1.877.GETS.UTA • www.uta.org Volume 16 • Issue 5 • May 2014

Used Association Chartered May 16, 1988 Published by the Used Truck Association UTA Young Members Group is on 325 Country Club Drive, Suite A Stockbridge, GA 30281 the Move!

Angelique Pierce, Daimler Remarketing Table of Contents Board News and Views...... 2 he UTA Dealer Group officially launched the Young Members Group at the 2013 UTA Quips & Quotes...... 2 TConvention in Orlando, FL. At the heart of this initiative was the desire to create opportu- nities for younger UTA members to be mentored by more seasoned members. With the New Members...... 3, 5 recognition that younger members represent the future of the UTA, veteran members such as Face to Face with Henry Coberth...... 4 Craig Kendall (The Store), Hal Dickson (), Jim Zimmerman ( of 2014 UTA Board of Director’s Pennsylvania), John Cosgrove (CAG Capital), Mike Mounsey (MHC Kenworth Nashville), Mike Nominations ...... 5 Thurston (Larson Group), and others have invested their time to get the group up and running. Industry Events Calendar...... 6 Since then, veteran members and young members have met monthly to formalize the goals and Moving on Down the Road: structure of the UTA Young Members Group. Our mission is to serve as a catalyst for the Catching Up with Adam Davy...... 7 advancement of the used truck industry through the effective professional development of the younger members of the Used Truck Association. We are an enthusiastic group that is The Brooks Group becoming more involved in UTA activities and taking on leadership roles within the association. Sales Tip of the Month...... 7 As a younger member of the UTA, you may wonder why you should be involved in this group. In Memoriam...... 8-9 By actively participating, you will be able to: Attendees Praise Tampa’s “Selling for ■■ Rub elbows with more experienced used truck professionals and get involved Success” Class ...... 10 ■■ Build your industry knowledge, broaden your network, and enhance your leadership skills

Subtle Fix for Big Rigs...... 11 ■■ Help guide the UTA’s direction by promoting the interests of younger UTA professionals

NADA Update ...... 12-15 ■■ Get your questions answered about selling trucks, handling difficult customers, and more Medium Duty Corner...... 15 The Young Members Group also provides a Industry News Briefs...... 16-17 way for veteran members to help ensure the 2013 UTA Convention Photos...... 18-19 success and longevity of the UTA by directly From Where We Sit...... 20 influencing the next generation of leaders. Our mission is to serve Brandon Hess (Wholesale Trucks of as a catalyst for the The UTA… America) has been elected the Young Members Supporting Members! Member Representative to the UTA Board of advancement of the Directors. Hess stated, “Everyone that gets involved in the Younger Members Group used truck industry can reap the benefits of building career- SHARE YOUR NEWS advancing professional relationships and through the effective with the UTA Industry Watch. great friendships that can last a lifetime.” professional Send submissions, ideas and Younger members…this is your call to comments to: action. You are invited to get involved with development of the the UTA Young Members Group to invest in UTA Industry Watch Editors yourself and our industry. younger members of Brad and Deb Schepp Ready to get involved or have questions? c/o Grace Management the Used Truck Then contact Brandon Hess via phone at 325 Country Club Drive, Suite A 800-705-4008, or via email at brandon@ Association. Stockbridge, GA 30281 wtatrucks.com. Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected] UTA Industry Watch 2014 BOARD Board News and Views OF DIRECTORS This is about a question that will make you think.

http://www.uta.org/directory was reading an article by Jacques Werth, the president of High Probability Selling entitled GOVERNING BOARD: IAre Top Salespeople Born or Made? This question has become for me like a song that gets stuck in your head. So, to get some relief, I decided to pose this question to you all, and maybe President...... Rick Clark later provide some feedback on your thoughts. Vice President...... Ken Kosic All of us in sales have thought about this age-old question, because it begs an answer if we consider used truck sales our career. I personally believe selling is a skill, and skill sets can be Treasurer...... Tom Pfeiler developed. Jacques Werth believes this skill is comparable to accounting or engineering: Secretary...... Sheri Aaberg Specific actions properly applied in a proscribed order produce the best results. Given enough motivation, almost any skill can be learned without formal training. President Emeritus To make his point, Werth cites the example of two General Motors top engineers who never took ...... Marty Crawford an engineering course. And of Michael Dell who didn’t major in computers, and dropped out of college. Werth goes on to say that similar aptitude patterns are seen in highly successful salespeople, trial lawyers, and teachers. Salespeople who lack the right aptitudes and attitudes can substan- COMMITTEE CHAIRPERSONS: tially improve their sales skills, if they are willing to change their behaviors. The changes they need to make are simple; yet it requires a lot of self discipline to make those changes. Affiliates & Benefits.... Bryan Boyd I also believe that salespeople, especially used truck salespeople, are born with the rare resilience Convention...... Hal Dickson, gene that gives them the vision to see the glass as half full. They have the right frame of mind to Sheri Aaberg make it a good day--always. They know uncertainty, but also possess the confidence to know that if there is opportunity they will reap its rewards. Dealer Group...... Mike Thurston, So, Are Top Salespeople Born or Made? Bobby Williams I am going with the combo deal. I believe salespeople are born into this world with an innate Elections...... George Barnett ability to persevere, and make the very best of opportunity. They can be “self made” by learning what works best for them, but the top 20 percent have been coached by industry mentors, and Finance...... Tom Pfeiler through specific in-house and professional sales training like what is offered through the UTA Selling Initiatives. Marketing...... Rick Clark One thing is for sure, the top 20 percent of sales professionals are doing something radically Medium Duty...... Amy Shahan different from the other 80 percent. If you find that you would like to take your career to the next level I would encourage you to Membership...... John Cosgrove, reach out to a Mentor, or enroll in career classes. You’ll learn to capitalize on what you do every Kenny Doonan day with the right mindset for customer perspectives and approach. You have the opportunity Training...... Ken Kosic, to choose and make a difference. Discipline, Attitude, and Vision make you the Used Truck Brock Frederick Ambassador who makes that difference. Your UTA also has partners such as the Brooks Group and TMI (Truck Marketing Institute) UTA Jerome Nerman Family that can help you attain success. By success I mean elevate your career, challenge your mindset, Foundation Scholarship and validate the choice you made to sell used trucks for a living. UTA’s own training initiatives ...... Jay Burgess, set the standard as offering the best approach to reaching the top 20 percent of sales profes- Brock Frederick sionals in our industry by mapping The Right Frame of Mind. UTA.org Website...... Bobby Williams If anyone would like to discuss used trucks as a career choice or training, I stand ready to help! I can be reached 24/7, if needed. I would enjoy reading your thoughts on the question: Wreaths Across America “Born or Made,” as there are many varying opinions on this. Send your thoughts and ideas to ...... Bobby Williams [email protected]. Oh, and by the way, you could say that “The Answers My Friend Are Blowing in the Wind.”

The Very Best of Success to You. If you’re not solving a problem then you’re unlikely to have a Ken Kosic business. Vice President/Training Committee [email protected] ~Jonathan Baer, Threshold Ventures

2 May 2014 www.UTA.org UTA Industry Watch 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, New and what gets your gears going as a person. So please return your questionnaire so your fellow UTA members can get to know you! Members 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.

