Industry Watch April 2014

1.877.GETS.UTA • www.uta.org Volume 16 • Issue 4 • April 2014

Used Truck Association Change is Good! Chartered May 16, 1988 Published by the Used Truck Association Making the Choice for 325 Country Club Drive, Suite A Stockbridge, GA 30281 Newer Emissions Technol- ogy Table of Contents Angelique Pierce, Daimler Trucks Remarketing/ SelecTrucks Board News and Views...... 2 Quips & Quotes...... 2 New Members...... 3,5 hat is the number one thing people typically Wagree is good for them, but often prefer not to Face to Face with Brandon Hess...... 4 go through? Change! One of life’s greatest truths is that Moving on Down the Road: everything will change. Many of us fear that change will Catching Up with Mary Sweebe...... 5 have both an immediate and negative impact on our Industry Events Calendar...... 6 lives. But, in the most positive sense of the word, change is a process that promotes learning, creativity, and UTA Training Update ...... 7 growth. More importantly, it can result in new opportu- The Brooks Group nities that help ensure you don’t stagnate or become Sales Tip of the Month...... 7 irrelevant. NADA Update ...... 8-11 These factors also ring true for trucking companies; especially regarding changes that the Medium Duty Corner...... 11 Environmental Protection Agency (EPA) has implemented that affect the industry. The shift to Industry News Briefs...... 12-14 EPA10 technology has been accepted in some circles but met with great resistance in others. This is mainly because the new technology being used to reduce emissions and improve From Where We Sit...... 15 efficiency is being introduced at a fast pace, and it comes at a higher cost. And the cost of this 2013 UTA Convention Photos...... 16-17 technology results in higher truck prices. Why would your customers want to pay more? That is the very question today’s used truck dealers must be able to answer, and answer well. The UTA… You and your sales team must be equipped to help customers make the mental shift to adopting Members Supporting Members! EPA10 technology, and investing in trucks equipped with it. The best way to do that is to clearly paint the picture of the market, and how their business can benefit from the change. The Reality Let’s first take a step back to look forward. Class 8 truck production in a normal year ranges from 230,000 to 250,000 trucks. The combined production in 2008 and 2009 (EPA07) was nowhere near that amount. With such low production volumes, these trucks exist in today’s market but in small numbers. Also, there are some drivers and trucking companies who still chase after MY07 trucks that meet EPA04 emission standards. But the harsh reality is these trucks are becoming a rare find at best. It is true these older model year trucks have the benefit SHARE YOUR NEWS of a lower price tag. The greater truth, however, is that choosing to continue operating these with the UTA Industry Watch. trucks can result in missed business opportunities. There are states, like California, in which Send submissions, ideas and you cannot operate your vehicle unless it is equipped with the newer emissions technology. As the saying goes, “you can’t drive forward while looking in the rearview mirror.” Therefore, being comments to: willing to let go of the trucks of the past helps ensure a good future for any trucking business. UTA Industry Watch Editors Brad and Deb Schepp The Silver Lining c/o Grace Management Trucks with newer emissions technology help improve air quality, and positively impact the 325 Country Club Drive, Suite A health of our families. That’s a great reward for being good stewards of the environment. There Stockbridge, GA 30281 are many ways to achieve this, including newer strategies like the use of cleaner fuels (e.g., Phone: 877-GETS-UTA (877-438-7882) ultra-low sulfur diesel and compressed natural gas), and more common approaches such as Fax: 770-454-0029 [email protected] Continued on page 7 UTA Industry Watch 2014 BOARD Board News and Views OF DIRECTORS pril is my month to present my views for the UTA Newsletter, and I just missed my first http://www.uta.org/directory Adeadline, which I do apologize for. (Fortunately, as you can see, I was able to get the article finished in time for publication.) I was held up a bit because Sue and I are in Scottsdale “researching GOVERNING BOARD: and studying activity options including wine” for the upcoming November convention. We President...... Rick Clark realized that the 80-degree days and sunshine we are enjoying make it a lot easier to do research and write this column here, than being in the 12" snows in Kansas. Besides I get to play cards Vice President...... Ken Kosic with my 91-year old dad who lives here, and YES he still beats me. I know that the eight months until our convention here at Talking Stick will Treasurer...... Tom Pfeiler pass VERY fast, and ALL of the UTA board Secretary...... Sheri Aaberg members look forward to getting together again in this beautiful setting. President Emeritus There is a lot of concern about how the new ...... Marty Crawford Hours of Service regulations will affect the driver shortage already here, and how much harder it will be to find drivers as the economy COMMITTEE CHAIRPERSONS: continues to improve. The Heavy Duty Manufacturers Association sees that vehicle Affiliates & Benefits.... Bryan Boyd electronics, cameras, and upgraded navigation systems will be the game changers for the next Convention...... Hal Dickson, generation of trucks. The White House is soon Sheri Aaberg expected to mandate electronic logs in future trucks, and like most mandates, I am sure it Dealer Group...... Mike Thurston, will be a short time until they have established Bobby Williams the time line for implementation. Many of the Elections...... George Barnett carriers are also looking at their shippers and even dropping them over unfavorable Finance...... Tom Pfeiler scheduling, delivery times, and dock management issues. Marketing...... Rick Clark If our sales numbers are a benchmark, our Medium Duty...... Amy Shahan used truck sales were up 22 percent in 2013 over 2012. Based on two months of data from this year they will be up slightly again when annualized. We are seeing new truck production times Membership...... John Cosgrove, go from three weeks to six weeks, which is good news for the manufacturers and should create Kenny Doonan more used trucks. We have seen a real shortage of good, saleable used trucks on the market, and we have had a hard time buying them, getting them through the repair process, and onto the lot Training...... Ken Kosic, while still trying to make a few bucks. The prices and availability on good, used day cabs are Brock Frederick getting higher. At a recent Ritchie sale here in Phoenix, I watched a 2013 Peterbilt bring $142,000 with 100,000 miles on it while I was sitting with a customer that I just delivered 2015s UTA Jerome Nerman Family to for $140,000. I elbowed him to pay attention to the price just paid. Foundation Scholarship ...... Jay Burgess, Last year, I mentioned CNG trucks coming onboard. We had sold four beer delivery units in July, Brock Frederick and I was told not to bother them for their proposed 12-month “test” of these units. In January they had three units running from 6.5-7.2 MPG (same as diesel), and one at 4 MPG. Not one of UTA.org Website...... Bobby Williams the trucks had been in the shop in the eight months since delivery. I proposed a driver swap, and some exceptions set for the driver. Guess what? His mileage went up dramatically and they just Wreaths Across America took delivery of two more new CNG trucks this month. We are getting ready to deliver two new ...... Bobby Williams roll-off trucks equipped with the 12 L CNG Cummins engine after doing a demo to prove the fuel savings. Forty percent of new trucks on order for the garbage industry today are equipped with CNG engines. With gas supplies good for 125 years under our feet, and now the engines to burn it, I see CNG becoming a major part of our sales as the infrastructure grows to support them. All of us on the UTA board hope you are having a good year and look forward to seeing you in November. And, remember to use the UTA logo in your advertising as it separates and promotes ALL of us. Real success is finding your lifework in the work that Kenny Doonan you love. Co-Chair Membership Committee ~David McCullough [email protected]

