DEALER GROUP UPDATE “Go and Grow in ‘2-0”! Contents 2 Board and Committees Happy, Healthy, and Prosperous New Year to Every UTA Member and Their Families

Volume 22 • Issue 1 • January 2020

Chartered May 16, 1988

The Used Truck Association INDUSTRYWATCH

DEALER GROUP UPDATE “Go and Grow in ‘2-0”! Contents 2 Board and Committees happy, healthy, and prosperous New Year to every UTA Member and their families. As we 2 Quips & Quotes A begin 2020 and prepare for our 32nd year as a viable industry organization, let’s exam- ine our roots and chart a course for the UTA’s future. 3 Board News & Views 4 Used Truck Association 2020 Update The UTA is an umbrella group that proudly represents Used Dealers, New Dealers, and Vendors. To move into the future in a positive and productive manner, let’s look at how we have grown 5 UTA Events Calendar to over 1000 members, with representatives in several countries. Along with my company, I’ve 5 Industry Events Calendar been a UTA member and attended the conventions for the last 16 years. Each year has brought us new markets, new networking opportunities, and a lot of new information to absorb. 6 In Memoriam: Charles Elbert Shirk, 1922-2019 The UTA’s inception was due to the hard work of a few “Elder Statesmen” in the Used Truck 6 Face to Face with Mark Drinkwater business. They had the wherewithal to create a formal governing body to represent its members. Through the years we embraced inclusiveness and new truck dealers and vendors were 7 Young Members Committee: Carly invited to join the UTA. We soon welcomed all who participated in the commercial truck industry. Hanson Communications Officer Quite frankly, it is the “inclusive” concept and our “code of ethics” that has spurred our growth. 8 Welcome New Members Now the question is: “Where do we go from here?” Like a child who has grown into an adult, I 8 In Memoriam: believe the UTA has reached a “crossroads” of sorts. This is like the passing of the baton from the Thomas William Hamm, 46 continued on page 5 9 Women In Trucking: Is the Playing Field Level for Women at the Loading Dock? 10 Ricardo Rodriguez-Long Opinion Column: High Risk Loans and Your Customers 11 Book Excerpt: Nature Favors Risk-Takers 12 JD Power Valuation Services Update 14 Industry News Briefs 14 Brooks Tip of the Month 16 From Where We Sit

1.877.GETS.UTA • WWW.UTA.ORG 2020 USED TRUCK ASSOCIATION BOARD OF DIRECTORS & COMMITTEES www.uta.org/directory

Craig Kendall President Convention Committee Amy Shahan Vice President Chair – Terry Williams Terry Williams Secretary Co-Chair – Hal Dickson Brandon Hess Treasurer Dealer Group & Preferred Partners Marty Crawford President Emeritus Chair – Brandon Hess Willie Boyle Co-Chair – Jay Burgess Jay Burgess Willie Boyle Amy Shahan Hal Dickson Joe Feco Elections Committee Michelle Ober Chair – Doug Shields Tim Ronan Co-Chair – Charles Cathey Mike Roney Finance Committee Doug Shields Chair – Craig Kendall Jody Johnson Co-Chair – Brandon Hess Co-Chair – Tim Ronan Rocky Carden — Alternate Ronnie Jordan Executive Advisors Marty Crawford Charles Cathey Marketing & Website Committee Dean Jeske Chair – Craig Kendall Ronnie Jordan Co-Chair – Terry Williams Robert Yost Hal Dickson Doug Shields OEM Advisors Membership Committee Brock Frederick Chair – Mike Roney Jeremi Guditis Co-Chair – Michelle Ober Bo Johnson Joe Feco Scholarship Committee Chair – Dean Jeske Co-Chair – Brandon Hess Rocky Carden Training Committee Chair – Amy Shahan Co-Chair – Jody Johnson Young Members Committee SHARE YOUR NEWS Chair – Victoria Lombardo with the UTA Industry Watch. Send submissions, ideas and comments to: UTA Industry Watch Editors Brad and Deb Schepp c/o Sentry Management 303 Corporate Center Drive, Suite 300 A Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882) Fax: 770-454-0029 [email protected] Twitter: @usedtruckassoc “It’s not just about being better. It’s about Facebook: Used Truck Association being different. You need to give people a Management: reason to choose your business.” Misty Reis, [email protected] -Tom Abbott Art Direction/Graphic Design: Laura Carter, [email protected] www.lauracarterdesign.com

2 How to Get P.A.I.D. in 2020

hen I began in this business faxing was cutting edge, but it was nothing like the Wtechnology we now have for selling trucks! Websites are robust, and dealers can collect a tremendous amount of data from people who visit their sites.

Just by examining the keywords visitors use provides valuable insights. Digital tools enable dealers to “retarget” (remarket) to their visitors, targeting ads to them based on their interests. These digital tools are also useful when retargeting to people who visit your Facebook or other social media pages. If we use the new tools at our disposal we should sell more.

But using all the latest and greatest online tools will fall short if you fail to do the basics. Height does not allow a basketball team to consistently score, let alone win. It’s the ongoing practice of the basics of shooting, passing, and running that must be developed and honed.

Let’s briefly review four fundamental areas, which, if done consistently and daily can pull you ahead of your competition. These tips just so happen to form the anagram P.A.I.D.

First is Price. Think of your personal online shopping habits and know your truck prospect is shopping and thinking the same way. When a prospect does an online search, it’s likely it will yield several trucks. Your prospect will select those that include pricing at a much higher rate, even if it’s a high price, than trucks with no price. (When you’re browsing online how often do you click on an item without a price?) So, add the price and note any incentives available as well.

The second basic area is Appearance—not the appearance of the truck in a photo, but how it appears in online searches. To move your truck’s appearance (search result) so it’s near the top use the keywords prospects use when searching online. Include these keywords (for instance, dump truck, automated transmission, warranty, or sleeper) in the truck description. Again, the key is to think how a prospect searches, and to use the words they would likely type into a search engine. Do not use industry jargon or shorthand.

We are at I, and that’s for Images. This is an area where more is better, but a good rule is to use about 25 images. In addition to static walk-around images, use action photos. If it has a body, open the doors, pull out drawers, raise the crane, and so on. What you’re doing is answering prospects’ questions, reinforcing your expertise, and driving engagement. Prospects educate themselves more than ever before making purchases and reviewing your images is part of that process. Most prospects do not call around to learn more, you must educate them while you have the opportunity.

We conclude with Description. Google indexes the first 135 characters of your truck’s description—not words, but characters. Therefore, you must carefully choose the words you use to help ensure your trucks appear at the top of those search results. Once more, use terms a prospect would use, not industry jargon or abbreviations. Leave out the engine make and use 500 hp, list the dump truck bed size, leaving the brand of body for after the 135 characters, note PTO, disc brakes, and so on.

