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got news?Have you expanded your business? Promoted staff? Won an award? Opened a new location? We want to know. Share your news with the
UTA Industry Watch. Send submissions, as well as ideas and comments, to:
UTA Industry Watch Editors Angela K. Durden, Lara Haag1740 Hudson Bridge Rd, Suite 1209Stockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)
Fax: [email protected]
Volume 11 • Issue 7 • July 20091.877.GETS.UTA • www.uta.org
Table of ContentsBoard News and Views ...................... 2
Membership ...................................... 3
Industry News Briefs .......................... 3
Face to Face with Ernie Bendele ......... 4
File Cabinet ....................................... 5
Elections and Nominations ................. 6
Privacy Rules ..................................... 6
Pipeline ............................................. 7
The Passing of a True Southern Gentleman: Jim Sundy ...... 8
People............................................. 11
Top 10 Markets ............................... 11
Last Notes ...................................... 11
The UTA… Members Supporting Members!
Dan Baker to Keynote UTA Family Reunionby Tim Ormsby, Convention Committee Chairman
Jokes and one-liners can get stale really quick. Which is why Dan Baker, who is known far and wide for his jokes, stories, and one-liners, never tells one unless it is linked to the topic
about which he is speaking. “Why waste a good joke on a laugh when it can provoke an insight,” said Dan, also known as the “Friend of the Trucker”. Dan is not limited to just talking to truckers. He also serves the industry by reaching out to related groups to spread a grass-roots understanding of trucking among people who interact with the industry.
Many of you already know Dan. We will enjoy him again as the keynote speaker at our Family Reunion and Convention in San Antonio. Dan is the perfect guy for this occasion. Everywhere he goes, he treats everyone as family. He understands the value of those ties. Strong families equal strong communities. Strong business families equal strong business communities.
Dan’s daily Thoughtgrams grew from this potent mix of entertainment and insightful speaking. Dan contends that entertaining communication is more memorable and his Thoughtgrams are certainly memorable. Each Thoughtgram is a short audio piece beginning with a joke or entertaining story and ending with a meaningful idea or stimulating tip for the day.
Dan’s popular seminars and training programs are certainly not limited to just dispatchers, managers, and drivers. Dan is an incredible resource for helping others involved with the industry really understand what trucking is all about. Almost any group that services the trucking industry can benefit from one of Dan’s talks. The phrase “one-trick pony” can never be used to describe Dan’s presentations. He learns about each group he will be addressing and develops specific content to address their needs and interests.
In fact, Dan has been seen by many as an ambassador of sorts for the industry; an elder statesman who understands and represents trucking in ways that enhance the ability of others to relate to trucking. Dan helps people understand by presenting easy-to-grasp concepts in simple, entertaining language.
The people side of the business is always a basic theme and he walks the people side of the street. Technology may rule, but people push the buttons. “I don’t deal with you in terms of what you’re really like,” Dan said. “I deal with you in terms of how I perceive you to be. We invite the treatment we get, we teach others how to treat us, and if we don’t manage how others perceive us, they will manage it for us.”
From helping us understand relationship building skills to fixing the system instead of the blame to using the Deming 85/15 Rule to show it’s almost impossible to build trust and respect without the dependability and consistency of a well-maintained work flow system, and more timely topics, Dan helps us to see ourselves as we really are and gives us tools to help us focus on making ourselves better.
“Since it’s the stuff we don’t see about ourselves that bites us in the butt, we need to stop and take a careful look at what makes people, ourselves included, tick,” Dan told us. “Ambivalence, Projection, Resistance, Escalation, Expectations; all of these things contribute to the mix that skilled managers need to understand and learn how to work with.”
Layout & Design by Laura A. Jones since Volume 8, Issue 1, January 2006 Jane and Jane Design • 913.706.7505 [email protected]
Used Truck AssociationChartered May 16, 1988
Published by the Used Truck Association909 Eagles Landing Pkwy, Suite 140-216
Stockbridge, GA 30281
Continued on page 3…
2
UTA Industry Watch
July 2009 www.UTA.org
Board News and Views
President Marty Crawford
Vice President Rick Clark
Treasurer Tom Pfeiler
Secretary Bryan Haupt
President Emeritus Eddie Walker
Convention Committee ChairmanTim Ormsby
Marketing Committee ChairmanLara Haag
Training Committee Chairman Jon Tepper
Education and Fundraising Committee Chairman
Tim Ronan
Membership Committee Chairman Randy Marshall
Affiliates & Benefits Committee Chairman
Jason Rush
Elections Committee Chairman Pete Pilittere
Medium-Duty Committee Chairman Bobby Williams
2009 Board of Directors First of all let’s get the formalities out of the way. The views expressed in this article are not
necessarily the views of the UTA, or the board of directors of the UTA, or the editor of the UTA, or possibly not of anyone that reads this article. They are my views and I take full responsibility for them. The following quotes are all from Ronald Reagan.
