Steve Temple
The Walkaround
Dennie Ortiz Publisher
Making Changes
They say time flies when you’re having fun, and while true, I would also add that time flies when you’re working your proverbial keister off. Running a 24/7 towing operation can be rewarding, yet can get a bit weary. Has the possibility of leaving the industry to pursue greener pastures ever crossed your mind? If so, a must read is Larry Oxenham’s article on Thinking of Selling? As an experienced trust and estate attorney, Larry offers keen insights you need to consider should you choose to go down this path.
Amongst the steep challenges tow business owners face, of prime importance is the cost of insurance. How does one tackle the continual rising costs and still turn a profit? Brian Riker evaluates captive insurance, an alternative option, and if it’s right for you.
Industry expert and well-known trainer, Paul Stephens, returns to our pages to sing the praises of what he claims was one of the best inventions in towing—the skate. Paul walks you through the best techniques to get the most out of this indispensable tool.
While Paul took on the loading aspect of a vehicle, Randy Resch takes it one step further to his preferred method of properly securing a casualty. Resch suggests the use of the 8-point strap system is best to not only avoid damage, but also provide an added measure of operator safety.
Safety being paramount in our industry and a focus in every issue, Terry Abejuela’s safety subject this time is the proper use of traffic control measures. Terry suggests understanding state and local laws and what exactly you are allowed to do to ensure the overall safety of the operator.
The sobering fact is that no matter how safely you operate at a scene, accidents that result in fatalities still occur much too often. Featured on our cover is a rolling monument, a carrier created by HBL Towing & Recovery out of Dallas, Texas as a remembrance of those towers that did not make it back home and whose names now solemnly reside on The Wall of The Fallen. More photos of this rig, along with the meaningful thoughts and feelings that went into its formation, can be found in our My Baby department.
Steve Temple Editor
Expect an Exciting Exposition
We’re touting our biggest tow truck event of the year in this issue, to be held at the Baltimore Convention Center on November 21 to 23 (for details, see our special section starting on p. 35). The wide array of exhibitors, hands-on towing demonstrations, and the AT Academy’s business seminars are destined to be enthralling and informative.
Of course, the AT Wrecker Pageant in particular is a huge draw as well. Competition is fierce for trophies, as our show judges scrutinize every detail in determining the winners. So, get ready to buff out your tow truck and make it shine for showtime.
While not every wrecker can take home an award, we plan to expand our coverage this year to include all of the participating tow trucks, so everyone will get a well-deserved acknowledgement for making the trip to Baltimore and being on display.
In addition, many tow trucks at the event become the subject of our “My Baby” and “Classic Wrecker” features. As an example, we came across our current cover feature on HBL Towing & Recovery’s “Wall of the Fallen” at the Texas TowXpo, which is a stirring example of selflessness in meeting the needs of towers’ families through the Survivor Fund. Also, many owners are interviewed by broadcaster Emily Oz of American Towman TV, and some wreckers are included in dramatic recoveries selected by WreckMaster for a Donnie Cruse Award.
We’re always on the lookout for feature candidates, and all we ask for is a selection of good photos to help us tell your story. Plan on stopping by the AT booth to let us know “whatcha ya’ brung.” We look forward to seeing you there!
Editorial Board
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The Passing of ECS’s Ed Grubbs
Ed Grubbs was an expert source for American Towman in the past decade. His knowledge and larger-than-life personality will be sorely missed, as Ed passed away from pancreatic cancer on the morning of June 24, 2024.
According to Environmental Chemical Solution (ECS) colleague Jim Figueira, “Ed looked at the disease as a blessing. With the short time allotted after the diagnosis, he took advantage of that time and focused his energy of setting things right for his wife, Lynn, and to ensure his work in support for the incident management towers (IMTs) was well cemented.”
Grubbs knowledge of environmental law, health and safety issues, and passion for working on behalf of the IMTs was unparalleled. His emphasis on doing the right thing steered his company’s foundational principles. He was dedicated in his efforts to set up guidelines for the mitigation, storage, and disposal of vehicle operating pollutants to be included in the tow service agreements (TSAs). He recognized the fundamental principal that the IMT must get paid for their environmental services that they are required to perform by law.
“Ed had a personality that instantly made you feel like you had known him for years,” Figueira added. “You sensed his genuine friendship.”
American Towman will miss Ed’s wit, charm and towing industry knowledge.
The Passing of Joe Prenda of Penny Pockets
Joe Prenda worked as a sales manager for Penny Pockets Custom Design & Embroidery for many years until his retirement. Henri “Doc” Calitri, President, A.T. Expo Corp., said, “Joe Prenda was a fixture for many years at the American Towman shows. He and his company, Penny Pockets, were always front and center supporting our shows. Joe was a good friend of not only our company, but also of mine. He was a great guy, always worked hard at the shows and had a wonderful disposition. I would always go to Joe as a sounding board on how our shows were doing from his perspective. He was always very straightforward and honest.”
Tow Company Unveils
North America’s First EV Tow Truck
Canadian tow company CAA is introducing what it claims to be North America’s first all-electric tow truck, the Lion5, which will operate in the Quebec area. This new vehicle comes 80 years after the company launched its initial horse-drawn towing services. The towing platform for the Lion5 was manufactured by XpaK Industries.
“Roadside assistance has always been a core part of CAA-Quebec’s mission, and our step into electric towing is a natural progression,” stated Marie-Soleil Tremblay, president and CEO, in a press release. “We are committed to leading by example and playing a significant role in environmental protection.”
The Lion5 tow truck is equipped with a 210-kWh capacity, and can travel up to 192 miles on a single charge. The 800-volt battery packs are produced by Lion Electric. CAA will be testing the truck in various towing scenarios and weather conditions over the next few months.
“This vehicle provides efficient
service while greatly reducing greenhouse gas emissions, showcasing the versatility of Lion trucks,” said Patrick Gervais, vice-president of trucks and public affairs at Lion.
“With this new 100% electric tow truck, made in Quebec, we are contributing to the transformation of the towing industry. We are proud to be part of a more sustainable and cleaner future with partners like CAA-Quebec and XpaK.”
The towing platform is 25 to 30% lighter due to its use of lightweight materials and the electric nature of the truck, which also eliminates the risk of hydraulic fluid leaks.
Source: trucknews.com
New Towing Law Requires Photo Evidence
A new state law signed by Pennsylvania Governor Josh Shapiro will soon require tow companies to provide photographic evidence before towing a vehicle. State Representative Jose Giral, who sponsored the bill, introduced this legislation in response to numerous complaints from constituents about wrongful tows.
Starting in September 2024, towers will need to take photos that clearly show the vehicle’s license plate, the specific parking violation, and any relevant signage before towing the vehicle. These photos must be provided to the vehicle owner free of charge and kept for 60 days or until the vehicle is claimed.
“This simple but necessary measure would ease the appeals process for parking violations in Philadelphia and
allow for a fair system that keeps both drivers and the enforcers of our laws accountable for their actions,” said Giral.
Some companies already take photos as a precaution. However, it will now be mandatory, and tow companies will need to be diligent in capturing clear evidence of the violation.
Source: 6abc.com/post
Nashville Booting Sues
State Over New Booting Law
Nashville Booting LLC has filed a lawsuit against Tennessee’s governor and attorney general, challenging a new state law they claim will put them out of business. The law, which took effect on July 1, caps boot removal fees at $75, requires removal within 45 minutes of a request, and mandates that booting companies obtain a license to operate.
The company contends the law is unconstitutional and will cause “irreparable harm” by prohibiting third-party booting in commercial lots. “The Act effectively legislates Nashville Booting out of existence by requiring that only ‘owners’ of properties manage booting or towing vehicles parked on those properties,” the lawsuit states.
Sen. Jack Johnson (R), who sponsored the bill, said the legislation targets “bad actors” in the booting industry. “If you’re going to go to the egregious step of immobilizing someone’s vehicle when there could be an emergency— you’ve got a sick child that you need to get to the hospital—and you come out and you find that your vehicle has been immobilized, those people need to be held accountable,” he said.
Nashville Booting LLC insists it complies with Metro Nashville’s booting code and has more than 60 service contracts that will be disrupted
by the law. Despite this, the company faced criticism for past non-compliance.