Using P.A.I.D as a fundamental tool of your inventory listings will yield greater user engagement, which will naturally lead to more phone calls, texts, emails, chat sessions, and ultimately more sales. I wish you a prosperous 2020! n

Terry Williams [email protected]

3 Used Truck Board, Officers and More he UTA Board of Directors held its annual planning meeting January 24-25, 2020 at the Association THyatt Regency Atlanta. This is the site of this year’s November Convention. When your Board met we held a special election during which I was elected President, and Brandon Hess was elected Treasurer. 2020 » The Board Members for 2020 are: • Willie Boyle, TruNorth Warranty Update • Jay Burgess, ADESA Auctions • Rocky Carden, Pedigree Truck Sales – serves as the UTA Board Alternate • Hal Dickson, Mack Trucks • Joe Feco, Legacy Truck Sales • Brandon Hess, Neely Coble Company • Craig Kendall, The Pete Store • Jody Johnson, Westrux • Michelle Ober, Truck Paper • Mike Roney, Premier Truck Group of Salt Lake City • Tim Ronan, McMahon Truck Centers • Amy Shahan, Bayshore Ford Truck Sales, Inc. • Doug Shields, Rush Enterprises • Terry Williams, Commercial Truck Trader » The Executive Advisors and OEM Advisors for 2020 are: • Marty Crawford, Volvo Trucks and Mack Trucks • Charles Cathey, Retired – Black Book Values • Dean Jeske • Ronnie Jordan, Jordan Truck Sales • Brock Frederick, International Used Truck Centers • Robert Yost, Gateway Truck and Refrigeration • Bo Johnson, Kenworth • Jeremi Guditis, Peterbilt Motors Company

As members of the Used Truck Association you can look forward to a busy 2020, with many networking and training events ahead. I encourage everyone to share their ideas and suggestions for how we can ensure your association helps you meet your professional and networking goals. As a start, here’s a breakdown of the UTA’s Committees and Committee Leadership: » Convention Committee » Marketing and Website • Terry Williams, Chair • Craig Kendall, Chair • Hal Dickson, Co-Chair • Terry Williams, Co-Chair » Membership Committee • Hal Dickson • Mike Roney, Chair • Doug Shields • Michelle Ober, Co-Chair » Finance Committee • Joe Feco • Craig Kendall, Chair » Training Committee • Brandon Hess, Co-Chair • Amy Shahan, Chair • Tim Ronan, Co-Chair • Jody Johnson, Co-Chair • Ronnie Jordan • Marty Crawford » Scholarship Committee • Dean Jeske, Chair » Elections Committee • Brandon Hess, Co-Chair • Doug Shields, Chair • Rocky Carden • Charles Cathey, Co-Chair » Dealer Group • Brandon Hess, Chair • Jay Burgess, Co-Chair • Willie Boyle • Amy Shahan

Among the changes you’ll see this coming year is a revitalized commitment to the Medium Duty market, which will help the UTA grow its membership and further its value to that membership. Please contact Amy Shahan or myself about this if you have ideas to share. Also, Marty Crawford and others are organizing Canadian dealers to form a Canadian committee. This committee should function like the Dealer Group does. Craig Kendall Our members are our greatest resource, so please consider joining a UTA Committee to provide Used Truck Association your expertise and perspective. President [email protected] The Board is quite excited about what’s planned for the year ahead. If you have any questions, please contact me or any Board Member. n

4 Industry Events Calendar Dealer Group Update continued from page 1 old guard to the next generation. Who will lead us and what path do we FEBRUARY follow? In my opinion, the future partly rests on past ideals—a “back to basics.” We want to maintain the commitments spelled out in our Code FEB. 29 - MARCH 3 • Annual Convention: Truckload of Ethics, yet not lose the personality of the organization itself. Carriers Association Gaylord Palms Resort & Convention Center, Kissimmee, FL Having a membership committee is important. But every member should reach out to those in the industry who are not currently UTA members MARCH and ask them why they haven’t joined yet. You should share your expe- 3 • Green Truck Show Sponsored by NTEA riences and explain the benefits of membership. It was 16 years ago that Indianapolis, IN, JW Marriott a dear friend in the industry asked me to become a member. He asked me point blank, how would you like to spend three days with a group of 3-6 • Work Truck Show people who loved buying, selling, and talking trucks? My response? Sponsored by NTEA Where do I go to join?” I hope that when YOU reach out to prospective Indianapolis, Indiana Convention Center members you get the same response. Consider this phrase: “You get 26-28 • Mid-America Trucking Show what you give.” In this case giving could mean attending the conven- Louisville, KY, Kentucky Expo Center tion, volunteering for a committee, or recruiting new members. MAY In every committee there are opportunities for members to participate. As a representative of the Dealer Group I invite everyone to share their 7-9 • East Coast Truckers Jamboree Sponsored by Kenly95 ideas, questions, and topics they would like the Group to address. This is Kenley 95 Truckstop, Kenley, NC your invitation to voice your UTA and industry-related suggestions. Just AUGUST email the Dealer Group at [email protected] or ashahan@baysho- retruckcenter.com. Always remember: This is YOUR UTA, and we are all 19-22 • National Truck Driving Championships in this together! “Go and Grow in ‘2-0”! Sponsored by American Trucking Associations Indianapolis, IN To every member and sponsor we thank you for your continued support. How we grow from here 27-29 • Great American Trucking Show (GATS) is up to all of us. Your suggestions and participa- Dallas, TX tion will determine how the UTA evolves. We SEPTEMBER are only an email away. Let’s ring in the New Year with good health, happiness, prosperity, 23-25 • Accelerate! Conference & Expo and inclusion for ALL. Never forget This is Your Women In Trucking UTA. Make it work for you every day! n Dallas, TX, Sheraton Dallas Hotel Mark Fishel 24-30 • IAA Commercial Vehicles Show Vendeventer Truck Sales, Inc. Hanover, Germany

UTA Events Calendar

APRIL 2020 Training 21-22 • UTA’s 2nd Annual Fishing Trip SELLING FOR SUCCESS Lake Texoma, Alberta Creek Resort, Kingston, OK Houston – March 23 and 24 JUNE Courtyard Houston Intercontinental Airport 24-25 • 15th Annual Kansas City 15838 John F Kennedy Blvd Golf Outing and Reception Houston, Texas 77032 to benefit the UTA Jerome Nerman Fontana – May 3 and 4 Family Foundation Courtyard by Marriott Rancho Cucamonga Kansas City, MO 11525 Mission Vista Drive (details to come) Rancho Cucamonga, CA 91730 NOVEMBER T: 909-481-6476 F: 909-481-0260 4-7 • 21st Annual UTA Convention Chicago – July 20 and 21 Hyatt Regency, Atlanta, GA (more information to come) Courtyard Chicago O’Hare 2950 S. River Road Des Plaines, IL 60018 (847) 824-7000 MANAGING FOR SUCCESS Kansas City – June 23 and 24 (details to come)