Andrew Baker, Used Truck Sales When we asked Will what he likes best about Mark McElmurry, Sales Manager Idaho Falls Peterbilt his job he had no trouble coming up with a Maudlin International Trucks, Inc. 4460 West Andeo Drive response. “I am fortunate to work with a 4900 N Orange Blossom Trail Idaho Falls, ID group of such skilled and hardworking Orlando, FL 32810 www.jgpete.com colleagues,” he said. “There is a real sense of www.maudlininternational.com (208) 227-5029 (w) camaraderie and pride with the teams I’ve (904) 515-8571 (w) [email protected] been a part of—both with IronPlanet and [email protected] Asset Appraisal Services. We pride ourselves Andy started in the truck business in 1992 Back in 1997, Mark got his on building reliable and trustworthy as a mechanic for a road and bridge start in our business relationships with our customers and department. His goal for his UTA membership working in inventory providing top-notch customer satisfaction is simple: “To be successful in the trucking control. for each assignment.” industry,” he said. The things he likes best Will says that if he wasn’t in the truck Andy’s favorite part of his current job is that about his current job are industry, he’d likely focus on the oil and gas it affords him the option to grow, do new the company and people industries. “I’ve always had an interest in the things, and meet new people. with whom he works. “It is a family-owned energy industry,” he said recently. “Oil and company,” Mark said, “and that makes you Outside of work, Andy’s other interests include gas continue to thrive in the U.S. and influence feel like more than an employee.” snowboarding, fishing, and spending time many other industries along the way.” with his family camping. Wildlife management also interests Mark, When he’s not in the office you may well and if he were to choose another field for Andy recently attended UTA’s Selling for find Will enjoying the outdoors with family some reason that’s probably where you Success training with George Papp, and and friends. He grew up in Florida and enjoys would find him. He enjoys the outdoors, found it both “enjoyable and very helpful.” “anything on the water,” with fly-fishing, and likes “to see the importance we all play duck hunting, and spear-fishing some of his in our ecosystem.” favorite sports. Although he’s now living in William Brawley, Business central Texas he quickly found new hobbies Speaking of the outdoors, Mark says fly Development Manager including golf, and turkey and deer hunting. fishing is another of his passions. The sport gives him the chance to both be outside Asset Appraisal Services and spend time with his family teaching 3880 Hulen Street, Suite 2000 them a field he feels is overlooked— Fort Worth, TX 76107 Phil Brown studying the habits and lifestyles of fish. www.assetappraisalservices.com International Used Truck Centers (817) 869-8938 (w) 2701 Navistar Drive Wrapping things up, Mark asked that we tell [email protected] Lisle, IL 60532 his fellow UTA members that he’s acquired many skills and contacts over the years Will began with (331) 332-5000 (w) from his work in Inventory Control, Quality IronPlanet in 2009 as (404) 787-1065 (c) Assurance, Operations Management, and an inspection analyst. [email protected] now truck sales management. “I’m always He later helped develop available to help out,” he said. and launch the company’s post-sale Kyle Howard logistics team. “The International Used Truck Centers logistics development 2701 Navistar Drive Christopher O’Donnell exposed me to the Lisle, IL 60532 Valley Freightliner Truck truck business,” he (331) 332-5000 10901 Brookpark Rd said, and “provided a [email protected] Parma, OH 44130 good foundation to continue my education www.ValleyFreightlinerTruck.com in the industry.” (216) 267-4800 (w) [email protected] As a new UTA member, Will hopes to build new William Laverde relationships and find opportunities for his Cross Country Truck Sales company. He’s interested in working with 10000 Southwest Wilshire Street, Suite A other UTA members “to create meaningful and Portland, OR 97225 mutually beneficial, long-term business (503) 227-3153 (w) relationships.” [email protected] New Members continued on page 5 www.UTA.org May 2014 3 UTA Industry Watch

Henry Coberth

enry Coberth was born into the sense of character and integrity as a way of Hworld of trucks. Although he didn’t doing business,” he said. “I also learned that actually start working in the trucking business success is directly related to the business until the ripe old age of 13, he talented employees you surround yourself comes from a family of trucking people. with.” He still sees this connection to his Henry’s dad was the GM/VP at Nalley coworkers as the most enjoyable part of his Motor Trucks of Atlanta when Henry job. “I enjoy the interaction between the launched into his first job doing odds and different departments of our dealerships and ends at his dad’s dealership. He remembers our ability to work as a team in exceeding our doing various jobs in many departments customers’ expectations in pursuit of throughout the dealership. When Henry profitable growth,” Henry noted. graduated from the University of Georgia When we asked Henry what he wished he’d with a degree in economics, he officially mastered earlier in his career, his answer was started his career in the truck industry when straightforward: perseverance. “Never give he took a position working with Lewis up on a truck deal,” he said. “There is always Dickens, at Arrow Truck Sales in Atlanta. “I another angle out there that can make all of learned a lot about truck sales from some of the difference in winning a truck deal or not. the greats in our industry,” he said. “I have Perseverance is what I wish I’d learned been lucky to work for and with earlier in my career.” Henry offers this some of the most talented people wisdom to the younger people just starting in the industry.” out in truck sales. “Perseverance in the sales His next career step took him process and a strong commitment to back home to Nalley, where he customer service,” he cited as hallmarks to a started as a used truck salesman successful career. just two years into his career. “I As he looks ahead, Henry sees some transitioned to new trucks for a challenges to the used truck industry. “I short period and then accepted think we are all challenged by the ebb and a position as used truck flow of the industry business cycles,” he manager with Nalley in 1997,” commented. And to address those chal- he recalled. He stayed in that lenges, Henry has a plan. “I focus on hiring job until 2007 when he good people,” he said. He also stays deter- became the Used Truck mined to manage his inventory well. Manager at Vanguard Trucks in Atlanta, and he’s been Henry and his wife Cindy have been married there ever since. for 20 years and have two young daughters. Anne Dawson is eight and Lila is four. Henry Henry attributes much of enjoys spending time with his family and what he’s achieved in his when he’s not at work, he also enjoys career to the years he spent traveling, golf, and running, but not at the working with his father. “He same time. n instilled in me a strong