Steven Knapp, a Nashville resident, called the lawsuit “karma,” noting that the company had previously booted cars without a valid permit. “It’s interesting to see that a company like Nashville Booting that was found to not be following the rules for their business is now suing the state for passing a law meant to protect people from exactly that type of behavior,” Knapp said.
Theresa Costonis of Metro Legal acknowledged the law’s impact on booting companies during a recent Metro Nashville Transportation Licensing Commission meeting. “It does seem to me to be very disruptive of their current business model,” she said.
Source: msn.com
Towman Killed in Accident at So. California Landfill
Tow truck driver Joe Martinez, 59, was tragically killed in an industrial accident at the Simi Valley Landfill and Recycling Center on July 1, authorities reported. The incident occurred around noon at the facility, according to Ventura County Fire Department reports. Deputies from the Ventura County Sheriff’s Office responded at approximately 12:15 p.m., stated Capt. Carl Patterson.
Capt. Patterson explained that a semitrailer hauling a load of gravel had tipped over, prompting the call for a tow truck to assist in righting the trailer. “While the tow truck driver was trying to right the trailer, he went to the side
opposite where he was pulling from,” Patterson said. “Something gave way, and the trailer fell back on top of him, crushing him to death.”
Source: vcstar.com
Speed Limit Changes: Key Insights for Towers
Speeding is a significant safety concern, contributing to nearly onethird of road fatalities over the past two decades. The AAA Foundation for Traffic Safety’s recent study, “Uncovering the Spillover Effect from Posted Speed Limit Changes,” highlights crucial findings for the towing community.
Key Findings:
-Beyond Interstates: Raised Interstate speed limits can cause safety concerns on adjacent roads. Spatial analyses revealed multiple hot spots on these roads, indicating a significant spillover effect.
-Local Impact: Increased speed limits improve traffic flow but may elevate safety concerns on nearby roads. Close coordination between transportation departments is essential to mitigate these effects.
-Visual Tools: The study introduced a tool to identify and visualize areas with speed-related crashes, aiding in developing targeted safety strategies. The Towing and Recovery Association of America (TRAA) values this research, which underscores the need for coordinated efforts to enhance roadway safety.
Source: TRAA Press Release
Beginning September 4th, 2024, American Towman is launching AT Academy online. This series of live webinars will be hosted by AT field experts such as Brian Riker, Terry Abejuela, and Bobby Tuttle, to name a few. Comprehensive webinars on Highway Safety, Liability in Hiring, and Electrocution Hazards at Crash Scenes will be offered, along with many others you may have missed while attending AT’s Tow Shows. American Towman is excited to make these seminars available to everyone online, and looks forward to providing an opportunity to attend these very informative webinars from any location.
road Tools
Tool Time
The Tesla Tool is a specialty long-reach device designed specifically for effective door opening of Telsa EVs. Tesla models can be tricky, particularly with respect to their use of thin, laminated glass on the front two windows, instead of the more traditional tempered glass. Sandwiching the Telsa Tool between Access Tools’ two Wonder Shields helps to protect the tool from contacting the window glass, thus preventing damage. In a situation where the vehicle is without power, the electronic locks fitted on a Tesla will not function properly. In order to open the vehicle, the Manual Door Release Lever in front of the window switches on the door panel can be operated. However, this release lever can be difficult to access with traditional Long Reach Tools due to the shape of the lever, the direction and angle that it needs to be manipulated, and the tightness of the frameless window through which the tool needs to pass. The Tesla Tool works on the following Teslas: Model S, Model 3, Model X, and Model Y.
Foldable Traffic Cone
While most tow operators carry traffic cones on their wreckers, they can take up valuable space, and aren’t nearly as compact and versatile as the FirstGard foldable traffic cone. Designed for rapid deployment as well as convenience, this 28.5-inch-tall unit folds to just 1.5” in width, so a set of five requires minimal space in a tow truck’s valuable storage space. Weighing just 3.5 lbs, FirstGard is lightweight yet heavy enough to remain stable. Each FirstGard unit has 237 square inches of sheeting for increased visibility, and conforms to the federal MUTCD (Manual on Uniform Traffic Control Devices). FirstGard is also designed for endurance, featuring replaceable nylon hinge components to allow for repairs. In addition, a recessed fitting located on top allows for mounting of LED warning lights.
pss-innovations.com
Three-Peat
Steck Manufacturing now offers its commercial-grade EasyWedge Inflatable Air Bag in a three-pack combo (STC32925). This durable, multi-use air wedge trio is ideal for emergency vehicle access, vehicle repair applications, and much more. The EasyWedge trio consists of three bags ideally sized for a wide range of uses. With a compact size and lightweight build for easy insertion into tight spaces, these air wedges feature a non-marring design, ensuring that surfaces, trims, and finishes remain unharmed. With durable construction for heavy-duty use, all air bag edges are high-frequency sonic welded, maintaining a tight seal for years of professional use. The air shim bag squeeze pump allows for easy, one-handed operation and precision inflation control as well as quick deflation.
Bus Hauler Lowboy
XL Specialized Trailers, a manufacturer of heavy-haul and specialized trailers, recently showcased the company’s XL 100 HDG: Bus Hauler. It’s rated to haul 100,000 pounds in ten feet, and designed for moving buses and other recovery loads. This latest innovative lowboy trailer from XL features a hydraulic detachable gooseneck, allowing for loading onto the front of the trailer. Seven-position variable ride heights enable the Bus Hauler to achieve maximum ride height versatility, aiding in the ability to handle rough terrain. The gooseneck also has work lights to assist with loading in lowlight situations.
This lowboy’s main deck is 23.5 inches long, and the 22-inch loaded deck height and six-inch ground clearance transitions with a low incline to the rear deck. The 102-inch-wide hauling area has outriggers that swing out to handle wider loads. Its hauling area also features raised Apitong wood decking, a stronger material than oak, and will withstand
years of wear and tear.
The rear deck height is 31 inches with 24-inch recessed bolsters and 24.5inch tires. The 60-inch rear platform in the back of the trailer, in combination with the two 20,000-pound winches, creates an ideal solution for loading buses or other inoperable loads. There are winches mounted both front and rear. The rear bolsters have adjustable height
traction inserts to accommodate varying load clearances. Aluminum ramps for the front and rear are conveniently stored on the gooseneck.
XL Specialized Trailers’ lowboys are backed by a full five-year structural warranty and a three-year paint warranty. In adddition, XL Specialized Trailers is known for customizing trailers specifically for user needs.
Tech
Skating Lessons
Can Make Your Towing Life Way Easier
By Paul Stephens
SChoosing the right skate material is important, depending on the type of casualty vehicles an operator handles, and the service area as well.
kates function like a greased wheel, with the sole purpose being to get something that doesn’t want to move, to move. The basic concept has been around for years but tow skates are a unique application. Tow skates are designed to help a tow operator relocate a vehicle with a variety of thorny issues. These could include a locked transmission or rearend, an electrical shifting issue, a compromised drivetrain, engaged emergency park brake, or damaged wheel component, among others.
The concept behind skates is to put a “slippery surface” in between the vehicles tires and the road or bed surface to allow it to be winched onto a car carrier, or move from a tight spot. All of which solves the various problems associated with vehicles that don’t roll.
Prior to skates as we know them, “skating” was accomplished by putting anything with a slick surface between a tire and the pavement, such as lunch trays, a piece of plywood, or even an assortment of soaps and lubricants. While these things might work well enough, the professional operator is looking for something that will work consistently and safely. Spraying oil or soap on the carrier bed may also work, but poses the distinct possibility that the tow operator is going to be the first one to slip and fall.
MOTHER OF INVENTION
Skates have become one of the best inventions to enter the towing industry, particularly when working with car carriers. Today’s basic skates haven’t changed much from the first ones
introduced more than 26 years ago.
The most notable change though, has been in the design flow and material composition, which ultimately makes the skate work smoother. Additionally, they’ve evolved into different styles for different applications which includes wheel skates, ball-joint skates, container skates, etc. Manufacturers make a variety of skate products that offer varying options in different styles and designs. With several usage options offered, purchasing the right skates, or even a variety for various jobs, is essential to a company’s success. Tow skates have proven to be durable, easy to use, forgiving, and the ultimate problem-solvers.
CORRECT TECHNIQUE
Understanding how to use a skate properly can save time and effort when getting a casualty vehicle on and off the car carrier bed, or when pulling a vehicle from a parking stall. Although skates might be a challenge in novice hands, seasoned pros usually get them installed and the vehicle moving in the right direction fairly quickly.
