 East Fwy.Channelview, TX 77530http://www.southerntrucksales.com(281) 452-2151 (w)[email protected]

Joe Gelfo Truck Master Warranty1524 Bloomingdale AveValrico, FL 33596http://www.truckmasterwarranty.com(800) 326-5204 (w)[email protected]

John Riley George, Sales RepresentativeThe Larson Group/Peterbilt of St. Louis2350 Sauget Industrial Parkway Sauget, IL 62206http://tlgtrucks.com(618) 798-0325 (w)[email protected]

“My grandfather and father both have run trucks my whole life. I have worked on, washed and drove them since I was very young,” said new UTA member John Riley George. His first professional job in the business was driving a delivery truck while in college.

John explained his reason for becoming a UTA member succinctly. “I hope to make new contacts with whom I can share ideas, work together to help each other out, and ultimately sell more trucks.”

While some sales people feel they can sell pretty much anything, John sees trucks as his passion and can’t see himself selling anything else. “Working around trucks and the business end has always interested me, doing this job fits that really well,” he noted.

But when we asked what he might do outside of the truck business, John mentioned the cattle buying business as a possibility or “something with financials.”

When he’s not at work John enjoys the outdoors, whether it’s “being on the river, in a tree-stand, sitting around a campfire playing music on the river, or riding my side by side.”

While John has been around trucks his whole life, he’s only 23 years old, and says he’s always open to learning from the old pros to make himself more successful.

Warren Green, Used Equipment Sales Representative-MidwestPaccar Financial Corp9620 S 76th AvenueHickory Hills, IL 60457(708) 430-9182 (w)[email protected]

Michael Griffis, General Manager Commercial Truck Sales605 S Loop 12Irving, TX 75060http://www.ctstrucksales.com(972) 438-4743 (w)[email protected]

Ken Kosic Rush Truck Center11525 S. Rogers RdOlathe, KS 66062http://rushtruckcenter.com(816) 985-8262 (w)[email protected]

Michael Malcolm, PresidentMike Malcolm Enterprises, Inc.1975 Westpointe CircleOrlando, FL 32835(407) 341-3040 (w)[email protected]

UTA Industry Watch


Charles Catheyexplained. “I got nine of my customers to help me and for about four or five weeks that’s pretty much all I did. It was a blast, and it was very cool being on the movie set. It was quite an experience.” Charles came to be good friends Jerry Reed, and he rubbed elbows with Burt Reynolds, Sally Field, and the Great One, Jackie Gleason, too.

Early in his career, Charles had already learned to treat his customers as though they were the stars. “Never, ever, ever take anyone for granted,” he said. “After a few years of selling and being pretty successful at it, I tended to pre-qualify and ‘crystal ball’ prospective customers. Unless you know for dead solid positive that they are not for real, treat them as an A+++ customer.” Charles shared this wisdom for younger people just starting out in the industry and added that it is important for those following behind to learn from the experiences and advice of the older veteran members of the industry and to continue their learning beyond experience, too. “Accept all offers from your employers to attend training seminars,” he advised. Whether the subject is sales, time manage-ment, or any other work-related training, he encourages attending all trainings and other higher education opportunities employers are willing to support.

As a long-time resident of Atlanta, Charles is happy to have raised his three sons in a single hometown. Growing up, his family moved so frequently that by the time he graduated high school, Charles had lived in nine cities. He determined his kids would graduate from the same school system where they began their educations. Today, Charles is enjoying the company of his two young grandsons and his granddaughter. All of his adult life, he has been active in sports; playing softball, golfing, hunting, and fishing. “My new sport is trying to keep up with the grandsons,” he said. “There is very little ‘sitting down’ time when we are together!” n

Since 2005, Charles has been the Editor of Heavy Duty Truck Data and

Commercial Trailer Data for the Black Book Heavy Duty Truck and Trailer Guide*. The monthly publication reports on the used truck values and data for approximately 4,000 Class 4 and Class 8 trucks, tractors, straight trucks, and commercial trailers in the used truck and transportation industry. “My main responsibility is to determine and report wholesale values for the above equipment,” Charles said. “I do this by monitoring auction activity, attending live heavy duty auctions, watching simulcast auctions, and studying other monthly wholesale truck and commercial trailer values I receive via various electronic channels.” Charles has been a UTA member since 2005 when he joined Black Book, but, of course, he’d begun to build his expertise in the trucking industry long before that.

Charles’ career spans back more than 40 years to 1971 when he took a job as salesman for Nalley Motor Trucks (Peterbilt, Brockkway, and heavy duty Chevy trucks.) “I was hired as a salesman, but I was basically a pledge for the first six months to a year, always at the beck and call of other (senior) salesmen,” Charles recalls. “It was a tremendous learning experience, seeing how the best salesmen stayed the best.” Charles stayed with Nalley Motor Trucks for 17 years. Along the way he also worked for Volvo-GMC Trucks of Atlanta, now Vanguard Truck Center, the Volvo, Mack, and Isuzu dealer in Forest Park, GA. In the early 90s Charles took his career into a different direction when he moved into the leasing business by joining LeasePlan. The company leases heavy trucks, medium duty trucks, and also light trucks and cars.

Throughout the years, Charles has been building his expertise he has always kept the people he works with and serves in the forefront. As a matter of fact, in his current job, the people are what he still enjoys most. “The people I work with at the office and the customers and the business related contacts I work with,” was the answer Charles gave when we asked what he enjoys most about his job. “When I’m in the office and get a phone call or an email from a customer or someone with a truck question, whether it’s value-related or not, I get a kick out of calling them and answering their questions,” he said.

Like so many others in this industry his first truck sale popped to mind when we asked what he looks back on with pride. “It was a brand new 1970 Chevrolet C65 with a transferred London-Log body (12’ length logs) which I sold for $6,900 dollars and got paid $500 commission,” he recalled. Among his other fond memories was getting called on by Peterbilt to see if he would be interested in providing all the trucks and drivers for the filming of the movie Smokey and the Bandit. “The movie was primarily filmed around the Atlanta area,” Charles

UTA Industry Watch


New Members continued from page 5

Molly Meloy River Valley Capital Corp14868 West Ridge LaneDubuque, IA 52003http://www.rivervalleycapital.com(563) 584-9800 (w)[email protected]

Jim MoellerCSM Companies Headquarters5100 Eastpark Blvd., Suite 210Madison, WI 53718http://www.csmcompaniesinc.com(608) 241-5616 (w)[email protected]

Mike Napier, Western Regional Buyer/WholesaleRush Truck Center/Utah964 South 3800 WestSalt Lake City, UT 84104www.rushsaltlakecity.com(801) 514-0159 (w)[email protected]

Mike’s been in the business since 1992, spending the entire time with Rush Truck Center.