4 May 2014 www.UTA.org UTA Industry Watch New Members continued from page 3 2014 UTA Board Michael Siebke Bennett Whitnell, Vice President/ Jackson Group Peterbilt General Manager of Director’s 6633 50 Federal Way Whitnell Analytics Boise, ID 83716 1420 N Marshall, Apt 204 Nominations (208) 344-8515 (w) Milwaukee, WI 53202 [email protected] www.Whitnellanalytics.com Nominations Due (310) 874-4209 (w) [email protected] June 20, 2014 Kevin Stevens Bennett’s new to the full time truck International Used Truck Centers business, and went full time with Whitnell he Elections Committee needs you to 2701 Navistar Drive Analytics in January of this year. Tnominate UTA members to serve on the Lisle, IL 60532 But Bennett was already quite familiar with UTA Board of Directors. The UTA Board of (331) 332-5000 (w) the business. His first exposure to the Directors plan and run the annual convention, [email protected] industry was when he worked in the service provide training programs, help members department for Chicago International. He obtain discounts on affiliate products and spent many of his college summers working services, maintain the UTA website, and Tony Trowbridge, Sales Manager in various functions within that dealership. publish an industry newsletter. In addition, the UTA Board has substantially increased Twin City Truck Sales & Service LTD Bennett’s quite enthusiastic about being a the UTA Scholarship Fund, which has helped 2205 County Rd. C2 West new UTA member. Asked what he hoped to many deserving students pay for their Roseville, MN 55113 get out of his membership he replied: “A lot tuition and books. www.twincitytruck.com of knowledge— I know numbers but I still (651) 253-5141 (w) have a lot to learn about trucks and the truck Please consider nominating UTA members [email protected] business. There is a wealth of experience in who could help the UTA continue its growth this group that I hope to tap into!” and improve the services it provides to the used trucking industry. Also, please Bennett really enjoys his work as it blends in remember you may nominate yourself if you well with his love of puzzles from crosswords would like to run for the Board. All to jigsaws. At Whitnell Analytics, Bennett nominees must meet the following criteria: helps make sense of a lot of data and “solve ■■ Have experience in the used truck industry puzzles” every day, which he finds a lot of fun. ■■ Demonstrate a history of ethical and You might find yourself listening to Bennett professional business practices on the radio if he wasn’t in the truck business. ■■ Be willing to advance the goals and “I would love to host a radio show,” he said. objectives promoted by the UTA “I read everything I can get my hands on so I’ve got an opinion on just about everything. If you know of someone who meets these criteria, please nominate them! This year is Tony’s 40th year in the truck I’d love to talk with and debate people on business. He started out as a technician in those opinions for a living.” To submit your nomination please go to our 1974. Finally, Bennett’s committed to exercising website at www.UTA.org. Then follow the directions to the “Board of Director Nomination” He may be an industry vet, but he still his body as well as his mind. He and his wife screen. On the form you’ll see where to send recognizes the value of belonging to the have made a real commitment to getting the application via mail, fax, or email. UTA UTA. He mentioned the chance to gather healthy. They have been doing “Crossfit” for members with voting rights will then vote information on trends, and regulations, as about a month, and are “loving it!” He’s and elect the Board members through internet well as networking as some of the reasons also a pretty solid amateur chef. voting. Please be sure to vote when you are he’s joined. He’s also looking to gain access emailed the UTA Board of Director ballot. to equipment to buy. There’s a lot about his job that Tony enjoys, We need qualified professionals who will including buying, selling, and repairing dedicate their time, knowledge, and experience heavy-duty trucks and equipment. He also to our organization, and, have a little fun while enjoys building gliders, staying current on serving the membership. Thank you for your specifications, and “interfacing with consideration and customers from different cultures, other we’ll be looking for parts of the country and the world— all your nominations with unique personalities and perspectives,” and votes for the he said. “Every day is a new opportunity.” UTA Board of Directors. n One look at his picture and you can guess the other business Tony can see himself in: George Barnett motorcycle dealer, service, and repair. He Elections Committee also likes building motorcycles. Chairman [email protected] www.UTA.org May 2014 5 UTA Industry Watch Industry Events Calendar

MAY AUGUST continued 19-20 • UTA Sponsored Training Seminar 20-21 • Commercial Vehicle Outlook Conference Selling for Success Dallas Convention Center • Dallas, TX Courtyard by Marriott, Downtown • Baltimore, MD www.cvoconline.com www.uta.org 21-23 • The Great American Trucking Show 2014 29-31 • ATHS National Show & Convention Dallas Convention Center • Dallas, TX Ozark Empire Fairgrounds • Springfield, MO http://www.gatsonline.com www.aths.org/convention

SEPTEMBER JUNE 5-6 • Big Iron Classic 20-22 • Great Lakes Truck Show Mantorville, MN Cabela’s • Dundee, MI www.bigironclassic.com http://greatlakestruckshow.org 22-23 • UTA Sponsored Training Seminar 25-26 • 9th Annual UTA Kansas City Golf Outing Selling for Success Adams Pointe Golf Club • Blue Springs, MO Phoenix, AZ www.UTA.org www.uta.org

28 • East Coast Large Cars Truck Show 2014 Augusta , NJ www.eclcannualtruckshow.com OCTOBER 1-3 • 24th Annual NTDA Convention 2014 LaQuinta Resort & Club and PGA West • La Quinta, CA JULY http://www.ntda.org 10-12 • Walcott Trucker’s Jamboree 4-7 • ATA Management Conference & Exhibition Iowa 80 Truckstop • Walcott, IA San Diego Convention Center & Marriott Hotel http://iowa80truckstop.com/trucker-jamboree/ San Diego, CA http://www.truckline.com 21-22 • UTA Sponsored Training Seminar Selling for Success 29-30 • Green Fleet Conference & Expo Dallas, TX Renaissance Schaumburg Convention Center www.uta.org Schaumburg, IL http://www.greenfleetconference.com/

AUGUST 1-3 • Carlisle Truck Nationals NOVEMBER Carlisle Expo Center, Carlisle Fairgrounds • Carlisle, PA 5-7 • 15th Annual UTA Convention www.carlisleevents.com/carlisle-events/carlisle-truck-nationals/ Talking Stick Resort & Casino • Scottsdale, AZ http://www.uta.org/ 8-9 • Waupun Truck-N-Show Waupun Community Center • Waupun, WI http://waupuntrucknshow.com

15-17 • Eau Claire Big Rig Truck Show Chippewa Valley Technical College • Eau Claire, WI www.eauclairebigrigtruckshow.com

6 May 2014 www.UTA.org UTA Industry Watch Moving on Down the Road: Catching Up with Adam Davy

After 25 years in the truck business, Toronto’s Adam Davy fulfilled a long-time dream and opened his own dealership a couple of years ago. We recently caught up with him to find out how things were going. As for many UTA members, trucking was the family business in the Davy household. It was Adam’s father Bob Davy who first introduced him to the truck business. Bob was the founder of Truck Equipment and Service, a company still operating today. He was the first in Canada to manufacture a Tuck Away Tailgate (he called it the “TruckMaster”). Before opening Davy Truck Sales, Adam was the branch manager for Arrow Truck Sales in Toronto. With Adam at the helm, his branch became Arrow’s number one branch out of 18 branches at the time! But Adam was quick to point out he couldn’t have achieved this without the help of a great team. “Overseeing all of the different departments, Adam said, “made me quickly see how crucial it is to find competent people in building something to last, and of course prosper!” Davy Truck Sales now employs seven people, and plans to soon hire another salesman. Adam added that the company hired its own mechanic, which “has been a great help in controlling costs and providing better customer service as well.” The dealership focuses mostly on highway tractors and a few day cabs. “Another big part of its business,” Adam said, “is selling soft products, such as gap insurance, and, of course, National Truck Protection warranties!” The company may be doing well now, but the road wasn’t always a smooth one. “For me to bankroll Davy Truck Sales,” Adam said, “I had to sell my cottage and liquidate all my other assets.” Adding: “Having a lack of capital gives you a unique ability to work your tail off pretty much daily. I actually found our second year more trying than our first! I was glad to see the calendar turn to 2014. We made a profit our first year, but it was a grind to say the least! Having a solid two years under our belt showing a profit will open up some borrowing opportunities now ( fingers crossed!)” One of the surprising things that Adam learned over the past couple of years is how the pressure he felt as the guy in charge was actually empowering. “I find it ironic that the best thing about working for yourself is that all of the pressure you have to deal with doesn’t get to you when you’re the one who’s actually in control! It’s empowering! You know what they say, ‘When you want to lead the orchestra, you have to turn your back on the crowd.’” n

Invest your time where it counts: With your highest performing or highest potential salespeople.