Do you miss this guy? I sure do. I am not happy with our current leaders in the federal government. Not the administration nor the House or Senate. I feel they are taking the wrong direction and I feel they are wrong about the way they see their role in governing this great country, and they are hurting my business.
Every part of the above paragraph I do believe to be true except for the last six words— “they are hurting my business.” They are not hurting my business. If anyone is really hurting my business it is me. I am correcting that situation by not obsessing on what I cannot control and just keep doing what I have always done. Not long ago I heard a very successful, recently retired NFL head coach say what he believed to be the reason for his team’s success. They concentrated a great deal on what they knew they could do and do well and did not worry to much about what they didn’t do well or what they had no control over. His way of putting it was to “just keep doing what you do.”
I have decided that I need to just keep doing what I do, in spite of the poor economy, of the tough credit terms, of all the things I could use as an excuse. I need to just keep doing what I do. One thing I will keep doing is attending the UTA conventions. I hope to see many of you in San Antonio this year. When you see me, we can talk politics…or maybe not.
“The most terrifying words in the English language are: ‘I’m from the government and I’m here to help.’ ”
“The trouble with our liberal friends is not that they’re ignorant; it’s just that they know so much that isn’t so.”
“The taxpayer: That’s someone who works for the federal government but doesn’t have to take the civil service examination.”
“Government is like a baby: an alimentary canal with a big appetite at one end and no sense of responsibility at the other.”
“The nearest thing to eternal life we will ever see on this earth is a government program.”
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
“I have wondered at times about what the Ten Commandments would have looked like if Moses had run them through the U.S. Congress.”
UTA Industry Watch
3July 2009www.UTA.org
Membership
“Dan Baker will be like a breath of fresh air when you’ve been 24/7 working to survive in these challenging times in our used truck market,” said Eddie Walker, UTA President Emeritus. “You will come away with a different outlook and with a better perspective on how to meet the challenges we all encounter. Dan will remind us how simple life can be and helps us realize how we surprise ourselves. As Dan says, ‘Sometimes when we least expect it, we hold up brilliantly under circumstances we’ve dreaded for so long!’ Trust me; you’re in for a treat and you’ll go home with at least one thought that will make your life better!”
Yes, Dan Baker has a lot of interesting things to say and a lot of people listen when he speaks. During his time on stage he will be hosting a game-show style event that will prove to be very much fun. He will also be there a day earlier to visit with our ever growing UTA family. See you there. We hope you will be able to attend our tenth annual convention in San Antonio. n
Continued from page 1…
Arrow Truck Sales Announces 4-Year/400,000-mile Warranty option on Used Trucks
KANSAS CITY, MO (June, 2009) Arrow Truck Sales, Inc., North America’s leading pre-owned truck source, announces an unprecedented 4-year / 400,000 mile comprehensive engine warranty option on pre-owned units. This NTP-adminis-tered warranty program provides extended protection for the equipment purchaser who wants to take the worry out of buying used.
“Arrow Truck Sales continues to be a true innovator and cutting-edge leader in the used truck industry,” said Carl Heikel, Arrow’s President and CEO. “We have continually led the charge in providing extended warranty options to the used truck buyer. Buyer satisfaction, and exceeding our customers’ expectations, have truly been the key to Arrow’s success in the industry for nearly 60 years.”
“We have always led the industry in this area,” said Lee Wallace, Arrow’s Vice President of Sales and Marketing. “We began including a free 30-day warranty on our trucks in 2003 and started offering a 3-year/300,000 mile warranty program in 2007. Today, we offer an extended warranty that’s unmatched by any of our competitors.”
Arrow’s warranty includes full coverage (not just major components) during the entire 4-year period and is longer than many manufacturers’ standard new truck engine warranties. This new extended warranty plan is available on 2005 and newer Volvo VNLs with less than 500,000 miles.
Founded in 1950, UTA-member Arrow is headquartered in Kansas City, MO and has 16 retail locations throughout the U.S. and Canada. Arrow Truck Sales, Inc., is part of the Volvo Group of companies.
Volvo Trucks Names 2009 Dealers of the YearUTA members M&K Quality Truck Sales (Byron Center, Michigan) and Beaver Truck Centre (Winnipeg, Manitoba, Canada, were named U.S. and Canada Truck Dealer of the Year, respectively. Congratulations to M&K’s dealer principal, Ron Meyering, and Beaver’s dealer principal, Barry Searcy.
“Our dealers are on the front lines every day, making sure our customers have the trucks, parts, and service they need to drive success,” said Per Carlsson, President and CEO of Volvo Trucks North America. “It is our pleasure to recognize the outstanding work of our top-performing dealers and the example they set for customer support.” n
Industry News BriefsRaise your hand if at this point in time you have more business than you know what to
do with?