Two of the most important parts of skate usage is getting them set up properly, and understanding the casualty vehicle’s drivetrain. When skating a vehicle, the skate
should always be completely under the tire and wheel to help reduce torque load on the drivetrain.
Also, the tow skate must be wide enough to support the width of the tire, and as noted previously, positioned all the way under the tire. As a telltale indicator, the tire should be all the way against the head of the skate to load it, effectively minimizing any tire movement or wheel rotation.
Not putting the skate fully underneath and separating the tire from the ground can cause the skate to kick out from underneath the wheel. When you examine skate position under the tire, it should look as if the tow skate has raised the tire off the ground.
The head of the skate should also face in the direction the vehicle is being moved. So, when loading on a car carrier, the head of the tow skate faces the winch, and when unloading, the head faces the ground at the rear of the bed. This setup allows for the
wheel or weight to load the skate head, which will cause the skate to move.
FINAL CHECKLIST
Once the skate has been completely situated under the tire and against the skate head, it is important to carefully inspect all of the wheels before fully engaging the winch. This measure will ensures that they are going to move, either on the skates or their wheels. A good rule of thumb: if the wheel is rolling, it doesn’t need a skate.
Once an EV (Electric Vehicle) becomes bricked, the EPB (electronic parking brake) usually selfengages without an available neutral release. This requires a way to move the vehicle onto the carrier deck without damaging it. If the EV is compromised from an incident or accident, then the vehicle’s wheels should not be rotated and skates must be utilized.
Another advantage to using tow skates is the reduction of the tension on the winch line when dragging a vehicle. In general, the working load limit of wire rope is 3500 pounds. The resistance of loading a casualty vehicle onto a car carrier is usually going to be about a one third of the weight of
the vehicle. If the wheels don’t roll, however, the entire weight of the vehicle is being dragged, plus the resistance from the gradient or angle of the bed. This scenario could easily exceed the working load limit of the wire rope.
A common mistake is when the vehicle is an AWD (All-Wheel Drive) or 4WD (Four-Wheel Drive), and
the operator attempts to put four skates under the tires and the tires continue to shoot the skates out or roll over them. Many of these models operate on a speed or inertia system which activates the drivetrain once the vehicle is traveling over three to five mph. If the wheels turn freely, they will continue to jump over the skates, indicating the lack of need for a skate under that wheel.
An important item to remember is that some newer model AWD and 4WD systems can activate on an incline, so it is possible to start winching a vehicle up a carrier using two skates, then the system notices an angle and automatically activates the drive system, which will require additional skates to be used. This is a fairly common occurrence on the new Hummer EV, as well as other SUV models.
Pushing the tow skate up against the tire, as many operators do, will work somewhat, but not nearly as well as with the tow skate completely under the tire. The most efficient way to accomplish this is to line the tow skate up with the tire, and then hit it with a six-pound hammer until the skate is under the tire.
OTHER ISSUES
Unloading from an aluminum carrier can be a challenge due to the extruded metal creating a backward lip that the skate must overcome in order to slide backwards.
As for skate composition, materials vary amongst manufacturers, and the choice of product depends on individual needs. Examine the type of material the skate is made from— does it slide better than others, is it more durable than other brands, is it easier to place under the wheel, and can it hold more weight than others? These aspects all merit careful consideration. They should be considered before price. Many operators will choose inexpensive versions when first
learning the process, and once they encounter difficulty using them, they’re tossed, and the operators never go back to skates. This is a perfect example of “getting what you paid for.” Doing research beforehand, and talking to other operators and equipment distributers, will go a long way in helping choose the right skates for the job.
A frequent question regarding skates is: What is the best type of material?” Honestly, it’s all about personal preference. Some operators like a little friction, while others like it so slick a car can be pushed by hand onto the bed.
Often, the thicker the skate, the harder it is to properly place it, but it may be more durable. Also, thicker skates can also be flipped over and used as a “ramp” to slide a vehicle up onto the car carrier bed.
When plastic skates get gouged up, they stay that way. Whereas woodtype skates slide easily on different surfaces, and if they get battered, they are easily restored with a belt sander. Alternatively, plastic skates can be hooked together to form a wider skate for fatter tires.
Another frequent question is, “How many skates should an operator carry?” Since most vehicles have four wheels, starting with that is a recommended minimum.
A quarter of a century later, skates are now made for a variety of applications, such as ball-joint skates, vehicles missing a wheel, a broken suspension component, or for moving overseas containers. Moreover, skates can assist with loading, unloading, and simply moving a vehicle in a loweffort manner, thereby reducing the resistance on winches and wire ropes, and making the job fundamentally easier in the long run. Skates are a worthwhile investment of both time and money which will keep a tow business rolling smoothly.
Vintage Muscle
The Enduring Strength of Older Tow Trucks
By George Nitti
OGeorge L. Nitti has written for American Towman since 2009. He started out as a news writer and now writes a weekly feature on TowIndustryWeek.com, Tow Illustrated, which spotlights the tow truck graphics.
In 1965, with the opening of a nearby interstate, the company anticipated even greater heavier duty towing, customizing a wrecker to include a 40ton WeldBuilt crane and body.
classic wreckers, many of which are still in use today. Wayne Plunske founded the company in 1949, and in part built his business upon a diverse fleet that could continue to be used through the evolving landscape of the towing industry. When Wayne passed away in 2015, his sons Jim
otherwise been retired or replaced by newer ones.
“Buying tow trucks is a big investment,” Jim points out. “We find the old trucks just work better for us, and we keep them in good working order because we respect them. If something goes wrong, we are usually the ones fixing them.”
Their preference for older trucks is not only about dependability, but also about the financial wisdom of having something paid for that consistently generates revenue.
"We would rather have something here that is paid for,” Jim notes. “And when we go out with it, we make money from it rather than making a payment on it.”
In Plunske’s early days of towing, their ’55 Ford F250 (#3) pickup truck was a big breadwinner, with its plucky 390 Thunderbird engine, boom and tow sling.
“It was used for wreck chasing,” Jim admits. “My father would monitor the police scanner/radio and if he heard signal #2, that denoted an accident. He would then
Today, the venerable Ford is semi-retired, but comes out for tow shows and is occasionally used as an emergency backup. It is stored in an alternative location that has logistical advantages if it’s needed in a pinch.
As the industry transitioned to heavier duty towing in the 1960s, Plunske’s acquired a ’62 Ford F950.
“In 1962, the biggest tow trucks were 12 tons, so this was purchased because my father wanted something bigger, something heavier,” Jim recalls. “He started with Holmes, shop-built wreckers, but made a jump to a WeldBuilt crane and body.”
With its 24-ton lifting capacity and two boom winches, it also included a 15-ton drag winch, providing one more weapon to their arsenal for low-line pulling.
“The chassis was specialty ordered from Ford with air brakes,”
Purchased in 1962 for heavier duty towing, it has a 24-ton lifting capacity, with two boom winches and a 15-ton drag winch.
he adds. “They called it a cement mixer chassis at the time, and it had a double frame, two transmissions, a five-speed main transmission and three-way auxiliary.”
Despite its age and old-school technology, this burly Blue Oval wrecker is still in service, handling winch-outs and tractor trailer rollovers. “When we have trucks that are stuck in the mud, because the ’62 is not long, you can angle it and not take up the whole highway,” Jim explains.
By the end of the 1960s, the company purchased its first dieselpower truck, a ’69 International Fleet Star 2000 with a Holmes 600M (military) Style (24). The unit became the Plunske's longer distance, heavy-duty runner, where it did a lot of tractor-trailer swap outs, and generated plenty of revenue through its consistent use. Today, it’s still being used for straight tows and breakdowns. ◀
In 1965, “My father saw that I-91 was going to open up, which would lead to more heavy-duty towing,” Jim remembers. Thus the elder Plunske started building a ’58 International R230 (#4) with a 40-ton WeldBuilt. This wrecker included a tandem rear axle, and winches having a 40-ton lift capacity, with twin-booms, a 25-ton rear drag winch, and a 15-ton front winch.
“That truck did the first rollover just 11 hours after they opened I-91 in North Haven, Connecticut,” Jim says
with a note of pride.
