1.877.gets.uta • www.uta.org Volume 14 • Issue 4 • April 2012

Used Truck Association J.R. Martinez to Keynote Chartered May 16, 1988 UTA’s 2012 Convention! Published by the Used Truck Association 325 Country Club Drive, Suite A Stockbridge, GA 30281 .R. Martinez had a great year in 2011! Not only did he Jand his dance partner Karina Smirnoff take ABC’s “Dancing with the Stars” Season 13 coveted Mirror Ball Table of Contents Trophy, but he was also named the 2012 Tournament of Roses Parade Grand Marshal. “J.R. is an inspiration to us Board News & Views...... 2 all and a natural fit for our theme Just Imagine,” explained New Members...... 3, 5 Tournament President Rick Jacksonj. To top it all, J.R. was featured in the People Magazine’s Sexiest Man Alive issue Face to Face with Jon Pearson...... 4 and named one of their “25 Most Intriguing People of the UTA Lifetime Achievement Awards Year.” But, not all of J.R.’s years have been this rewarding. Nominations...... 6 Jose Rene Martinez was born June 14, 1983 in Shreveport, LA to Maria Zavala. His two sisters, The Brooks Group Consuelo and Anabel, were raised in El Salvador with his mother’s family. Sadly, J.R. never met Sales Tip of the Month...... 6 Anabel, who died as a toddler. When J.R. was nine, he and his mother moved to Hope, AR, finally settling in Dalton, GA, the place he proudly calls his hometown. During his senior year he played New Changes Make UTA.org strong safety for the Dalton High School Catamounts and went to the State Championship. More Useful than Ever...... 7 Playing professional football was his dream until he suffered an injury during that same year. Happy Anniversary to After high school J.R. joined the Army, proud to serve his country. During his basic training at Tulsa Truck Depot! ...... 7 Fort Benning, he gained skills as an 11-B Infantryman. With basic training behind him, J.R. was 2012: Off to a Strong Start...... 8-9 assigned to the 2nd Battalion, 502nd Infantry Regiment of the 101st Airborne Division. Industry News Briefs...... 10 -11 In March of 2003, J.R. went to Iraq. Less than a month into his deployment, while serving as a Bryan’s Spotlight...... 12 Humvee driver in Karbala, his vehicle hit a land mine. The three soldiers with J.R. were ejected from the burning vehicle, but he was trapped inside and suffered smoke inhalation and severe Industry Events Calendar...... 14 burns to more than 40 percent of his body. J.R. says that while he was fighting for his life and From Where We Sit...... 16 awaiting medical help in Iraq, his sister Anabel appeared to him, giving him the strength to stay alive. He spent nearly three years recovering from his wounds and endured 33 different surgeries The UTA… including skin grafts and cosmetic surgery. Members Supporting Members! During J.R.’s recovery, a nurse asked him to speak to a burn patient who had just seen his body for the first time and had become withdrawn. After a 45-minute visit, the patient opened the curtain, letting light into his room and his heart. J.R. saw the impact he had on this patient and decided to use his experience to help others. J.R. has become a highly sought-after motivational speaker, traveling the country to spread his message of resilience and optimism. He devotes himself to showing others the true value in making the most of every situation. He speaks to large corporations, veterans groups, non-profits, SHARE YOUR news and schools. J.R. has been featured in the Los Angeles Times, the Washington Post and the New York Times. He has appeared on The Oprah Winfrey Show, 60 Minutes, The View, CNN, FOX with the UTA Industry Watch. News, and Good Morning America. Send submissions, ideas and J.R. has also had success as an actor. He played ‘Brot Monroe’ on the daytime drama “All My Children.” comments to: In true Hollywood fashion, he attended an open casting call for the show at the urging of a UTA Industry Watch Editors friend. After several meetings with producers, he was cast, and his acting career began. Due to Brad and Deb Schepp and Jay Burgess his popularity, a storyline meant to last three months, led to three years with the show! c/o Grace Management While J.R.’s war experience was certainly life-changing, he insists it was a change for the better. 325 Country Club Drive, Suite A “I discovered it is what is inside a person that matters most, and I wouldn’t change anything… Stockbridge, GA 30281 absolutely anything!” says J.R. “I do believe everything happens for a reason, and I’m extremely Phone: 877-GETS-UTA (877-438-7882) grateful for that day because it led me into this life!” Fax: 770-454-0029 Today, that life includes a happy home with his girlfriend Diana and his black lab. He also enjoys [email protected] working out, and he’s working on a book. Learn more about J.R. on his website: www.knowjr.com n 2012 UTA Industry Watch Board of Directors Board News and Views UTA’s Dealer Group is Off and Running