His first job was fueling and washing trucks.

Many of the people we interview say that meeting other people from all around the country is one of the things they like best about their work. On that point Mike’s no exception. Then he added: “It’s better than breaking my knuckles as I did in the shop as a mechanic for many years.”

Baseball is one of his passions, and Mike he wasn’t in the truck industry he can envision himself playing shortstop for the St. Louis Cardinals! He coached little league baseball for 20 years and also loves camping and being outdoors in the summer. “I hate winter,” Mike said, “but the number one passion I have in life is my family.”

Finally, Mike said he’s looking forward to meeting and working with as many UTA members as possible.

Scott OsbornTruckGuard/U.S Dealer Systems, Inc.526 Sugar Maple CourtCincinnati, OH 45255(513) 325-6856 (w)[email protected]

Drew Wirstrom, SalesSouthWest International - Triple C Used Trucks 3600 Irving BlvdDallas, TX 75247www.southwestinternational.comwww.triplecusedtrucks.com(214) 689-1540 (w)[email protected]

Let’s welcome Drew to our business —he just joined earlier this year. Drew had been in the sub-prime lending industry for 14 years, and was ready to take on a new challenge.

“Knowledge and brotherhood,” are the two things Drew mentioned he’s looking for from his UTA membership.

As a newcomer to the business he enjoys learning new things and the “constant change.”

“I would love to be a rancher,” Drew said, when asked what else he could see himself doing. “I love being outside in the country, hunting, fishing, and working cattle.”

Other interests…”I am a Marine,” Drew said. I was a founding member of a Veterans Board at my previous company. We started a charity and implemented a strategy to recruit and employ veterans.”

Moving on Down the Road: Catching Up with Mike Mounsey

Just about six months ago long-time UTA member Mike Mounsey returned to the Larson Group, a Peterbilt dealer network in Springfield, MO as the Regional Sales Specialist. His job includes supporting sales and managing inventory for the truck departments in the company’s St. Louis, Louisville, and Cincinnati locations. The Larson Group’s network spans six states, and Mike is responsible for the stores east of the Mississippi River. In between his positions with the Larson Group, Mike spent some time working for MHK Kenworth in Nashville, TN. Mike referred to his return to the Larson Group as “coming home,” and he’s happy to be back.

Mike’s new job gives him a little taste of everything. “I assist the sales managers in each store with trade values, wholesale buying and selling, advertising, and reconditioning guidance, among other things,” Mike explained. “I try to be a resource to support truck sales in any way possible.”

“The opportunities with the Larson Group are endless,” he said about his new job. He enjoys the freedom the company gives him to do his job, and he appreciates that Larson management trusts their employees to take care of their customers in ways that bring them back. “I’d like to make people aware that with the size of the Larson Group, we are always buying and selling wholesale,” he said, “so please stay in touch and let’s do some business!” n

UTA Industry Watch


Mr. Sponsor123 Any StreetAny town, US, 32154

Dear Sponsor:

I wanted to express my deepest gratitude for your sponsorship of our UTA Jerome Nerman Family Foundation annual golf tournament this past June. It says a lot of a company like yours to step up and support the worthy scholar-ship program that the Nerman family has established.

The UTA Board of Directors and I work hard every year to make sure this great scholarship program is fully funded by generous people just like you. I appreciate your giving back to our community. Generously giving financial assistance to students in their pursuit of higher education, is an investment in all of our futures. These are all great young men and women who have excelled in every aspect of their young lives, but who without our help may not become all they can be.

The Board of Directors of the Used Truck Association believes, with all of our hearts, that this scholarship program is a very big deal. Without your gener-osity, it would not be possible. So please, when you or your employees come ask to play in the Golf Tournament and sponsor this scholarship program, remember what it does for our community.

Also remember that this year we will award a scholarship to a deserving young man or woman who is attending the Universal Technical Institute. Universal Technical Institute, Inc. provides technical education training nationwide for students seeking careers as professional automotive, diesel, collision repair, motorcycle, or marine technicians.

Please read about the winners that we will announce in November at our banquet. If you can use any of these young men or women at your place of work, please contact them.

Again, I say thank you for your support! I look forward to hearing from you again next year!

Sincerely,

Jay D. Burgess Chairman, Scholarship Committee

A Letter to the Sponsors of the UTA Jerome Nerman Family Foundation Kansas City Golf Tournament

2014 SpoNSoRSAdesa

Arrow Truck Sales

Best Used Trucks

Black Book

Bolt Insurance Agency

CAG Truck Capital

Doonan Truck & Equipment of Witchita

Fleet Lease Disposal

Insurance Auto Auctions

J & J Driveaway

Mission Financial Service

National Truck Protection

Navistar

Next Truck

Next Truck Sales

Pyle Equipment Auctioneers

Ritchie Bros Auctioneers

RoadRunner

Truck Center of America

TruckGuard

TruckMovers.com

Vander Haag’s

Wholesale Trucks of America

UTA Program Ad-Peterbilt579&MX-13.indd 1 7/31/14 11:13 AM

UTA Industry Watch


Industry Events CalendarAUGUST8-9 • Waupun Truck-N-ShowWaupun Community Center • Waupun, WIhttp://waupuntrucknshow.com

15-17 • Eau Claire Big Rig Truck ShowChippewa Valley Technical College • Eau Claire, WIwww.eauclairebigrigtruckshow.com

20-21 • Commercial Vehicle Outlook ConferenceDallas Convention Center • Dallas, TXwww.cvoconline.com

21-23 • The Great American Trucking Show 2014Dallas Convention Center • Dallas, TXhttp://www.gatsonline.com

SEPTEMBER5-6 • Big Iron ClassicMantorville, MNwww.bigironclassic.com

22-23 • UTA Sponsored Training SeminarSelling for SuccessPhoenix, AZwww.uta.org

OCTOBER1-3 • 24th Annual NTDA Convention 2014LaQuinta Resort & Club and PGA West • La Quinta, CAwww.ntda.org

4-7 • ATA Management Conference & ExhibitionSan Diego Convention Center & Marriott Hotel San Diego, CAwww.truckline.com

29-30 • Green Fleet Conference & ExpoRenaissance Schaumburg Convention Center Schaumburg, IL www.greenfleetconference.com

NOVEMBER5-7 • 15th Annual UTA ConventionTalking Stick Resort & Casino • Scottsdale, AZwww.uta.org

MARCh 201526-28 • Mid-America Trucking Show 2015Kentucky Fair & Exposition Center • Louisville, KY www.truckingshow.com

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UTA Industry Watch


UTA Q & A: NADA’s Chris Visserdealers who report retail and wholesale sales to us monthly. We also work with OEMs to collect data from their used truck operations. In addition, NADA’s relationship with the National Auto Auction Association provides us with an automated feed of every truck sold by Manheim and ADESA. All of this data is processed into our monthly sales database, which I use to perform monthly analysis. I also monitor auctions not included in our automatic feed – I find some of these to be useful for smaller-volume vehicles like construction trucks. This wealth of data gives us actionable information about where all segments of the retail and wholesale markets stand at a given time.