2 April 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.

Matthew Gantner, Used Truck network with other UTA members and learn Lonnie Martin, Used Truck Sales Account Manager more about our industry is what brought Manager Mack of Nashville him to the UTA. Piedmont Truck Center, Inc. 161 Charter Place Were he to leave trucking for some reason P.O. Box 18109 LaVergne, TN 37086 you’d probably still find Luis outdoors. Luis Greensboro, NC 27419 www.macknashville.com was a firefighter for the Forest Service piedmonttruckcenter.com 615-557-6663 (w) during the summers while attending the 336-668-2401 (w) [email protected] University of California. “I’ve been to fires [email protected] Matthew’s only been all over Oregon, California, and Arizona,” he Way back in 1979 McDonald’s in the truck business said. “I’d probably go back to firefighting. I introduced its “Happy Meal,” since 2012, when he enjoyed being out in the woods and the and it just so happened that started as New Truck adrenaline rush of fighting a fire that was the year Lonnie Martin Account Manager for sounds like a freight train.” started out in the truck Mack of Nashville. He Luis’ other interests include fishing and business. His first job was says that the training playing golf. selling new and used trucks opportunities, as well for Mack Trucks in as the chance to gain Springfield, MO. Lonnie’s been a UTA expertise and participate in networking member before, when he was with Peterbilt, events, are some of the reasons he’s now John Kovary, Owner/President and this time around he’s looking forward joined the UTA. Betten Trucks, LLC to “meeting nice people,” and attending 1790 Highway A1A, Suite 204 helpful seminars. Matthew’s job gives him the chance to build Satellite Beach, FL 32937 lasting relationships with customers and www.bettentrucks.com His job brings him into contact with a lot of learn about different trucks and truck manu- 800-247-3999 (w) people and that’s what he likes best about facturers, which he enjoys. Even if he were [email protected] it. “I get to know a lot of different people,” to leave the truck business for some reason he said. “It’s always nice to talk to new people.” Matthew said he’d probably stay in sales. John’s actually been a member since October Although Lonnie’s background is in computers Matthew is a big baseball fan and he comes 2013. We’re including and economics, he keeps coming back to by his interest in the sport naturally. His him again this month trucks. “Everything I’ve done integrates father, Jim Gantner, played for the Milwaukee since we recently into the trucking business,” he said. “I get Brewers for 17 years. For his part, Matthew caught up with him to travel and every day get to go in played college baseball for five years. and learned a bit more different directions.” about his background. John started out in the business in 1993 Luis Guzman, Specialty Coordinator with the same company he’s with now— Tyler Pontier Manheim Betten Trucks. He’s worked his way up from World Wide Export & Equipment Sales, Inc. 278 N. Marks Ave his first job as Parts and Transportation 103 E. 3rd St. Fresno, CA 93706 Manager to the Owner and President. Bevington, IA 50033 559-351-9610 (w) 515-462-9900 (w) [email protected] He finds the best part of his job is just [email protected] being a business owner. “I can control my While still in high school, destiny,” he said. “At least most of the Luis got his start in time.” He also enjoys developing trucking working for a local relationships with customers and venders. Wendell Strubhar transportation company to If he wasn’t in this business though he can Dale’s Truck Sales earn money for college. He envision himself in architecture, as he 2475 W. State Rd 84 serviced and repaired enjoys designing and creating things. Ft. Lauderdale, FL 33312 trucks and hopper trailers. www.dalestrucksales.net Finally, John wanted everyone to know he’s (954) 522-2136 (w) His current job takes him “happy to be a member of the UTA (954) 321-6890 (c) on the road and learning fraternity, and that he’s looking forward to [email protected] about local businesses, which he enjoys. “I networking and developing friendships.” feel like time flies when I’m out getting New Members continued on page 5 new business,” Luis said. The chance to www.UTA.org April 2014 3 UTA Industry Watch

Brandon Hess

randon Hess has been around trucks But, listening while you learn the trade and Bmost of his life. “My grandfather being open to coaching and being open to owned a towing and wrecker company in suggestions is how success is built.” Brandon Binghamton, NY, and my first non-paying considers himself very fortunate to have job was riding along with him as a little kid been managed and mentored by some great when he went on a tow job,” he recently told leaders. “John Porter was my Branch us. Today, Brandon is a wholesale buyer and Manager at MHC in Kansas City,” he said, seller for Wholesale Trucks of America, but “and guys like Ken Kosic, George Papp, and for him work is still a family affair. His current Lee Wallace were influences at Arrow, and boss is his father, Al Hess, 2009 Marvin F. I’ve always been able to turn to my brother, Gordon Lifetime Achievement award winner Marc, and my father Al, and Denny and a long-time industry veteran. Brandon Christensen for help along the way.” has been a UTA member for about four years, Brandon credits his brother with giving him and is devoted to seeing other younger sales some of the best advice he’s ever received. people become active in the organization, “I think the biggest thing I’ve learned is to try recognizing the current Board for its efforts looking at things in the big scheme rather to draw in younger members. than just the view from my window,” he When he first joined the industry, Brandon explained. “A lot of my early frustrations in worked in retail sales for MHC Kenworth in sales stemmed from a manger not approving Kansas City, MO. He also a deal or taking a different offer.” Brandon worked for Arrow Truck said it was his brother Marc who told him to Sales before joining his have “horse blinders” on and just worry about father’s team. In his current your work, staying focused on what lies ahead. position he helps dealerships This formula seems to have brought Brandon find trucks, and he helps to a successful career, and he is very much them with trade valuations. looking forward to leadership roles in UTA He also helps dealers move as he continues to advance that career. equipment they may not “Eventually the torch will be passed onto the want to keep for retail next generation, and like any position, sales. The best part of his whether it’s on the Board or at a dealership, job is still talking to his proper training and experience is vital. customers, he told us. When he’s not at work, Brandon enjoys his “Establishing relation- life at home with his girlfriend Jamie and ships is great when your their two dogs, Baxter their French bulldog, phone calls are about and Tazer their Doberman Pinscher. “On the stuff outside the office in weekends I enjoy cooking and BBQ and addition to the business smoking meats,” he said. He and Jamie also at hand,” he said. This enjoy going to the gym, and Brandon is a huge gift of gab is so impor- sports fan. “I enjoy local teams such as the tant in sales, that Kansas City Chiefs, the Major League Soccer Brandon used its flip-side to explain his Champion Sporting KC Soccer Team, and the greatest advice to people just starting out in Kansas Jayhawks. Paying tribute to his New truck sales. York roots, Brandon also follows the Yankees “Listen, listen, listen,” he advised. “A lot of and the Syracuse Orange basketball team. n people get into sales, because they like to talk, and they are hired because they can talk.