5 WITH Mark Drinkwater

ark Drinkwater, the Used oversight of the day-to-day and summers for as far back as I dealership. Financially it was not MTruck Manager for Rush operations, and managing the can remember. Watching him do a windfall by any means,” Mark Truck Center in Fontana, CA, was sales staff. “I still feel truly business was fascinating to me, admits, “but the experience and literally born into the trucking blessed to have this position and and it was through watching him relationships were invaluable.” company. His father, Derrell to be able to work for a company intently that I learned values and His recruitment to Rush Trucks by Drinkwater, was in trucking, and that values its employees and a work ethic that have served me Mike McRoberts and Hal Meri- when young Mark arrived, Derrell allows them to use their talents well through the years.” From his weather, both highly esteemed owned a truck repair shop. “I without being micromanaged,” he dad, Mark learned some important members of the industry, was a grew up working part-time and said. Mark reports that although lessons. “A good business deal must true highwater mark in Mark’s then full-time,” Mark reports. At Rush Trucks is a large company, it be good for all involved,” was just eyes. “I was honored that they the age of 25, Mark branched out still feels like a family owned one of them. Another was the vital recognized and trusted me to run operation. This culture is trait of caring about your customer. their used truck department in part of what Mark His father never had to put this Fontana,” he recalls. As a new hire, enjoys most about into words, but young Mark learned Mark traveled to New Braunfels to his current job. “I simply by watching the way his meet the corporate team. “I was know this doesn’t father treated his customers. It particularly impressed when happen by acci- seemed to the young man that his Marvin Rush, the founder and a dent,” he said. “It dad worked all day and every day legend, took 30 minutes to con- takes intentional to make sure his customers were verse with me in his office. He leadership from the satisfied and cared for. was amazing,” Mark recalled. top.” Mark credits During that trip, he also met Rusty Mark calls this devotion to rela- the corporate Rush, Ernie Bendele, Tom Culli- tionships the best part of his job. culture to Rusty son, and other industry icons. “I believe that if you do business Rush, the com- with integrity you will build Over the years, Mark has realized pany’s CEO. “He long-lasting relationships,” he that his career has just flown by. does an outstand- explained. “I believe and have “It’s really all about the journey ing job of interfac- tried to live that belief in my life and taking it all in, while enjoying ing with the entire and my work. In the trucking the ride,” he notes. “I have also company and business, as I’m sure is true, in learned that we never regret the makes everyone most businesses, relationships are chances we take.” His advice to feel valued. His what it is all about.” In looking younger people just starting out is humble approach back at his success, Mark has to pay attention to everything, no trickles down the some proud moments to share. matter what your job is. “Do your ladder all the way First among these was establish- job well, but always try to under- into his own business when he to, and through me—the Used ing his own business at the age of stand how the entire operation founded Commercial Leasing and Truck Manager. I can honestly say 25. He saw his fledgling company works,” he said. “Notice how it is Finance, a financial brokerage that I enjoy coming to work every rapidly become one of the most done right, wrong, and most of all, firm. “I was heavily involved in day, because of the culture he, frequently used truck financing always be thinking about how it arranging the financing for and we, have established,” he firms in the area. “By 1985, I was can be done better.” owner/operators in Southern added. handling a large percentage of the California,” he said. From his early Mark and his wife, Ellen, have six When asked to explain his suc- used truck financing that was days as a mechanic in his father’s children and six grandsons! In his cess in the trucking industry, done in Fontana—about $700,000 shop to his current position with spare time, Mark is deeply de- Mark turned back to his very per month.” Rush Truck Center, Mark’s career voted to his Christian faith, and beginning. “My dad, Derrell has also included time spent with Another proud moment for Mark he also enjoys golf and football Drinkwater,” was his answer. “He Diversified Truck Center, Glacier was during his time as President games. “Especially high school was an entrepreneur in trucking— Transport, and MD Truck Center. of Diversified Truck Center. “We games, and a nice bourbon from truck repair, sales, and salvage— went from an independent repair time to time,” he said. n Mark’s been with Rush for eight my entire life,” he explained. “My and used truck operation to a full years now, where he’s respon- brother and I learned through service new and used truck sible for purchasing trucks, working with him on weekends 6 YOUNG Carly Hanson: Communications MEMBERS Officer, Young Members Committee arly has been a UTA member for less than was a job with Tiffany & Co. in the back end Ca year, but already she’s jumped right into of the business. She decided then to look for COMMITTEE a leadership position as the Communications an industry that had a more cooperative sense Officer of the Young Members Committee. She than the high-end jewelry business. “It was recently attended her first UTA Convention, and an industry that was more about what you while there, the Committee officers worked can do for me rather than what can we do for together to strengthen the support available to you,” she recalled. She realized that quickly younger members of the association. Along once she joined the trucking industry and the with Committee Chair Officer, Victoria Lom- UTA. Her first UTA event was the most recent bardo, Carly and the other officers worked to golf outing. “I went to get to know people and define the needs of their specialized group. see what the association was all about,” she “We got a lot of input,” said Carly. “We thought explained. “I thought it was really fun. It felt to come up with a mission statement. We very small, so I felt like I got to know people.” refined what we were trying to accomplish.” Her first trip to the annual convention did not Right now, the officers are working to provide detract from her early optimism. “It was more information to those starting out in the fantastic,” Carly reported. “People were so industry. “Information is what we need,” said open, warm, and willing to share.” In her role Carly. “It’s one of the pillars we’re trying to add as Communications Officer, Carly is looking to to our group.” Carly went on to say that the learn about the industry and the best ways to group is looking for “any and all knowledge and meet the needs of young members. She advice we can get about trucks, marketing, encourages everyone in the industry to feel and dealership issues.” At the recent conven- free to reach out and share the details of their tion, the Committee held a breakfast for new jobs. The group will put out monthly updates attendees to the convention. “That gave us an about the members’ activities. “We want to know opportunity to talk to the other more seasoned about you, about your job, and what your attendees who gave us advice about how to needs are,” she said. “People in this industry make the best of the convention.” are so warm, helpful, and encouraging,” she added. “I’ve never been part of a group of Carly came to the trucking industry after an competitors who work so well together.” n internship spent at the Mayo Clinic, working in their fundraising department. Her next stop

In Memoriam: Charles Elbert Shirk, 1922-2019

Charles “Charlie” Shirk, passed away on November 26, 2019 at the age of 97. He was the founder of Shirks Tree City Supply, and he sold International Harvester farm implements and truck equipment from the company’s founding in 1962 until he exclusively turned to new and used truck sales in 1987. He was a veteran of World War II, having served as a gunner and aerial engineer on a B-17 bomber. At the War’s end, Charlie returned to his home of Greensburg, IN to continue his family’s farming tradition. He left farming only when he opened his International Har- vester dealership.