he UTA Dealer Group is off to a running start in 2012, as we work on our agenda for the Tyear. We capped off 2011 when we awarded the Dealer Member and Vendor Member of the Year awards at the convention. It was an excellent way to celebrate some of the UTA’s great talent and resources. The winners represented a long history of professionalism in the used truck industry. Front, L to R: Kenny Doonan, Tim In case you missed the awards, the winners were: Ormsby, Tim Ronan, George Barnett, Victor Manilla, American Motors Andy Holloway, Truck Central Marty Crawford, Mike Thurston Joey Lojek, Premier Truck Sales Joe Gallowitch, Inland Kenworth Back, L to R: Bryan Boyd, Bryan Haupt, Tom Cullison, Rush Enterprises Jim Zimmerman, Kenworth of Pennsylvania Sheri Aaberg, Tom Pfeiler, Rick Clark, Terry Williams, Truck Blue Book Lara Haag, John Cosgrove, Bobby Williams, Ken Kosic, Jay Burgess - In the next couple of months, nomination forms will go out via email for 2012’s awards. Any UTA member can nominate any other UTA member for these awards, which will be presented alternate (not pictured) at our November convention. You can nominate as many members as you would like. President The Dealer Group has had several meetings to brainstorm and plan for this year’s events. One of Rick Clark this year’s priorities is to continue learning and educating UTA members on Diesel Particulate Filter (DPF) and Diesel Exhaust Fluid (DEF) technologies. A specific concern this year is the Vice President work being done to replace or bypass the emissions systems. How do we identify these bypassed Bobby Williams systems, and what liability do we have as dealers selling these trucks? Our plan is to gather Treasurer information, and share our findings at our November convention. Tom Pfeiler Our group has also been working with the Membership Committee to explore the best ways to grow the UTA’s membership. One item we will work on is a flyer or presentation for dealer owners Secretary explaining who we are at the UTA, and the benefits of membership. We also want to take a closer Sheri Aaberg look at vendor membership, and how we reach out to vendors who are not familiar with the UTA. President Emeritus We want to show these potential members the benefits the UTA can bring to them, as well as Marty Crawford what they can bring to UTA dealers. Remember our vendor members when you do business, they are vital to our success! Affiliates & Benefits Committee We are also working on a strategy with the Web Committee to enhance communication Chairman between the UTA’s dealers and vendors. I am really excited about this idea. We are just in the Bryan Boyd development stage, but I hope to have some news along these lines by late summer. Convention Committee Chairmen The Dealer Group is considering other projects as well. Ideas in the hopper include: Getting Sheri Aaberg & Tim Ormsby emissions information out to our members, especially to non-OEM dealers; ideas for speakers at UTA Jerome Nerman Family the UTA convention; a used tire program, working on warranty programs, and getting dealer/ Foundation Scholarship Committee owners to the UTA convention. Let us know what other topics interest you. Chairman We will have a face-to-face Dealer Group meeting the day before the Scholarship Golf Outing in Tim Ronan June in Kansas City. Don’t forget this great event, which Tim Ronan and his group put on every June to support our scholarship fund. This year’s event is being held June 20-21, in Blue Spring, Elections Committee Chairman MO. So mark your calendars right now for the Scholarship Golf Outing and support this cause. George Barnett If you want to join the UTA Dealer Group we are always looking for more people with great ideas. Marketing Committee Chairmen Call me or your regional rep. As you can see, this group is doing some great things for the Used Jay Burgess & Rick Clark Truck Association. Medium Duty Committee Chairman Regional Dealer Group Reps: Alan Strickler, Eddie Altman, Guy Cheney, Michael Kirby, Mike Tom Pfeiler Roney, Steve Sonego, Zach Baurer n

Membership Committee Chairmen John Cosgrove & Kenny Doonan

Training Committee Chairman Ken Kosic Mike Thurston, Co-Chair UTA Dealer Group Committee UTA Dealer Group Committee [email protected] Chairmen Mike Thurston & Bryan Haupt

UTA.org Website Committee Chairman Bobby Williams

2 April 2012 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 like/don’t like about the work you do, why you joined the UTA, and New 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 Members David Grace at [email protected] or 770-389-6528 ext. 404.

Mitch Allen, VP Ryan Bowling, Sales Manager Mark Hubert, Dealer Development Allen Truck Sales B&D Truck Parts, Sales and Services, LLC CAG Truck Capital 2989 Industrial Blvd. 1498 Perrysburg Rd. 4 Hillman Dr., Ste 102-104 Crawfordsville, IN 47933 Fostoria, OH 48830 Chadds Ford, PA 19317 www.allentrucksales.com (419) 701-7041 (W) www.cagtruckcapital.com (888) 364-0828 (W) (419) 392-0935 (C) (610) 558-3800 x106 (W) [email protected] [email protected] (610) 425-2958 (C) [email protected] Mitch Allen started his life in Vincent Cerni, VP the truck Sean Jones, President business in 2001 Cerni Motor Sales P. O. Box 4176 Revolution Payment Systems when he took a Youngstown, OH 44515 22 Wayside Ave job washing www.cernimotors.com Hagerstown, MD 21740 trucks and (330) 652-9917 (W) www.revolution-payments.com organizing the [email protected] (301) 790-3450 (W) truck lot at (301) 992-8368 (C) Pedigo Truck [email protected] Sales. Today, Todd Clark, Owner Sean is the president of Revolution Payment Mitch is the Vice Quality Truck Sales Systems, helping truck dealers and others, President of Allen Truck Sales. He joins the 2715 N. Eastgate Ave. make informed decisions when selecting a UTA in hopes of meeting other dealers. “The Springfield, MO 65803 credit card processing provider. His first more people I know, the better I’ll be at (417) 863-7778 (W) experience in the trucking industry came purchasing and selling,” he told us. He (417) 861-1215 (C) along when his company became the loves what he calls the “out-of-the-blue [email protected] endorsed payment processor for the phone call” from a customer expressing Maryland Motor Truck Association. Sean is happiness with the truck he purchased and looking forward to meeting other UTA satisfaction with the service he received John Haseman, Corp. Used Truck Dir. members and working with them to identify from Allen Trucks. Mitch had trouble JX Enterprises ways they can reduce their payment envisioning his life in some other industry. 4255 S. Harding St. processing costs and streamline the way He feels that he’s relatively new to this Indianapolis, IN 46217 they accept payments. “Like we’ve done for industry with years of growth and www.jxe.com the UTA,” he told us. achievement ahead of him. “Ask me again (317) 788-0299 (W) in 20 years,” he said. “I’m sure I’ll have a (317) 910-6865 (C) Actually, that educational aspect of Sean’s job [email protected] different answer then.” is the one he seems to enjoy the most. He loves sharing knowledge about what determines Mitch says that his young family is the most John began his career in 1998 discount rates and the fees that impact his important part of his life. He and his wife clients’ bottom line. “I make it my goal that have two very small children who bring them when he became a medium-duty each company I speak with will tell me ‘no great joy. Mitch also finds politics to be very one else ever told us that before,’” he said. interesting, although nowhere near as joyful. Hino truck He calls it sometimes “frustrating,” which salesman for If Sean weren’t pursuing his current career, we found quite a politic way to describe it! Chicago he’d like to be in real estate. He is a part-time Mitch is looking forward to meeting new Kenworth. He investor and enjoys the flexibility and long-term people and forming new relationships joins the UTA in security real estate affords. Others may not realize this, based on his easy going nature, through his UTA membership. hopes of gaining but Sean also trains in mixed martial arts. contacts and “Most of my friends would have a hard time enjoying the camaraderie of a reputable Ivan Arbelaez, Owner imagining me being aggressive,” he said. Still, association. He loves dealing with his many of the people he trains with actually do Used Truck Parts customers, but if he did have to choose compete. Sean is looking forward to meeting 2019 McCarty another profession he’d like to own an Aurelio’s UTA members and learning more about them Houston, TX 77029 Pizza franchise. Pizza, not unlike used trucks, in order to build long lasting relationships. [email protected] moves on the quality of the product, and that’s We plan to stay on Sean’s easy going side so (713) 675-3027 (W) where John’s devotion lives. He enjoys his as to never have an opportunity to see the (713) 875-1724 (C) other role as referee to a travel soccer team. whole MMA part of him in action! [email protected] New Members continued on page 5 www.UTA.org April 2012 3 UTA Industry Watch