4 April 2014 www.UTA.org UTA Industry Watch New Members continued from page 3 Moving on Down the Road: Catching Up with Mary Sweebe Bill Weddington Best Used Trucks 9401 North Freeway Since autumn of 2012 Mary Sweebe has been the Business Manager for her family’s business, Fort Worth, TX 76177 Diamond Companies, handling all the financing for the company’s Memphis, TN location, www.bestusedtrucks.com and the five locations the company holds in Arkansas. We checked in to see how the job 888-808-2700 (w) change has been working out for her. [email protected] In spite of the fact that her father has been in truck sales since before she was born, and Mary grew up in the industry, she didn’t start her career under her dad’s wing. During her college years she took a summer internship working in the corporate office of Cummins, Inc. in Terrence (“Terry”) Williams, Columbus, IN, and enjoyed it very much. With her degree in hand, she joined a management Corporate Sales Lead Manager training program with Navistar Financial Corporation. She then spent the next three years in Bruckner Truck Center Chicago working for Navistar. Her last assignment was a two-year stint in the company’s used 3611 Irving Blvd. truck division. “As a Pricing Specialist, this was my first real job assignment with specific Dallas, TX 75247 duties, and I really enjoyed this experience,” she said. www.brucknertruck.com 806-376-6273 (w) Now Mary enjoys working with her organization and their customers, no matter what size [email protected] dealership those customers may represent. “I help the salesperson sell the truck by finding suitable finance sources and help the customer buy the truck by doing the same thing,” Mary Terry Williams needs no explained. “Most of what I do is traditional debt financing but I also do TRAC leases, FMV introduction to many leases, and equity leases. I work with a variety of lenders from local banks to large finance UTA members—he companies like Wells Fargo, Hitachi, and Navistar Capital, which is a division of General served on the board for Electric.” Recently, Diamond Companies and Roberts Truck Centers merged, and now Mary several years. If you helps her sales staff at 29 locations in seven states. “I am very excited about this merger,” she knew Terry you may said, “and I can’t wait to see what the future holds for Summit!” remember he’s a bit of a card. When we asked We asked Mary to compare life at a large corporation versus life working for the family business. what he’s hoping to get “Corporate world is night and day to working in the dealership,” she said. “Because I am in a from his UTA family owned organization and part of that ownership, it makes me enjoy my job even more. membership this time around he said: Summit Truck Group truly cares about its employees and customers. I will cherish the time I “Dates!” To be fair, he also mentioned more spent in Chicago, but I am glad to be home, especially after the winter they just had!” industry networking and learning Having also spent that winter in colder climes, we hear you, Mary, we hear you! n opportunities. When we asked him what other industry he could see himself in besides trucks, his answer made us hungry (it could have been that it was getting close to dinner time too). I’d “love to be a chef because of the creativity and the event of a good meal with good friends,” he said. Aside from this, Terry said backpacking has always been a way for him to disappear and recharge as he wonders at nature.

www.UTA.org April 2014 5 UTA Industry Watch Industry Events Calendar

MAY AUGUST (continued) 8-10 • East Coast Truckers Jamboree 15-17 • Eau Claire Big Rig Truck Show Kenly 95 Truckstop • Kenly, NC Chippewa Valley Technical College • Eau Claire, WI http://kenly95.com/east-coast-truckers-jamboree/ www.eauclairebigrigtruckshow.com

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

6 April 2014 www.UTA.org UTA Industry Watch Change is Good! UTA Training Update continued from page 1

reducing engine idle time. Another way TA’s recent Selling for Success training, held in Tampa, was a great success. An enthusi- (which is this article’s focus), is to embrace Uastic class enjoyed and benefitted from solid, practical training from George Papp. the additional benefits that your customers If you missed this class consider going to the next session! These informative, UTA-sponsored can reap from change. In this case that classes are sorely needed in today’s fast-changing world of truck sales. I truly believe that with a means replacing their older trucks with solid approach and plan, selling trucks is a career that pays dividends. equipment that meets the new emission The next training class is scheduled for May 19th and 20th in Baltimore, MD. This class is goals. Everyone wants to avoid paying starting to fill up, so please register as I expect the class to become filled completely. higher prices for their trucks, but the key is to help your customers understand they will get a return on their investment. Here’s the hotel information: Courtyard by Marriott Make sure your customers realize that Baltimore Downtown/ Inner Harbor buying a used truck meeting the current 1000 Aliceanna Street emissions standards inherently means they Baltimore, MD 21202 are operating a vehicle with an engine that 888-236-2427 runs more efficiently. This improved fuel economy positively impacts driver performance, while reducing operating costs. Who doesn’t want a lower cost of ownership? But the benefits don’t stop there. When your customers choose to drive a truck that meets the newer emissions standards, they are creating new profit opportunities for themselves. That’s because they are then able to drive into California (CARB compliant), and into city/state ports governed by stricter emissions regulations. As a used truck dealer, there is also a benefit to you. When you act as a used truck sales consultant to your customers and help them understand the long-term benefit of buying Ken Kosic, newer trucks, your dealership benefits from Vice President/Training Committee, selling trucks with higher price tags. This [email protected] typically results in more profit. For most people, it’s hard to see that change is good when it is happening. This is your opportunity to affect that process for your customers, and that will ultimately have a positive impact on your dealership’s bottom line. The most successful companies find ways to make change work to their advantage. Make certain you and your customers can be counted among them! n