Industry Watch: What are the most important trends that you see in the industry?

Visser: Right now, the increased supply of 2011 to 2012 model-year trucks is the biggest factor influencing used truck market dynamics. The extremely tight supply of low-mileage iron has relaxed mildly in the past four months, so I’m watching market movement very closely to see how pricing trends are changing when viewed in terms of mileage and age, and of course by individual model. Pricing will remain strong because demand will continue to outstrip supply through the end of the year—but 2010 to 2013 model year trucks should depreciate mildly in that period.

Industry Watch: What should used truck dealers be doing to maximize their chances for success over the next 12 months or so?

Visser: The days of increasing values for three- to- five-year-old trucks are likely behind us, so dealers should expect pricing to trend mildly downward. Dealers may want to spend additional time looking at values of incoming trades and inventory. Overall, dealers can expect to move increased volumes of iron that will still be high-priced in historical terms, which is the definition of a “healthy market.”On the other end of the price spectrum, the practice of overhauling and reconditioning older, pre-DPF trucks has increased over the past year. Demand for that niche remains strong in regions with less-strict emissions regulations. If a dealer has a process for efficiently getting this work done, there is likely profit to be made.

Industry Watch: Aside from your NADA update what other reports, etc., does NADA provide that UTA members should be sure to check out?

Visser: Our main product is the ATD/NADA Official Commercial Truck Guide®, which provides subscribers with used retail, loan, and wholesale values —as well as MSRP, GVW, and GCW data—for most makes and models of trucks and trailers back to the 2000 model year. That product is available, in print, web/smartphone, and data formats. We also provide custom analysis and reports to clients on request.In terms of what everyone can access for free, our Commercial Truck Blog is updated twice weekly, and our Guidelines market report is published monthly. Both of these publications provide a look at where NADA sees various segments of the market currently. All of our products and publications can be accessed via our homepage at www.nada.com/b2b.

Thanks Chris! n

Industry Watch readers know Chris Visser as the author of each month’s NADA Update. In this first in a new series of interviews with industry

experts, we caught up with Chris to learn more about his background, and his thoughts about what’s ahead for the used truck business.

Industry Watch: Please tell us a bit about your background as it relates to the trucking industry.

Visser: Before I started in this industry I had oil in my veins, coming from a long line of motorheads. My grandfather was into sports cars in the ‘50s, and my Dad is an amateur car restorer, and rebuilt about a dozen cars starting in the late ‘60s. He still owns his favorite, a ’66 Vette that he bought damaged in 1976, and restored over the next year or so.As for how I began in the trucking industry, I started as an analyst with the NADA Used Car Guide in 1997, a couple of years out of college. About a year later, I had an opportunity to work on the “Commercial Truck Guide”—with more autonomy and responsibility than I had in my previous role. I jumped at the chance. Initially, we hired a consultant to help with market intelligence. The name of that individual should be recognizable to anyone in the used truck industry, especially the UTA: Marvin Gordon. Marvin helped to bring me up to speed on the ins and outs of the used truck market, and went out of his way to introduce me to many of his contacts, which proved invaluable. Marvin loved to travel, even in his later years, and he showed me how face-to-face interaction is critical to getting business done…more so in this industry than in many others.My day-to-day tasks have evolved in step with technology. In the late-‘90s, we were still receiving faxed sales reports and manually entering data into a spreadsheet. Some dealers didn’t even have e-mail. Our valuation products consisted of the printed book and a CD-ROM application. Today, I’m pretty sure our fax machine has cobwebs on it, and our sales data is automatically processed into a database. Our customers can access values on the web and on their phones, and we can help build websites with our developer’s tools and raw data. On the back end, I’ve worked with my counterparts at the Used Car Guide to develop sophisticated analytical tools and processing applications that have created internal and external opportunities.In the 16 years I’ve been managing the Commercial Truck Guide, I’ve had the good fortune to interact with used truck dealers through the ATD’s Dealer Academy, OEM events, and of course the UTA. I’m proud to have been a part of the first UTA Convention in 2000, and have attended every one since except for 2013 (I decided it would be more fun to go with my Dad and brother to the SEMA show in Vegas for Dad’s 65th birthday).

Industry Watch: Your bio identifies you as NADA’s Senior Analyst and Product Manager, Commercial Trucks. What exactly are your duties?

Visser: My primary responsibility is to analyze incoming retail and wholesale sales data from dealers, auctions, and OEMs, and translate that data into NADA’s monthly value forecasts. I also represent the Commercial Truck Guide at industry panels, seminars, and events. In addition, I write our twice-weekly Commercial Truck Blog and monthly Guidelines market update, and film our monthly video market update. I also initiate and manage business relationships involving commercial vehicle data, which includes preparing unique reports for individual clients.

Industry Watch: Industry Watch features your NADA update each month. Tell us a bit about how the data is compiled for that report.

Visser: Over the years, NADA has cultivated a network of over 200

UTA Industry Watch


Wreaths Across AmericaCobb Wants to Cover Arlington and Her Truck

This year marks the 150th anniversary of Arlington National Cemetery. In

support of WreathsAcrossAmerica.org, Jennifer Jo Cobb Racing has teamed up with The Used Truck Association (UTA.org/Driven2Honor) to encourage fans to join their fundraiser group to sponsor a remem-brance wreath for a fallen veteran at Arlington. The cost is just $15 each. All proceeds go to Wreaths Across America (WAA) as a charitable donation.

For every wreath sponsored between now and Veteran’s Day through the UTA website or at a JJCR appearance, Cobb will person-ally sign the name of each donor on a wreath decal and place it on her truck. “We felt it was appropriate to kick this off on the 4th of July and we’re going to offer this opportunity through Veteran’s Day weekend. We will add the donation wreath decals to each truck I will race in the NASCAR Camping World Truck Series between now and the race on November 7 at Phoenix International Raceway,” says Cobb. “I’d love to meet our goal to cover Arlington as well as cover our #10 Driven2Honor race truck with remem-brance wreath decals and names of donors.”