Jon Pearson

ack toward the end of our college days ment training program and worked with peers. He credits UTA members with adding Bwe attended many “Job Fairs” both operations and sales. This early to his storehouse of knowledge and wisdom. equipped with freshly minted and just experience has been very helpful to him “Being active in organizations like the UTA slightly padded resumes. Since those days, throughout his career. and the Minnesota Truck Association also we’ve known lots of other hopeful students When the time came to leave Ruan, Jon help to expose you to great networking who did the same. Now, happily, we can say spent four years working for St. Cloud Truck opportunities and stay on top of what is that we know someone who not only got his Sales (Freightliner of St. Cloud). There he happening in our industry,” he noted. first job through a college job fair, but also was the leasing manager. Then he spent Jon loves the problem-solving and solution- launched a successful career. You probably another decade working with GATR Truck finding aspects of his job. As you might also know Jon, a seven-year UTA member, but Center in Sauk Rapids, MN. Now, of course, guess, he’s devoted to the satisfaction of did you know that this is how it all began? “I he is back with Freightliner of St. Cloud, but every customer. “We need to never lose sight was graduating from St. Cloud State this time as the General Manager. Jon is that our customers expect and deserve the University and Ruan Leasing was on campus enjoying his current job, because it allows best experience possible every time they doing interviews,” Jon told us. “I signed up him to have a direct role in the operation of have a need,” Jon said. “Some of those for an interview. Prior to the interview I did every aspect of the dealership. “I have opportunities will be big and others small, my research and came to the conclusion that quickly learned that a General Manager is but they are all important.” it was a company with a lot to offer.” Jon only going to be successful Jon’s philosophy about customer satisfaction entered Ruan’s manage- if he has a good team,” he is tied to one of his proudest moments in the said. “Most of the time I trucking industry. “I was moved into the find that our team has the rental/leasing side of the business at Ruan,” solution, and we just need he remembered. “I went out and pounded to implement a plan to the pavement and took a customer from cold follow through with that call to signing a five-year lease on a few tractors. solution.” In the big picture, it was a small event for the Jon clearly values the company, but it gave me the confidence that people who surround I could be successful in this industry.” him, and that seems to Now Jon can boost the confidence of others be a hallmark of his who are just starting out in the trucking entire career. When we industry with some sage advice. “Find good asked him the secret to people to work with and be willing to learn his success in this something from every person that you industry, he turned interact with,” he said. I also believe that you back to his devotion to need to stay on top of what is happening in others. “I have been the entire industry. Having a general very fortunate to have understanding of your prospect’s business worked with some will make you more valuable to them as a very good people vendor.” along the way in my career,” he said. When Jon isn’t at work, he spends his time “Although I have a with his three favorite ladies. He and his wife four-year college Tanya have been married for 19 years and degree, my ‘real’ education are the proud parents of two daughters, ages started my first day with Ruan and continues 7 and 11. Jon also loves ice fishing, boating, every day of my career.” But, Jon’s dedication and, of course, anything he gets to do with to others extends beyond his immediate his kids! n