Successful people envision themselves being even more successful. Unsuccessful ones envision the opposite.

www.UTA.org April 2014 7 UTA Industry Watch NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

Average Retail Price by Model Year -‐ All Sleeper Tractors Under 1M Miles Summary Adjusted for Mileage $100,000 Retail and wholesale volume both returned to trend in February, after $90,000 an anomalous January. Retail sleeper tractor pricing remains at record $80,000 highs. Wholesale pricing is back to average levels, with age and $70,000 mileage figures returning to typical positions. The market for medium $60,000 duty trucks recovered to an extent, with mild strength in the Class 4 $50,000 2007 conventional segment and notable changes in the Class 6 segment. $40,000 2008 Class 8 pricing is highly dependent on engine and transmission spec, $30,000 2009 as a special study explores. 2010 $20,000 2011 $10,000 Sleeper Tractors – Retail Source: ATD/NADA 2012 $0 This past winter’s severe weather impacted the volume of trucks sold, Jul Jul Mar May Sep Nov Mar May Sep Nov but retail pricing remained unaffected. Demand remained strong Jan-‐12 Jan-‐13 Jan-‐14 enough through the roughest months to keep pricing at or near record levels. February’s pricing was off January’s record by just $262 (or 0.5 percent). Mileage was up 8024 (or 1.5 percent), and age was 1 month 2009s outsold all other model years for the first time in four months. older. Year-over-year, February’s pricing was $6720 (or 12.0 percent) 2009s averaged 554,063 miles this month, putting them at a relatively higher, mileage was 11,251 (or 2.1 percent) lower, and age was attractive point in their price/useful life cycle. This model year did see identical. See “Average Retail Price and Mileage” graph for detail. a mild downward price movement of $851 (or 1.6 percent) month- over-month, but based on recent performance, we consider this model year stable. Average Retail Price and Mileage -‐ All Sleeper Tractors Under 1M Miles $60,000 580000 Depreciation for the under-1,000,000-mile cohort as a whole was 560000 negligible for the first two months of the year, with 2008 and newer $55,000 540000 trucks stable at a high level and 2007 and older trucks down moderately. $50,000 520000 However, these older trucks have fluctuated up and down mildly in 500000 recent months, and we do not expect notable downward movement $45,000 480000 going forward. $40,000 460000 As for 2012s, trucks of that vintage continue to enter the market in 440000 gradually higher numbers, but there has not yet been any downward $35,000 Price Source: ATD/NADA 420000 pressure on pricing. It is entirely possible that market appetite for Mileage $30,000 400000 low-mileage sleepers will remain strong enough to absorb increased Jul Jul Jun Jun Oct Oct Feb Feb Feb Feb Feb Feb Sep Sep Sep Sep Apr Apr numbers of this higher-production model year with no adverse impact Dec Dec Dec Dec Aug Aug Nov Nov Nov Nov Mar Mar May May May May Jan-‐12 Jan-‐13 Jan-‐14 on price in upcoming quarters.

2011 model year trucks continue to push our average to record levels Sleeper Tractors – Wholesale as they enter the market in greater numbers. In December 2013, this Last month, severe weather kept buyers focused on only the youngest, vintage overtook 2010 as the most-common model year sold in the lowest-mileage trucks available. In February, it appears that buyers retail market, although this month was an exception, with 2009s went back to auctions and picked up a more typical mix of trucks. The edging out 2011s. Despite their continued increase in volume, 2011s average sleeper tractor sold at auction or dealer-to-dealer this month have actually gained value during this period. This performance is brought $31,691, had 723,465 miles, and was 89 months old. See evidence of inadequate supply of late-model, low-mileage trucks. See “Average Wholesale Price and Mileage” graph for detail. “Monthly Retail Sales Volume by Model Year” and “Average Retail Price by Model Year” graphs for detail. Average Wholesale Price and Mileage: All Sleeper Tractors Under 1M Miles Monthly Retail Sales Volume by Model Year: $45,000 750000 Sleeper Tractors Under 1M Miles $40,000 400 700000 350 2 per. Mov. Avg.(2008) $35,000 650000 300 2 per. Mov. Avg.(2009) $30,000

250 2 per. Mov. Avg.(2010) $25,000 600000

200 2 per. Mov. Avg.(2011) $20,000 550000 150 2 per. Mov. Avg.(2012) $15,000 500000 100 $10,000 2 per. Mov. Avg.(Price) 450000 50 $5,000 Source: ATD/NADA 2 per. Mov. Avg.(Mileage) 0 Sources: ATD/NADA and Auc2onNet $0 400000 Feb Mar May Jun Aug Oct Nov Dec Feb Mar May Jun Aug Oct Nov Dec Feb Jul Jul Jul Jan-‐12 Jan-‐13 Jan-‐14 Sep Sep Apr Apr Apr Jul Jul Mar May Sep Nov Mar May Sep Nov Jan-‐12 Jan-‐13 Jan-‐14

8 April 2014 www.UTA.org UTA Industry Watch NADA Update Chris Visser, Senior Analyst and Product Manager, Commercial Trucks

Month-over-month, February’s pricing was $6858 (or 17.8 percent) Average Retail Price -‐ 3-‐5 Year-‐Old Sleeper Tractors by Spec lower than January’s. Mileage was 99,621 (or 13.8 percent) higher, and Adjusted for Mileage $80,000 Source: ATD/NADA age was 17 months older. Again, January was an outlier. $70,000 Interest in high-mileage trucks was considerably higher this month. $60,000 $50,000 The percentage of sleepers sold with over 600,000 miles returned to a $40,000 more typical 69 percent, which happens to match the CY2013 average $30,000 exactly. Compare this result to January’s 47 percent. Not only that, but $20,000 $10,000 trucks in our highest mileage band (900-999K) were the top sellers $0 this month. See “Average Wholesale Price and Number of Trucks Sold” graph for detail. 780 ISX Man 386 ISX Man 387 ISX 670 Man ISX Man 780 D13 T660 Man ISX Man 780 D13 Auto 670 D13 Auto CX MP8 670 Man D13 386 Man C15 Man ProStar ISX ProStar Man MF Man Cascadia DD15 Man Average Wholesale Price and Number of Trucks Sold by Mileage Range Sleeper Tractors, YTD2014 $80,000 80 transmissions – are a target market for this truck. Interestingly, the Sources: ATD/NADA and Auc2onNet $70,000 70 670 returns the opposite results, suggesting stronger demand for an $60,000 60 automated in this more fleet-oriented model. $50,000 50 $40,000 40 Price Looking at engines, Peterbilt 386 buyers valued the ISX substantially Count $30,000 30 higher than the C15, with a $7474 (or 11.1 percent) difference between $20,000 20 the two. There was also a much greater number of 386s sold with ISXs $10,000 10 in this period, at 142 vs. 25. International ProStar buyers also preferred $0 0 the ISX, paying an average of $11,012 (or 19.6 percent) more for trucks so equipped over MaxxForce counterparts. Volume for the ProStar/