Charlie spent 57 years in a career that he loved. He loved trucks and was well- known for attending many local truck auctions, making new friends wherever he went. He was a lifelong member of the Greensburg Optimist Club, president of the Decatur County Fair Board, and very involved with the Indiana Future Farmers of America. He was deeply dedicated to his work. He was best known for his devotion to meeting people and helping them further their careers within the trucking industry.

He is survived by his daughter, Melissa Shirk Freeman, his friend Steve Freeman, his ten grandchildren, and three great-grandchildren. Charles was preceded in death by his parents, wife, three brothers and one sister. n

7 Mike Amrhein, Sales Manager Darcie Tate Thompson, Manager of John B. Tindal, Owner Yard Truck Specialists, Inc. Sales Tindal Truck Sales 4200 Casteel Drive Fleet Resources LLC 113 West Vaughn Road Coraopolis, PA 15108 1336 Adams Street Mayfield, KY 42066 www.yardtruck.com Franklin, TN 37064 (270) 519-8518 Facebook: yardtruck specialists www.fleetresourcesllc.com [email protected] (215) 447-3226 Facebook: Fleet Resources John's been in the [email protected] (615) 708-5551 industry almost 30 years Mike’s been in trucking since 2003. His first [email protected] having joined trucking in job was as a technician with the same Darcie only started 1991. Before then, he company he’s with now: Yard Truck Special- working in the trucking worked in the rubber ists, Inc. Asked why he’s joined the UTA he industry a year ago but industry (tire plant). His replied with a to-the-point answer: “New said she “grew up in the first job in trucking was relationships.” industry.” working for himself. Mike’s favorite part of his job is helping new Before joining trucking, John’s joined the UTA and existing clients. she worked in aviation hoping to meet different dealers from all over the United States. Outside of work Mike enjoys coaching and sales. watching his children play sports. Darcie’s become a UTA “I enjoy the challenge that my job brings,” member hoping to John said about his current job. He also enjoys meeting different people “from all areas.” In Chris Mehaffie network and continue building relationships with “other great trucking people.” addition, John likes the “independency and Truck Masters Warranty flexibility” that his job provides. (281) 687-9109 We asked Darcie what she liked about her [email protected] current job, and her response showed just When he’s not working, John likes to be how much she enjoys the job. “To be honest I outdoors and spending time with his family. love my customers and industry,” Darcie said. He enjoys going racing, something he’s done “There are solid wonderful people in this since 1998. He also likes traveling. “I got my industry.” pilots license four years ago and have been in the air ever since,” he said. When she's not working Darcie enjoys spending time with her ten-year-old daughter and the rest of her family; running and practicing yoga. Closing thoughts? “I look forward to meeting you all,” Darcie said. “Feel free to send me an email or give me a call.”

In Memoriam: Thomas William Hamm, 46

Tom Hamm of Red Bay, AL passed away on Tuesday, December 24, at his home. “Tom was well known in our industry and will be missed,” said Bobby Williams. Born in Waukegan, IL, Tom was a truck salesman in Alabama at the time of his death. He leaves behind to treasure his memory, his wife, Christina Hamm, of Red Bay, his father, Tommy (Diane) Hamm, Russellville, AL, his mother, Pat (Ralph) Harrington, Ramsey, MN, daughter, Mariah and son Hunter. He is also survived by one sister, Amy (Carlos) Castillo, two brothers, Michael Hamm and Greg Harrington, and several nieces and nephews. He was predeceased by his grandparents and his sister, Tracy Dinan. n

8 Women In Trucking: Is the Playing Field Level for Women at the Loading Dock?

ach year the American minutes to two hours in length, so far as to say I get unloaded ETransportation Research while women claimed to be more faster at some places...because I’m Institute (ATRI) asks drivers and likely to be delayed for two hours a woman.” Amanda wrote, “I don’t carriers about their top con- to more than six hours. really find this true. I been OTR for cerns. As you can imagine, the a long time and I sometimes get To better understand the reasons drivers list differs from the truck- unloaded before males. Everyone women are detained longer than ing companies’ lists, but some waits some places forever, some men, ATRI followed up with issues do affect both groups places not long at all. I don’t think interviews with the Women In significantly. gender has anything to do with Trucking Image Team mem- it.” Janine wrote, “I never felt I bers. Owner-operators Deb La was ever treated negatively at a Bree and Ingrid Brown insisted customer for being female but the delays were NOT related to have been treated nicer by some gender. Neither one felt that the customers because I was female.” dock crews intentionally kept them waiting. Most of the Facebook group felt the detention wasn’t related to The reason is probably more gender at all. Betsy wrote, “In 17 closely tied to ATRI’s crash causa- years I’ve never been treated tion research, which found that differently.” Jill claimed she’s male commercial drivers are 20 Detention and delays at customer been on both sides, “I’m quieter percent more likely to be involved facilities was one of the issues and more patient so I’ve been in a crash than female driv- that was important to both groups. by-passed for the ‘squeaky wheel.’ ers. The secret is estro- It was the fifth most pressing However, I’ve also been pushed gen. Women have more estrogen concern for drivers and number ahead because I’m more polite and men have more testoster- six on the list for carriers. Delays and professional. I don’t think one. Estrogen is a hormone that at the loading docks reduce a gender has much to do with it.” encourages bonding, teamwork, driver’s productivity and decrease collaboration and empathy. Perhaps gender is less of the issue the level of compensation for both Testosterone encourages risk than attitude. As Deb wrote, “You drivers and their companies. taking, competition, and can look for discrimination every- ATRI gathers date through an aggressiveness. where, but it’s not always there.” online survey website but they How does that pertain to a loading The Women In Trucking Associa- also collect responses in person at dock? I asked female drivers on tion’s mission is to ensure a level the Mid-America Trucking Show our Facebook page for their playing field for all women in each spring. This year they insights. Some of the women felt transportation, so this study received over 1,100 responses they might have longer wait times caused us to step back and try to from drivers. Thirteen percent of because they aren’t complain- dig into WHY the female drivers in the drivers were female, which is ing. Jennifer wrote, “Women the study reported longer delays. higher than the industry average generally are less aggressive, so Remember, the word is “reported.” of ten percent. Most of the respon- they don’t get acknowledged as ATRI researchers recognize there dents were company drivers, but fast. Squeaky wheels get the are many factors that may influ- surveys were collected from grease has been my experience.” ence a driver’s perception. Per- owner-operators and independent Dani wrote, “My guess is we’re haps future insight can be ob- contractors as well. more patient.” tained from the electronic logging The drivers were asked to esti- devices, so we won’t need to even Many of the female drivers felt the mate the number and the length ask drivers for their recollections. study didn’t reflect their own of delays in the past twelve experiences and claimed they are For a free copy of the report, visit months. Eighty percent of drivers often unloaded BEFORE their male ATRI’s website (https://truck- report being detained, but female counterparts. Melissa commented, ingresearch.org/2019/09/04/ drivers reported much greater “I drive local intermodal, so I’m driver-detention-impacts-on- Ellen Voie CAE PDC delays then men. In fact, ATRI the only female in the area with safety-and-productivity/) n President/CEO found that women were 83 the same 15 or so male drivers Women In Trucking percent more likely to be detained every day. I don’t find this (study) Association, Inc. six or more hours. Men reported to be true at all. I would even go (920) 312-1350 delays from less than thirty