4 April 2012 www.UTA.org UTA Industry Watch New Members continued from page 3.

Jay Malave, President Will Pappano, Sales She is eager to get involved with UTA, Diamond Motors Quality Equipment Sales because she is very people oriented. “I am a 159 P and N Dr. 7240 N. I35E creative, social person,” she said. Lindsey Greenville, SC 29611 Waxahachie, TX 75165 has a passion for building relationships and www.diamondmotorz.com www.qestrucks.com using her creativity through sales. When (864) 422-1520 (W) (855) 559-9620 (W) she is not at work, Lindsey also enjoys [email protected] (317) 341-5287 (C) being outside and playing soccer. (Her [email protected] picture was taken at a Barcelona v. Manchester United soccer game in Peter Moore, Managing Director Washington DC.) She also skis (snow) and Corporate Finance Associates John Simon, Sales Manager pursues road-cycling among other outdoor 75 Market Street, Ste 305 Broadway Trucks activities. All through school she played Portland, ME 04101 1506 S 7th Street soccer. Today she coaches teams of www.cfaw.com St. Louis, MO 63104 elementary, middle-school, and high-school (207) 772-2221 (W) www.broadwaytruck.com players. “I enjoy the opportunity to be (207) 712-0720 (C) (636) 448-8783 (W) involved in the development and training [email protected] [email protected] of young people in a sport I love,” she said. Lindsey’s advice to both her young players John Mravinac, President/Owner Lindsey Strohschein, Sales and and to the rest of us is to make the best of Correct Truck & Trailer, Inc. Customer Service Coordinator every opportunity and remember that we 2904 W. 76th St. Premium 2000+ Warranty Programs only get one first impression. “Attitude is Davenport, IA 52806 190 Charlois Blvd, Ste B everything,” she told us. www.usedtruckdealer.com Winston Salem, NC 27103 (563) 445-3624 (W) (888) 261-7581 (W) (563) 529-1538 (C) [email protected] Joseph Thornburg, Wholesale Manager [email protected] Lindsey is a relative Stoops Freightliner-Quality Trailer, Inc. John started his career newcomer to the 1910 West Thompson Rd. in the truck business in truck industry, Indianapolis, IN 46217 www.stoops.com 1973, almost forty years having joined the (317) 781-4387 (W) ago now. His first job account department (317) 916-6620 (C) was in sales. Today he is of Premium 2000+ [email protected] the Owner/President of Warranty Programs Correct Truck & Trailer, in 2010. On another Inc., and he cites his level, she was born Kris Williams, Sales Business Manager independence in into the industry as Sioux City Truck Sales, Inc. operating his own her father has been 2546 Mid America Dr. business as the most rewarding part of his in trucking since she was born. “You could Council Bluffs, IA 51501 job. Through his UTA membership, he is say it runs in my blood,” she told us. Today www.pbtruck.com looking forward to gaining up-to-date she is the Sales and Customer Service (712) 328-7710 (W) information about the transportation Coordinator for the company. [email protected] industry including legal issues facing the Lindsey has already gained a taste of the industry, equipment updates, and issues networking and educational opportunities related to both truck operation and dealer available through UTA as an attendee to both operations. the 2010 and 2011 conventions. “Now that In all the years that John has been in the I’m officially a member, I hope to continue industry, it has remained the one and only building those connections and relationships thing he could envision himself doing. He through this great organization of people,” looks forward to meeting other used truck she said. dealers and their staffs and sharing information, camaraderie, and support. Lindsey loves the problem-solving aspects of her job and enjoys working as a go-between with other dealers and customers. “My job is Martin Nanney, Heavy Used Truck multidimensional and gives me the opportunity If you are not taking Manager to be involved,” she said. Lindsey loves sales, care of your customer, Grande Truck Center and if she weren’t in the trucking industry, P. O. Box 201210 she’d probably be pursuing her passion for sales your competitor will. 4562 I.H. 10 East in either the retail environment or in the San Antonio, TX 78220 realm of design. She actually spent part of (210) 666-7114 (W) her career in the interior design field before ~Bob Hooey (210) 410-4237 (C) she moved toward business management. [email protected] www.UTA.org April 2012 5 UTA Industry Watch

Mark Your Calendars! 2012 UTA Lifetime Achievement Award Nominations 13th Annual t’s time to nominate your candidate for the 14th annual Marvin F. Gordon Lifetime Achievement Convention IAward. This prestigious award will be presented at our 13th annual Convention being held in New Orleans, LA November 7-10, 2012. We are looking for an individual who has a proven record of accomplishments within the Used Truck industry, who demonstrates a capacity for maintaining the highest business practices and standards, and who promotes the ethics and goals of the UTA. It is very easy to nominate someone. Go to the UTA website at www.UTA.org and look for the Lifetime Achievement link on the left-hand side. Then go to the bottom of the page and click on the nomination form. You’ll find a PDF form there. Print it, fill it out, and send it to the address listed or fax to 770-506-8430. If you know of a worthy candidate, please do them and our industry a huge favor and take the time to nominate them for this prestigious award. Also be on the lookout for next year’s call for Board of Directors’ nominations in the coming months. n

George Barnett Click Here to Committee Chairman download the Elections and Lifetime Achievement Award nomination form [email protected]

November 7-10 Hyatt Regency 2012 Remember that prospects/clients pay you New Orleans more than money when you make a sale. They have invested their time, energy, risk, change, reputation, and potentially relationships with other vendors. The perceived emotional cost (PEC) is crucial for you to understand.

6 April 2012 www.UTA.org UTA Industry Watch New Changes Make UTA.org More Useful than Ever

ello UTA Members. I want to bring you up to speed Hon what we have been doing with the UTA website for you, the members. Below are the changes we have made to provide easier access to certain website pages or links. As you go to www.uta.org you will now notice we have more links on the left hand side of the page. Here are two of the biggest items I have been working on: ■■ Online Membership Directory: We now have an online Membership Directory that you can filter by Name or Company Name to access member photos and additional contact information. With this new directory you can edit your profile, upload a photo of yourself, add fax numbers, location, company name, and so on. If you need help, please contact me at [email protected], or give me a call in the office. I will be glad to help. ■■ Convention Photos: I have uploaded the convention photos from each year and location. You can click on the Wednesday, Thursday, Friday, or Tours tab for each year, and view photos from that year. So far, I have from 2005 Savannah, GA to 2011 Scottsdale, AZ. I’m now working on the other years, and should have them uploaded very soon. In addition, we have now launched a Trailer Needs and Trailer for Sale Forum that works just like the Equipment Forums. If you have any questions about how to change your settings to Add/Delete a Forum please contact me, and I will be glad to help. If you have any questions or comments on how we can make the UTA website better for you, the members, please contact me and I will be glad to listen. n Thanks, Bobby Williams 972-993-3817, bobby @uta.org Happy Anniversary to Tulsa Truck Depot!