www.UTA.org May 2014 7 UTA Industry Watch In Memorium

Bryan Boyd Wendell Doonan Bryan L. Boyd, affectionately known as “BB,” passed away on April Wendell Doonan, founder of Doonan Truck & Equipment, passed 13th, 2014 at the age of 64. He had battled health issues stemming away Sunday, April 27 in Arizona. Wendell was the father of Kenny from an accident he suffered while working on his custom Corvette. Doonan, owner of Doonan Peterbilt and a UTA Board Member. The Corvette was his passion in life after he lost his beloved wife a year The elder Doonan founded Doonan Truck and Equipment, which sold and a half earlier. farm equipment in the late 1940’s. His began his next new venture in BB owned Tulsa Truck Depot, he was on the UTA Board, and was 1955, when he started a GMC dealership in Great Bend, KS. He signed successful in business as well as in life. He was in the truck business on to add a Peterbilt store in 1964, and put in a new Peterbilt store in for most of his adult life. Most of the older members of the UTA knew Wichita, KS in 1965, according to Kenny Doonan who now owns and or knew of BB, and had been involved in some way in equipment deals operates the dealerships. with him through the years. His infectious laugh, and unique way of Wendell Doonan retired 15 years ago to Arizona where Kenny says his doing business, made you smile and feel comfortable with the father played just as hard as he worked. “He loved the weather and deal—regardless if you were buying or selling. enjoyed riding his four-wheeler in the Colorado Mountains,” Kenny He was one of the most giving people on the earth, and would donate says. “He knew all the trails. He never got out a map. He just had this his time or money to causes close to his heart. He truly made you feel knack of finding his way around.” like a close friend the first time you met him. His attention span was Wendell Doonan sold the Wichita dealership to Kenny in 2002, but short. This meant you had to get your business done quickly so he Kenny was given the opportunity to buy the Great Bend dealership could tell you a short story that always ended in a laugh and smile. back three years later. Kenny began working for his father in 1965, and You’d just shake your head and say, “that knot head.” You had to love successfully brought full circle a family business that was almost 50 him. He wouldn’t have it any other way. years old. “I started driving trucks at 15, Kenny says, “bringing a stack Bryan’s history in dealerships in which he worked would read like a of trucks back home. I went through four years of college, and always Who’s Who of Texas and Oklahoma businesses. But when he opened came home and worked the weekend doing something.” Brent Boyd Truck Center, and later acquired Tulsa Truck Depot, his destiny Doonan, the 3rd generation, is now running the day-to-day operations. was set. He would be his own man to the end. Mission accomplished. A respect for hard work, instilled by his father, is Kenny Doonan’s Bryan’s love of family and friends went deep, and all those who loved work ethic to this day. He’s him back now feel a great void in their lives. His way of life should be a also respected for his lesson to all of us to work hard, but to love harder. His passion for the contributions to the bright side of life was trucking industry, and the inspiring. He truly believed contributions he’s been able that it’s not what you to make to charities through accomplish in life, or the the UTA. things you leave behind, that The UTA extends its truly matter. Instead, he sympathies to Kenny, Susie, believed that what really and the rest of the Doonan counted were the positive family—with sad hearts and memories that others will grateful memories for a life have of you, which live on in well lived by Wendell our minds. Doonan. All who knew you BB have With love from your UTA some great memories and Family. n smiles to grab hold of whenever we want to. Good game BB: you won. n

8 May 2014 www.UTA.org UTA Industry Watch

Richard “Dick” Fellows May 22, 1945 - April 10, 2014 Richard “Dick” Fellows, age 68, of Hendersonville, Tennessee, passed away on April 10, 2014 in Nashville, Tennessee. He was born May 22, 1945 to Raymond and Artha Fellows in Milwaukee, Wisconsin. He is survived by his loving wife Sharon Fellows of Hendersonville, Tennessee; two sons, Scott Fellows and wife Talisha of McKinney, Texas; and Jeff Fellows and wife Betsy of Aubrey, Texas. He is also survived by three grandsons, Zachary and Trey Fellows of McKinney, Texas and Hayden Fellows of Aubrey, Texas; brothers Dennis Fellows and wife Joann of California; and Hank and wife Karyl Fellows of June 17 & 18th, 2010 Tampa, Florida; sister, Sharon Allen and husband Don of The 9th Annual California; uncle, Henry Fellows of Arizona; and UTA Jerome Nerman step-children and step-grand- children, and many other Family Foundation loving family and friends. Dick was preceded in death by Golf Open Fundraiser his first wife of 41 years, Jean Marie Fellows and parents, Raymond and Artha Fellows. A memorial service was held Saturday, April 19, 2014 at 4:00 p.m. at Turrentine- Wednesday, June 25 Jackson-Morrow Chapel in 6:00 – 9:00 p.m. Allen, Texas. n Welcome Reception at the Adams Pointe Conference Center, Marriott Courtyard KC East 1400 NE Coronado Dr. Blue Springs, MO 64014

Thursday, June 26 Golf Outing at the Adams Pointe Golf Club 816-220-3673 • 1601 R.D. Mize Road http://www.adamspointegolfclub.com

Breakfast will be served at the course from 7:00 – 7:30 a.m. Tee Time is at 8:00 a.m.

Show Your Support and Sponsor this Charitable Event! WWW.UTA.ORG www.UTA.org May 2014 9 UTA Industry Watch Attendees Praise Tampa’s “Selling for Success” Class

ll the reviews are now in! UTA’s recent “Selling for Success” seminar in Tampa, FL was a Arousing success. Attendees left supercharged to get back to work, and apply some of the smart strategies industry veteran and UTA trainer George Papp presented. But we’ll let the attendees speak for themselves about just how valuable they found the training.

The Quality of the Materials Selling for Success “The binder given with the presentations was excellent and will be a good future reference.” ~Tyler Pontier Sales Associate Training “Improve Sales Performance” “Exactly what I was looking for. George was fantastic in presenting the material.” My goal is to ~Ian Logan by providing quality-­‐ specifically for the new and used truck industry. training programs designed Delivered by an industry professional, one who has walked in their shoes provides me the ultimate training advantage. I know what they face every day, I speak their language and I will provide your Most Beneficial Materials sales associates with information they can put to use imme Selling for Successdiately. “The importance of prospecting and the method to achieve success.” 2-­‐Day Course New to sales, ~Ian Logan new to our industry or not producing up to your capabilities course to put your sales associates on the path to …this success. is a must Designed take to implement a sound daily activity routine that will meet the demands of your dealership. “How to Create Relationships with Customers.” associates the fundamentals of selling plus they Selling will for be Success given will teach additional tools needed to be your successful in our industry. ~Andy Daugherty Participants will learn the difference between a sales Selling CAREER. for Success job and a sales Will Teach Your Associates How to: • • Prepare for the sales day More on the Presenter • Prospect for success • Control the sales call “Very knowledgeable. He made it easy to understand with great examples. It is a AgendaOvercome objections pleasure to lean from a true professional like George. He made learning very enjoyable.” • Day 1 ~Andy Daugherty • Attitude – • It’s all about attitude Preparation • – Inventory, add campaigns, industry knowledge Relationship Building “George is the man, Couldn’t have presented the material any better.” • – Its what selling is all about! Closing Rate • – A look at qualified opportunities VS sales ~Tyler Pontier Prospecting • – Finding and qualifying Your Database – It’s your book of business Keys to Controlling the Sales C “I was captivated most of the presentation” all – Control the call…control the sale

• Day 2 ~Ian Logan • Price and Objections • – Eliminate then early Inbound Calls • – The importance of an incoming call Your Lot – Day Make a “Great Impression” • Would you Recommend this Class? Outside Sales Calls – Empowering and effective • Closing – Techniques Role play – Lets have some fun “Absolutely, I feel that this class is a must, if you want to be successful in the industry.” ~Andy Daugherty “It was just what I needed as a new salesperson.” ~Ian Logan

And Overall? “I have been to a lot of sales classes and this is the best one I have been to.” ~Mike Siebke “Awesome!” ~Audra Caldwell

Thanks to George Papp, and all the attendees, for making UTA’s Selling for Success class in Tampa such an educational and enjoyable experience for everyone. If you missed this class, don’t worry. There will be at least two more presented this year.