9 OPINION COLUMN High Risk Loans and Your Customers

s financial institutions start Customers must understand the be doing well now, but trucking is A tightening their portfolios, situation they’re in and acknowl- slowing down to 2015-16 levels of we should re-evaluate how to edge it. At the same time the freight volume. And trucking help the customer. dealer should help them find the depends heavily on leveraged right loan. I have reviewed and collateral loans. We all have “A” and “B” credit approved hundreds of deals customers and they require little Helping the customer to get his through the years and I’m still help when acquiring a truck. But truck and making sure he comes surprised that some salespeople when we have a new buyer or a back to trade it in helps ensure don’t understand why deals are credit-challenged customer we do your dealership will be successful. turned down. It’s not the customer have options, at a cost to the buyer. At a time when turning inventory but the inflated value that banks quickly is paramount, ensuring are frowning upon when the the customer gets the right deal is economy turns uncertain. the win-win situation we are all It may look good right now but looking for. n loans that are 4 to 5 years in maturity are scrutinized for possible dips in the market, and with the huge number of trucks entering the market the collateral values are going to drop. So, a deal that is “over-priced” is not Used Class 8 trucks are considered going to look good. It can also high risk. For those who made happen that your dealer can be financial mistakes in the past, “blacklisted” by such a bank for buying a commercial vehicle is overvaluing the equipment. Once going to require a “high risk loan.” that happens, they won’t really These loans can be useful in that look at your deals seriously any- they can improve credit scores as more. This is something that can well as give the customer a way to hurt your dealership even more. manage cash flow. Good financial management can offset the higher According to Brian Moyniham, interest. CCE of Bank of America, “If the economy slows down and the Customers must completely banks can’t carry the debt and understand these loans before then restructure it, then the usual using one to acquire their new carnage will go on.” He was vehicles. As I work through many referring to leveraged loans and repossession cases I hate to admit the weakening terms of these that about 50 percent of these loans. The U.S. economy seems to loans were never fully explained to the customer.

I also realized that some of these loans began with over-valued collaterals. I understand that every company operates to gener- ate profits. But selling a truck 25 or 30 percent or more above its real value to a financially unedu- cated person will probably end with not just a repossession, but also the loss of a future sale. Ricardo Rodriguez-Long Asset Management US 395 Motors

10 Nature Favors Risk Takers

Editor’s Note: Are you someone who’s willing to take risks, and stand out from the crowd? Or, perhaps you like to keep your head down, do your work, and just proceed along like that. Well, “risk-taking behavior” has real benefits as described in this excerpt from the book Disrupt Yourself: Master Relentless Change and Speed Up Your Learning Curve by Whitney Johnson.

tarting something new Of course, in order for evolution are prevention focused tend to Smeans taking a risk. But in and natural selection to favor concentrate on staying safe, work our society, the word “risk” has risk-taking as a behavior there slowly and meticulously, worry assumed mostly negative conno- has to be a benefit, and that what might go wrong if they tations. When someone tells us benefit has to outweigh the aren’t careful enough, and focus “that’s risky,” most of us have a outcome of doing nothing. Many on preserving what they have. visceral, fearful reaction. But examples from the animal king- So for the risk averse who are Mother Nature seems to have built dom support this hypothesis. trying to convince themselves to a loophole into our sense of According to research by Dr. Lee try something new, the trick is not well-being, because embedded Alan Dugatkin, who was trying to to focus on what will be gained somewhere within the human understand a continuum of risk- by venturing forth, but to instead genetic makeup is an inclination taking, fish willing to take risks focus on what might be lost by to take risks. were likely to mate better.11 standing still. For example, if I’m a Guppies, for example, engage in really prevention-focused person what is known as predator in- thinking about asking for a spection behavior. Predator promotion, I shouldn’t try to psych inspection is akin to guard duty. A myself up for it by imagining all few fish break away from the the accolades I might win or the group and slowly approach the new projects I might take on. I predator to obtain information. In should focus on what I might miss taking risks in the presence of a out on—the great projects I might predator, a guppy is more likely to not get assigned to, or the money get eaten, but a male guppy that I’m leaving on the table. n takes this risk is more attractive as a mate to females.12 The bolder guppies are also better at learning.

Fortune may favor the brave guppy, but what if you aren’t a risk-taker by nature? According to psycholo- gists Tory Higgins and Heidi Grant Halvorson, people can be divided into two personality categories: those who are promotion focused and those who are prevention focused.13 Those whose motiva- tion is promotion focused are comfortable taking chances, like to work quickly, dream big, and think creatively: they are natural risk-takers, focused on maximiz- ing gain. In contrast, people who

Reprinted by permission of 11 L. G. Dugatkin, “The Evolution of Risk Taking,” Dana Foundation, January 1, 2013, accessed October 30, Harvard Business Review Press, 2014, http://www.dana.org/cerebrum/default.aspx?id=39485. Disrupt Yourself: Master Relent- 12G. Dugatkin, “Female Mating Preference for Bold Males in the Guppy Poecilia reticulate,” Proceedings of the less Change and Speed Up Your National Academy of Science of the United States of America Volume 93 (1996). Pages 10262-10267. Learning Curve by Whitney Johnson, Copyright 2020. 13 H. G. Halvorson and E. T. Higgins, Focus (New York: Hudson Street Press, 2013). Page xi. All rights reserved.