Is your hand raised? Yeah, well, neither is mine. Did you see the Page 1 articles in both the April and May 2009 issues of the UTA Industry Watch? If you missed them somehow, log on to www.UTA.org and read them. Entitled The Benefits of Belonging to an Association, they help you understand the depth of benefits to you when you take an active membership role in your association.
By now you should have received your 2009 Mem-bership Directory. If you don’t yet have it, it is winging its way to you as you read this. Take a few minutes to go through it and notice something. It reads like a Who’s Who of the truck sales business. Everybody who is a player in every aspect of this business is in it. From the OEMs to independent dealers to service companies. You name them, we’ve got them. We have a great membership. Use this directory daily when you need information. Somebody in our organization usually has the answer you need and the resources you can use. Are you making use of the Membership Directory? How about taking advantage of the discounts the Affiliates offer for services you are using every day?
Do you have salespeople who are new to the business? Have them read each and every newsletter starting with whichever one is most current. They will learn about the things they should know and hear about them from those who are in the thick of the action each and every day. Everything is on the website: www.UTA.org.
Do you have your UTA Code of Ethics hanging in your dealership or office? Do you use the UTA logo in your advertisements, on your business cards, or on your website? Are you spreading the membership word to those you know whose good business ethics match your own? Please do so. We want to grow this organization because, when we grow, it only means
the entire used truck industry is getting strong.
Thank you very much for the support you do give. If I can help you in any way, please get in touch.
Randy Marshall Membership Committee Chair [email protected]
Membership Directory
4
UTA Industry Watch
July 2009 www.UTA.org
Year started in the business: 1962. Started in the truck business as a: Parts counterman.Current Company: Rush Enterprises, Inc., in New Braunfels, Texas.Current Position: Vice President of Used Truck Operations. How I got here was doing a little bit of everything in this business from parts counterman and manager to new and used Ford Truck sales to running my own business selling used heavy-duty trucks to operating a trucking company and becoming a very good truck driver and mechanic only to come back to truck sales. After some years, I was hired in 1984 by Marvin Rush, then the owner of one Peterbilt dealership in San Antonio, who asked me to be his Used Truck Manager. I have now been with Rush for 26 years. Are you a dealer principal? No.How many trucks do you estimate you have sold in your lifetime? I would say I sold a few thousand trucks and I have purchased or been involved in purchasing more than I ever sold.Did you ever sell new trucks? Yes, for five or six years. What make, model, and year was the first truck you ever sold and who did you sell it to? I will never forget it; It was a 1967 Ford T950 equipped with a super-duty 534 gas engine with a five and four and heavy axles. I learned my first and most valuable lesson about not pre-judging your customer. I had just started as one of three new salesmen in a newly opened Ford truck store. As the three of us stood looking out at the lot, we observed a middle-aged, raggedy dressed, dirty and unshaven guy drive up. He got out of his old beat-up Ford pickup, which badly leaned to one side because of broken springs. One of the other salesmen said, “I think this guy could not buy the lug nuts, much less afford the truck he is looking at.” I went out and greeted him. Long story short, he was the contractor for the very important dam build for the new lake south of San Antonio. It took 30 minutes to make a two-truck deal. It was my pleasure to show the other two salesmen the check and watch their faces drop in disbelief. The trucks were picked up the next week. How many employees are at your location(s)? Rush employees a little over 2,600 people.What is the best part of selling used trucks? Making friends with a new customer, developing a good relationship over a period of time, and at the same time, making someone happy that they received a good deal and the kind of service they are entitled to receive. And of course it always makes you feel good when a little money has been earned.What is the worst part of selling used trucks? It is always disappointing to see one of your customers have a problem with his truck or seeing your customer lose his truck by his own bad management.What do you see is the biggest obstacle to your business within the next year? I still see a glut of used trucks, indicating that values will stay down due to heavy inventory levels. As demand begins to strengthen for used trucks and inventories diminish, values will start climbing. I do expect to see this since fewer new trucks were sold in 2008 and 2009. When those vehicles are ready for trade, we expect there will be less supply than demand. What do you repeatedly hear customers say? They say they are looking for service, and a good deal and to do business with someone they can trust that will tell them the truth.How do you attract customers? Give them the best deal from someone they like and trust, and feel they are getting an honest, fair deal from. Customers don’t want to be lied to, they want to trust you and feel comfortable with you. The keys are relationship, friendship, and trust. How do you keep customers loyal to you? Always remember “The Customer is the Boss”.Any last stories/opinions/thoughts? I want to sum up with comments and opinions that concern me for the future. Like a lot of other dealers, we have been faced with significant challenges dealing with heavy used truck inventories due to extensive fleet buying in 2005-07. The problem is that fleets need to trade in order to replace those trucks, but it is getting harder to digest all the trades. Rush is now at a used truck inventory level of a little over a thousand units, and we predict that by year end 2009 we will be faced with a used truck inventory of around 1,200 units. Even with our 50-plus locations, these are a lot of trucks to move. And with the poor economy and tighter credit, we must take the trades in order to maintain new truck sales. Also, governmen-tal regulations are forcing engine changes; no one knows if that will kill the diesel engine as we know it. I predict natural gas engines to come into play. For dealerships, though, there will be more and more opportunity in engine repowers and retrofits to bring diesel power up to emissions standards so we can sell these trucks. n
Ernie Bendele
UTA Industry Watch
5July 2009www.UTA.org
Navistar Continues to Expand Presence in Southern Africa
New Parts Distribution Center Improves Customer Service and Parts Availability
JOHANNESBURG, SOUTH AFRICA (June 5, 2009) – The doors to a new 4,200 square meter parts distribution center (PDC) officially opened today in Midrand, launching Navistar’s (NYSE: NAV) newest facility in South Africa.