TA Board member Bryan Boyd has been in the truck business since 1976. When he first Ustarted in the business “he didn’t know anything about trucks or the industry,” he told us. But over the years the industry has been very good to him, and he’s made many friends. Bryan spent a good part of his career at Freightliner. Then, about five years ago, he decided to “go out on his own,” and that’s when he opened Boyd Truck Center in Tulsa. Bryan says he started the business “at the worst time in the world,” because of the way the economy was back then. Yet Boyd Truck Center not only survived, it thrived. “Life was good,” Bryan told us. His son Josh and wife Nancy also worked with him at Boyd. And sales were steady. About a year ago, John Saied, another UTA member and owner of Tulsa Truck Depot wanted to “get out of the mainstream,” as Bryan put it, and pursue some other interests. So in March 2011, Boyd Truck acquired Tulsa Truck Depot. They’ve kept the Tulsa Truck name, and the new business keeps expanding and adding employees. Josh is still with him although Nancy has moved out of the business for now. Bryan says he’s actually looking to phase out the Boyd Truck Center name, and stick just with Tulsa Truck Depot. Tulsa Truck Depot has a dynamic presence on Facebook at TulsaTruckDepot. We suggest you check it out! n www.UTA.org April 2012 7 UTA Industry Watch 2012: Off to a Strong Start

By Chris Visser, Senior Analyst and Product Manager, ATD/NADA Official Commercial Truck Guide

he year 2012 has begun with a bang. Year-over-year comparisons (1) Tof pricing and sales volume in both the retail and wholesale markets are strong. The used sleeper market continues to tolerate high price levels for trucks with historically high mileage. Newer model years are bringing strong money, indicating that any concern about new emissions technologies is overshadowed by the need for low to average mileage iron. The medium duty market is flat to upwards, and is positioned for a comeback. Looking first at the overall retail sleeper market, the first two months of 2012 saw a $3268 or 6.9 percent increase over the same period of 2011 (see graph 1). This increase is despite average mileage higher by 33,633 or 6.1 percent. While February’s average price was off the record set in September 2011 by $2451 or 4.9 percent, we are not at all concerned about that variance, given the upward trend in mileage. The market is simply confirming that it will tolerate pricing in the mid to high $40’s for sleeper tractors with mileage in the low to mid 500’s.

Focusing more closely on late-model sleepers, we are now using the 2009 (2) model year as our four-year-old benchmark. The year 2009 is the first full model year to feature Diesel Particulate Filters (DPFs) and revised engines. Despite apprehension about the new technology, mixed feedback about reliability, and increased maintenance requirements, the 2009 model year has performed extremely well so far this year. Four-year-old trucks were up $3114 or 4.5 percent in the first two months of the year vs. the same period last year (see graph 2). Like last year, this group came in strong in January and then dipped in February. However, this year’s dip was smaller than last year’s by $1051 or 16.2 percent. As we concluded in a recent Commercial Truck Blog analysis, any way you slice it, the 2009 model year is bringing strong money. The wholesale market (auction and dealer-to-dealer) is showing very interesting trends. Sleeper tractors on average brought their highest money in at least four years in February, with the $40,315 result beating February 2011 by $3179 or 7.9 percent (see graph 3). Average mileage fluctuates quite a bit in the wholesale markets, and the first two months of 2012 have seen the lowest average mileage in a year. There is currently only a 2.8 percent difference in mileage between the retail Class 6 Conventionals are still struggling, but may be showing a hint and wholesale channels, which is an historically low spread. Average of strength. Year-over-year comparisons are unimpressive, with age is the other piece of the puzzle. Like early last year, comparatively February 2012’s average price essentially identical to same-period 2011 young trucks are going through the auction lanes (see graph 4). on mileage 16,204 or 8.9 percent lower (see graph 6). However, the last three months have seen an upward trend in pricing despite generally It is unusual for mileage and age to trend so closely in the retail and higher mileage. We are still considering this market “flat,” but also wholesale markets. As such, we have a rare glimpse at the “natural” suspect that the bottom was found in the 4th quarter of 2011. retail-wholesale spread, which currently stands at $8837. The reason for this trend? Younger, lower-mileage trucks may be entering the Sales volume is the final piece of the puzzle. Our reporting dealers sold wholesale channel thanks to the increase in new truck deliveries in an average of 7.5 retail trucks per dealership in February, which is the late 2011. Dealers and OEMs may be wholesaling groups of trade-ins highest result since August of 2010 (see graph 7). Again, there could be instead of floor planning them for retail sale. an increase in used inventory thanks to the increased deliveries of new trucks in late 2011. Moving over to the medium duty side, Class 3 Cabovers have returned a nice increase so far in 2012, regaining every bit of their 2011 loss. Looking forward, our view of continued strength in the Class 8 This segment is now essentially equal to where it was this time last highway markets is unchanged. We are still working our way through year (see graph 5). Average mileage is a partial explanation for the a multiyear period of low returning supply of inventory, and demand strong performance – 2012’s average is 127,678, just below the 130K will remain high thanks to the slow but steady economic recovery. As threshold at which price seems to drop off dramatically. However, it is we predicted, fuel prices are holding steady, and consumer spending also likely that the consumer-focused roles of this segment are does not appear to have been affected by the moderate run-up of the providing increased demand. The urban delivery and daily rental mar- past few months. The manufacturing sector remains healthy and will kets will continue to benefit from increases in consumer spending. continue to be the primary driver of Class 8 sales. n

8 April 2012 www.UTA.org UTA Industry Watch

(3) (6)

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www.nada.com/b2b

Reprinted with permission from the ATD/NADA Official Commercial Truck Guide® www.UTA.org April 2012 9 UTA Industry Watch Industry News Briefs