Here are the dates: May 19–20 Baltimore, MD July 21–22 St. Louis, MO

Save these dates! Details about the location of the hotels will be posted shortly on UTA.org.

10 May 2014 www.UTA.org UTA Industry Watch Subtle Shift for Big Rigs Research by Professor, Students May Improve Long-Haul Trucks for Women

ook at Jeanette Kersten, and you probably L don’t think trucker. The assistant professor of operations and management for University of Wisconsin-Stout is so slight you would think she’d have a hard time climbing into the cab of an 18-wheeler, much less driving the beast on the open road. That’s that focus of Kersten’s research: to make long-haul trucks more accommodating and comfortable for women— a largely untapped, and badly needed, pool of drivers. “Today’s trucks are not designed with women in mind,” Kersten said. “Given the driver shortage and the changing demographics that the trucking industry faces, it’s important for manufacturers to make trucks more female-friendly through moderate design changes for seats, pedals, and gauges, for example.” Kersten, with the assistance of her Organization Development class graduate students, and Ellen Voie, president for the Wisconsin-based Women in Trucking Association, conducted research that led to major recommendations UW-Stout Assistant Professor Jeanette Kersten, student Matt Mauer, and two other on improvements in the design of truck students did research on improving cab designs for female truck drivers. As a result seats, dashboards, steering mechanisms and of the research, is considering making changes to its trucks. other ergonomics for female drivers. Kersten recently presented her paper “Truck Cab Design: Perceptions of Women Truck Drivers” at the fifth annual International Conference on Women’s Issues in The research caught the attention of the “It’s important for manufacturers to take Transportation in Paris, France. Ryder transportation company, which has women’s needs into consideration when announced a partnership with the Women designing and specifying new vehicles, and The trucking industry says that it needs an in Trucking Association to improve we are encouraging all of our major suppliers additional 20,000 to 25,000 drivers, and conditions for female drivers. to do so,” said Scott Perry, Ryder vice women could help fill that gap. In 2011, president for supply management. women accounted for just seven percent of Vehicle specifications Ryder is reviewing the workers in the U.S. trucking industry. include: “In addition many of the same design changes will also support the needs of men who are The study Kersten conducted used a ■■ Height and placement of cab steps and smaller in stature, as well as the growing questionnaire that went to 663 members of grab handles population of older male drivers. With the the Women in Trucking Association. ■■ Adjustable foot pedal height (accelerator, current industry-wide shortage of professional “Adjustability was a central issue facing brake, clutch) drivers, this is a strategic initiative that can women truck drivers,” the study concluded. ■■ Height of seat belts (shoulder area) have far-reaching implications for truck fleets.” “A well-designed truck cab not only makes a ■ Ryder said it will deploy the design changes significant difference in the working condi- ■ Visibility of dash gauges in its owned and leased fleet and will encourage tions for a truck driver but also affects the ■■ Electric/hydraulic hood lifting mechanism vehicle manufacturers to consider additional safety of truck drivers and other road users. ■■ Automated transmission shift lever design changes. “If the design of the truck cab is poorly fitted placement/location Kersten emphasized the important role Voie to the size and dimensions of the driver, the ■■ Access to the top of the dash had in the study. “She came to me with this road may be less visible, driving controls may issue, and I designed the project with her for be more difficult to reach and seat belts may ■■ Better access to oil and coolant check and fill the students,” Kersten said. “She was also be less comfortable and less likely to be used.” instrumental in influencing Ryder to take an active approach regarding the results.” n www.UTA.org May 2014 11 UTA Industry Watch NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

Monthly Retail Sales Volume by Model Year: Summary Sleeper Tractors Under 1M Miles The volume of trucks sold at auction roared back in March after a 400 2 per. Mov. Avg.(2008) 350 mediocre start to the year, thanks to pent-up demand and the month’s 2 per. Mov. Avg.(2009) traditionally strong results. Volume through the retail channel 300 2 per. Mov. Avg.(2010) 2 per. Mov. Avg.(2011) increased mildly, potentially representing a return to month-over- 250 2 per. Mov. Avg.(2012) month stability. 200

Class 8 retail pricing on average is mildly down, suggesting that Volume Sales 150

late-model trucks may have found their price ceiling. Class 8 whole- 100

sale pricing on average also ticked downward, driven by the continued 50 increase in number of high-mileage trucks sold. In the medium duty 0 Jul market, Class 4 conventionals continue to gradually strengthen, while Jul Jun Jun Oct Oct Apr Apr Feb Feb Feb Feb Feb Feb Sep Sep Sep Sep Dec Dec Dec Dec Aug Aug Nov Nov Nov Nov Mar Mar Mar May May May May Jan-­‐12 Jan-­‐13 Class 6 conventionals turned in a very strong month. Jan-­‐14 Source: ATD/NADA Period Major players in the new truck arena are making big bets on the used truck market, as a special commentary explores. Average Retail Price by Model Year Sleeper Tractors – Retail All Sleeper Tractors Under 1M Miles -­‐ Adjusted for Mileage Retail sales data submitted to NADA from dealers and OEMs shows 2007 2008 2009 2010 2011 2012 that the overall sleeper market in March ticked mildly downward. $100,000 $90,000 The average sleeper tractor retailed in March was 77 months old, had $80,000 524,564 miles, and sold for $55,840. Compared to February, this truck $70,000 was one month newer, had 4224 (or 0.8 percent) fewer miles, and $60,000 $50,000

worth $386 (or 0.7 percent) less. Compared to March 2013, this truck Price $40,000 was identical in age, essentially identical in mileage, and worth $5048 $30,000 (9.0 percent) more. See “Average Retail Price and Mileage” graph. $20,000 $10,000 Source: ATD/NADA Average Retail Price and Mileage: $0 All Sleeper Tractors Under 1M Miles Jul Jul Mar May Sep Nov Mar May Sep Nov Mar Jan-­‐12 Jan-­‐13 Jan-­‐14 $60,000 580,000 Period $55,000 550,000 Spring market dynamics are still shaking out after an unusual winter, $50,000 520,000

Mileage so we are not yet identifying a trend. We expect retail pricing in $45,000 490,000 upcoming months to be stable to very mildly downward. Price Price $40,000 460,000 Sleeper Tractors – Wholesale