At a grand opening ceremony, customers, dealers, employees, and Navistar executives celebrated the benefits of the new PDC, which will greatly improve customer service and parts availability for customers throughout the region. Located just north of Johannesburg, the Midrand PDC now imports, stocks, markets, and distributes aftermarket service parts for the entire Southern Africa region.
“Our strategy in Southern Africa is another sign of Navistar’s growing global presence and demonstrates our commitment to serve our customers in the Southern Africa region,” said Phyllis Cochran, senior vice president and general manager, Navistar Parts Group.
International® brand trucks have a long history in South Africa dating back to 1921. In 2008, Navistar introduced a new distribu-tion strategy in southern Africa, creating Navistar International Trucks Southern Africa, to import and assemble International brand trucks such as the International 9800i and provide comprehensive aftersales technical service and parts support for the International brand.
“Our trucks deliver a strong brand presence in Southern Africa and expectations of our PDC include profitably growing our parts business by expanding our parts availabil-ity, service and support capabilities,” said Tim Quinlan, regional vice president, Navistar Truck Group.
The PDC will support dealerships in Namibia and Swaziland as well as several in South Africa, including locations in Wadeville, Johannes-burg South, Polokwane, Middelburg and Bloemfontein, Cape Town, Durban, Port Elizabeth, Harrismith, Richards Bay, George, Nelspruit, and Port Shepstone.
“The Navistar team in Southern Africa is a great group of people who work tirelessly at every level for the benefit of our customers,” added Quinlan.
Hendrickson joins U.S. EPA SmartWay Transport® Partnership
ITASCA, Ill. – Hendrickson announced that four of its divisions, Truck Suspension Systems, Trailer Suspension Systems, Auxiliary Axle Systems, and Bumper and Trim, have joined the SmartWay® Transport Partnership. This is an innovative collaboration between U.S. Environ-mental Protection Agency (EPA) and the freight industry, designed to increase energy efficiency while significantly reducing greenhouse gases and air pollution.
Hendrickson will contribute to the Partnership’s goal to reduce 33 to 66 million metric tons of carbon dioxide and up to 200,000 tons of nitrogen oxide per year by 2012 by improving the environmental performance of our freight operations. Carbon dioxide is the most common greenhouse gas, and nitrogen oxide is an air pollutant that contributes to smog. By joining SmartWay Transport Partnership, Hendrickson demonstrates its strong environmental leadership and corporate responsibility.
“We are excited to be a partner with SmartWay Transport and to continue in doing our part to achieve our collective goal of reducing greenhouse gases and air pollution,” said Baine Adams, vice president of global sales and marketing at Hendrickson.
Launched in February 2004, the SmartWay Transport Partnership aims to achieve fuel savings of up to 150 million barrels of fuel per year and currently has over 1800 Partners.
Navistar Defense Debuts Its Husky Tactical Support Vehicle at U.K. Vehicle Show
WARRENVILLE, Ill. (June 24, 2009) – Navistar Defense, LLC today debuted its Internation-al® Husky Tactical Support Vehicle (TSV) at the U.K. Ministry of Defence vehicle show known as DVD. In April, the Ministry of Defence awarded the company a contract to provide 262 Husky vehicles. Organized by the Ministry’s Defence Equipment and Support division, DVD offers attendees the chance to see vehicles in action on the show’s off-road course.
Specially designed to meet U.K. urgent operational require-ments in Afghanistan, the lighter and more mobile Husky is built to navigate the rough Afghan terrain, while offering added protec-tion from ballistics fire, mines and roadside bombs. The Husky, which is the medium variant for the TSV program, will be procured in three
vehicle types: patrol, ambulance, and command vehicle. Integrated with U.K. specific systems by Dytecna, the vehicle accommodates a four-person crew and is equipped with a Maxx-Force® D 6.0 L V8 engine, Allison five-speed automatic transmission, and also incorporates Plasan Sasa’s armouring solution.