Senate Passes Two-Year $109B Commercial Vehicle Transportation Bill Registrations The Senate has passed a far-reaching bill to improve the nation’s highways. at 1.25 Million: Polk The “Moving Ahead for Progress in the 21st Century Act” is intended Research company R.L. Polk announced that new and used commercial to improve “the mobility of people and commerce,” while reducing vehicle registrations (GVW 3-8) in the U.S. reached 1.25 million units traffic congestion and improving air quality. during 2011. A record was achieved for used commercial vehicle The bill provides for significant investments in the construction and registrations at 791,288 units, beating the previous record of 671,887 maintenance of roads, bridges, public transit systems, trails, and rail units achieved in 2010. The most recent tally was a 17.8 percent increase infrastructure means. The hope is that the investment will allow goods in year-over-year registrations. to move more efficiently, and improve our ability to compete in the Polk noted that 2011 ranks third in the total number of commercial international marketplace while creating much-needed needed jobs. vehicle registrations in a single calendar year since the company began “It is one of the most obvious things we can do to help boost the tracking this information in 2004. The current record of total commercial economy as it struggles to emerge from the Great Recession,” said Sen. vehicle registrations in a calendar year is 1.35 million units in 2005. Carl Levin, D-Mich. “Good quality used commercial vehicles continue to be in high demand, Of course the House also needs to approve the bill and as of now “a as shown by the record level of used vehicle transactions reported path forward for action on the House bill is still unclear,” Levin’s office during each of the first three quarters 2011,” said Gary Meteer, account added in a statement. director for commercial vehicle solutions at Polk. “However, our But the bill enjoys the strong support of a broad cross-section of organiza- analysis of fourth quarter 2011 activity shows evidence of a shortage tions ranging from the AFL-CIO, to the U.S. Chamber of Commerce, of good clean equipment,” he said. Allstate Insurance, and the American Public Transportation Association. Fourth quarter used registrations were down 4.1 percent from the The Highway Users Alliance, representing motorists and truckers, comparable quarter in 2010. Furthermore, GVW 8 used registrations buses, and motorcyclists had this to say about the bill: during the fourth quarter of the 2011 calendar year were down 22 percent from the fourth quarter, 2010. “The Highway Users commends the Senate for passing a highway bill that will be a huge benefit for motorists. The bill provides much-needed “This strong demand for both new and used commercial vehicles is a stability for our nation’s aging infrastructure and ensures that urgent positive sign that businesses feel comfortable enough about their plans road construction and rehabilitation won’t be stalled at motorists’ to update older equipment,” said Meteer. “The close of the 2011 peril. Significant reforms within the legislation include the consolida- calendar year is a solid foundation on which to build for 2012.” tion of duplicative programs, streamlined federal environmental Polk found that for all categories except GVW 8, used registrations for reviews, a new focus on highway freight corridors, and a doubling of 2011 were significantly higher than in the 2010 calendar year. funding for roadway safety projects. Registrations among used GVW 3-7 vehicles were higher in 2011 than in “Passage of the Senate highway bill proves that Congress is still capable of 2010. In addition, the increase in calendar year registrations since 2010 ranged enacting commonsense, bipartisan legislation that benefits every American from a high of 53.5 percent for GVW 4 vehicles to a low of 4.8 percent from coast-to-coast. This legislation is critical for rural, suburban, and for GVW 7 vehicles. More information is available at www.polk.com. n urban citizens alike. The country’s roads and bridges are our economic arteries. Safety and mobility improvements on our highways are essential to America’s long-term recovery and our quality-of-life.” n

Pulse of Commerce Index Up 0.7 Percent in February Slight increase shows improvement, but not enough to offset recent declines The Ceridian-UCLA Pulse of Commerce Index® (PCI®) rose 0.7 again, we will have a real recovery with much healthier job growth,” percent in February. The rise was not enough to offset January’s drop. said Ed Leamer, chief economist for the Ceridian-UCLA Pulse of In addition, report data for December to February was lower than for Commerce Index and Director of the UCLA Anderson Forecast. the previous three months by 3.2 percent at an annualized rate. Year-over-year growth in the PCI since May 2011 has been hovering “The continuing weakness of the PCI is signaling that, perhaps, the just slightly above zero. Things turned for the worse in December 2011 recovery in home building has not yet taken hold. The recent improve- when year-over-year growth was shown to be down -0.8 percent. ment in building permits and housing starts may get building going January 2012 was even worse at -2.2 percent; February year-over-year again and therefore, trucking as well, as it has been said that it takes 17 was only slightly negative at -0.2 percent. truckloads to build a home. If we get the saws and hammers going The Ceridian-UCLA Pulse of Commerce Index® is based on real-time diesel fuel consumption data for over the road trucking, and is an indicator of the state and future direction of the U.S. economy. The complete February report, regional analysis and additional commentary are available at www.ceridianindex.com, by contacting [email protected], or by following the Twitter handle @CeridianIndex. n