100-‐199K 200-‐299K 300-‐399K 400-‐499K 500-‐599K 600-‐699K 700-‐799K 800-‐899K 900-‐999K ISX combination was much higher than for the ProStar/MaxxForce, at 308 vs. 74, respectively. The ISX/manual was also valued more highly in the Volvo 670 than the D13/manual, commanding an average of Currently, it looks like the wholesale market is somewhat split, with $1346 (or 2.1 percent) more. As with the other two models, the ISX interest concentrated in the under-500K and over-700K segments. We accounted for the majority of 670s sold, at 404 vs. 106. Again, though, expect this trend to smooth out a bit in upcoming months, but it is the price relationship reverses when the D13 is backed by an iShift. logical that demand will remain strong for low-mileage trucks. By the same token, there will always be some degree of a market for Earlier this month, we published results for 3-year-old and 5-year-old low-priced, high-mileage trucks. trucks separately in our Commercial Vehicle Blog. Focusing specifically on 3-year-old trucks, we know that PACCAR’s MX engine performs well In terms of age, model-year 2007 was again the top seller, regaining in the marketplace, coming in higher spec-for-spec vs. the ISX in both this position after giving it up for one month to 2011s. Although 2007s the 386 and T700. The T660 brought slightly higher money with the ISX, generally come with high mileage – averaging 867,710 year-to-date but only by just under $700. Freightliner’s proprietary engine – the DD15 – their low price ($17,827 on average) and lack of DPF’s keeps them a – also brought slightly more money than the ISX, with DD15 Cascadias popular target. As for 2011s, trucks of that vintage will continue to commanding about a $700 premium. Volvo’s D13 was the exception, make a larger impact as they return off trade. with the ISX outperforming the proprietary engine by almost $8000 As in the retail channel, we do not expect notable downward in the 780 and about $1600 in the 670 when equipped with a manual. movement in any age or mileage cohort in upcoming months. For 3-year-old trucks, automated transmissions represented a premium Special Study - Effect of Engine and Transmission for all models save for the 780. When behind a proprietary engine, an Specs on Price automated transmission appears to be a value-add on a late-model sleeper tractor. Given the driver shortage, it is logical that small fleets This month, instead of looking at performance of four-year-old trucks and other buyers of late-model used iron would purchase trucks that over time, we’re going to examine the impact of engine and transmission are easy for novices to drive. spec on retail pricing of popular aerodynamic models. For this study, we’ve averaged results for 3-5 year-old trucks split up by engine and Medium Duty – Class 3-4 Cabovers transmission combinations. Models included are those that were The medium duty cabover segment returned to trend in February after available in the 2009-2011 model years, for which we have a statistically an essentially moribund January. Auction sales collected by NADA show valid sample size. The time period is calendar year 2013. Results show our benchmark 4-7 year-old, Class 3-4 cabover with under 200,000 miles not only the relative value of individual models, but the impact of spec selling for an average of $13,668. Average mileage for that cohort was on price. 112,307 miles. Volume was up notably, although still off the average. As you can see from the “Average Retail Price – 3-5 Year-Old” graph, Month-over-month, February’s pricing was $5218 (or 38.2 percent) the Volvo 780 takes top honors, with ISX/manual and D13/manual higher than January’s, while mileage was 48,159 (or 30.0 percent) combinations essentially equal in price. The market appears to prefer a lower. As we stated last month, January’s results are not really valid for manual in this truck, given the roughly $5000 premium over 780s comparison, since the unusually low number of trucks sold resulted in equipped with an automated transmission. This result is not surprising, skewed figures. given that owner-operators – a group that appreciates manual NADA continued on page 10 www.UTA.org April 2014 9 UTA Industry Watch NADA continued from page 9

Year-over-year, February 2014’s pricing was $1556 (or 11.4 percent) higher Medium Duty – Class 6 Conventionals than last February, while mileage was 1459 (or 1.3 percent) lower. See the Last month, we stated that January’s results for our 4-7 year-old associated graph for detail. benchmark average were an anomaly due to extremely low volume driven by extreme weather. We now know that February’s volume was also unusually low (the lowest in at least five years), so we’re now looking at additional factors. One factor is our revised definition of “4-7 year-old.” As of January 2014, our definition includes the 2008-2011 model years in place of the 2007-2010 model years. Since 2008-2011 were low-build model years due to the recession, it is logical that there will be a lower number of trucks included if 2007 is removed. This factor would explain why there was a major volume drop in 2014 but not in previous years. As background, the Class 6 segment is highly exposed to the state and municipal fleet sector. These entities were generally under budget austerity during the recession, which means they kept their fleets in service longer than normal. In some cases, they skipped the 2008-2011 model years entirely. This is one factor behind the low number of 2008 Pricing since mid-2013 has been unimpressive. The supply of trucks and newer trucks cycling through the market. with over 100,000 miles appears to be more than enough to meet demand. At the same time, 2010 and newer trucks are performing better than the average, thanks to their much lower supply. Still, the comparatively low pricing of new Class 3-4 cabovers keeps a cap on pricing of used equipment. Medium Duty – Class 4 Conventionals 4-7 year-old Class 4 conventionals returned a relatively strong performance for another month. Class 4s are more heavily exposed to the consumer/end-user market than their heavier GVW counterparts, and it is likely that demand for this group continues to improve. Pricing was moderately lower than last month, at $15,192 vs. $15,845 respectively. However, this result came with higher mileage, at 115,244 vs. 102,391. Pricing is similar to this time last year, although mileage is higher. Specifically, February’s result was $782 (or 4.9 percent) lower than February 2013, but with mileage higher by 19,350 (or 16.8 percent). See the associated graph for detail. Looking at price and mileage, Class 6s returned $21,988 in February - $1485 (or 6.3 percent) lower than January, and $4999 (or 22.7 percent) higher than February 2013. February’s mileage was 180,982 – 57,960 (or 32.0 percent) higher than January, and 4472 (or 2.5 percent) higher than last February. As we mentioned, due to the extremely low volume of data, we expect to see higher than normal monthly fluctuations in these measures. See the associated graph for detail.