Last month, Navistar also delivered its first two Husky prototypes, ahead of schedule, to undergo final requirements testing before full production begins this summer. “The Navistar team is going after an aggressive delivery commitment to provide our U.K. forces with the equipment they need as soon as possible,” said Archie Massicotte, President, Navistar Defense. “Not only will we deliver quickly to support those in theater, but Navistar is prepared to rapidly incorporate design changes into our vehicles as in-theater threats evolve.”
Additional information is available at www.Navistar.com/newsroom. n
6
UTA Industry Watch
July 2009 www.UTA.org
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Elections and Nominations
It is that time of the year again to select the candidates for the Used Truck
Association Board of Directors. As members of this great organization you get to nominate people who will be able to help the UTA run better and grow larger. The individuals you choose to nominate should be able to bring unique and interesting ideas to the Board and have an understanding of the Used Truck business. Being on the Board of the UTA is a very rewarding experience, but it also means a commitment and hard work. Being on the Board means you will be able to help make decisions that will enable the UTA to continue its growth and benefit its members.
If you nominate someone, and I hope you do, make sure you notify that person you are doing it. If anyone who is nominated wants to contact any present Board member to talk about the positions they are interested in, feel free to do so. You should go to the website www.UTA.org and click on the link to get the Board of Directors Nomination Form.
By the way, if you would be interested in running, do not hesitate to nominate yourself. We thank you in advance for your support and the vision you have in the UTA. Remember, this is your organization; you
only can get out what you put in.
Pete Pilittere Elections and Lifetime Achievement Award Chairman [email protected]
PS: It isn’t too late. We are still accepting nominations for the 2009 Marvin F. Gordon Lifetime Achievement Award. Please go to the www.UTA.org website and get your nomination in today.
Privacy Rulesby Scott Carr
truck dealers and the lenders they do business with have something else to worry about beginning August 1, 2009. Compliance with the Fair and Accurate Credit Transactions
Act (FACTA) becomes mandatory on that date (unless the deadline is extended again by the federal regulators, which they have now done twice). The law is in response to the growing problem of identity theft and how it can potentially destroy a person’s credit. Any dealer that assists in arranging for an extension of credit as defined by the Equal Credit Opportunity Act is subject to this new law. There is no exclusion for business purpose credit under the ECOA.
In a nutshell, dealers are required to adopt and enforce a policy that assures all personal identifying information obtained from customers is safeguarded and used only by those in the organization who have the need to access it. These are referred to as the Privacy Rules. The policy must also define the ways the dealership can detect potential identity theft fraud and what procedures to undertake when they do. These are referred to as the Red Flag Rules.
Generally speaking, identifying information consists of the customer’s first name or first initial and last name in combination with any identifying information, such as a Social Security Number, employee ID #, driver’s license, passport, state identification number, checking or savings account number, credit or debit card number, personal identification number, or any other number or information that can be used to access a person’s financial resources. This identifying information may be provided to the dealer verbally and recorded on documents used in the business, or it may be provided on documents supplied by the customer, most notably a credit application and copy of driver’s license or other identification. At no time can this information be purposely disclosed to or accessed by any third party, unless that third party has a vendor relationship with the dealer.
While much of the burden of this new law falls on the finance and administrative sides of our businesses, it very much applies to what happens on the sales floor as well. All employees will have to adapt to doing things in a new way, from verifying at all times who they are talking to and doing business with, to assuring that no papers containing identifying information are left in or on desks or work areas accessible to the public. All such information will have to be safely kept and destroyed according to the dealer’s written policy. Managers will be responsible for assuring that all employees are properly trained and following the law.
Given time, the unfortunate result of new laws is they usually result in more lawsuits. Attorneys will potentially see this as an opportunity to win monetary settlements for their clients who
have suffered damaged credit, for any potential reason, by bringing action against anybody the client has ever provided identifying information to, thereby placing the burden of proof upon the business to show the adequacy of and compliance with their internal policies. For this reason, and also to act as good stewards on behalf of our customers, dealers should take this law seriously and take all steps necessary to comply. At the very least, dealers should seek guidance from their local attorney. n
[Editor’s Note: Scott W. Carr is President and CEO of Transport Funding, LLC. If you would like to make comment on this article, please email [email protected] and [email protected]. www.transportfunding.com]
Scott Carr
UTA Industry Watch
7July 2009www.UTA.org
Tie a Knot in the Rope and Hang On. Relief is Coming. by Chris Brady, CMVC
In my last UTA editorial, I mentioned the need to monitor industrial production since industrial production measures freight volumes flowing through the supply chain. Current supply chain statistics imply the downturn in industrial production is stabilizing, but the recovery in industrial production will be gradual since excess inventories still plague the supply chain. The downward trend in retailers’ inventory-to-sales ratio implies retailers have begun to get their inventories in equilibrium with sales volumes. As inventories approach equilibrium, retailers will speed up inventory replenishment, thereby stimulating freight volumes into their distribution centers from wholesalers and producers.