By 1973, the company acquired its first flatbed, a 69' Chevrolet C50 (#11) with an 18-foot Chevron rollback. “My father was the first in the area with a flatbed, and it's still in our fleet, and still registered.” The company continues to use it, especially for hauling vehicles that are smaller in size.
In 2004, the company purchased its first rotator, and true to form, Plunske opted for an older one, a 1960 Oshkosh with a Silent Hoist
Model Q40 (30), previously used at a naval airbase. According to Plunske, what makes this 20-ton particularly effective is that its military rating gives it more lifting capacity than what’s stated, with its boom sitting 12 feet off the truck.
“Today, this area is saturated with rotators,” Jim observes. “There is not enough work for the amount of wreckers around. If the work is not there, how do you pay for it? You have to subsidize it with some other part of your business.”
By not getting overly leveraged buying newer tow trucks over the years, the company has been able to adhere to one of its core values— an ability to charge fair prices for their tows.
"When we get a job, we want to charge a fair rate within the parameters we are supposed to be charging,” Jim shares. “I don’t want to be known as a person who is gouging the public.”
This principle continues to guide the company. An approach that not only ensures financial stability, but also allows Plunske to provide consistent and dependable service to their clients.
As Jim points out, "You can’t have all of this stuff to pay the big insurance bills for, along with the taxes and upkeep—and then just sit there and look at them. You have to work them, as my father would remind us.”
Ultimately, it is the love for the business and the dedication to their craft that keeps them going.
“You’ve got to love the work you do and you’ve got to plug away, day in and day out, like my father would say.”
And so, they continue to do just that, carrying forward a legacy built on hard work, integrity, and a deep respect for the trucks that have been their faithful companions all these years.
Tow Boss
An Eight-Point System minimizes the risk of operator-inflicted damage to high-end exotic cars.
Soft Touch Making the Case
for Eight-Point Straps
By Randall C. Resch
AOperations Editor Randall C. Resch is a retired California police officer and veteran tow business owner, manager, consultant and trainer. He writes for TowIndustryWeek. com and American Towman, is a member of the International Towing & Recovery Hall of Fame and recipient of the Dave Jones Leadership Award. Email Randy at rreschran@gmail.com.
n older BMW 5-series stopped running and needed transport atop a flatbed carrier. There was nothing special about the load-and-go request, but the motor club member requested a carrier as recommended by the owner’s manual. In the usual, front-end-first manner of loading vehicles onto carriers, the Beemer was winched all the way up the deck. The final task was securing it to the carrier’s deck.
Outfitted on this flatbed carrier was a combination of J-Hooks, chains and ratchet straps. The operator secured the car using the typical “four-point tie down,” in order to comply with the state’s vehicle code law.
As the tower activated the winch out, the BMW steered itself toward the carrier’s passenger-side rail. Subsequently, the customer’s auto repair shop determined the tower snagged and bent the rack-andpinion steering unit, a common “driverinflicted damage.” Its repair was estimated to cost about $3,000 dollars.
HOW’D THAT HAPPEN?
In a similar situation, a novice carrier owner/operator called me about damage he caused on a customer’s car where he unintentionally bent a Porsche’s front tierod. The cause of the damage was simple: he had hooked a “J” to a tie-rod, versus attaching to a suitable location that would bear the weight of a tie-down.
Somewhere along the line in their careers, most towers have inflicted some type of suspension damage. In this scenario, while the damage wasn’t all that expensive, this new owner/operator did the right thing by reaching out and learning how to avoid this type of damage in the future.
TEXAS TWO-STEP
In the mid-1980s, flatbed carriers were reintroduced to the tow and recovery industry as a means to transport cars. Carriers became instantly and increasingly popular as a way to promote damage-free towing by offering what tow bosses thought could reach a new market for their businesses.
Although carriers serve other niches, there was a huge learning curve in knowing where to attach—and not to attach—ratchet straps and J-Hook chains to a vehicle’s suspension and other chassis components. This was especially true to new operators just hired, and even experienced towers not yet familiar with carrier operations.
While early carriers were outfitted with J-Hooks and chain, they were eventually replaced by ratchets and straps as the industry’s mainstream. At some point, a system using four ratchets with four, twoinch-wide by eight-foot-long straps, along with a shortened, looped-end cross strap, entered the market, referred to as, “The Texas Tie Down System.”
While the origin of the Texas reference remains unknown, the Eight-Point’s design and intent was to avoid and prevent frame, suspension and steering damages by not attaching J-Hook and chain to underside components. The same system today is referred to as an Eight-Point Tie Down.
When the strap’s remaining loose ends are threaded into ratchets, they are tightened where the tire’s tread surface bulges at approximately “Ten and Two.”
DAMAGE-FREE TRANSPORT
While employing the Four-Point Tie Down technique is perfectly acceptable, it does have limitations. The Eight-Point Tie Down System is a better alternative when seeking to achieve damage-free transport. Consider the following:
• When a vehicle is winched onto a carrier’s deck to the transport position, the operator should apply a topside ratchet strap or chain to serve as “capture device” should the winch accidentally free-spool, the cable breaks, or the hydraulics fail. Safety first!
• Any tie-down accessory attached to the wrong location is capable of inflicting costly damages.
• The Eight-Point System allows the vehicle to ride on its own suspension.
• A J-Hook hooked to or threaded through rim spokes can inflict costly “chain dinks” or “paint rubs” if not protected. In contrast, the EightPoint secures the customer’s vehicle by only contacting the rubber of the vehicle’s tires, thus avoiding damage.
• The Eight-Point won’t inflict a costly “limo stretch” to suspension parts when over-zealous winching stretches T-Slots or underside components.
• High-end vehicles typically have underside skirts and splash panels covering the engine’s undersides, but an
Eight-Point System doesn’t attach to them
• For exotic vehicles and Tesla EVs, read the manufacturer owner’s manual where an Eight-Point strapping method is recommended
• On highend vehicles, collectible motorcars and rare exotics, attaching metal J-Hooks and T-Hooks to a vehicle’s subframe or underside components can inflict tiny surface dings.
FETCHING A DOG BONE
Once the vehicle is secured and restrained by an Eight-Point System, the winch’s cable can be backed off. When properly set, movement is eliminated. Backing off the winch cable with the bridle’s hook tip pointed down helps ensure that a costly “rub” isn’t inflicted onto the car’s oil pan or underside panels.
Straps are threaded through a single, dog-bone-shaped strap. Ratchet-strap ends are dropped, clipped or hooked into the deck’s “Banjo Eyes” or “Clevis Hooks” located forward, center, and rearward at the carrier’s tail board.
For the Eight-Point system to be effective, all tires must receive the same attachment application. While there are many variations towers use to apply ratchets and straps, the Dog Bone Strap sits at the upper threequarters of the tire’s diameter.
Caution: Positioning the Dog Bone Strap below the tire’s halfway point may cause the strap to “detach” during transport or panic stop.
With ratchet, chain, or strap ends positioned topside, the strap’s remaining loose ends are threaded into ratchets. They are tightened where the tire’s tread surface bulges at approximately “Ten and Two,” and this bulging doesn’t damage tires. Best practices recommend the vehicle’s E-Brake is applied, with the transmission shifted to “Park” or “In Gear” to eliminate unwanted movement.
EXCEPTIONS TO CONSIDER
Today’s ratchet straps are manufactured with a PolyVinyl Butyral coating (PVB), making straps better resistant against grease, dirt, oils, chemicals, UV rays and weather extremes. The straps’ finished edges typically help reduce
cuts, tears and abrasions. However, the Eight-Point system may not be the best securement choice for transporting wrecked vehicles due to the presence of “cut points.”
There is a multitude of equipment suppliers offering Eight-Point systems. Prices start around $200, and can cost upwards of $500 per set based on type, style and manufacturer.
Most tow companies allow ratchets and straps to be stowed atop their carrier’s deck, stretched and ready for the next tow. Experienced carrier operators learn to quickly complete the tie-down process in ten minutes or less.
Two additional considerations to keep in mind include:
• Straps left on the carrier’s deck are susceptible to environmental extremes, especially heat, oil, battery acids and other fluids.
• Straps and ratchets aren’t
secure, being ratcheted tight atop the deck where an unscrupulous competitor can liberate all four straps in a matter of minutes. Straps should be stowed in the carrier’s side boxes to avoid premature wear and theft.