Average Number of Used Trucks Retailed per Roo9op 8.0 7.0 6.0 5.0 4.0 3.0 Higher pricing despite higher mileage indicates a strengthening market. As we mentioned last month, due to the wide variety of applications for 2.0 1.0 a Class 4 conventional, it is likely that future performance of this segment Source: ATD/NADA will reflect the slow but steady growth of the economy overall. 0.0 Jul Jul Jun Jun Oct Oct Feb Feb Feb Feb Feb Feb Apr Sep Sep Apr Sep Dec Dec Dec Dec Aug Aug Nov Nov Nov Nov Mar Mar May May May May Jan-‐12 Jan-‐13 Jan-‐14

10 April 2014 www.UTA.org UTA Industry Watch

Sales Volume The number of used trucks retailed per rooftop in February headed back up to a solid 6.1, continuing the unusual see-saw pattern we’ve seen since mid-2013. With most of the factors causing uncertainty through late “Tips You Can Count On” 2013 no longer in place – and winter storms behind us – we expect monthly fluctuations in volume to moderate in upcoming months. See the “Average Number of Used Truck Retailed” graph for detail. Spec’ing Medium Duty Trucks In the wholesale channel, February recovered to a level almost for Maximum Resale identical to the 2013 average. Combined auction and dealer-to-dealer Here are some key things to note: volume this month was 3261, up 476 (or 14.6 percent) from a weather- impacted January. Year-over-year, February 2014 was up 174 (or 5.3 Engine percent) over February 2013. We expect wholesale volume in 2014 to look similar to mildly higher than 2013. See the “Total Wholesale Is it Gas or Diesel? Sales Reported to NADA” graph for detail. Spec diesel over gas whenever possible.

Total Wholesale Sales Reported to NADA 6000 Horsepower/Torque 2010 Total: 42,320 2011 Total: 29,282 2012 Total: 34,275 2013 Total: 39,179 230hp or more is prime, but keep it in perspec- 5000 tive. The key is to find the sweet spot so a truck 4000 offers sufficient power for how it will be used initially, while also considering future resale. 3000

2000 Transmission Is it manual or automatic? 1000 Sources: ATD/NADA and Auc2onNet The savings will be substantial upfront with 0 Mar May Nov Mar May Nov Mar May Nov Mar May Nov Jul Jul Jul Jul Jul Jan-‐10 Jan-‐11 Jan-‐12 Jan-‐13 Jan-‐14 Sep Sep Sep Sep manuals, however that savings will likely be wiped out at resale. Also, when spec’ing autos remember PTO’s. Conclusion Upcoming months should return consistent results in most segments. Color Sleeper tractors with less than 600,000 miles should continue to bring White is most common, but you may have to record pricing despite a mildly increased number of 3-4 year-old factor in paint or decal removal. trucks entering the market. Interest in older, lower-priced models may be picking up, and we will continue to monitor that cohort to see if Remember, while resale is a very important part new trends develop. In the medium duty sector, Class 4 conventionals of the life cycle, what’s most important is building look the most promising, with mild upward movement predicted the right truck for the intended job function! going forward. In general, economic conditions continue to improve, and most of the factors causing uncertainty in previous quarters are no longer in play. n ~ The Medium Duty Counselor

Reprinted with permission from the ATD/ NADA Official Commercial Truck Guide® www.nada.com/b2b

www.UTA.org April 2014 11 UTA Industry Watch Industry News Briefs

DOT Proposes “Electronic Trucking Conditions Index Logbooks” to Boost Efficiency Very Positive: FTR and Safety FTR agrees that so far 2014 is shaping up as The U.S. Department of Transportation a good one for the industry. Its Trucking (DOT) is continuing its campaign to keep Conditions Index (TCI) reading of 8.82 for truck drivers undistracted and alert, citing January “reflects a very positive environment for truckers in early statistics showing that impaired driving, including 2014,” FTR concluded. The market analysis firm expects the index to fatigue, is a factor in more than 12 percent of the 129,120 total crashes remain high “as regulatory drag keeps capacity tight.” The index involving large trucks or buses in 2012. increased 2.8 points from December to January, which FTR said reflects ongoing improvements in truckload rates that started last Most recently, DOT’s Federal Motor Carrier Safety Administration summer with the Hours of Service changes. (FMCSA) announced a proposal requiring interstate commercial truck and bus companies to use Electronic Logging Devices (ELDs) to improve “While freight certainly took a hit to start 2014 numerous other indicators compliance with Hours of Service rules. In addition to improving are positive for the industry and line up with our expectations for the logbook data, the proposal would also greatly reduce the paperwork remainder of the year,” said FTR’s Jonathan Starks. “Namely, the associated with hours-of-service recordkeeping, which is the second capacity situation for trucking was highlighted when the severe largest such effort in the federal government (following tax-related filings). weather hit and capacity shortages started occurring. These shortages illustrate that the industry has been operating with much less surge The proposal “will improve safety while helping businesses by cutting capacity available than in the past, and spot market pricing responded unnecessary paperwork,” said Transportation Secretary Anthony Foxx. and has stayed elevated through much of February,” Starks added. n “By leveraging innovative technology with Electronic Logging Devices, we have the opportunity to save lives and boost efficiency for both motor carriers and safety inspectors.” DOT says the proposed rule would reduce hours-of-service violations MHC Kenworth – Kansas Named 2013 by making it harder for drivers “to misrepresent their time on logbooks PACCAR Engine Dealer of the Year and avoid detection by FMCSA and law enforcement personnel.” DOT’s analysis shows it will also help reduce crashes by fatigued drivers, MHC Kenworth– preventing roughly 20 fatalities and 434 injuries each year for an annual Kansas City safety benefit of $394.8 million. received the 2013 “By implementing Electronic Logging Devices, we will advance our PACCAR Engine mission to increase safety and prevent fatigued drivers from getting Dealer of the behind the wheel,” said Federal Motor Carrier Safety Administrator Year award for Anne S. Ferro. “With broad support from safety advocates, carriers the United States and members of Congress, we are committed to achieving this and Canada, at Kenworth’s important step in the commercial bus and truck industries.” n annual Dealer Meeting. The award has ACT: February’s Orders Up been given out 30 Percent Y/Y for three years and MHC has earned it twice. The award encompasses MHC Kenworth – Kansas City locations in Columbia, Kansas City, Sales are rolling along nicely so far in and St. Joseph, MO, and Olathe and Topeka, KS. MHC Kenworth– 2014, according to ACT Research’s latest Kansas City was also selected from among Kenworth’s five Gold data. The market research firm sees February’s Class 5 to 7 net orders Award winners for 2013. coming in at 19,600 units, with Class 8 net orders expected at 29,200 units. These figures are preliminary but expected to be within five “MHC has had great success with the PACCAR MX-13 engine due to percent of the final figures when those are released. its outstanding performance in fuel economy and drivability,” CEO “Following two months of below trend order placements, Classes 5-7 Tim Murphy said. “We are honored to receive Kenworth’s PACCAR net orders rose to their highest level cycle-to-date at 19,600 units,” said Engine Dealer of the Year award. This award is a testament to our commitment to our customers to help them realize the value of the ACT’s president and senior analyst Kenny Vieth. “That volume represents ® an improvement of 14 percent from January and 22 percent compared MX, provide them with world-class service, and do Whatever It Takes to last February,” he added. “Medium Duty orders over the past year to support them every day.” can be characterized as ‘slow and steady wins the race.’ Since October, orders have been booked at a 211k SAAR, while going back to the “It is a great honor once again for our company to receive this award,” beginning of Q3’13 produces a net order SAAR of 210k units. Over the Regional Vice President Steve Mayhew said. “With the number of 12 months ending February, 206k net orders were booked,” Vieth said. PACCAR MX engines running in the Midwest, we continue to provide superior customer service, convenient locations, and extended hours For further information visit http://www.actresearch.net. n to meet our customers’ expectations.” For more information visit mhctruck.com. n 12 April 2014 www.UTA.org UTA Industry Watch