Stronger inventory replenishment by retailers will help wholesalers and producers to get their inventories in equilibrium. When inventories are in equilibrium throughout the supply chain, retailers, wholesalers and producers will replenish inventories in response to sales, thereby spurring industrial production. An upward trend in industrial production implies a broad base freight recovery, which is necessary to spur used truck demand since fleets are suffering from excess truck capacity.
Excess truck capacity has dampened used truck demand since fleets are shrinking truck capacity in response to lower freight volumes. This implies used truck sales below replacement
demand volumes. For example, ABC fleet would normally replace five trucks in 2009, but as a result of excess truck capacity the fleet plans to only purchase two trucks in 2009 while continuing to liquidate five trucks from its fleet. ABC fleet is shrinking truck capacity in response to depressed freight volumes.
An upward trend in freight volumes would help fleets to absorb excess truck capacity and would increase fleets’ freight capacity require-ments. Used truck demand will slowly trend upward towards replacement demand volumes as higher freight volumes absorb excess truck capacity. I foresee a slow freight recovery bringing truck purchases below replacement demand volumes. So the pressure will remain upon fleets to correct for excess capacity by shrinking truck capacity. Fleet capacity utilization decreased substantially in the fourth and first quarters, so a gradual freight recovery will not bring truck capacity in equilibrium with freight volumes.
The gradual recovery of freight volumes will initially stabilize the downward pressure on used truck demand, as sluggish freight growth combined with decreasing truck capacity results in an upward trend in truck utilization from depressed levels. The gradual upward trend in truck utilization will initially stabilize the down- ward pressures on used truck demand, but as truck utilization continues to trend upward it
will begin to spur used truck demand. Truck utilization will reach levels to spur used truck demand in 2010, but excess truck capacity will plague fleets during the second half of 2009.
Continue to monitor industrial production since a freight recovery is necessary to spur a rebound in used truck demand. I would also recommend used truck dealers to monitor industrial production, since the U.S. economy is dynamic and if past economic recoveries are an example the upturn in the U.S. economy can surprise economists. A strong recovery in the industrial production would absorb excess fleet capacity faster than anticipated causing a stronger rebound in used truck demand than predicted. Higher freight volumes also imply an improved business environment that will make fleets more confident about increasing investment spending on trucks. Businesses need to be confident about the future to make capital purchases.
Industrial production is an easy economic statistic to monitor since industrial production is widely reported in newspapers and other media outlets and can be found at the Federal Reserve Board’s web site. n
[Brady is principal of Commercial Motor Vehicle Consulting, a market analysis and research firm, focused exclusively on the North American commercial vehicle industry. He has over 20 years analyzing the commercial vehicle industry and is a member of the National Association for Business Economics and is a previous contribu-tor to the UTA Industry Watch. Send comments on this article to [email protected].]
Chris Brady
Supply Chain IndicatorsRetail Sales excluding motor vehicles
230,000
238,000
246,000
254,000
262,000
270,000
jan marmay jul
sep
nov jan mar
2008 2009
Wholesalers Sales
125,000
135,000
145,000
155,000
165,000
175,000
jan marmay jul se
p nov
jan mar
2008 2009
dura
ble
gds
155,000
160,000
165,000
170,000
175,000
180,000
185,000
nond
urab
le g
ds
durable nondurable
Inventory-Sales Ratios within the Supply Chain
1.00
1.10
1.20
1.30
1.40
1.50
janmar
may julse
pno
v janmar
2008 2009
who
lesa
le a
nd m
fg
1.44
1.49
1.54
1.59
1.64
reta
il
mfg wholesale retail
Manufacturing Output
95
98
101
104
107
110
janmar
may julse
pno
v janmar
2008 2009
cons
umer
goo
ds
110
115
120
125
130
135
busi
ness
eq
uipm
ent
Consumer Goods Business Equipment
-0.12
-0.10
-0.08
-0.06
-0.04
-0.02
0.00
0.02
0.04
0.06
Q1Q4Q3Q2Q1Q4Q3Q2Q12007 2008 2009
Change in U.S. Class 8 Capacity Utilization seasonally adjusted annual rates
8
UTA Industry Watch
July 2009 www.UTA.org
Personal Thoughts From Those Who Knew Him Well
“It seems like yesterday when, as a young man entering the used truck profession, I heard Jim Sundy accept one of his many awards for his service to our industry. He said that we should all give something back to the industry that we were involved in. I took that to heart. Jim inspired me to get involved with Blue Book and, under George Stanton’s tutoring, I gave back to my industry. Again, inspired by Jim Sundy, when the opportunity to lead the UTA presented itself, I stepped up to the plate. All because of one man’s speech about how the truck industry had been a blessing to his family and his life. Can one man inspire and change another’s life? Indeed! Jim was a true friend to me and extended his wit and charm to many of us throughout the years. Once in Savannah, years ago, Jenny and Jim took me under their wing and gave me a tour of the area. Since they had lived there in their younger years they knew some very interesting things which they shared with me as we toured the city. I was unable to attend his funeral, but I was there in spirit and lifted my glass to a life well lived and to a man whom I admired and respected. Have a pleasant journey, dear friend, and leave me something to do in the celestial world!