$35,000 430,000 The wholesale channel continues to be a story of two separate markets, Source: ATD/NADA Price Mileage with trucks with under 600,000 miles representing the late-model, $30,000 400,000 higher-priced component and the segment represented by trucks with Jul Jul Mar May Sep Nov Mar May Sep Nov Mar over 800,000 miles increasing in popularity. Volume and pricing for Jan-­‐12 Jan-­‐13 Jan-­‐14 the high-mileage segment increased through the 1st quarter of 2014, Period which is a new development. The year-over-year comparison provides a good example of how the On average, the typical used truck sold at auction or dealer-to-dealer market has shifted over this period, with the average used truck now in March was 86 months old, had 699,500 miles, and brought $32,183. worth over $5000 more retail, despite identical age and mileage. As we’ve Month-over-month, this truck was 3 months older, had 23,965 (or 3.3 stated, continued increases in our universal average are due mainly to percent) fewer miles, and cost $492 (or 1.5 percent) more. Year-over- an increased number of newer, lower-mileage trucks available to the year, the average truck was 7 months newer, had 43,785 (or 5.9 percent) secondary market. Trucks of 2011 vintage are now the most common fewer miles, and cost $8452 (or 26.3 percent) more. See “Average sold retail, and 2012s are slowly but surely coming on-line. In terms of Wholesale Price and Mileage” graph. mileage, trucks in the 300-399,000 range have increased in recent The year-over-year increase is due mainly to a higher number of 2009 months. See “Monthly Retail Sales Volume” graph. and 2010 model-year trucks moving through wholesale channels, their Based on this positive data, why did we say that the market ticked mildly higher relative pricing comprising a larger proportion of the universal downward? Because when viewed on an individual basis, most average this month. trucks declined slightly in March. Essentially, the market is increasingly As for high-mileage trucks, buyers continue to pay more for trucks represented by newer trucks, which bolsters our universal average— with over 800,000 miles, continuing a trend that began in the 1st but when viewed by model year, trucks are flat to slightly down. See quarter. In 2014 to date, trucks in this mileage group comprise a larger “Average Retail Price by Model Year” graph. proportion of the market than they did in 2013. These trucks are most 12 May 2014 www.UTA.org UTA Industry Watch NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

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

$45,000 750,000

$40,000 700,000 $35,000 650,000 $30,000 Mileage $25,000 600,000

Price Price $20,000 550,000 $15,000 2 per. Mov. Avg.(Price) 500,000 $10,000 2 per. Mov. Avg.(Mileage) $5,000 450,000 Source: NADA and AucFonNet $0 400,000 Jul Jul Sep Sep Sep Nov Nov Nov Mar Mar Mar May May May Jan-­‐12 Jan-­‐13 Jan-­‐14 Period

commonly from the 2006 and 2007 model years, which are popular as the last of the pre-DPF models. Engines will need a major overhaul if they haven’t had one already, but some buyers may consider this procedure worth the investment, since the market for pre-DPF trucks with remaining useful life remains healthy outside of coastal/port regions. Anecdotal evidence suggests this activity is most common in the long & tall segment, but our data indicates aerodynamic models are also contributing to this trend. See “Average Wholesale Price and Number of Trucks Sold” graph.

Average Wholesale Price and Number of Trucks Sold by Mileage Range -­‐ Sleeper Tractors, YTD2014

Price Count $70,000 120

$60,000 100 $50,000 80 $40,000 Count 60 Price Price $30,000 40 $20,000

$10,000 20

$0 0 The Freightliner Cascadia continues to lead the aerodynamic segment, retaining that position even after moving slightly downward this month. The 386, T660, and T700 returned very similar results month-over- 100-­‐199K 200-­‐299K 300-­‐399K 400-­‐499K 500-­‐599K 600-­‐699K 700-­‐799K 800-­‐899K 900-­‐999K month, and are positioned essentially equally in the marketplace. Mileage Sources: ATD/NADA and AucDonNet In the late-model market, there does not appear to be a clear difference between wide cab trucks, such as the T700 and 730/780, and narrow Given this dynamic, dealers may want to revisit their aged, high-mileage cab trucks, such as the T660 and 386. The moderately increased inventory, as there may be more buyers out there now than in previous versatility of the narrower cab design is likely counterbalanced by the months. Establishing a relationship with a high-mileage truck broker increased interior space of the wide-cab trucks, at least for units with or buyer could pay off in inventory reduction and potentially increased remaining useful life in a long-haul role. A difference may become more comfort with high-mileage trade-ins. apparent as trucks accumulate mileage and are placed in more local/ regional roles. We will continue to monitor this segment to determine whether these results suggest a long-term trend or merely a short-term anomaly For trucks that typically trail the segment average, an increased number following the unusual start to the year. Stay tuned. of MaxxForce-equipped ProStars were sold in March, placing downward pressure on that model’s average. As experience with the 2011 iteration Competitive Comparison of the MaxxForce engine grows, marketplace confidence appears to be This month, we return to our benchmark 4-year-old comparison of improving, judging by increased volume and pricing stability. As for aerodynamic models sold through the retail channel. As always, the other models, the 630/670 was stable month-over-month, and the comparison is limited to trucks equipped with big-bore or proprietary limited build of 2011 387s resulted in no reported sales in March. engines. As you can see, pricing for these trucks followed the broader market, staying similar to February or ticking mildly downward. See “Average Retail Price – 4 Year-Old Sleeper Tractors” graph. NADA continued on page 14 www.UTA.org May 2014 13 UTA Industry Watch NADA continued from page 13

Medium Duty – Class 4 Conventionals Given the low monthly volume of this cohort, it is useful to look at The Class 4 Conventional segment showed strength in March, with quarterly results for a basis of comparison. Average price for the first average wholesale pricing for 4-7 year-old units coming in at $17,581 quarter of 2014 was $24,005 – a whopping $8028 (or 33.4 percent) - $2487 (or 14.1 percent) higher than last month, and $3274 (or 18.6 higher than 4Q 2013. Lower average mileage this quarter was largely percent) higher than March 2013. Average mileage was 98,745 – 16,499 responsible for the price difference, coming in 23,015 (or 13.4 percent) (or 14.3 percent) lower than February, and 9492 (or 8.8 percent) lower lower than last quarter. Year-over year, Q1 2014 was $7798 (or 32.5 than March 2013. See graph. percent) higher on price, and 35,663 (or 19.5 percent) lower on mileage. The Class 6 market is now priced higher than the previous post-recession peak in early 2012. Lower average mileage is the main factor behind the higher pricing. At the same time, a deeper dive into the data suggests that trucks at given mileage points are bringing moderately higher pricing in the current period. As such, our confidence in the strength of the Class 6 market is increasing. Special Commentary: Major Players Betting Big on Used Trucks Recently, two of the nation’s largest sources of new and used trucks, Rush Enterprises and Penske, opened brick-and-mortar locations dedicated solely to used trucks. Rush currently operates one Rig Tough used truck location, and is planning to open an unknown number of additional locations this year. Penske Used Trucks currently has two On a quarter vs. quarter basis, Q1 2014 saw higher pricing than Q4 locations, and plans to open two more by the end of 2014. 2013, at $16,005 vs. $13,322, respectively. Mileage in Q1 2014 was For entities with access to the necessary capital, a major investment in mildly lower than the previous quarter, at 105,307 vs. 108,282. Q1 2014 used truck infrastructure makes sense. Late-model trucks are selling for was slightly better than Q1 2013, with a $776 (or 4.8 percent) improve- historically high prices, and increased numbers of these trucks have been ment in price despite a 6708 (or 6.4 percent) increase in mileage. entering the secondary market due to the return to normal build rates This higher pricing is encouraging, but keep in mind the moderately and shorter trade cycles. In addition, competition between OEMs for lower mileage this month is partly responsible. Also, and more importantly, new truck business will likely provide additional late-model trade-ins. the volume of trucks reported sold in this cohort has remained in the In general, dedicated used truck locations provide enhanced visibility 40-50 unit range each month, down about 25 units from the 2012 average. among end users, extend services to areas otherwise not served by a Given these results, we continue to view the Class 4 segment as gradually dealer group, and ensure that a used truck is marketed on its own improving. As this segment touches a wide variety of economic merits as opposed to merely being a component of a new truck deal. segments, we expect results in upcoming months to roughly track the Looking specifically at Penske, this move represents a shift from their gradual improvement in the domestic economy overall. traditional wholesale model towards the retail channel, providing the end user with medium and heavy trucks ready for immediate purchase. Medium Duty – Class 6 Conventionals In terms of Rush, the move provides potential customers increased Since January, we’ve been reporting on the extremely low number of access to trucks returning from trade in the near future. In both cases, 2008-2011 model year Class 6 Conventionals sold. Along with that low an expected increase in volume of trade-ins is an underlying rationale. volume has come historically high pricing. In March, the average 4-7 In terms of the customer base, customer analytics have become extremely year-old Class 6 Conventional sold wholesale for $25,014 – the highest advanced thanks to better understanding of big data, and major average price in at least six years. Mileage was moderately low, at operators like Penske and Rush are surely among the most savvy when 136,871, continuing a trend begun in January. See graph. it comes to taking advantage of all the predictive tools available. According to ATD 20 Group data, used trucks represent a higher margin than new trucks as a percentage of gross. Establishing physical outlets for used trucks indicates a realization that there will be more iron to move, and there is money to be made doing it. Sales Volume As predicted, March’s retail volume was slightly higher than February’s. March came in at 6.3 trucks retailed per rooftop – 0.2 higher than February. See “Average Number of Used Trucks” graph. March is traditionally a high-volume month, and the remaining pent-up demand from the winter likely contributed to sales. Thanks to fewer external factors suppressing demand, we expect increased stability in volume in upcoming months.