WHAT ABOUT SAFETY
The preferred Eight-Point strap system is easy to apply, and also provides the added operator safety that’s realized when not having to stand behind a car on a tilted carrier’s deck.
Once a topside safety chain is added, the operator applies each strap facing the vehicle’s tires from the side of the tires, not while standing behind, similar to attaching J-Hooks..
If a carrier is outfitted with EightPoint straps and being loaded from a busy highway’s shoulder, employ every safety consideration necessary to avoid the hazardous side or approaching traffic. When it’s too dangerous to complete traffic-side, four-corner securement, make the situation as safe as possible and carefully move to a safer location. Safety and survival are always the first priority.
PREVENTING DAMAGES
Outfitting carriers with the EightPoint System will lessen or eliminate operator-inflicted damages when used properly, and provide years of functional service.
New carriers are typically equipped with ratchets, straps, and/or J-Hooks, allowing towers to complete a basic tie-down. Consider the Eight-Point system a valuable upgrade to a tower’s toolbox than can significantly reduce injuries and damage claims. In addition, incorporating an Eight-Point System demonstrates to vehicle owners that the tow company genuinely cares about the safety of their specialty vehicle, adding an impressive level of professionalism. For the affordable cost of an EightPoint strapping system, the payoff is immediate when operator inflicted damages are eliminated, making it the right tool for the job.
TowiNg BusiNess Thinking of Selling?
Know the Pluses and Pitfalls
By Larry Oxenham
Experts tell us we are about to experience a $1 Trillion Wealth Transfer as small business owners sell in pursuit of retirement, address health concerns, or simply explore new ventures.
Does this mean a tow business can simply be put on the market and a rush of buyers will descend and create a bidding war, such as has recently been seen in residential real estate?
The answer is both yes, and no. What’s the most critical element of a successful sales? The following comment at a recent tow truck event highlights a common theme for business owners:
“I have thought about selling my business a lot lately. When I started, I enjoyed being outside and being busy, but now I spend most of my time trying to put out fires with employees or bureaucrats. I have worked hard all these years and I’m ready to retire. I know how to run my business, but I don’t have a clue about how to sell it. I don’t want to give it away.”
ART OF THE SALE
The point is, running a business is an art, but selling it requires an entirely different skill. Hanging a “For Sale” sign out front and hoping for the best is just not a feasible option. Unlike a home sale, much of a company’s value is not visible from the curb.
Compare selling a tow business to receiving a call requesting a tow or
recovery. It doesn’t make sense to gather all the resources of a tow business, including all the staff and equipment, and take them to the incident site to determine how to handle it. Instead, dispatch first asks the caller several questions to determine the situation, and then allocates only what is needed to do the job.
The same goes when selling a tow business. In preparing for a sale, make determinations by first doing some homework. Be measured and precise, follow appropriated steps, and in the meantime, keep running the business. Above all, consider the most important aspect to a successful and profitable sale.
ONE KEY DETAIL
In one word: Confidentiality. This is the utmost critical element of a sale that must not be compromised under any circumstances.
Consider all those who might be able to take advantage of knowing about an impending sale: Competitors, employees, vendors, and others?
Although not always the case, many competitors want nothing more than to see their rivals out of business. Once word gets out that a business may be sold or closed, a few key things will occur:
-Employees will update their resumes and post them to online job search engines such as LinkedIn and Indeed, as well as other social media venues.
-Vendors will call in their invoices.
-Banks may decide to withhold a line of credit.
Once confidentiality is compromised, it is like trying to put toothpaste back into the tube, and the damage to the company can be critical. In the Mergers and Acquisitions industry, the wisest advice is: “Keep your own counsel.” In other words, don’t tell anyone that’s not absolutely trusted, or who does not have a need to know.
And definitely don’t tell anyone (spouses exempted, in most cases) until the value of the business is established and whether or not the sale will satisfy personal needs and goals.
IMPORTANT PAPERWORK
Execute a legal comprehensive Confidentiality Agreement (CA) and have it signed by interested parties before any information is released. Once confidentiality has
been established in writing, it is safe to launch the sales process.
Although it’s possible for a seller to manage the sale from start to finish, it can be very difficult when that person is emotionally attached to a business. All the things that make a business unique are the same things that make it impossible to remain objective.
In most instances, it is wiser to retain an experienced Mergers and Acquisitions adviser who will provide a unbiassed viewpoint, and effectively identify a tow company’s full value. This adviser can work with the accountant and the attorney, manage the enthusiasm and skepticism of potential buyers, and keep the process moving, all while protecting confidentiality.
The size of a business will often determine the best course of action to take when contemplating a sale. Begin by looking at the EBITDA
(Earnings before Interest, Taxes, Depreciation and Amortization). While this number does not represent an exact overall value, it is a good starting point.
As a general rule, if a firm has an EBITDA below $1 million, working with local business brokers, attorneys or accountants who specialize in business representation is recommended.
Note of caution: The internet is loaded with ads from so-called experts who say they can get a firm in front of buyers, fast. These are usually lead-development firms also running ads to attract buyers. They may have a list of thousands of individuals who have answered a few online questions, but few, if any are truly qualified. These firms make their money by enticing a company to pay a fee for advertising. That means spending a lot of time with unqualified buyers, as well as ◀
risking confidentiality, ultimately resulting in valuable time wasted. Inquire into a local business sales firm that can provide both the details on their process, along with the success they have had with similar sales.
When a company’s EBITDA is $1 million or more, or as much as $100 million, it is better to retain a mid-market Mergers and Acquisitions firm. And, while a large firm might be attractive to Wall Street, their fee can be upwards of $250K at a minimum.
ADDITIONAL CONSIDERATIONS
With a thorough understanding of the importance of protecting confidentiality and assembling a team, following is a list of factors to consider before entering the marketplace:
--Overall Objective: Retirement, another business venture, travel, or something else? If there are partners, all must agree (note sidebar on Expect the Unexpected). This may seem very basic, but if there isn’t a specific reason for selling, it may not be the time to enter the marketplace. As a brilliant negotiator once said, “If you don’t have something specific to do, you won’t be able to let go.” Be honest about the objectives, because selling is usually a once-in-a-lifetime decision.
-Assemble your Team: A longtime tow company probably has a trusted team that has worked together over the years, including an accountant and an attorney. However, it’s important to select an advisor according to the size of your firm, as outlined above, when deciding to sell. Since knowing the EBITDA is part of this, the company accountant must understand M&A recasting.
-Evaluate: This aspect is more than just the numbers, it is an inside look at a company’s structure, processes,
advantages, management, and other related factors. It also includes a study of the marketplace, the business potential, and those likely to benefit from buying the business. Simply put, “show the present but sell the future.” In other words, while a buyer may know what a business is really worth, they won’t pay that amount without proof of worth.
This is especially true with corporations and family owned businesses. One example is a small San Diego business my company represented many years ago. The owner’s financials justified a sales value of a modest $1.2 million. When screening buyers though, it was discovered that one large company desperately wanted the data. The final sale price was $3.1 million cash, nearly three times the asking price! A company’s value is often more than what is exhibited on the raw financials, and if it can be proven, the rewards are much higher.
-Make a Decision: Once it is determined that the sale can meet expected goals, it is time to go to market. This is a matter of either the owner or the adviser confidentially researching the market, preparing a detailed offering memorandum, identifying the most likely buyers and creating an auction environment.
-Negotiate/Due Diligence. If the business information provided is accurate, a buyer should be ready to write a check (or provide a wire transfer). The process of divulging details should be managed by a designated advisor, and both the company accountant and attorney must be ready to provide supporting information as needed. This is the point where all the preliminary effort pays off—and also the point where the majority of sales fail.
If a prospective buyer discovers something is wrong with the information provided—for example, gross sales are less than reported; or
Expect the Unexpected
During a meeting with a commercial landscape maintenance firm in Denver about a possible sale, preliminary indications were all positive. The firm was successful, had longtime customers, and great cashflow. But a surprising turn of events came up between the three partners who owned the business. One of the owners revealed that they were selling because the partners, “Don’t like each other anymore.” He did not go into details, but when all three met together, the room was filled with tension. They claimed that they could all agree on a sale, but one of them then added, “I would give the company away to get out of this partnership.” Soon afterward, a very qualified buyer from Texas made a strong offer that met every request of the owners.