10 April 2012 www.UTA.org UTA Industry Watch

At Daimler, Obama Announces Latest Alternative Energy Proposals Calls for $1 billion National Community Deployment Challenge to spur clean, advanced vehicles development, expansion of advanced vehicle tax credit In March, President Obama visited Daimler Trucks North America’s said the Administration’s standards for cars truck plant in Mt. Holly, NC to outline his latest alternative energy and light-duty trucks span model years 2011 to proposals. He discussed the importance of taking a sustained, 2025, and represent the first meaningful update in over three decades. all-of-the-above approach on energy; responsibly expanding domestic “Under this proposed program, average fuel efficiency will reach a production of natural gas and oil, now at an eight-year high; improv- performance equivalent of 54.5 miles per gallon by 2025 and will save ing car and truck efficiency; and making long-term investments in consumers $1.7 trillion at the pump over time--or roughly $8,200 per alternatives to oil. While at the plant, Obama also toured the assembly vehicle and slash oil consumption by 2.2 million barrels a day by 2025,” line and saw several of the trucks built there that run on alternative fuel. the White House noted. The Administration has also finalized the first-ever national fuel efficiency and greenhouse gas (GHG) emission The $1 billion National Community Deployment Challenge Obama standards for heavy-duty trucks, vans, and buses spanning model years outlined would spur deployment of “clean, advanced vehicles in 2014-2018, which it says will reduce oil consumption by over 500 million communities around the country.” Obama also announced a set of barrels, and save truck owners and operators more than $50 billion in incentives to help consumers and businesses purchase new, advanced fuel costs. cars and trucks, including increasing and expanding the current tax credit for advanced vehicles, from the current $7,500 credit up to The Daimler Trucks plant was chosen as the site for the President to $10,000. He also called for the credit to be applied to technologies not deliver his remarks because Daimler Trucks North America is a partner currently covered. In addition, he announced a new research challenge in the Energy Department’s SuperTruck initiative, focused on increasing that “invests in breakthrough technologies to make electric vehicles as the fuel efficiency of long haul trucks by 50 percent by 2015. While affordable and convenient to own and operate as gasoline-powered long-haul trucks represent only 4 percent of the on-road vehicles in vehicles by the end of the decade.” America, the White House said they’re responsible for almost 20 percent of the country’s on-road fuel consumption. These trucks now Obama also highlighted Daimler’s commitment to increasing fuel consume more than 30 billion gallons of gasoline a year. economy standards and manufacturing vehicles that will increase fuel economy and reduce oil consumption. In a release, the White House “To achieve this goal, companies like Daimler are developing and improving vehicle technologies in engine efficiency, aerodynamics, waste heat recovery, and hybridization, among other approaches,” the White House added. “Through these types of improvements, the Energy Department estimates fuel economy increases could save long-haul truckers more than $15,000 per truck per year in fuel costs. Daimler views itself as a trendsetter in the development of trucks running on alternative fuels. “Daimler Trucks North America has long been committed to reducing greenhouse gas emissions and improving fuel efficiency through the development of clean drive systems and alternative fuel technologies,“ said Martin Daum, President and CEO of Daimler Trucks North America. “Through strategic partnerships with the EPA and the National Highway Traffic Safety Association, DTNA is committed to developing clean, fuel-efficient, and environ- mentally sustainable solutions for the North American market.” n

Mitsubishi Debuts New 2013 Model-Year FUSO Canter Work Trucks Mitsubishi Fuso Truck of America, Inc. (MFTA) announced the wiring harness designed to availability of its 2013 model-year medium-duty cabover trucks. The new receive an optional, matched 2013 FUSO Canters are in production now. The first models were control switch and “to make displayed in the Mitsubishi Fuso booth at the NTEA Work Truck Show connection to optional PTOs in Indianapolis. According to the company the new trucks feature easy.” Moreover, “a 33-gallon “the same great lower-cost-of-ownership benefits as the 2012 models, side-mounted fuel tank will once with some additional refinements and options.” again be available as a factory- installed option, and mirrors will In addition to the five cab colors MFTA has offered, the 2013 Canters have new, wider mounting arms are available in solid black, “which helps give these rugged work trucks a that facilitate the installation of bodies with outside widths up to 102 striking appearance, and can save some customers from having to paint on all Canter FE models, including the Canter FE160 Crew Cab,” the the cabs to match their company colors,” the company noted in a release. company noted. In addition, Mitsubishi said all new 2013 Canters will come standard A product brochure and individual-model spec sheets are available at with dual batteries, and will also include a factory-installed PTO www.mitfuso.com. n www.UTA.org April 2012 11 UTA AffiliatesUTA Industry Watch

4 State Trucks Inc. Chrome Shop Mafia HALO Branded Solutions HTAEW.com Manheim Heavy Duty Truck and Equipment Auctions My Little Salesman National Truck Protection

NextTruck offers a new business philosophy that’s really quite simple. NextTruck You can list your products and services for a flat rate fee, or choose our Premium 2000+ Medium and Heavy Duty Warranty new “List for Free, Pay for Results” option. With a combination of a Programs strong Internet presence and attendance at tradeshows and events, R.L. POLK NextTruck is focused on supplying the best value in the industry for your advertising dollars. Ramsey MediaWorks LLC The NextTruck site focuses on highly targeted advertising for trucks, Revolution Payment Systems trailers, parts and accessories, and industry services. Our goal is to SOARR.com (Interstate Online Software) connect you with the most qualified, active buyers through our new Tired Iron and improved website. NextTruckOnline.com offers one of the most innovative, user-friendly websites in the trucking industry. The The Truck Blue Book website was designed to offer a positive search experience. There are Truck Marketing Institute several ways to search the site, along with multiple tools to find Trucker to Trucker inventory for sale, companies by name or location, and industry services. Vehicle Inspection Pros NextTruckOnline.com is committed to increasing leads for your company with our ongoing SEO (search engine optimization) and research efforts. We also utilize social media sites such as Facebook, Twitter, Google+, and LinkedIn to help increase views and branding for our sellers.

NextTruck strives to deliver an optimal product. Our goal is to give leads generated by NextTruck. There is no limit to the number of our customers the confidence they need to list their products and trucks, trailers, parts and accessories items you can list. A toll-free call services on NextTruckOnline.com. We offer a risk-free advertising tracking number is also assigned with call recording to monitor your opportunity with our new “List for Free, Pay for Results” program. call leads. Reporting access is available 24/7 to view all web hits and With the option, you are only billed for the phone calls and email phone calls/email leads generated for any selected time period. Weekly inventory updates are available through various export types, FTP, or spreadsheet uploads to ensure your inventory is up-to-date. We staff a dedicated web team who is happy to assist in making this process smooth and simple. We strive to work with each customer on a personal level to achieve the maximum return on investment for all listings. NextTruck Online offers a great discount for all UTA members through the affiliate program. Companies will receive a 15 percent discount from the regular $350/month rate, or $12 per call/email lead, plus 5 featured items per month (a $100 value). This provides added value and results in UTA members enjoying premium exposure on the website. NextTruck also offers personalized website design and hosting services as an added benefit and value to our customers. We look forward to serving you and meeting your advertising needs in the future! l Amy Looper, General Manager NextTruck www.NextTruckOnline.com

12 April 2012 www.UTA.org UTA Industry Watch Don’t miss out on the 7th annual 2012 Jerome Nerman KC Golf Tournament

Join us Wednesday, June 20, 2012 from 6:00pm to 9:00pm for the June 20th and 21st Welcome Reception at the Adams Pointe Conference Center and Courtyard Marriott.