11 J.D. Power Valuation Services Update December Market Conditions Underperformed Expectations

lass 8 auction volume increased dramatically in December, and Sleeper Tractors – Retail Cpricing dropped more than expected. Trucks sold retail also lost value, Late-model trucks lost more value than expected in December. Sales as the market continues to lose tolerance for trucks with anything other volume of 3-year-old-trucks increased notably, while the volume of than low mileage. The medium duty market was mixed, with cabovers stable, 4-and-5-year-old trucks was in line with expectations. There were no Class 4 conventionals mildly weak, and Class 6 conventionals recovering. anomalies in average mileage, spec, or model mix, so depreciation Sleeper Tractors – Auction appears to be natural market movement. The volume of 4-7-year-old trucks sold at auction increased notably in The average sleeper tractor retailed in December was 71 months old, had December. Pricing was markedly lower on average. Both measures were 481,060 miles, and brought $47,311. Compared to November, the average more volatile than expected. See below for detail. sleeper was 5 months newer, had 4,447 (0.9 percent) fewer miles, and » Model year 2016: $27,051 average; $3,699 (12.0 percent) lower than brought $1,549 (3.4 percent) more money. Compared to December 2018, November this average sleeper was 2 months older, had 21,093 (4.6 percent) more » Model year 2015: $23,697 average; $3,246 (12.0 percent) lower than miles, and brought $9,924 (17.3 percent) less money. November Looking at trucks two to five years of age, December’s average pricing » Model year 2014: $19,376 average; $1,990 (9.3 percent) lower than was as follows: November Model year 2018: $92,225; $2,877 (3.0 percent) lower than November Model year 2013: $15,954 average; $1,212 (7.1 percent) lower than » » Model year 2017: $71,941; $2,943 (3.9 percent) lower than November November » Model year 2016: $56,074; $2,553 (4.4 percent) lower than November » Model year 2012: $13,559 average; $2,391 (15.0 percent) lower than » November » Model year 2015: $42,433; $2,761 (6.1 percent) lower than November » Model year 2011: $12,667 average; $3,417 (36.9 percent) higher Year-over-year, late-model trucks sold in calendar year 2019 brought an than November average of 4.2 percent more money than in 2018. As we’ve said the past In calendar year 2019, our benchmark group of 4-6-year-old trucks brought few months, this full-year comparison is misleading since it doesn’t 14.0 percent less money than in 2018. If we narrow our comparison to reflect the market shift in the second half of 2019. Narrowing our focus the last two months of each year, the variance increases to 30.8 percent. to the last two months of each year, 2019 came in 8.0 percent behind. Average monthly depreciation was 2.1 percent per month in 2019, Monthly depreciation for 4-6-year-old trucks averaged 3.5 percent in 2019. compared to well under 1 percent in 2018. Pricing remains roughly on In 2018, there was essentially no depreciation. Pricing for late-model trucks par with the last market bottom in 2016. is now roughly 10 percent lower than the last market bottom in 2016. See the “Average Retail Selling Price: 3-5-Year-Old Sleeper Tractors” December is typically a high-volume month, as fleets and dealers look to graph for detail. remove unused trucks and excess inventory from the books. However, this Average Retail Selling Price: 3-5 Year-Old Sleeper Tractors December’s increase over November was greater than expected. In addition Adjusted for Mileage to these factors, the greatly increased number of fleet bankruptcies in 2019 $100,000 is not helping. January is typically a slow month, so we don’t expect much $90,000 $80,000

change in the market in that period. $70,000

$60,000 See the “Average Selling Price: Benchmark Sleeper Tractor…” and $50,000 “Volume of the Three Most Common Sleeper Tractors…” graphs for detail. $40,000

$30,000 4YO Average Selling Price: Benchmark Sleeper Tractor Sold through the Two Largest Nationwide $20,000 5YO No-Reserve Auction Companies MY2011 $10,000 3-5YO Avg. $50,000 MY2012 $0 $45,000 MY2013 Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov $40,000 MY2014 Jan-16 Jan-17 Jan-18 Jan-19 Source: J.D. Power Valuation Services $35,000 MY2015 $30,000 $25,000 Dealers retailed an average of 3.4 trucks per rooftop in December, identi- $20,000 cal to November’s 11-year low. There aren’t a lot of buyers looking for $15,000 replacement trucks currently. $10,000 $5,000 See the “Number of Trucks Retailed per Dealership Rooftop” graph for detail. $0

Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Jan-16 Jan-17 Jan-18 Jan-19 Number of Trucks Retailed per Dealership Rooftop Source: J.D. Power Valuation Services 7

6 Volume of the Three Most Common Sleeper Tractors (4-6 Year-Old) Sold through the Two Largest Nationwide No-Reserve Auctions 5 900 800 4 700 3 600 500 2

400 1 300 200 0 Jul Jul Jul Jul 100 Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Jan-16 Jan-17 18-Jan 19-Jan 0 Source: J.D. Power Valuation Services Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Jan-16 Jan-17 Jan-18 Jan-19 Source: J.D. Power Valuation Services 12 Our Retail Value Forecast estimate for 2019 was very pessimistic if Starting with Class 3 – 4 cabovers, December’s average pricing and comparing full-year to full-year, but essentially right on if looking just at volume were very similar to the preceding two months. December’s the last few months of each year (which is a more accurate way of average was $12,439, $444 (2.0 percent) higher than November, and accounting for the market shift in mid-2019). Basically, trucks are retail- $1,703 (15.9 percent) higher than December 2018. Metrics in the fourth ing today for roughly 8-10 percent less than this time last year, which is quarter were stable, helping the year-over year average come in 7.5 what we intend to convey in this graph. Early this year, we predicted percent higher in 2019. Average monthly depreciation in 2019 was 2.3 downward movement in the retail channel would more closely mirror percent, very similar to 2018’s 2.2 percent figure. the auction channel, when in fact there was a lag of 4-6 months. Of See the “Average Wholesale Selling Price: 4-7-Year-Old Class 3-4 course, our actual residual value forecasts (available by subscription, not Cabovers” graph for detail. published here) are a more sophisticated analysis referencing estimated trade-in figures, so results were different in that data. Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 Cabovers Adjusted for Mileage

Looking forward, here are the main economic factors we’re tracking. $25,000 Starting with the positives, the first big one is signing an initial phase of $20,000 a US-China trade agreement, which will halve tariffs on about a third of Chinese imports and prevent additional tariffs from being implemented. $15,000

The deal also stipulates massive increases in Chinese orders of various $10,000 US products and services, but let’s just say we’re taking a wait-and-see view of that aspect. At the very least, this development provides some $5,000 stability to costs of doing business abroad. Another major trade develop- $0