During a meeting with the three partners to review the offer, the partner with the most the dominant personality, looked at the other two, and asked, ”What do you guys think?”
Both said they liked it. He waited a minute, pushed back from the table, stood up, and blurted out, “Well, if you like it, I don’t!” and left the room.
That ended the business negotiations, and two years later the firm closed its doors. The animosity between them was greater than any amount of money could overcome.
Lessons learned: Partnerships can be tough on partners, getting them to agree on anything even tougher. So, don’t be surprised by sudden surprises.
there’s litigation that may affect the buyer’s ability to operate the firm; or agreements are not in writing or current—the buyer will look for other “errors and omissions.”
Going back to the example of trying to put toothpaste back into the tube, it is virtually impossible to regain credibility once lost. On the other hand, if the sales preparation was diligent and all the information is verifiable, this will be a quick process.
Once the sale is complete, move forward and focus on achieving your new objectives without looking back! An important takeaway is to remember that selling a business requires the same kind of professionalism and dedication used to build a business, and the rewards can be spectacular as long as there’s a plan. Be thorough, maintain a respectable team, and patiently continue to run the company while selling it.
OIL STRIKE!
Panorama Towing’s Overturned Recovery Involves a Greasy Spill
By George L. Nitti
In the wee hours of morning last April, the driver of a tractor with two trailers attached was heading onto the North 14 Freeway in southern California near Santa Clarita. But this day was ill-fated due to rainy weather, compounded by excessive speed, and the semi slid off the side of the roadway. The truck landed upside down on a very narrow onramp and hit the side of a canyon wall, flipping both trailers as well.
RESPONDING EQUIPMENT
Two 2020 Kenworth’s with 1040 Century Rotators
21’ Kenworth with 1150 Century Rotator.
40’ Hazmat trailer
After the call came into Panorama Towing Service’s Santa Clarita facility, they rolled out three rotators to the scene: a pair of 2020 Kenworths with 1040 Century Rotators, and a 21’ Kenworth with 1150 Century Rotator. Panorama CEO Kenneth Wilson described what they encountered when arriving on scene.
“The driver may have fallen asleep, hitting the dirt wall on the right side, rolling over onto the passenger side, 60 feet from the highway,” he noted. “The trailers went over each other like dominoes and were all mangled.”
The recovery posed several challenges. The first order of business was cleanup, as the tractor was leaking both fuel and oil.
“About 25 to 35 gallons of fuel was running down into the storm drain,” Wilson recalled. “One fuel tank on the driver’s side was pushing out a steady stream at the fuel cap, so we had to drill and tap the tanks immediately.”
The passenger side tank was completely ripped open, and had dumped unknown amounts of fuel, along with motor oil, onto the freeway. With the help of
up, requiring the use of three rotators.
Caltrans (the California Department of Transportation), Panorama’s crew performed a Hazmat remediation cleanup process.
“All the fuel on the highway needed to be removed 100% before the freeway was opened to traffic again, once CHP and a Caltrans supervisor gave the ‘okay’,” said Wilson. “We have a 40-foot Hazmat trailer which we take to major accidents. It includes a vacuum fuel pump, air bags, 277 bags of oil absorbent, 24/55-gallon steel drums, extra heavy-duty rigging equipment, hand tools, brooms, chain saws, gas cutoff saws, cutting torches—plus you can’t forget a Porta Potty.”
The second challenge was maneuvering in the narrow location, where two of the rotators would need to be carefully backed into the site, while the other was positioned 60 feet above on the freeway.
“We had limited access and had to work in a tight space,” Wilson explained. “We couldn’t park perpendicular to the casualty, which would have made them easy to flip. Everything had to be lifted vertically and set back down.”
After finally uprighting one of the
Kenneth Wilson
Robert Talbot
Zachary Springer
Tracy Smith
Les Holt
Brandon Foote
David Mashburn
Steven Read
David Castillo
Robert Rasmussen
damaged trailers, the other trailer’s axle and drawbars had to be cut.
“The second trailer was completely upside down with the wheels sticking in the air,” Wilson said. “We needed to roll it in the air, requiring the use of all three rotators. The rotator from the freeway had to wrap around it with chains, while the other two rotators lifted it.”
Once the mess was cleared away and the casualties uprighted, they were transported back to Panorama’s facility. The job took 13 hours in all, demonstrating just how much extra time a spill cleanup can add to a complicated recovery.
AD INDEX
TowmaN safeTy
Staying Out of Harm’s Way
By Proper Use of Traffic Control Measures
By Terry Abejuela
TField Editor Terry Abejuela has 40-plus years of light-duty towing and recovery experience. He is also a light-duty Level 1 instructor for the California Tow Truck Association.
ow truck operators are frequently required to provide traffic control at minor incidents when law enforcement or DOT personnel are not present. Unfortunately, towers rarely receive training on this important task. Whenever possible, it is recommended to leave traffic control to law enforcement or the DOT. But when they are not on scene, and the incident is relatively minor (taking 30 minutes or less to complete), tow truck operators may need to set up their own traffic control measures in order to prevent secondary collisions and provide for their own safety. Traffic control measures used by tow
truck operators involve a combination of strategies to maintain safe and efficient traffic flow that minimizes congestion, and improves the overall safety of the tow truck operator. Such measures greatly reduce the potential for secondary collisions by providing clear guidance and instructions to motorists which reduce confusion.
Tow operators must be familiar with state and local laws pertaining to the use of traffic control devices (TTC, or “Temporary Traffic Control”) and what exactly tow operators are allowed to do in these situations. For example, California does not recognize tow trucks as authorized emergency vehicles, so tow operators are not legally allowed to block, impede, or stop traffic. If such measures are required on scene, tow operators must request the assistance of law enforcement.
However, if an incident is already blocking traffic upon arrival, then a tow operator may be able to deploy TTC devices such as advanced warning signs, emergency flashing lights, cones and/or road flares to secure the scene and warn approaching motorists that a hazard exists.
FOLLOW THE MANUAL
The MUTCD (Manual on Uniform Traffic Control Devices) is a document issued by the Federal Highway Administration which sets minimum standards to ensure uniformity of traffic control devices across the nation. Uniform use of Traffic Control Devices (TCD’s), which includes TTC devices, helps reduce crashes and congestion resulting in improved efficiency of the transportation system. ◀
The first edition of the MUTCD was published in 1935, and the 11th edition was published in 2023. Some state transportation agencies adopt the national MUTCD, or add a supplement which might include statespecific, allowable options. Or they can develop their own state manual using the national MUTCD as a basis, as long as it substantially conforms with the national MUTCD.
Most lightduty tow trucks are equipped with emergency flashing lights, cones, and/ or road flares, and usually do not carry advance warning signs. And, while most light-duty incidents are minor (requiring less than 30 minutes on scene) and won’t require advance warning signs, there are some scenarios where they will improve traffic control and make the scene safer for both motorists and the tow truck operator.
allowed may vary depending on the state, but the most common color allowed on tow trucks is amber. Once again, tow operators must be familiar with local laws pertaining to the use of flashing emergency lights.
In California, tow trucks are equipped with flashing amber warning lights, which may be displayed while providing service to a disabled vehicle. Additionally, the warning lights must be illuminated to the rear when towing a vehicle and moving at a speed slower than the normal flow of traffic.
Tow trucks are not allowed to display their flashing amber warning lights on a freeway, except when an unusual or extreme traffic hazard exists.
Two examples include when the incident is on the blind side of at a curve in a roadway, or the blind side at the crest of a hill. In these two scenarios, if the incident is close to the curve or crest of the hill, it may limit the time a motorist has to react to the emergency lighting, cones, or flares. Placing an advance warning sign before the curve or crest of the hill will alert motorists of the upcoming hazard before they see the cones or flares.
EMERGENCY WARNING LIGHTS
Most states allow tow trucks to use flashing emergency lights at the scene of an incident. The type and color of the emergency lighting
Engaging emergency warning lights when not necessary can distract motorists, cause congestion, and create a hazard. The use of a directional arrow, where allowable by state, helps provide clear guidance and instruction to motorists. Further precautions include ensuring that the lights are aimed properly to avoid blinding approaching motorists.
are equipped with a minimum of six high-visibility traffic cones, each a minimum of 18 inches tall,(preferably 24 inches tall) with at least two retroreflective stripes. While most tow trucks are equipped with orange traffic cones, ensuring that they are compliant with state and local laws pertaining to the color and other requirements is the responsibility of the tow operator.