14 May 2014 www.UTA.org UTA Industry Watch Coming Next Month!

On the wholesale side, pent-up demand following the rough winter combined with timing of our data collection processes resulted in a massive increase in number of trucks reported sold in March. In fact, this month represented the highest volume reported since May of 2010. June 17 & 18th, 2010 Month-over-month, March’s total of 4183 trucks was higher than February’s by 1202 (or 28.7 percent). Year-over-year, March 2014 was 1109 (or 26.5 percent) higher. See “Total Wholesale Sales” graph.

“Tips You Can Count On” Moving Old Inventory

When you have old inventory that just won’t retail consider changing things up. • Perhaps run it back thru detail • Add or change the body (for example, take the van off and put the flatbed on) • Paint the unit (e.g., if it’s painted yellow, paint it white or make it two tone) Due to the timing of our data collection processes, we received one • Add aluminum wheels or simulators additional week of sales in March compared to February. However, even if • Fix any damage (at first you may think that we split that “extra” week evenly between February and March, March little dent in the door didn’t need it) still comes out ahead by almost 12 percent. That additional volume is explained by typical early-spring seasonality amplified by the severe Sometimes putting extra money into the truck winter. Volume will likely return closer to the 2013 average, and we expect will help you sell it! auction activity in 2014 to proceed moderately higher than last year. Conclusion ~ The Medium Duty Counselor In the retail channel, Class 8 sleepers have likely seen the last of their appreciation. Pricing should remain at or mildly off record highs in upcoming months as more late-model trucks become available. In the wholesale channel, increased interest in high-mileage trucks is the new dynamic. In the medium duty sector, Class 4 conventionals are in recovery, albeit a very gradual one. Class 6’s may finally be coming back, although we will need another month of sales not impacted by winter weather to gain confidence in that assertion. n

Reprinted with permission from the ATD/ NADA Official Commercial Truck Guide® www.nada.com/b2b www.UTA.org May 2014 15 UTA Industry Watch Industry News Briefs

March’s Orders Up Again: ACT Research March brought good news all around this year. It signaled the arrival of Spring, of course, but it also brought good news for the trucking industry, in particular. Class 8 orders were up 24 percent as compared Tight Capacity, Surging Rates Breed to last March. Medium Duty orders were up 15 percent. Confidence: TCP ACT’s preliminary numbers pegged Class 8 net orders at 27,400 units; Truckers are optimistic about rates and volumes according to Transport Classes 5-7 orders at 17,600 units. Capital Partners’ (TCP) first quarter survey. In fact, optimism concerning “Class 8 orders in March represented the lowest intake since November,” volume growth has steadily risen over TCP’s last six surveys. TCP said said Kenny Vieth, ACT’s President/Sr. Analyst, “but March was also the the results reflect a better outlook for the economy at large. Also, sixth best order month since early 2006, up 24 percent compared to a seasonal capacity shortages contributed to carriers’ expectations that year ago. Typically a strong month, seasonal adjustment drops March volume will increase over the next 12 months. orders to 26,100 units/314k SAAR. In Q1, Class 8 net orders were booked Volume expectations grew 74 percent from 2013’s 4th quarter—from 44 at a 353k SAAR. percent to 77 percent. Compared to last year this time the increase is “Like Class 8, Classes 5-7 net orders rose compared to March 2013, but 48 percent. slipped sequentially. In March, Classes 5-7 net orders totaled 17,600 “The literal mother of all rate increases may be here in 2014, as reflected units. That volume represents a seven percent decline from February’s in our first quarter survey,” said TCP’s survey leader, Richard Mikes. cycle-to-date high, and a 15 percent improvement from last March. The market research firm also noted that rate expectations have moved Consistency continues to be part of the MD vehicle order story: Over almost in tandem with volume expectations. Four out of five carriers the past 3, 6, and 12 months, orders have been booked at a 209k SAAR, expect rates to rise over the next 12 months—a 62 percent increase from a 206k SAAR and 204k units, respectively,” said Vieth. last quarter. For more information, visit ACT at http://www.actresearch.net. n “Historically, smaller carriers have been the more optimistic about rate increases,” TCP Partner, Steven Dutro noted. n

Trucking Conditions Reflecting “Unprecedented” Capacity Constraints: FTR FTR’s Trucking Conditions Index (TCI) reading of 7.54 for February, was down some from January’s reading, but was still good news for trucking fleets. It was also “a warning to shippers seeking carriers to move their goods,” FTR said in a release. Once again, the wrath of last winter had some serious repercussions, which were not reflected in the data. When adjusted for weather, the TCI reading would be pushed above a reading of 10, “certainly making this the tightest truck market on record,” FTR noted. FTR said it expects the TCI to remain in this range throughout 2014—affected by both “truck freight demand and regulatory drag hindering available capacity.” Jonathan Starks, FTR’s Director of Transportation Analysis put the findings in perspective. “The most recent weekly spot market data shows that the spring thaw has come to truck demand with spot market capacity up and load activity down slightly—a plateau versus the last couple of months when both demand and pricing spiked while capacity was severely constrained. Both carriers and shippers have to be on the lookout for a potential tipping point when freight demand is able to keep the current high level of truck use well into the summer months. Such an environment would necessitate shippers bidding up rates to maintain secure capacity during the fall shipping season…It would only take a relatively modest and short uptick in the industrial sector for capacity to tighten significantly further. We advise everyone to stay tuned to the manufacturing data to see if the thaw continues.” n