Isuzu Debuts New 2014 and 2015 N-Series Michelin Launches Models Nationwide Truck Isuzu Commercial Truck of America, Inc., recently unveiled its lineup Care Network of 2014 and 2015 N-Series diesel models. The company also Michelin Americas Truck Tires recently announced that it would extend its 24 months/60,000 miles covered announced “Michelin Truck Care,” a national maintenance program to all the diesel models sold through June 30, network of mechanical service providers for trucks. Launched in 2014. Isuzu announced the news as part of its 30th anniversary March, the network will feature dedicated fleet maintenance celebration of Isuzu trucks entering the U.S. market. managers and technicians, plus “standardized services” that Michelin 2014 NPR ECO-MAX will audit. Mobile maintenance visits, “consistent nationwide pricing,” Isuzu’s increased the allowable frontal area of its 12,000-lb. GVWR integrated fleet maintenance systems, and “the assurance of high NPR ECO-MAX for the 2014 model year, from 6.92 square meters to quality parts,” will also be included the company said. 7.4 square meters. This means non-air-deflector equipped models can The service will give fleet managers the tools to “expertly manage handle bodies with inside heights of up to 85 inches (a boost of six their maintenance, control costs, and be assured the job will be done inches), without application approval from Isuzu. (Models equipped properly,” Michelin said in a release. Adding: “It allows managers to with the air deflector can accommodate bodies with inside heights of spend less time gathering data and more time making decisions.” up to 91 inches with Isuzu application approval.) Michelin said there will be more than 100 service locations by the end Also, the 151-inch wheelbase ECO-MAX model will now offer a dual of this year. Michelintruck.com/truckcare lists participating service fuel tank option. Isuzu said the second tank is side mounted and locations, which now includes Colony Tire, Raben Tire, Snider Fleet carries 33 gallons of fuel. While pricing isn’t yet available, the Solutions, and Service Tire Truck Centers among others. company said it will be equivalent to the dual fuel tank option already available on Isuzu NPR-HD, NQR, and NRR models. In addition to the network of service centers, mobile maintenance is offered. The following services are available through either option: “These changes make the NPR ECO-MAX more capable, versatile, ■■ Preventative maintenance (PM) for tractors and trailers to include flexible and convenient than ever, meeting the needs of a wider variety of oil, lube, and filter service owner-operators, drivers and vocations,” a company spokesperson said. ■■ DOT annual inspections 2015 NPR-HD, NQR and NRR ■■ Electrical repair, including lights, charging, and starting Isuzu also announced that all 2015 NPR-HD, NQR and NRR models ■■ Brake adjustments, repair, and replacement offer new 19.5-inch Bridgestone M895 low-rolling resistance tires, which the company says will improve fuel efficiency without sacri- ■■ Wheel-end work to include seals and bearings ficing strength or durability. The tires incorporate “stone ejector ■■ Suspension repair and replacement design” to help protect against stone drilling for enhanced casing ■■ Mud flaps durability, closed shoulder design for increased wear life, dual sidewall ■■ Minor body repair to trailers and other service repairs protector that resists cuts and scrapes, and reinforced steel casing for ■■ Reefer PM services long life and “retreadability.” Michelin audits the procedures and services “to ensure standardized Isuzu added that for the new 2015 model year, the 4J 3.0-liter 4 quality throughout the network and consistent parts and labor cylinder turbo-diesel engine will adopt the Denso air conditioning pricing.” It uses standard repair times and vehicle maintenance compressor already found on the Isuzu 4H 5.2-liter 4 cylinder reporting standards coding. turbo-diesel engine. Further information is available at www.MichelinTruck.com. n “The upgrades to our 2015 NPR-HD, NQR, and NRR trucks will add to their reputation for efficiency, ruggedness, driver comfort, and environmental friendliness,” according to Isuzu’s spokesperson. For more information, call (866) 441-9638 or visit www.isuzucv.com. n

Industry News Briefs continued on page 14 www.UTA.org April 2014 13 UTA Industry Watch Industry News Briefs continued from page 13