Jul Jul Jul Jul Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov ment will be the ratification of the USMCA by the US Senate and Cana- Jan-16 Jan-17 18-Jan 19-Jan dian Parliament, which we assume will happen in the first quarter. This Source: J.D. Power Valuation Services agreement will further reduce uncertainty and inefficiency in cross- Looking at Class 4 conventionals, pricing and volume both pulled back border commerce. In terms of the broader US economy, consumer spend- month-over-month in December. Average pricing for our benchmark group ing is still red-hot, and as long as employment figures remain at 50-year was $17,673, $920 (4.9 percent) lower than November, and $1,458 (17.6 highs, it should remain that way. percent) lower than December 2018. In calendar year 2019, pricing for this Moving over to headwinds, the industrial side of the economy has pulled group was 8.5 percent higher than 2018. Depreciation in 2019 averaged back notably from the recent peak in late 2017/early 2018, and data looks 1.0 percent, slightly higher than 2018’s 0.7 percent average, but still well a lot like the end of a cycle. Layoffs in manufacturing industries are of below the historical trend. concern, particularly in the non-cyclical white-collar sector. Second, Class 6 conventional volume recovered from November’s slump, and fleet bankruptcies increased dramatically in 2019. Insurance costs, much pricing was higher as well. In December, our benchmark group averaged lower value of assets, and regulatory requirements were the main reasons, $21,451, $1,100 (5.4 percent) higher than November, and $5,180 (31.8 but volatility in freight demand is an underlying factor. If the industry percent) higher than an unusually low December 2018. In calendar year overall has too many trucks available (trucks in service plus trucks on 2019, average pricing for these trucks was 16.2 percent higher than the sidelines waiting for freight), trucks from bankrupt fleets are either 2018. Average monthly depreciation in 2019 was 1.6 percent, compared scrapped or sent to the resale market. Another major headwind will to 1.7 percent in 2018. manifest itself in the second half of the year, when Presidential election season kicks into high gear. Even in less contentious times, investment See the “Average Wholesale Selling Price: 4-7-Year-Old Conventionals by typically pulls back in the months leading up to the election. GVW Class” graph for detail. Bottom line—expect economic conditions to feel similar in the short term. Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW Class Adjusted for Mileage If Industrial Production flatlines or declines further, we can expect a $35,000 broader economic retrenchment. Keep a close eye on IP and unemploy- $30,000 ment figures. $25,000

$20,000 See the “Retail Value Forecast” graph for a look at how we see used $15,000 truck pricing unfolding over the next four years. $10,000 2 per. Mov. Avg. (Class 4 Price) $5,000 Retail Value Forecast 2 per. Mov. Avg. (Class 6 Price) Percent Change Year-over-Year $0 Jul Jul Jul Jul 20% Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov Mar May Sep Nov 3YO Tr uck Jan-16 Jan-17 Jan-18 Jan-19

15% 4YO Tr uck Source: J.D. Power Valuation Services

10% 5YO Tr uck

5% Forecast

0% January is typically a slow month for volume, so we don’t expect much

-5% change in the market. One bright spot in 2020 will be fewer trade

-10% returns compared to 2019, but of course the industry still has a major -15% surplus of trucks in inventory to work through. Industrial Production will -20% need to recover or at least stabilize for the used truck supply/demand -25% relationship to improve noticeably. n 2015 2016 2017 2018 2019(f) 2020(f) 2021(f) 2022(f)

Source: J.D. Power Valuation Services

Medium Duty Trucks Cabovers were stable in December for the third month in a row. The Class 4 conventional market pulled back, while Class 6’s recovered. Chris Visser, Senior Analyst and Product Manager Commercial Vehicles

13 Tough Times Ahead for Class New NA Class 8 Orders Sink to 8 Market: ACT Research 17,300 Units: FTR Santa took a pause Christmas eve as ACT November’s preliminary NA new Class 8 Research announced the trucking industry orders came in at a disappointing 17,300 units, down 21 percent from hasn’t yet seen the worst of the current downturn, with Class 8 demand October, according to research firm FTR. This is was the lowest November “headed toward tougher business conditions in 2020.” Meanwhile, total since 2015 and was 39 percent lower than last November’s total. October’s Medium Duty Class 5-7 markets were “awash in a sea of red Fleets are not looking beyond the first quarter when placing their build ink,” ACT reported. A bright spot is that “moderate growth persists” in orders, preferring a cautious wait-and-see approach. The orders they are build expectations. The forecasts were recently published in ACT’s placing are small, FTR noted, and although some OEMs reported “decent” Transportation Digest, a report combining ACT’s proprietary data analy- orders, total orders fell below expectations. From November 2018 to sis from industry sources. November 2019, Class 8 orders stand at 180,000 units. “After peak sales and build rates in 2019, significant declines are ahead “The fall order season has gotten off to a slow start,” said Don Ake, FTR’s in 2020, as heavy-duty sales and build follow the net orders trend vice president commercial vehicles. “Freight growth has stalled from the down,” said Kenny Vieth, ACT’s President and Senior Analyst. “But if our high rates of last year. This is causing fleets to be much more measured forecast of ongoing (but slower) economic expansion holds in 2020, the in their ordering for 2020. There still will be plenty of freight to haul, so drop will be a correction (along the lines of 2015 and 2016), not a we expect fleets will continue to be profitable and to replace older devasting recession (as in 2008 and 2009),” he added. equipment. However, there won’t be a need for much additional equip- Moving to the medium duty market, Vieth feels that because October is ment on the roads.” traditionally the strongest month for medium duty orders, the disap- Ake added that the tremendous uncertainty that exists is creating pointing numbers for that month suggest consumer demand will soften “apprehension” in the trucking industry. “Manufacturing has receded for further. “Following September’s bow shot, the downward trajectory of four straight months, slowing economic growth. The trade war and the seasonally adjusted annual rates in the past two months suggests tariffs are destabilizing prices and supply chains. And the tumultuous the slowing of build rates during that period are looking more like a new political climate just adds to an uneasy mix. The industry thrives on n paradigm, rather than a pause that refreshes,” Vieth said. stability, but we are now on a rocky road,” Ake said. n

Numbing November for Used Truck Sales Follows October Surprise October provided an early fall boost as used Class 8 same dealer sales, yielded an unexpected sequential gain. But November’s numbers returned to form for that time of year, falling 35 percent m/m, according to ACT’s latest release of the State of the Industry: U.S. Classes 3-8. Addi- tionally, “Longer term, sales were down nine percent y/y and 16 percent year to date, compared to the first 11 months of 2018,” ACT noted. The report also showed that used Class 8 average miles dropped five percent m/m and are now up just one percent year-to-date. In addition, ACT reported that November’s average age rose three percent compared to October’s, with age now showing a five percent increase year-to-year. Some good news: Average prices grew five percent m/m, although they’re flat year-to-date. “Dealers are reporting used truck sales are lagging, inventory is building, prices are falling, and the used truck market remains a buyer’s market,” The best sales managers know said Steve Tam, Vice President at ACT Research. He continued, “While all of this is not welcome news for finance companies, truckers trading that what motivates them may trucks, truck OEMs or dealers, it is good news for people who are buying not motivate each trucks. Customers are finding that there are bargains available for all makes and models of used trucks, and there are some fantastic buys.” n individual salesperson.