“We’re happy to once again be part of this with Jennifer and UTA,” says Dave Pack, Vice President of Marketing & Personal Relations of Trucker Fan Racing, the organization overseeing the promotion. “We want to honor our veterans at Arlington and build on what we did last year. We’re confident as Jennifer’s season progresses and more and more wreath decals with donor names appear on her race truck, people and the media will ask questions and want to be part of it. We want to cover Arlington and Jen’s truck by season’s end. And that’s what it’s all about!”

Approximately half of Arlington National Cemetery was covered last year and Cobb and the UTA announced in February a goal to cover the remaining grave sites at Arlington with remembrance wreaths through WAA. Approximately 100,000 more donors are needed to cover Arlington than the number who participated in 2013.

Wreaths Across America Day is December 13th. WAA is a non-profit 501(c)3 charity in Columbia Falls, Maine that delivered over 540,000 such wreaths in all fifty states last year to veteran cemeteries including 142,700 at Arlington. Patriotic fans who sponsor a

wreath will also be recognized with a personal thank you on the Jennifer Jo Cobb Racing Facebook page as well as the honorary wreath decal. To learn more, go to www.uta.org/driven2honor or to sponsor a wreath go to www.uta.org/driven2honor/join_our_group.

Update: Currently the fundraiser is going very well. Pictures of Jennifer’s race truck are posted and they’re filling her Jennifer Jo Cobb Racing Facebook page. Decals reflect a remembrance wreath image, Wreaths Across America logo and our UTA.org/Driven2Honor weblink. There are plans for Jennifer and her race truck to be available at The UTA Convention in Phoenix prior to her race that weekend at PIR. Details are forthcoming.

More race updates can be found on Twitter: @jenjocobb and www.facebook.com/JJCRacing n

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UTA Industry Watch


Risk InsightsThe Growing Risk of Employment Practices Liability for Small Businesses

Employment practices liability claims involve work-related suits stemming

from allegations of discrimination, harass-ment, wrongful termination, wage-and-hour disputes, retaliation, and other issues. These may seem the type of claims only larger companies face. But this is far from true and just as with any industry, independent and franchise truck dealerships – big and small – are exposed to workplace lawsuits. In fact, small operations as with any size firm face an increasingly higher level of employment liability risks due to a tougher regulatory landscape over the last several years.

For example, legislation such as the Americans With Disabilities Act (ADA), which was enacted in 1990, prohibits, under certain circumstances, discrimination based on disability in the workplace, in the same way the Civil Rights Act of 1964 made discrimination based on race, religion, sex, national origin, and other characteristics illegal. In 2009, the ADA Amendments Act of 2008 (ADAAA) became law and made a number of significant changes to the definition of “disability” under the original legislation. Ultimately, it’s now easier for an individual seeking protection under the ADA to establish that he or she has a disability within the meaning of the statute.

An Aggressive Stance by the eeoCMoreover, the Equal Employment Opportunity Commission (EEOC) in 2012 stepped up its game with its Strategic Economic Plan (SEP) to undertake a more proactive approach to “stop and remedy unlawful discrimination.” Under the SEP, the focus of the EEOC is to coordinate its programs to “have a sustainable impact in reducing and deterring discriminatory practices in the workplace.” Its priorities over the last couple of years have been to eliminate barriers in recruitment and hiring; protect immigrant, migrant and other vulnerable workers; address emerging and developing employment discrimination issues; enforce equal pay laws; preserve access to the legal system; and prevent harassment through systemic enforcement and targeted outreach. As a result, we have been seeing a rise in several types of claims, including discrimination and retaliation cases.

The Use of background Checks Another issue at the forefront of employ-ment practices that impacts business owners are background checks when hiring employees. Many employers use background checks to screen applicants. And, while employers are permitted, under certain circumstances, to rely on the information about an applicant or employee from a criminal history and/or consumer report in making employment decisions, employers must take certain precautions to ensure they do not violate federal laws. Indeed, earlier this year in March, the EEOC and the U.S. Federal Trade Commission (FTC) issued guidance documents on how their agencies’ respective laws apply to background checks performed for employment purposes. Among the guidelines, employers must:

■ Tell an applicant or employee of his or her right to a description of the nature and scope of investigative reports conducted by third-party providers.

■ Get an applicant’s or employee’s written permission to perform a background check. This can be part of the document you use to notify the person that you will get the report.

■ Certify to the company from which you are getting the report that you notified the applicant and got his or her permission to get a background report; complied with all of the Fair Credit Reporting Act require-ments; and won’t discriminate against the applicant or employee, or otherwise misuse the information in violation of federal or state equal opportunity laws or regulations.

■ Before you take an adverse employment action (not hiring an applicant or firing an employee), you must give the applicant or employee a notice that includes a copy of the consumer report you relied on to make your decision and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act.

A rise in Wage-and-hour disputesWage-and-hour disputes are also a rising concern for employers. According to recent numbers released by law firm Seyfarth Shaw after analyzing reports by the Federal Judicial Center, federal wage-and-hour lawsuits filed under the Fair Labor Standards Act (FSLA) reached a record high in 2013 to 2014. Between April 1, 2013 and March 31, 2014, there were 8,126 federal wage-and-hour lawsuits filed, indicating nearly a five percent increase from the comparable period a year ago, when 7,764 cases were filed. Furthermore, this trend is likely to continue with the minimum wage debate and rising rates, which is putting greater emphasis on wage-and-hour laws and the availability of overtime pay.

As you can see, the employment practices landscape is continually evolving and becoming more difficult for business owners to navigate if one doesn’t keep updated on regulatory changes. This can impact your livelihood should your business be hit with an employee-related lawsuit. The attorney costs alone to defend a case can add up significantly. It’s critical to have someone within the organization or an outside resource who understands the laws and their impact on employment practices, and can implement robust Best Practices when it comes to hiring practices and employee relations, including fostering a zero tolerance policy on discrimi-nation throughout the company.

In addition, in the event of a lawsuit, Employment Practices Liability Insurance (EPLI) is must-have coverage in today’s litigious environment. EPLI insurance safeguards one’s business against the high

Quick Steps to Prevent employment Practices Claims

n Maintain a clear, up-to-date and well-written employee handbook.

n Document employee supervision.

n Establish grievance procedures.

n Distribute written discrimination and sexual harassment policies.

n Establish prudent hiring, performance and termination guidelines.

n Understand and comply with the requirements for ADA and FMLA and other federal and state regulations.

n Secure coverage with Employment Practices Liability Insurance.

n Be sure to consult with an insurance professional to ensure that your business is covered properly.