June 17 & 18th, 2010

Sign up to play AND be a SPONSOR

Rooms have been reserved for this event by mentioning the UTA you will receive a special room rate of $ 99+tax per night must book by May 27th, 2012.

Tee Time is at 8:00AM on Thursday, June 21st, at Adams Pointe Golf Course.

Breakfast will be served at the course from 7-7:30 AM. MORE INFORMATION WILL AVAILABLE AT WWW.UTA.ORG

www.UTA.org April 2012 13 UTA Industry Watch Industry Events Calendar

APRIL JUNE 19–21 • Truck World 14-16 • Great West Truck Show Toronto, ON Las Vegas, NV International Centre Sands Expo & Convention Center www.truckworld.ca www.greatwesttruckshow.com

21–24 • NAFA’s 2012 Institute Expo 20–21 • UTA Kansas City Golf Open St. Louis, MO Blue Springs, MO America’s Center Convention Center www.nafainstitute.org Benefiting the UTA Jerome Nerman Family Foundation Education Fund 24–26 • HTAA Healthy Trucking Summit Atlanta, GA Wednesday: Adams Pointe Sponsored by Healthy Trucking Conference Center and Association of America Courtyard Marriott. Omni Hotel at CNN Center Thursday: Adams Pointe www.healthytruckingsummit2012.com Golf Course. www.uta.org/kc_golf_tournament/

MAY 14–17 • Alternative Clean Transportation Expo Long Beach, CA Long Beach Convention Center www.actexpo.com/index.html

15–16 • The Truck Blue Book Conference Palm Beach Gardens, FL PGA National Resort and Spa www.truckbluebook.com/conference july 12-13 • Truckers Jamboree Walcott, IA I-80 Exit 284 http://iowa80truckstop.com/ trucker-jamboree/ 20–23 • 2012 ATA Leadership Meeting St. Petersburg, FL Sponsored by American Trucking Associations (ATA) www.truckline.com AUGUST 7-11 • National Truck Driving Championships May 31–June 2 • American Truck Historical Minneapolis , MN Society Convention Minneapolis Convention Center West Springfield, MA www.truckline.com Eastern States Exposition www.aths.org 14-16 • Great American Trucking Show Dallas, TX Dallas Convention Center www.gatsonline.com/great-american-trucking-show-faq/

14 April 2012 www.UTA.org UTA Industry Watch

www.UTA.org Don’t Miss the Excitement This Year in The BigApril 2012Easy15 UTA Industry Watch From Where We Sit

If you read this little column at the end of the newsletter, you know we live in a beautiful little farming community nestled in a picture-perfect valley. Our little town has about 3,000 residents, and many of them know everyone in the valley. The town’s done well in the last 300 years, and today people of all types occupy what has always been a peaceful and lovely place to live. Yesterday was another gorgeous spring day, but the day was marred for me by the third annual 5K run/walk organized to remember a terrible tragedy that oc- curred three springs ago. On another lovely spring weekend, a young father, strapped by more than $400,000 of debt, decided his only alternative was to murder his wife, their three children, and finally himself. His wife’s father, unable to reach his daughter by phone, discovered the carnage the next day, and our town erupted into spasms of grief. Here was the picture-perfect family to go with the setting. The mom grew up here, and her family was a founding member of their church— now one of the largest in the area. She and her husband had come back to raise their children in the same bucolic setting she treasured, surrounded by the family she adored. Her poor father will live a life of grief forever more. As our little town so often does, we came together. The day of the funeral found all of the church bells in the valley chiming mournfully. Citizens lined the street to pay their respects. The sobbing was audible. In order to allow the family to be buried together, a church of a different denomi- nation opened their churchyard to the family. Three hearses took them to their final rest—the baby daughter nestled in her mother’s arms, the tiny brothers cuddled together, and the father at their side. Then it was over. Nothing more could be done or said. There community as a whole should claim the rights of eternal mourners. is no sense to be made of such a senseless loss. Today, we can tap into tragedy and horror with the click of the mouse The following spring, the mom’s surviving sisters planned a 5K run/ or a switch of the TV remote at any time and from any place in the walk to raise money for a playground in the memory of the children world. We can break our own hearts a thousand times before who will never be adults. Brad and I eagerly joined the walk, because breakfast. Doesn’t our insistence on claiming mourning rights the donation of time and money and the playground seemed just the cheapen the memory of this family? Their story is over. Sadly, we need right way to remember this family. The event, as you can imagine, was to build our story now without them. a huge success. Today there is a beautiful little tot lot where the sounds You may disagree, but I think a more fitting tribute is for us to be more of laughing children fill every lovely afternoon. Out of terrible loss, devoted to our own families; to find more patience and understanding came a community gain. Of course, the children at play don’t know for our own loved ones; to stay vigilant and proactive in the face of the origins of the playful spot, but there is no parent who sits watching mental distress and illness. The playground is lovely, and I’m glad it’s over those children who doesn’t have a silent thought of this lost there, but I refuse to gather each spring and family. That is as it should be. pretend that this event happened to me. It didn’t. But, now the 5K is an annual event, and this feels all wrong to me. I’d rather hold a private moment to cherish the Yesterday’s crowd cheered, hooted, laughed, and made quite a day of it. memory of the family I didn’t know, and then Now the event feels like the opposite of resting in peace. This annual turn my energy and attention to making life event yearly drags those of us who remember back to that terrible better for the little town I do know. That, to spring weekend three years ago. I don’t fault the surviving family me, is a far more fitting tribute. At least, that’s members who must do whatever they possibly can to feel better. the way it looks from where we sit. Honestly I pay honor to the fact that they still get up every day, put their Deb and Brad Schepp feet on the floor, and go about their business. But, I don’t think the [email protected]

16 April 2012 www.UTA.org