–Steve “Bear” Nadolson
Jim Sundyon June 10, 2009, Jim Sundy passed peacefully while surrounded by Jenny, his wife of
44 years, and his family. He has been a friend to many over his lifetime. Jim started earning his place within the used truck industry over fifty years ago. Among his numerous sales awards were Peterbilt Used Truck Manager of the Year and the Used Truck Sales Professional of the Year. He was also involved with the Blue Book Advisory Council; the Peterbilt Advisory Council; and the Detroit Diesel Advisory Council. He was one of the founders and a former chief officer of the Used Truck Association. Jim worked for 35 years with Nalley Motor Trucks in Atlanta.
When Jim was honored with the UTA’s Marvin F. Gordon Lifetime Achievement Award for his many contributions to the used truck industry, he said “I am extremely honored to receive this award. I’ve always been committed to the used truck industry and I take great pride in knowing that my colleagues and associates feel I have made some difference in helping that industry evolve.”
Jim was a true southern gentleman.
The Passing of a True Southern Gentleman:
Jim Sundy was a dear friend and I will miss talking with him. He was smart and knew his history which I enjoyed listening to as he talked about it. Jim and Jasper Johns, the famous artist, were born the same day in the same hospital on May 15, 1930; and they lived next door to each other. Jim was a good person and a good truck man. Those who have come in contact with him will miss him. He has a lot of friends. His word was his bond.
–Jerry Nerman
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I spent a lot of time with Jim during his days with Nalley since I was his Paccar Financial Contact. He told me early in my career to always protect the pricing integrity of a Peterbilt Truck, believed in the product he sold, and demanded a premium price. I followed thru with my commitment to Jim during my Paccar career. He deserves a lot of the credit for maintaining a high residual for our product thru-out the years. He shared his expertise with all who were associated with the used truck industry and we will forever carry his guidance and memory with us. I will miss him.
–Dick Vulgamore
Jim Sundy has been a friend of many over his lifetime. Even though Jenny was his all time best friend, he enjoyed a large number of second best friends and I was privileged to be one of those . Jim was the type of person that continually gave back in all aspects of his life. One of his friends said, “Those that watched and listened to him are better because of him.” I agree. Jim was a pure southern gentleman. We are so blessed to have had Jim Sundy in our lives. The ones that knew him best will tell you that his contribution to our personal lives was immeasurable and will last forever. He is a friend I will miss immensely and so will the used truck industry.
–Eddie Walker
Jim Sundy was a true friend. He meant the world to me and to others he touched. He always had a story and a quip. I was pleased to be one of Jim’s friends. That is an honor. I am proud of the work he did to promote the professionalism of our industry. This “Southern Gentleman” was the epitome of what this industry is all about and Karen and I will always cherish the time we got to spend with him and his best friend and wife, Jenny. We will miss him but we are better off for knowing and being with him.
–Al Hess
I strive each and every day to BE A “JIM SUNDY” KIND OF GUY.
–Ronnie H. Jordan
When I think of Jim, I think of a dry sense of humor, a great laugh, and a kind smile. Jim Sundy was the kind of person you always wanted to spend more time with talking about life in general, or Southern politics or business. Jim was First Class both personally and professionally. He was great man and a dear friend to all.
–Lee Chapin
Jim and Jenny: Best friends. Inseparable partners.
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Sincerely, Angela K. Durden [email protected](404) 358-0951
Last Notes
Quintessential Quote
Adjustment: dancing to the tune
which is played.
SPANISH PROVERB
PeopleNavistar International Corporation announced today that Diane H. Gulyas, a group vice president at E.I. DuPont de Nemours & Company, has been named to its board of directors effective June 16, 2009. “I am extremely delighted that Diane Gulyas is able to bring knowledge of manufacturing, electronics, and marketing as well as her experience in international operations to Navistar,” said Daniel C. Ustian, Navistar chairman, president, and CEO. Diane H. Gulyas
When I heard the thunder and felt it shake the house, I took my supper out to the back porch to eat. As the thunder rolled and the rain hit, the wind whipped the trees into a fury and the temperature dropped a good fifteen degrees. I was enjoying every minute of it. As I watched the trees I caught a glimpse of a white speck bouncing up and down in mid-air.
A small butterfly was steadily fighting the headwind and dodging the drops. Yes, I said dodging. I know because every now and then I would see him drop a few inches and fight his way back up even higher until finally he was above my roofline and I could see him no more. Watching this little creature and seeing his application of an iron will, I am sure he made it to his destination.
It made me think of our businesses this year. The rain of decreased sales has been steady; the thunder of doom-and-gloom reports has been booming at us across the nation; and we have felt the cold, cold winds of investments lost. But here we are, just like that fragile, small, seemingly insignificant butterfly, yes, here we are dodging the raindrops, ignoring the thunder, and keeping up our spirits as best we can. We will make it home.