16 May 2014 www.UTA.org UTA Industry Watch

Volvo’s 2014 GHG-Certified Engines are Peterbilt Introduces Beating Fuel Efficiency Expectations New 220 Model Volvo’s Greenhouse Gas (GHG) 2014-certified engines are more fuel Peterbilt Motors Company has efficient than anticipated, recently announced. The added the Model 220 to its medium- integrated engines are delivering up to a three percent fuel efficiency duty COE lineup “that features numerous improvement compared with their 2013 counterparts. interior and exterior enhancements to increase driver productivity, safety and durability,” according to the company. “Introduction of our SCR-equipped models yielded a five percent fuel The new model comes with a new electronic braking system (EBS) efficiency increase…our 2014 engine lineup is delivering up to an “that provides quicker responsiveness and an improved braking feel.” additional three percent savings.” said Göran Nyberg, president, Volvo Trucks North American Sales & Marketing. Peterbilt said the new cab has a completely redesigned interior, engineered to give drivers “unparalleled levels of productivity and comfort.” It “Fuel efficiency remains top-of-mind across the industry, but there’s features a curved dashboard with easy-to-read instrumentation and an no one-size-fits-all solution that will deliver massive improvements. interactive, five-inch color display module that provides information on Every drop counts,” Nyberg said. “On average, a one percent fuel vehicle and driver performance. efficiency improvement amounts to annual savings of more than $650 per truck. Carriers ignoring opportunities for incremental fuel “The Driver Information Center display in the Model 220 keeps operators efficiency gains are leaving money on the table.” abreast of all vital vehicle and engine functions,” said Landon Sproull, Peterbilt Chief Engineer. “It also features advice for the operator on ways In addition to the fuel efficiency gains from Volvo’s 2014 engine to improve in areas such as increasing fuel efficiency and reducing brake technology, Volvo Trucks’ XE powertrain package boosts fuel wear by modifying driving efficiency by up to an additional three percent, according to the behavior.” Other improve- company. Available on Volvo VNM and VNL models equipped with ments include a multi-func- 2014 Volvo engines, the XE11, XE13 and XE16 packages improve fuel tion steering wheel and a efficiency by lowering engine rpm at a given vehicle speed, a concept push-button style shifter the Volvo calls “downspeeding.” Possible through the combination of driver can easily reach. Volvo’s standard I-Shift automated manual transmission and Volvo engine with modified software, XE allows the engine to cruise about “Ergonomics were enhanced 200 rpm less than the average truck sold today. with easier-to-read instru- mentation and all switches Fuel efficiency improves by about 1.5 percent for every 100 rpm of are grouped by function. downspeeding, so customers spec’ing the XE package can expect up to Everything is within easy a three percent improvement when compared with another overdrive reach of the driver and the transmission in a similar operation. Demand for XE powertrain overall layout provides a packages has grown each year since the initial introduction of the logical, easy-to-operate environment,” said Sproull. He added that XE13 for the D13 engine. n storage is abundant in the new cab with compartments in the door panels, along the back wall, in the header and on the dash, conve- niently located near the driver for paperwork or other items. In addition there’s an optional lockable compartment with two inte- grated cup holders that fits along the engine tunnel area. The Model 220 will remain standard with features including: power windows, locks and mirrors; air-ride driver’s seat; and air conditioning. It’s also available with passenger-side air-ride seats, or a fixed two-man bench to accommodate three people in the cab. Exterior Cab Improvements The new cabs are designed for durability to withstand harsh, urban operating environments. For instance, the new bumper is manufactured from galvanized steel, there’s a new radiator protection plate, and the headlamps are protected by a tough Lexan covering. For improved visibility during adverse conditions, fog lamps have been integrated into the bumper. “Productivity and safety are two major areas of improvement. We’ve facilitated ease of entry and egress with doors that open a full 90 degrees and there’s ample courtesy lighting,” said Sproull. According to Sproull, implementing the new cab allowed Peterbilt to integrate the new EBS. “Braking performance is improved with faster response from the pedal to the brakes, and drivers will appreciate the improved feel when braking,” he said. n www.UTA.org May 2014 17 UTA Industry Watch

18 May 2014 www.UTA.org UTA Industry Watch

www.UTA.org May 2014 19 UTA Industry Watch From Where We Sit

Hooray! It’s springtime in our beautiful little valley, and we’ve all made it through to the glorious month of May! See, we told you this winter would end, and end it did. Now life is filled with the happy sound of children playing in the sunshine and the characteristic smell of the manure in the farmers’ fields means it’s time to stop waiting and start growing. Life in agricultural country is good indeed. Still everyone who has made it through to this wonderful reward can see the effects of the winter-we-thought-would-never- end. The kids had a two-day spring break from school instead of more than a week. So snow days come at a cost. Roofs and sidewalks need some repair after the onslaught, and all the damage that was done to trees and yards is now fully visible. Well, luckily, those are all “first-world” problems. Ugh! This expression has crept into our lexicon over the last few years, hide our own personal sufferings or act like we don’t have problems or and we despise it. We really truly do. It’s insulting to the people concerns. If your child isn’t thriving in school, that’s a genuine throughout the world who are struggling with third-world problems, concern. It’s certainly wonderful that she went off in the morning with and it’s entirely dismissive of the a belly full of a good breakfast, but her tears and frustrations are still day-to-day challenges of those hers and yours and they matter. If who aren’t. Absolutely, as a human your spouse is struggling to find the community, all of our hearts right job while taking stop-gap work should go out to the parents who to make ends meet, that’s a genuine are struggling to feed their worry. Yes, it might only mean that children today and the oppressed you forgo a vacation this summer or people who are only dreaming of cut back on spending in the meantime, the types of freedoms and but it is still your struggle and you opportunities we who live in this are entitled to your feelings about it. country enjoy. Even the neediest So, do these examples of “first-world Americans have a better life and problems” compare to the struggles more advantages than many who of the third world? No, of course weren’t born to our good fortune. they don’t. But, if you broke your leg We would never compare our skiing during the endless winter that daily issues with the struggles of just ended, your pain was no less real families who aren’t guaranteed to you. That the injury happened clean water every day, or who while you were enjoying a great day never know what it means to take doing something many in the world a loved one who is ill to a doctor. Americans in general are among the can’t even dream of doing doesn’t change that. Sure, here in the first most generous and giving of people who have ever walked this planet. world, you would have gotten great care, and you’d now be well on In our generation alone, we’ve raised kids who joined Teach for your way to being mended. We’d still include you among those who America, the Peace Corps, and Volunteers in Service to America deserve our empathy and compassion. We (VISTA). We’re proud of all our country does when terrible storms, won’t use the expression “first-world earthquakes, or terrorist attacks happen throughout the world, and problem,” out of respect for the entire human we’re proud to stand among our fellow citizens in doing what we can family. We will continue to try to make the to help the less fortunate. But, do we categorize our problems as first world a better place, both around the globe world? No, thank you very much, we don’t. and here at home, but suffering is suffering and it need not be dismissed. At least, that’s Maybe that’s because we grew up among people who knew first-hand the way it looks from where we sit. what life was like under dictatorial governments. Maybe it’s because their history showed us that when one group of people is suffering, it detracts from the happiness and peace all groups of citizens know. Deb and Brad Schepp Even so, that doesn’t mean those of us who are more fortunate need to [email protected]

20 May 2014 www.UTA.org