The number of cones deployed on scene depends on the speed of traffic, visibility, weather conditions and the geography (such as curves or hills) at the specific location. Whenever possible, traffic should be diverted in only one direction. Generally, cones should be located about 20 feet apart, and provide a tapered transition around the incident. Most importantly, always face and keep an eye on traffic when placing cones.
ROAD FLARES
Advance warning signs are not common on light-duty tow trucks but are effective at major incidents, or even minor ones, on the blind side of a curve or the crest of a hill.
TRAFFIC CONES
The deployment of traffic cones is an effective and easy traffic control measure for tow truck operators. It’s recommended that tow trucks
Road flares are another effective traffic control measure that may be available for use by tow truck operators. Standard incendiary road flares should not be used when a fire hazard exists, such as flammable liquids, dry brush, or the presence of combustible debris. Nonincendiary type road flares are available for these situations. Road flares should be deployed the same as cones, and are considered to be more effective than cones during nighttime.
USE OF FLAGGERS AND TRAFFIC CONTROL UNITS
Some towing companies are utilizing their own traffic control units equipped with larger quantities of TTC devices
and additional TCD such as message boards, directional arrows, and advanced warning signs that are operated by trained employees who perform flagger duties at major incidents.
Of course, none of these traffic control measures will block a vehicle from crashing into an incident scene if the warnings have been overlooked. It is always important to be aware and on the lookout for distracted, intoxicated, and drowsy drivers.
As mentioned at the outset of this article, whenever possible, traffic control measures should be deployed by properly trained and qualified personnel such as law enforcement or your local DOT. Additional training might be needed in order to safely utilize traffic control measures and to stay out of harm’s way.
The BoTTom liNe Captive Insurance
Is it Right for Your Tow Business?
By Brian J. Riker
It is no secret that insurance rates for tow businesses are skyrocketing. Premium increases of 100% and more have been reported. Cost control is more important now than ever, especially with the tightening of revenue streams and attacks against tow companies' billing practices, which have resulted in reduced and even unpaid invoices.
A key component of effective cost control is having a comprehensive risk management plan in place. Understanding the role of the insurance policy in this risk management plan is essential.
IS LOWER BETTER?
Not all insurance is created equal, and the lowest premium is not always the best option for overall cost control and survival of a business. Insurance companies are in business to make a profit, same as anyone, and their primary means for profit is invoicing above operating costs (including paid
claims, aka the loss ratio).
For commercial auto providers, this loss ratio has run in the negatives lately, hitting an all-time high of 109.4% in 2019 according to a report published by Fitch Ratings. In last five years, only 2021 disclosed a loss ratio below 100%, meaning they only made a profit in the CA (Commercial Auto) segment once during the last five years. That’s not enough of a profit to offset the poor performance for the other four years.
With results like this, it’s no wonder that the number of companies willing to underwrite these risks is dwindling, and premiums are skyrocketing. This raises two questions: why is this occurring and how can towers be insulated from it?
GETTING LUMPED IN
Stopping to ask ourselves “why” more often would probably result in running a better business with fewer risks and lower loss ratios. Part of the problem is that towers are lumped in the same risk pool as ride-share drivers (Uber and Lyft), trucking companies, construction businesses, landscapers and other firms that use vehicles in their business. The rise in loss ratios
is quite obvious when viewing the numerous wrecked commercial vehicles in an impound yard.
Even so, not all towers are experiencing excessive rate increases, and are either managing to remain steady or only having increases in line with inflation. Typically, these companies have a clear focus on safety and excellent management structures. By emphasizing continual team development, investing in the latest in equipment, and holding staff accountable for their actions, it’s possible to have a lower likelihood of being involved in a claim, therefore reducing the loss rate. Essentially, mitigating risk will almost guarantee that an insurance company will apply a lower risk multiplier to premiums when rating a policy’s exposure.
However, even with having a robust safety program, great loss runs and exceptional management, insurance premiums are likely to rise when a company is pooled with other companies that do not share the same passion for safety. Which thus makes captive insurance a possible alternative.
WHEN TO BECOME CAPTIVE
Group captives are relatively new to the towing industry and are certainly not a solution for every firm. A captive is a group of towers, similar in size, risk, and financial stability, which have agreed to pool their resources and self-insure against most claims. Captives require creating a separate business to manage the program. Essentially buying into a
Revenue Streams
Group Captives have become a hot topic in the insurance middle market, with accounts ranging in size from $25,000 to $1,000,000-plus in premiums. They have long been used by large companies to control their insurance cost. The vast majority of fortune 500 companies are in captives. Group Captives enable smaller companies to amass, effectively providing financial stability in a joint venture.
However, for a group captive to work it obviously must spend less on claims than the amount paid on premiums. This requires that members be top performers, thereby ensuring an underwriting profit. The end result is that the members retain the profits after losses and expenses are paid.
This chart illustrates how a captive insurance program could generate underwriting profit and investment income for the tow companies involved.
In contrast, insurance companies keep the profits, as well as any premium dollars that have not been paid out. This is considered investment income.
Captives also require an upfront captive contribution to form a premium surplus, a cushion in case of a bad year and all of the premiums are used toward claims. This capital, unearned premium (paid premium including unearned expenses), reserves (money put aside to pay known claim), IBNR (Incurred But Not Reported claims) allocations, along with profits, are invested and making money for the insurance company.
very small insurance company and thereby held responsible for losses, as well as those of all the other companies in the group plan.
Captives work best when all the members have existing proven safety records, and also agree on how their businesses should be managed. This requires transparency with the other members’ operations, which could possibly create some issues if they don’t have complete trust in each other.
The goal is to build industry best practices among the members which reduces the exposure to losses, possibly even returning dividends to the captive group members (instead of simply creating a line of revenue on an insurance company’s ledger sheet— note sidebar on Revenue Streams). Essentially, control who is part of the risk pool and realize some savings because of the ability to exclude
Since claims commonly take several years to pay out, the investment is growing with compounded interest. Even in a losing year, the insurance company may show a profit because of investment income.
Conversely, a captive group is the beneficiary of this income. The accompanying chart shows a simulated flow of claims payouts over a number of years and the annual investment income.
Indicated at the bottom is the captive underwriting profit, the pure profit from the premium, and the investment income. Investment income has the potential to greatly increase the overall profit, and when factored back into overall insurance costs, it’s evident how these costs are lowered.
non-compliant companies that don’t operate safely.
WHEN NOT TO BE CAPTIVE
Captives are not for every tower and for it to make sense, consider the following:
• The company’s annual insurance expense spend should be at or above $100,000.
• Willingness and ability to accept a reasonable financial risk without becoming insolvent. As a member of a captive, a tow company will share the rewards—and also the risk.
While there is some risk, captives typically purchase reinsurance from traditional insurance companies to provide coverage above a certain limit or for catastrophic losses. As with any business venture though, there is always a the chance of losing money.
In its simplest form, the captive
Is Captive Insurance Really All That Captivating?
Establishing a captive insurance company requires capital investment upfront, as well as operational overhead. This includes legal and regulatory compliance expenses, actuarial and underwriting costs, employing administrative staff, and maintaining sufficient capital reserves. In addition, there are administrative responsibilities such as financial reporting and claims processing. All of the above requirements can be complex and time consuming.
Furthermore, when self-insured, tow businesses are exposed to potential risks and bear the responsibility of covering losses. With catastrophic or unforeseen events, captives may be required to access reinsurance to handle large-scale losses.
In sum, a captive insurance company requires specialized knowledge including insurance expertise, risk management, and financial management. While captive insurance offers tow companies a risk management alternative with cost savings, along with greater control over insurance coverage, the pros and cons should be carefully weighed before determining whether this is a suitable program for your tow business goals and risk tolerances.
concept is risk pooling. Since the towing industry faces unique risks, it can be difficult to obtain fair evaluations of actual risk. Especially when so many players within the industry are unregulated and not fully committed to having a robust risk management plan in place.
RISKY BUSINESS
Exposures with regards to cargo, on-hook, general liability and more are not the same as those of a typical trucking company. Yet these two industries are often compared when determining base premiums. Perhaps it makes more sense to have fellow towers making these risk assessments?