And home this year for us is the 10th Annual UTA Family Reunion and Convention. As I write most of this, it is just three hours since I received the bad news. Yes, this year, at our family reunion, we will be missing one of our elder statesmen. Jim Sundy, a founder of the UTA and a much beloved figure, shuffled off his mortal coil. At his side was Jenny, his wife of 44 years. When I called the hospital room, she told me he had just passed, but until they came to get him she was staying in the room so he wouldn’t be alone. “He was a keeper,” she said. Yes, Jenny; he was.
Family. Some are born into loving and supportive families. Others, cast adrift, make their own or find one wherein they can get the support and care they need to fight life’s stormy raindrops that seek to tear off their fragile wings. Jim Sundy was an umbrella to many in both business and personal matters. He was a man you could count on. Fiercely loyal. Hating injustice. A lover of good. The example he set has inspired the youngsters among us. As incentive to strive harder and be better, we shall each keep our own fond memories of this fine man.
When he was 16, he joined the Marines. They didn’t know he was only 16. But after earning a Purple Heart and distinguishing himself in other ways, he was okay by them. It is a measure of a man that when he dies his children cry because they will miss his presence and guidance. His children were tearful and yet joyous at being able to celebrate his life instead of having had to endure it. He will be missed. I for one, having known him only a few years, am honored to be able to say he reached out a helping hand to me, too, which puts me in some mighty fine company.
When we see each other in San Antonio, let’s celebrate Jim Sundy’s life and Jenny’s unwaver-ing support of him, and continue the tradition of supporting one another and keeping this a
strong family-like organization.
In the meantime, keep dodging the drops and flapping those wings.
Top 10 Markets with Best and Worst Expected Home Price PerformanceCary, NC (PRWEB) June 23, 2009 — Local Market Monitor today released its latest Home Price Forecast, covering well over 300 US local markets. The forecast, which predicts local market behavior over the next 12 months, identifies markets where home prices will continue to drop as well as stable markets with opportunities for growth. A market is defined as stable if it “did not have a large boost in home prices over the last few years and therefore, even though the economy is doing poorly, no adjustment in prices has been necessary,” said Ingo Winzer, president of Local Market Monitor. “Steady economic growth and price apprecia-tion have helped these markets remain stable.”
Best markets : n Baton Rouge, LA n Buffalo-Niagara Falls, NY n Dallas-Plano-Irving, TX n Fort Worth-Arlington, TX n Houston-Sugar Land-Baytown, TX n Little Rock-North Little Rock-Conway, AR n McAllen-Edinburg-Mission, TX n Oklahoma City, OK n Rochester, NY n San Antonio, TX n Syracuse, NY n Tulsa, OK n Wichita, KS
Worst markets: n Bakersfield, CA n Fort Lauderdale-Pompano Beach-Deerfield Beach, FL
n Fresno, CA n Las Vegas-Paradise, NV n Miami-Miami Beach-Kendall, FL n Orlando-Kissimmee, FL n Oxnard-Thousand Oaks-Ventura, CA n Phoenix-Mesa-Scottsdale, AZ n Riverside-San Bernardino-Ontario, CA n Stockton, CA n West Palm Beach-Boca Raton-Boynton Beach, FL
www.localmarketmonitor.com
h 2009 SponSorS hDiamonD
arrow Truck SalesCaG Truck Capital/The Fairville Companies
plaTinumCaterpillar, inc.
manheim Corporatenational Truck protection
Truck paper
GolDBennett DriveawayColdiron Companies
idealease, inc.international used Truck Centers
naDa premium 2000
Team Drive-awayTrader media/Commercial Truck Trader
Truckmovers.com, inc.
Silveramerican Trucker
ameritruckGreat american insurance Division
rock and DirtSoarr/interstate online Software
BronzeHino Trucks
The cover story this issue is about our convention keynote speaker,
Dan Baker. Dan’s message for us fits in well with our convention theme of making this a family reunion. With the recent passing of Jim Sundy, one of the fathers of our UTA family, we are reminded ever more of the need to make and keep strong the connections we have as well as the benefits of having friends to call upon when things get tough. In San Antonio you will have networking and used truck industry-spe-cific education opportunities as well as the opportunity to visit with old friends and make new ones. I have been involved with these conventions since we started them in 2000. I have never failed to be benefited by each and every one of them. It would be nice to see you there, too. If you are new to the association, I urge you to make this convention a priority each year starting now. If you are a long-time member but you are thinking you can’t afford to come because business is down, I say you can’t afford not to be there. San Antonio is a great town. Join us. n
This Fender guitar, autographed by some of country music’s biggest stars, could be yours at the 2009 UTA Family Reunion in Ol’ San Antone. Stay tuned to find out how.