14 Kenworth Honors Nation’s Top Military Veteran Rookie Driver, Joseph H. Campbell Jr. of Roehl Transport Once again Kenworth has selected the nation’s top rookie driver from the ranks of military veterans. For this year Kenworth awarded Joseph H. Camp- bell Jr. of Roehl Transport with what it’s deemed The Driver’s Truck™ – a Ken- worth T680 equipped with a comfortable 76-inch Volvo and Isuzu Announce they Intend to Form a sleeper. Campbell’s special T680 features the complete PACCAR Pow- Strategic Alliance ertrain with a PACCAR MX-13 engine, PACCAR 12-speed automated transmission, and PACCAR 40K tandem axles. The Volvo Group and Isuzu Motors recently signed a non-binding Memo- randum of Understanding with the intent to form a strategic alliance Campbell, a distinguished veteran with 24 years’ service in the U.S. Marines within commercial vehicles to capture opportunities as the industry and U.S. Army, received the annual “Transition Trucking: Driving for continues to transform. Excellence” award during a ceremony at the U.S. Chamber of Commerce Foundation in Washington, D.C. The two companies intend to establish “a global technology partnership” to create a “stronger, combined heavy-duty truck business” for Isuzu To select the winner Kenworth worked with the FASTPORT Trucking Motors and UD Trucks in Japan, and across international markets. “This Track Mentoring Program and the U.S. Chamber of Commerce Founda- entails transferring ownership of the complete UD Trucks business tion’s Hiring our Heroes Program. The aim was to find America’s top globally from the Volvo Group to Isuzu Motors to accelerate growth by rookie military veteran, who successfully transitioned from active duty to leveraging greater volumes and complementary capabilities.” commercial fleet driving. “The Volvo Group and Isuzu Motors have a well-established relationship In a release to the media, Kenworth described Campbell’s impressive on medium-duty trucks in Japan based on mutual respect, shared values military background. Campbell comes from a family of military veterans. and a win-win spirit. We see great potential to extend our cooperation He achieved many accolades while serving stateside and abroad in within technology, sales and service as well as other areas going forward, combat zones. Now driving for Roehl Transport’s Flatbed Division, he for the benefit of our customers and business partners,” said Martin Lundst- achieved an accident-free record in his first year working for Roehl. edt, President and CEO of the Volvo Group. “Our UD Trucks colleagues Campbell is training to become a certified trainer and is a member of the have done a great job to improve performance in recent years and the company’s Driver Advisory Group. alliance opens up a great opportunity to continue the successful journey.” “It’s a great honor to receive this award,” Campbell said. “This Kenworth “Isuzu Motors and the Volvo Group strongly believe in the business T680 will provide some exciting new opportunities for my future career in opportunities and synergy potential between the two Groups. We intend the trucking industry. Thanks to Roehl Transport, Hiring our Heroes, to derive the full value from each other›s different specialties across FASTPORT and Kenworth for supporting and encouraging veterans to n product and geographical strongholds. Our collaboration will actively make the transition into the trucking industry,” Campbell added. contribute to service improvements and strengthened customer satisfaction as well as to prepare ourselves for the forthcoming logistics revolution,” says Masanori Katayama, President and Representative Director of Isuzu Motors Limited. According to the companies, the intended strategic alliance between the Volvo Group and Isuzu Motors will include: » Forming a technology partnership, which will leverage the parties’ complementary areas of expertise within both well-known and new technologies as well as to create a larger volume base to support necessary, forthcoming technology investments. » Creating the best long-term conditions for a stronger heavy-duty truck business for UD Trucks and Isuzu Motors in Japan and across international markets. » Exploring opportunities for even broader and deeper collaboration within the commercial vehicle business across geographical areas and product lines, such as light-and medium-duty trucks. All technology cooperation between the Volvo Group and Isuzu Motors will be managed through individual contracts. This is a non-binding Memorandum of Understanding. The next steps are to finalize the scope of the business to be transferred, due diligence by Isuzu Motors and negotiations of binding agreements. Signing of binding agreements is expected by mid-2020 and closing of the transac- tion is expected by the end of 2020. All potential transactions will be Shown with Transition Trucking Award winner Joseph H Campbell Jr. (at podium) are, subject to regulatory and other approvals. n from left, his father Joseph H. Campbell Sr., mother Littie A. Campbell, and wife Debra Campbell. 15 Just Say It!

n the world of truck sales and especially choose to use the perfectly fine phrase “sand- I the UTA, we’ve found that people speak wich generation,” to refer to this phenomenon. clearly, especially when they’re talking about No, this professor from Stanford, Dr. Thinksa- business. They speak to make sure lotofherself (not her real name), had coined a they’re understood, not to confuse new phrase that she likes to use: The Panini or impress the other guy. That’s Generation! so important in an industry like Wow. When I read that I admit I wasn’t sure truck sales, where your word is what a Panini was. (Much to Deb’s and my meant to be your bond. kids’ chagrin I’m no “foodie.” I can live on Why am I pointing out what may mashed potatoes and graham crackers and be seem obvious? Because it’s not perfectly happy, if not healthy). I thought something people in many other Panini had something to do with Panera, the fields do. Think lawyers or sandwich place. So, I asked Deb, my keeper of SIMPLE. doctors, or just someone looking kitchen knowledge what a “Panini” was. It more to impress than communi- turns out it’s a gadget that presses a sandwich cate. Or maybe a coworker you together to grill it. Oh. That professor used the once had in a job that had noth- word Panini because the food you make with ing to do with trucks. These the gadget gets squeezed, like a grilled people may utilize a 50-cent word cheese sandwich. And that’s how she feels when a nickel word will do just millennials who are pressed from both sides fine. (Use is almost always better must feel. than utilize!) Let’s be honest. By coining a new phrase, Using fancy or somewhat obscure words is she was hoping others would start using it, bad enough. But in reading the paper today I associate it with her, and perhaps mention noticed something just as annoying. So her name and the prestigious institution from annoying in fact that I had to write and tell which she is perched. She wants to see you all about it. articles that say something like, “And this is why Dr. Thinksalotofherself, of Stanford, Remember when writers and others started calls millennials the “Panini generation.” calling Baby Boomers the “sandwich generation?” That’s because many had to care for Ok, write a book if you want to make up their children and (sometimes) ailing parents obscure phrases. If you’re trying to make a at the same time. Now maybe you don’t like point, to TRULY COMMUNICATE, do it clearly. such catch-all terms to begin with, and I Skip those vague, high-falutin’ words. Just understand that. But at least “sandwich say it! generation” is clear. You can easily envision a This is what so many UTA members already do sandwich, with those two pieces of bread and and we love you for it. As professional com- pieces of, say turkey, in the middle—getting municators we’re grateful. It’s no small thing squeezed. to speak or write clearly so everyone under- Are you still with me? Just hang on you’ll stands what you’re trying to say. If you’re soon see where I’m headed. going to be a person of his or her word, make it a word people will understand. At least Recently I’ve seen lot of articles about how that’s the way it looks from where we sit. n some millennials are starting to feel this same Deb and Brad Schepp sense of being squeezed as they care for their [email protected] own children and aging parents. But the writer whose article I’m referring to didn’t