UTA Industry Watch


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cost of lawsuits due to discrimination, harassment, wrongful termination, and other potentially devastating charges. It can cover your business for the cost of legal defense, settlements, and other court fees when your business is sued for violating a person’s or group’s civil rights or failing to provide a fair, acceptable environment for them to perform their work. What’s more, it covers claims brought against your business by former, current, or prospective employees.

EPLI coverage should be a component of an independent and franchise truck dealership’s insurance program. Be sure that your program is comprised of Employment Practices Liability coverage, and take care to ensure that you have the appropriate Garage Liability and other specific industry coverages. Check out when your renewal is set to come due so that you can have a professional assessment of your insurance program scheduled ahead of time to ensure you, your employees, and your assets are covered. n

Each month in this column, BOLT Insurance provides UTA members with insights into the various exposures and risks they face. If you have any questions regarding a particular coverage issue or a story involving any type of claim you’d like to share with BOLT Insurance, please contact Brian Lawlor at 860-777-2671 or via email at [email protected].

UTA Industry Watch


Market Summary

Availability of sub-500,000-mile sleeper tractors continues to increase, with strong demand limiting the rate of depreciation. Sales volume was relatively strong in June, with the typical late-spring/early-summer slowdown not present this year. Medium duty segments continue to gradually improve, returning strong year-over-year comparisons. The construction sector remains mixed, with selected regions showing strength. A low supply of 2010 and newer construction trucks supports strong pricing for that segment.

Sleeper Tractors – retail

The influx of late-model sleeper tractors coming off trade continued in June, pushing our universal retail average down about three percent from May. Specifically, the average sleeper tractor retailed in June for $57,138, had 521,586 miles, and was 78 months old. Compared to last month, pricing was down $1,748 (or 3.0 percent), mileage was up 14,640 (or 2.9 percent), and age was three months older. Year-over-year, June 2014’s pricing was up $4,314 (or 8.2 percent), mileage was down 10,755 (or 2.0 percent), and age was three months older. See “Average Retail Price and Mileage” graph for detail.

Drilling deeper, we see that this influx of late-model trucks is represented primarily by those with fewer than 400,000 miles. In fact, the number of trucks with that mileage sold in the first half of 2014 is already greater than in all of 2013. These trucks are still early in their usable lifespan, and they’re also half the price of a new truck. As such, demand for this cohort will remain strong, limiting depreciation. See “Average Retail Price and Number of Trucks Sold” graph for detail.

Given the extremely favorable year-over-year comparisons, we still consider pricing to be at a historically high level, which is where we expect it to remain through the end of the year. At the same time, we are unlikely to see record-breaking pricing again, and we continue to forecast depreciation for 2013-2010 model year trucks on the order of roughly 1.5 percent per month.

Sleeper Tractors – Wholesale

At the halfway point of 2014, the number of lower-mileage sleeper tractors reported sold at auction or dealer-to-dealer is notably higher than last year. Whereas this dynamic is represented by the under-400,000-mile cohort in the retail channel, that cohort moves up to 500K in the wholesale channel. In terms of age, we’re talking about 3-5 year-old trucks. See “Average Wholesale Price and Number of Trucks Sold” graph for detail.

Interestingly, older, higher-mileage trucks are also more popular in 2014. Increased recon/rebuild business for pre-2007-emissions trucks is the likely factor here. If an older truck is bought right, it is possible to turn a profit on the retail end even after an overhaul and recondi-tioning are completed.

Fortunately, pricing for newer trucks on an individual basis has still not been notably impacted. Depreciation has been very mild both in terms of model year and mileage range, with no across-the-board changes. However, there was enough downward movement in the market overall to push our universal average down month-over-month.

Specifically, the average sleeper tractor sold wholesale in June brought $40,491, had 615,771 miles, and was 77 months old. Compared to May, pricing was down $4,343 (or 9.7 percent), mileage was up 49,998 (or 8.8 percent), and age was four months older. Year-over-year results remain extremely favorable, with June 2014 pricing coming in $15,740 (or 63.6 percent) higher, mileage 72,216 (or 10.5 percent) lower, and age eight months newer. See “Average Wholesale Price and Mileage” graph for detail.

NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

400,000

430,000

460,000

490,000

520,000

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580,000

$30,000

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Source: ATD/NADA

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Average Retail Price and Number of Trucks Sold by Mileage Range Sleeper Tractors, CY2013 vs. YTD2014

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Source: ATD/NADA

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Average Wholesale Price and Number of Trucks Sold by Mileage Range Sleeper Tractors, CY2013 vs. YTD2014

YTD2014 Price

CY2013 Price

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CY2013 Vol.

Source: ATD/NADA

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

2 per. Mov. Avg.(Price) 2 per. Mov. Avg.(Mileage)

Source: NADA and AucFonNet

UTA Industry Watch


NADA continued on page 12

Competitive Comparison – 3- and 4-Year-old SleepersLooking at the 2012 model year, the Peterbilt 386 made up some yardage in June to perform on par with the Kenworth T660, which is where we would logically expect this model to be. The average mileage of 386’s reported sold has been consistently above both the T660 and the overall sleeper average, which likely explains the pricing difference despite our mileage adjustment.

Volvo’s 730/780 also consistently returns higher-than-average mileage, although pricing for that model finally pulled away from the 630/670 to a level more in line with expectations. The lower volume of the 730/780 makes monthly fluctuations more likely.

The Freightliner Cascadia continues to perform strongly, giving up some ground to the 386 in June, but still in the ballpark of the PACCAR models. It should be noted that the Cascadia is by far the highest-volume 2012 aerodynamic sleeper model reported sold in 2014 to date, which makes its performance even more impressive.

International’s ProStar continues to be challenged in the marketplace, with all 2012’s reported sold in June equipped with the MaxxForce. At this point, most if not all of the MaxxForce’s issues are known, and approximately 75 percent of trucks in operation so equipped have had the parts in question replaced. Given these factors, as well as the introduction of Navistar’s Diamond Certified initiative, we expect the ProStar’s discount to competing models to gradually close going forward. See “Average Retail Price – 3-Year-Old” graph for detail.