Used Commercial Vehicle Registrations Up for 2013: Polk If you thought that 2013 was a good year for the industry you were right. For 2013, U.S. combined new and used commercial vehicle (GVWs 3-8) registrations came in at 1.25 million units, an increase of 4.3 percent over 2012’s tally, Polk’s analysis found. New registrations climbed 3.8 percent; used transactions were up 4.7 percent over 2012 volumes. Polk added although combined commercial vehicle registrations were up over 2012’s numbers, registrations “have been virtually flat over the past three years at an average of 1.245 million units each year.” June 17 & 18th, 2010 But used registrations have outpaced new ones for five years running. The 9th Annual Polk said used transactions accounted for 54.3 percent of total commercial vehicle registrations in 2013, up slightly from 2012’s 54.1 percent figure. UTA Jerome Nerman

Used Commercial Vehicle Registrations Family Foundation for 2013 Calendar Year 2013 Used 2013 Share Golf Open Fundraiser VIN-Defined Commercial Percentage of Used Gross Vehicle Vehicle Change Commercial Weight Transactions from 2012 Vehicles (000’s) GVW 3 206 7.1 30.4 GVW 4 63 6.3 9.5 Wednesday, June 25 GVW 5 36 9.3 5.2 6:00 – 9:00 p.m. GVW 6 59 8.3 8.6 Welcome Reception GVW 7 54 5.4 7.9 at the Adams Pointe Conference Center, GVW 8 261 1.1 38.4 Marriott Courtyard KC East TOTAL 679 4.7 100.0 1400 NE Coronado Dr. Source: IHS Automotive, based on Polk new commercial vehicle registration data. Blue Springs, MO 64014

2013’s used commercial vehicle registrations reached 679,000, a boost of 4.7 percent over 2012, and the second highest recorded number of Thursday, June 26 annual transactions since Polk began tracking these in 2004. (Used Golf Outing transactions peaked in 2011 at 791,300 units.) at the Adams Pointe Golf Club “Strong demand continues for clean used equipment to replace older 816-220-3673 • 1601 R.D. Mize Road equipment as exhibited by year-over-year increases in each of the GVWs for 2013,” Polk said in a release. “The continued strength of http://www.adamspointegolfclub.com used commercial vehicle transactions during the 2013 calendar year reflects a competitive market for clean used equipment as it becomes Breakfast will be served available,” Polk’s Gary Meteer added. “We see high demand for clean used equipment for the replacement of significantly older (pre-2000 at the course from 7:00 – 7:30 a.m. Model Year) equipment, and our team continues to monitor the age of Tee Time is at 8:00 a.m. the vehicle population within each GVW,” he continued. “Our analysis indicates that over the past five calendar years more than 1.5 million pre-2000 model year commercial vehicles have been phased out, replaced by newer used equipment.” The tally for 2013’s used GVW 8 transactions reflected “performance Show Your Support and lower than historical levels as a result of the continued shortage of clean used equipment,” Polk found. This is mostly based on the low numbers Sponsor this Charitable Event! n of new GVW 8 registrations during the 2008-2010 calendar years. WWW.UTA.ORG

14 April 2014 www.UTA.org UTA Industry Watch From Where We Sit

By the time you read this spring will have certainly sprung. You’re probably busy mowing the grass, putting in the garden, and decorating the porch. Just so you know, we’re writing this while awaiting yet another Winter Storm Advisory! Here we are still trapped in the winter that just won’t end, with upward of five inches of snow predicted overnight. We’ve kept our cool and our sense of perspective pretty well throughout the onslaught of this seemingly endless winter. Any day we get to wake up on this side of the lawn is still a good day, in our opinion, but many of our friends, neighbors, and loved ones have had more than enough. We keep telling them that Old Man Winter will succumb to the calendar just the same way all the rest of us do. Judging by the rolling eyes and pursed What has made us all so frenetic that we can’t even bother to get lips that greet us with this statement, we do recognize that this is cold around to having children? Most likely the answers lie with those very comfort—and, yes, that pun was intended. same devices that help us to shop while in the bathroom. Because we So what’s our secret for staying cheerful? Okay, we’ll share it. Naps. can be connected anytime and from anyplace, it seems an obligation That’s right, you read it right, naps. On any day that we possibly can, to stay connected. We want information and communications we sneak off for an hour or two in available at all times. We want to be able to answer all questions and dreamland just like babies and solve all problems the instant they toddlers do. Actually, it seems all occur. Life is bound to carry you humans might be happier catching away if you approach it with that a few winks after lunch. And, just attitude. like those little ones, we tend to Now, maybe we’re giving ourselves wake up happier and able to away, but we both remember a time handle the remainder of the day in when sitting on the stoop after much better spirits. This morn- dinner or having the neighbors over ing’s Washington Post had a for dinner was just part of the daily fascinating article about how and weekly flow of life. Our parents Americans have become so much worked hard, but they also made busier in the 21st century than time to spend with us. Road trips we’ve ever been before, and that’s included roadside picnics, which not actually sad. The headline for the only saved money, but also gave the article was “You’re Probably Too kids a chance to run around and the Busy to Read This,” and it focused driver a chance to rest a while. There on studies that prove we’ve made was no fast food that could do the life much harder than it’s ever same, and so what if we got to our been before. The writer reported interviewing people who claim to be destination an hour or two later? Well, speaking just for the two of us, so busy that they’ve decided not to have children, because they can’t we’re not buying into the story we’re being fed in 2014. We not only add that to their to-do list. made time to have the children, but we also made time to eat dinners Now you might think, well, yeah, sure you’re reading the Washington with them, and today we make time to enjoy them and their families Post and Washington, DC, like so many other big coastal cities, is as often as we can. We’re pretty sure as we await that final and eternal where life is hardest and busiest. But the bulk of the research quoted in nap, we won’t look back and wish we’d worked harder. Sure, we meet the article comes from Professor Ann Burnett at North Dakota State our deadlines and keep the lights on, just like everyone else does. But University in Fargo, ND. “Life is stressful in Fargo,” she was quoted as we also know that when that day comes we’ll look back and savor the saying. “People are going nuts.” Other researchers have found the memories of those wonderful times we spent with the people we love same thing to be true, no matter where their subjects come from. and those glorious naps that helped us turn never-ending winter into According to the article, one study in 2012 found that 38 million the first burst of blessed spring. At least that’s the way it looks from Americans shop on their smart-phones while sitting on the toilet! Too where we sit. much information? Absolutely, but we have no one to blame except ourselves.

Deb and Brad Schepp [email protected] www.UTA.org April 2014 15 UTA Industry Watch

16 April 2014 www.UTA.org UTA Industry Watch