Moving back to the 2011 model year, the Cascadia maintains its top position, where it has been since the beginning of the year. Detroit’s 2010-spec engines had one of the smoother rollouts in the industry, which is undoubtedly a factor behind this model’s positioning. Unlike the three-year-old cohort, the Cascadia is not the top-volume truck in the four-year-old group. That distinction belongs to the T660.

The 730/780 and T700 both gained value in June, performing very similarly to the Freightliner. Average mileage for the 730/780 has been right in line with the universal average in 2014, while the T700’s has been consistently lower. Viewed in this light, the 730/780’s perfor-mance is more impressive.

The ProStar performs somewhat better in the four-year-old cohort, with the vast majority of trucks reported sold in 2014 to date (88 percent) equipped with ISX power. See the “Average Retail Price – 4-Year-Old” graphs for detail.

Medium duty – Class 3 and 4 Cabovers2014 has been a mediocre year for Class 3-4 cabovers, with volume down from last year. At the same time, the average price of our 4-7 year-old benchmark group in 2014 to date is running ahead of same-period 2013, at $14,551 vs. $13,710, respectively. Average mileage is higher in the current period, at 116,520 vs. 104,554. Higher pricing for trucks with higher mileage suggests strength, but the continued lower volume is an opposing factor.

We continue to view the market for pre-2012 trucks as saturated, with newer trucks performing more strongly simply due to limited supply. At the same time, conditions are mildly better than last year. See the Class 3-4 cabover graph for detail.

UTA Industry Watch


The Class 6 market remains selective. The volume of 4-7 year-old trucks sold per month is down substantially from 2013, at an average of 15 this year vs. 42 last year. Trucks with mileage up to roughly the mid-100K range are performing strongly, but as mileage increases past that level, strength moderates. As with the Class 4 segment, improving business confidence increases demand for new equipment at the expense of older equipment.

Construction TrucksAs of this writing, it looks likely that the U.S. House of Representatives will pass a short-term highway funding bill that will keep infrastruc-ture construction active through December. The business community would, of course, prefer a long-term solution instead of a stopgap, so the current “solution” won’t do much to encourage increased demand for equipment.

With this in mind, the construction segment continues to eke out a recovery, with pockets of regional activity supporting mildly better conditions. Pricing for trucks by mileage range continues to outpace 2013, as does sales volume (see “Construction Trucks by Mileage Range” graph). The number of 2010 and newer trucks reported sold is

much lower than the number of 2009 and older trucks, which makes monthly tracking difficult. This volume dynamic is due primarily to the low number of 2010 and newer trucks sold new during the recession, and also the fact that a 5-year-old truck is still likely in service with its original owner. Overall, the bulk of the used construction market is represented by 6-9 year-old trucks, and this cohort has not gained or lost much value in over two years. See the “Average Retail + Wholesale Selling Price of Construction Trucks” graph for detail.

Basically, the regions with healthy construction activity will continue to bolster pricing on an average basis. However, it will take a more notable recovery in the residential and commercial construction sectors

NADA continued from page 11

Medium duty – Class 4 and 6 ConventionalsWholesale pricing for 4-7 year-old Class 4’s remains stable to mildly upward, with monthly price swings for this group driven primarily by changes in average mileage. This cohort returned an average of $15,853 in June, which was a $3,299 (or 17.2 percent) decrease from May, but a $2,881 (or 22.2 percent) increase over June 2013. Mileage was in line with recent months, at 102,933— an 11,339 (or 12.4 percent) increase over May, and a 12,400 (or 10.8 percent) decrease year-over-year. See the Class 4 conventional graph for detail.

Volume in 2014 to date for this cohort remains lower than calendar year 2013, at an average of 43 trucks sold per month vs. 50, respectively. However, this difference is partly due to one high-volume outlier month in 2013 which skewed the average by about 5 trucks per month. As such, we do not consider the year-over-year difference in volume a notable factor.

Despite the monthly drop in value, pricing for Class 4’s is up notably year-over-year, and has followed a clearly-positive trajectory since the 4th quarter of 2013. As such, we view the Class 4 market as moderately strong. Demand will continue to strengthen in step with the gradual improvement in the general economy.

As for Class 6’s, wholesale pricing for 4-7 year-old trucks pulled back for a second month in a row. Mileage was actually lower than average, so the pullback is unexpected. At the same time, year-over-year compari-sons remain extremely positive, so we are not overly concerned with a one-month change.

Specifically, this group returned an average of $21,270 in June, which was a $1,780 (or 7.7 percent) decrease from May, but a healthy $5,410 (or 34.1 percent) increase over June 2013. As stated, mileage was on the low side, at 107,051 – 63,758 (or 37.3 percent) lower than May, and 76,884 (or 41.8 percent) lower than June 2013. See the Class 6 graph for detail.

UTA Industry Watch


The late spring/early summer period is traditionally weak for retail volume, but that pattern did not develop this year. Strong activity in the 3-5 year-old segment, driven by increased supply of off-lease iron, is responsible for the increased volume. See the retail volume graph for detail.

ConclusionThe market’s hunger for low-mileage sleeper tractors is evident in the continued high pricing in the face of increased supply. Trucks will depreciate at a mild and predictable rate through the end of the year, with strong demand limiting the rate of decline. Increased numbers of lower-mileage trucks coming off trade means increased business. It’s time to make hay while the sun shines. n

“Tips You Can Count On”

~ The Medium Duty Counselor

www.nada.com/b2b

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

before we see prices start to increase. As for infrastructure, trade groups are actively lobbying for a long-term highway bill, but individual Congressmen are still paranoid about voter reaction to any spending measure, even one this fundamental. Welcome to politics in 2014.

Sales volume – retail and WholesaleAs we enter the 3rd quarter of 2014, the number of trucks sold at auction or dealer-to-dealer remains comfortably ahead of same-period 2013. Through June, NADA collected 20,779 wholesale records, compared to 19,449 for the same period last year – a difference of 1,330 (or 6.8 percent). We had predicted a roughly five percent improvement year-over-year, so the year is mildly outperforming our expectations. See the wholesale volume graph for detail.

As we’ve said, an increased supply of 3-5 year-old trucks, especially those with under 500,000 miles, is primarily responsible for the increased volume. A secondary factor is greater interest in older, higher-mileage trucks — specifically those with over 800,000 miles.

As for the retail channel, dealers sold an average of 5.8 trucks per rooftop in June. This figure is 0.2 truck lower than May, but 1.1 trucks higher than June, 2013. In terms of the year to date, 2014 is running 0.1 truck behind 2013, at 5.9 vs. 6.0.

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Average Number of Used Trucks Retailed per Roo<op

Source: ATD/NADA

Summer Check List for trucks on, or leaving your lot:

1. Clean Batteries

2. Maintain and test A/C

3. Check coolant, radiator, and hoses

4. Check brakes

5. Replace wipers

6. Check fan belts

7. Check tire pressure (air is a gas and will expand when heated and contract when cooled)

UTA Industry Watch


Industry News Briefs

DOT’s Freight Index Hits New High The amount of freight the for-hire transportation industry carried rose 0.6 percent in May over April’s figures. The numbers rose for the fourth straight month, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS) Freight Transportation Services Index (TSI)*. May’s index level (120.0) was 26.9 percent above the April 2009 low during the most recent recession.

“The level of freight shipments in May measured by the Freight TSI (120.0) reached a new all-time high level of 120.0, exceeding the previous high of 119.4 in November 2013,” DOT reported. DOT revised April’s index to 119.3 from 117.6 and also revised higher previous monthly numbers.

DOT Analysis: Trucking led May’s TSI increase, which grew rapidly for the fourth straight month. Pipeline and waterborne also saw large increases. Growth in trucking occurred across different segments of the trucking sector, including dry van trucks as well as flatbed and tank trucks. Rail intermodal declined after three months of increases. The freight index has now risen for four straight months following January’s bottom (which was largely weather-related and affected the entire economy, as measured by the GDP decline in the January-to-March period).

Trend: With four consecutive monthly increases, the index rose 3.4 percent following January’s weather-related low. In May, the index reached an all-time level (120.0), exceeding the previous all-time high (119.4) set in November before the winter declines. After dipping to 94.6 in April 2009, the index rose by 26.9 percent in the succeeding 61 months.

*The Freight TSI measures month-to-month changes in freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. n

June’s Class 5-8 orders Remained Strong: ACT ACT’s latest figures show that the bloom remained on the rose in June, with demand for Class 5-8 vehicles remaining strong. A total of 41,300 NA commercial vehicles were booked, according to the company’s preliminary figures. June continued the trend of stronger sales figures that began last October. Since then, Class 5-8 net orders have been booked at a 541,900 unit annual rate.

“With seasonal tendencies dampening expectations, NA Class 8 net orders surprised on the high side in June at 26,600 units,” said Kenny Vieth, ACT’s President and Senior Analyst. “That volume marked an improvement of two percent from May and 41 percent compared to year-ago June. Seasonal adjustment boosts June’s Class 8 order total to 29,200 units/351k SAAR. On that basis, June was the strongest order month since January. Since October, Class 8 orders have been booked at a 318,100 unit SAAR.”

While the news was all good for Class 8 vehicles, the numbers showed a cooling trend for Classes 5-7. April’s orders were the best since 2006, but they’ve cooled a bit over the record pace set by the last two months. ACT reported that June’s net orders fell 9 percent from May’s and 1 percent from year-ago levels to 14,700 units. “Given that June is typically a soft order month, seasonal adjustment boosts the month’s MD order intake to 15,600 units/187k SAAR, representing the weakest order intake (SA) since December,” said Vieth. “Over the past six months, Classes 5-7 net orders were booked at a 214,600 units SAAR. Over the past 12 months, actual orders have totaled 209,600 units.” n

“Moderation” Characterizes FTR’s May TCI Market researcher FTR’s Trucking Conditions Index (TCI) for May came in at 5.74, which “reflects some headwinds affecting truck fleet results,” the company said. Adding: “Modest recovery growth along with the lack of acceleration in contract rate increases are accompanied now by increased labor and recruiting overhead costs.” FTR also said it expected that a near capacity crisis environment through May eased somewhat in June. While remaining solidly positive, FTR said its TCI outlook has moderated.

“While still robustly positive, the TCI has moderated recently and reflects some of the challenges currently facing the industry,” said Jonathan Starks, FTR’s Director of Transportation Analysis. “Capacity is tight but has moderated from the critical level that we operated in during and just after the winter months. Freight rates seem to be a tale of two cities with contract rates very stable and only showing modest growth, yet spot rate activity has been quite strong since winter hit and has not let up since then. If economic growth continues to remain modest then we would expect the status quo to persist for some time; however, if the economy finally shows a strong growth spurt in 2014 there isn’t sufficient surge capacity in the truck market to be able to easily accommodate that growth. When combined with the inability to quickly add more drivers into the industry we would then expect rate growth to accelerate in both the spot and contract markets.”

For further information email [email protected]. n

UTA Industry Watch


Daimler’s “Highway Pilot” Prototype Brings Driverless Trucks one Step Closer

“The Future Truck 2025 is our response to the major challenges and opportunities associated with road freight transport in the future,” said Bernhard. The company feels that self-driving trucks offer many clear advantages. These include more efficiency and better safety and connectivity. “This, in turn, results in a more sustainable transport system to the benefit of the economy, society and consumers,” Daimler told the media.

In terms of a launch timetable, Daimler said that depending on when the “legislative framework” for autonomous driving is created, “the launch of the Highway Pilot is conceivable by the middle of the next decade.” Daimler feels that the environment is conducive to a quick timetable. “We believe the chances of success are good, because autonomous driving combines the ability to achieve business and technology objectives with the creation of benefits for society and the environment,” Daimler said in its release.

Daimer was quick to point out that the advent of driverless trucks will not put truckers out of work. “The Highway Pilot system will significantly upgrade the job profile of truck drivers,” Daimler said. “It will not only free them from having to perform monotonous tasks; it will also give them more time for tasks that were previously handled by office workers at shipping companies. In other words, it will be possible for truckers to advance to new positions as transport managers, making truck driving a more attractive profession. Autonomous driving could thus help to resolve the shortage of truck drivers.” n

Navistar Ships Vocational Vehicles With More Fuel Efficient Engines

Dr. Wolfgang Bernhard, member of Daimler’s Board of Management and responsible for Daimler Trucks and Buses, presents the Future Truck 2025.

“The truck of the future is a Mercedes-Benz that drives itself,” according to Dr. Wolfgang Bernhard, of Daimler’s Board of Management. He was describing the Mercedes-Benz Future Truck 2025, which premiered in early July. The truck includes “the extremely intelligent Highway Pilot assistance system,” Daimer said, “which enables it to drive completely autonomously at speeds of up to 85 km/h. Daimler Trucks demon-strated the vehicle on a trip along a section of the A14 autobahn near the city of Magdeburg. The “Future Truck” drove itself in completely realistic driving situations, according to the company.

Navistar, Inc. has begun customer shipments of its first International® DuraStar® and International® WorkStar® vehicles with the company’s 9- and 10-liter engines with Selective Catalytic Reduction (SCR) emissions technology. Navistar’s testing shows these products are “delivering up to eight percent in fuel economy improvement over the previous generation.”

“Our field test customers are seeing positive results–with our new trucks registering significant fuel economy improvements,” said Bill Kozek, president, North America Truck and Parts, Navistar. “Our vocational trucks with 9- and 10-liter engines are also experiencing fewer active regenerations while still delivering the durability and power that customers expect from International trucks.”

Built on Navistar’s proven I-6 platform, the company’s 9- and 10-liter engines bring 9.3-liter displacement and 860-1,150 lb.-ft. torque in a weight-saving medium-duty package. The company conducted field tests in extreme environments found in Alaska, Colorado, and Arizona. These tests included a variety of vocational duty cycles from garbage packing and utility trucks, to dump trucks and sewer pumpers.

“We’ve run our DuraStar with the 9-liter for around 40,000 miles during the last two months,” said Robbie Easley, owner, Easley Trucking. “We haul mail and the 9-liter has performed well on the steep hills our trucks climb daily. This truck runs between Phoenix

and Yuma, Arizona— one of the hottest environ-ments you can find, and it hasn’t missed a beat.”

The International DuraStar is available with the 9-liter engine from 275 hp 860 lb.-ft torque up to 330 hp 950 lb.-ft torque. The International WorkStar is available with 9- and 10-liter engines from 275 hp 860 lb.-ft torque up to 350 hp 1,150 lb.-ft torque. All International® vocational trucks feature the International Diamond Logic® electrical system, which Navistar says helps vocational operations work smarter, faster and safer, while also preventing drivers from inadvertently damaging valuable equipment.

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

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UTA Industry Watch


UTA Industry Watch


From Where We SitSummer is in full swing in our little part of the world, and the living is easy, for sure! That snowpack we kept reminding neighbors about in that last, never-ending, dreary winter has done for the farmers what snowpacks have always done for framers. The fields are lush, the fresh produce is abundantly affordable, and life is looking good. If Shakespeare were still here with us, he’d probably be writing about some Midsummer dream or another. Here in our neck of the woods, we’ve spent the month celebrating July 4th and commemo-rating the 150th anniversary of the Civil War event that saved our town.

In July 1864 Confederate General Jubal Early came back through our town with his army. He’d stopped by before, since we live nestled between Harper’s Ferry, the Battle of Antietam, and Gettysburg, PA. But, this time Gen. Early stopped by with something particular in mind. He needed money, horses, and supplies for his ragtag army. He rode into town and commanded the local farmers and business owners to pay him $5,000. If the ransom wasn’t secured by a certain time, he’d simply burn our town and everything in it. There was every reason to believe this threat, since towns in our surrounding area had already been put to the flame. Fortunately, the General settled with the down-payment of $1,500 our townspeople were able to gather, and the promise to have the rest soon. He and his troops took what they could; horses, crops, and animals, plus the money and left. They must have been busy after that, because they never did come back for the balance.

Our little town is very proud of its Civil War history. Our citizens saw troops from both armies travel back and forth through our valley on multiple occasions. A battle took place on top of our western mountain just before both armies could get to Antietam for the main event. Most surprisingly, the woman who saved the Union flag was not old Mrs. Barbara Fritchie, as we’ve all been taught, but Miss Nancy Crouse, a teenager who then lived down the street and placed herself in harm’s way to protect the Stars and Stripes. (That was part of the reenactment we just enjoyed in commemoration, too.) This little town was so supportive of the Union cause, that an Officer of the Army of the Potomac nicknamed it, “Little Boston!” And “little” it must have been, since 150 years later we still have only about 2,000 citizens right here in town.

Anyway, those of us who live here now consider ourselves lucky. Not only did our forebears preserve our beautiful little town and save her from the torch, they went back to their businesses at the end of the war, and continued to do what all people do; build a community and raise their families. Now, our bustling little old town is full of fun, family activities, and great schools. Fourth of July is celebrated here as it has been in small American towns since the beginning. Luckily, our town is home to a county sponsored park. Just behind the schools you’ll find a fishing pond, picnic pavilions, ball fields and courts of every type, playgrounds, and walking trails. Lots of things are held in the park throughout the year, but none we love more than the July 4th celebration!

It lasts mostly all day. In the afternoon are activities, games, crafts, and contests for the kids. Families hang out, grill food, play Frisbee, and gather with friends and neighbors. There are country music concerts featuring local musicians, and enough carnival type food to give any all-American kid a bellyache. As the sun sets, the crowd is filled with excitement about the fireworks display. Now, crazy as it

sounds our little town puts on the BEST fireworks show anywhere around. It’s free, it’s loud, it lasts a long time, and the “oooohs” and “ahhhhs” abound in time with the elaborate and colorful show. Why do we have such a great display? Well, I guess someone put that extra $3,500 Gen. Early never came back for into good investments that we all now get to spend on fireworks, because these are expensive!

This year, something new got added to the show. We were reclining in the warm, damp grass, when the show got started. Within a minute or two, we saw a plane on the

horizon. Isn’t that cool when you’re on a plane and see fireworks in the distance? Yeah, we thought so, too. Then the plane flew closer. It was flying incredibly low. It came right into the fireworks display. It stopped moving, just hovering in the air. It was silent, so it sure wasn’t a helicopter. As the crowd started asking each other about it, we noticed another one arriving, and then two more flew in. They were drones! The fireworks company was using drones! Were they for capturing images up close to the display? Were they for helping synchronize the blasts? Who knows?

We sat in wonder as much about the drones as we did about the fireworks. The company must have known we’d been surprised, and maybe alarmed by the sight of their drones. They actually gave us three grand finales to make up for anyone being unsettled by new technology. We only found one like that in the crowd, and he’d been enjoying his part of the picnic from the beer cooler. He grew panicked that he was being watched from above, and ran straight back to the safety of his car; poor thing. The rest of us just wondered. We talked about witnessing the first commercial use of a drone. We speculated about what this will mean in the future. Will drones be used for delivery? Will drones bring us yet even more forms of advertising? Will this technology be used for good or ill? Then we wondered what Nancy Crouse thought the

first time she saw electricity, or the telephone, or the earliest automobile. It wouldn’t be surprising to us if she had some of those very same thoughts and concerns. We’re going with the excitement of seeing what’s possible next as technology and history still continue to wrap themselves together. At least that’s the way it looks from where we sit.

Deb and Brad Schepp [email protected]

industry watch august 2014

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