Group captives can be formed to insure most risks, with the majority of them assuming automotive, property, or workers compensation liabilities. Since all of these areas are of great concern to the towing industry, it should be determined
if a group captive can provide protection for more than just commercial auto risks.
A captive is a long-term business strategy that allows for underwriting profits, turning typical insurance risks into a revenue opportunity rather than a traditional expense. While there may even be some tax advantages, caution is highly recommended as the IRS scrutinizes this structure very carefully. There are numerous documented attempts to utilize insurance captives as illegitimate tax shelters.
Insurance is often misunderstood and many tow companies frequently pay for unnecessary, or worse yet, coverage that does not properly protect their assets. It is best to seek the council of experts in the insurance field who will take the time to make sure an insurance policy is clearly understood, before a tow company agrees to any changes.
EXPANDING HORIZONS
TowXpo Benefits From ShopXpo’s Fresh Infusion
By American Towman Staff
Change is for the better, especially when there’s a good fit between two industries with much in common. This was the exactly the situation in late June in Fort Worth, Texas, where American Towman Magazine’s TowXpo saddled up with ShowXpo at WreckWeek, featuring suppliers for collision and auto repair shops, as part of a collaboration with Body Shop Business Magazine.
Attendees participated in hands-on training, seminars, and American Towman’s popular Wrecker Pageant, along with a new program: WreckWeek’s Garage Legends, showcasing both classic and customized cars.
Theses combined events also provided opportunities for team building and company bonding. Clint Wilson from Beard's Towing expressed high praise for the event stating, "I've got to say this had to be one of the best trainings I have been to so far with American Towman Magazine & Expositions." His sentiment underscores the value of the real-world recovery demos, a key component of the show.
Attendance was solid for both days of the show, and exhibitors reported good crossover traffic with tow company owners. "It was great to see everyone again this year and to make some new friends, too!” enthused Utility Trailer Sales Southeast Texas, Inc.
Many tow operators expressed appreciation for how both towing and body shop exhibitors came together in a seamless manner.
"We are grateful to everyone involved for their contribution to making the event a great success,” noted Bruckner's Truck & Equipment.
American Towman Magazine has even bigger plans in the works for its Exposition in Baltimore on November 21-23, so be on the lookout, and don’t miss out!
VINTAGE
1951 Ford
Custom-Built Wrecker
Dilley, TX
Tijerina Towing
SERVICE /SUPPORT
2021 Ford F550 Utility Bed Fulton, AR Red River Wrecker
Winners
1st
2nd
Southwest
Southwest Tow Operators
Memorial Carrier
A Rolling Shrine to Towers Lost in Service
By Steve Temple
What price can be put on a human life—especially one lost in service to others?
Obviously, that’s simply not possible, but it is possible to
TECHNICAL HIGHLIGHTS
Engine: Cummins X15
Chassis: 2024 Western Star 49X
Wrecker: Century 30-series
Custom Features: Edgetec lighting, sirens, toolboxes; up-optioned Western Star 49X with visor, chrome stack, leather interior, front bumper, and heated headlights
Graphics: Artworks Commercial Graphics
contribute to the welfare of a deceased tower’s loved ones, their spouse and children who are bereft of financial support.
This is the heartfelt motivation behind the Survivor Fund at the International Towing Museum. Back in 2006, the museum dedicated a memorial, The Wall of the Fallen, to honor men and women who lost their lives while assisting motorists. In 2007, at the first Wall of the Fallen dedication service, 94 names were added to the Wall. Since its establishment, the names of towing operators who have lost their lives are enshrined during a special ceremony every September.
Along with this somber annual ceremony, the museum established a Survivor Fund to assist the families of fatally stricken towers. Tragically,
the total number of towers who died in the line of duty grows every year, now amounting to nearly 600 operators since before the Wall’s creation. Which means that many next of kin are in dire need of financial support. This grievous situation prompted the staff of HBL Towing & Recovery in Dallas, Texas to address this heartrending issue.
“The idea came to us last year at TowXpo,” recalls Joseph Fitzhugh, HBL’s Operations Manager. “The tow industry focuses on SDMO on a lot of trucks, to draw attention to the laws in place, but they’re not enforced. We needed to show just how many people are actually struck and killed.”
Yousef All, one of HBL’s four owners, admitted how personal this matter is to him. “To us, it’s a touchy subject. I still work accidents, and you can see cars flying by us, not
obeying SDMO laws. They’re not being enforced enough. We need to show how many people have passed away on the side of the highway, while operating a tow truck.”
Partly in response to the Southwest Towing Association’s efforts to raise public awareness of SDMO laws, HBL decided to collaborate with Miller Industries, EdgeTec, and Artworks Commercial Graphics to create a rolling version of the Wall using a Western Star 49X truck chassis and Century 30 series carrier.
The names of towers from the Wall, which includes both their date of birth and death, were supplied by permission of Jeffrey Godwin at the museum (note sidebar), and then applied by Artworks with vinyl print graphics on magnetic panels. These panels are placed on the carrier’s flatbed when the truck is on ◀
A Solemn Day at the Museum
While the International Towing Museum holds an annual ceremony to enshrine additional towers on the Wall of Fallen who were killed on the job in the previous year, that’s not the only effort made to draw attention to this serious issue. Here’s how other memorial initiatives are viewed:
“The Wall of the Fallen memorial trucks add to our industry awareness of the tragedies that occur far too often, taking the lives of the men and women who work in the line of service to the motoring public. There is often no knowledge of the Wall of the Fallen or the Survivor Fund across our industry, and these truck presentations serve to share the message internal to towing and recovery. They can also serve as an awareness tool for the motoring public when they are day-to-day working trucks. We appreciate HBL’s use of the memorial and their partnership in gaining the appropriate approvals during their process.
Jeffrey Godwin ITRHFM – 1st Vice President Survivor Fund / Wall of the Fallen - Committee Chairman
display at community events.
“It’s still a working truck, not just a show truck,” points out Fitzhugh. “But we didn’t want to drag heavy equipment or casualty vehicles across the names. We need to be respectful to the Wall.”
In order to avoid desecrating the names on the flatbed, the panels are removed when the wrecker is needed to handle a recovery. He also emphasizes that this memorial truck is not about the company, but about the cause, and all contributions go directly to the Museum for distribution to the next of kin.
When the HBL carrier is at a show, how does this wrecker raise money for the Survivor Fund? The truck recently entered the Wrecker Pageant at American Towman’s TowXpo show in Fort Worth, TX. Next to the display a prominent poster board described the Survivor Fund’s donation program, and displayed a QR code for a quick internet connection to the Museum in order to make a donation.
Thus far, the HBL Carrier has raised a significant sum of money, and is available for appearances at other events around the country in the coming months and even years.
Sadly, as the number of fallen towers increases, the list of names on the carrier bed will likely need to be modified to include more of those lost to highway strikes. Then, perhaps, other tow companies will join in this important program and also offer their wreckers as memorials to fallen towers, to further highlight the SDMO initiative.
“It’s a serious matter; a serious problem we have,” All points out. “People just need to pay attention to it. If I can just take this message to others, that would be wonderful."
Steve Calitri Editor-in-Chief scalitri@towman.com
The Gurus Go Online
By Steve Calitri
When American Towman pioneered its Academy seminars in 1989, towmen were lured to them with free access and complimentary breakfast and dinner buffets. After all, they were already there to attend the Exposition, why not partake in a free meal and listen to what some gurus have to say about running a towing business? The combination proved a great success. Even after we began charging a modest fee for carte blanche access, tow business owners were intent on upping their game, becoming more professional, controlling more costs, and turning more profit.
It’s not easy to get any small business owner into a classroom. He or she is busy running things. What can they learn that they don’t already know? Now the Internet has changed the way people can communicate and learn. It’s not a question of which venue provides the best learning experience, in person or online, because either venue has its merits.
A seminar online, coined a “webinar,” offers easy access and convenience; you can bring yourself a cup of coffee from the kitchen before it starts. If you miss it, you can catch a video replay.
But an industry friend asked me, “Aren’t you concerned about the online seminars, or webinars, taking away from your classroom participation at the shows?”
It’s an interesting question. The same red flag was raised when major league baseball teams aired their first game over the radio waves in 1921, and again decades later with television broadcasts. In the long run, giving fans easy access to the games was a dynamic way to introduce new fans to baseball. The same is true for other sports. Broadcasting games was also a way to keep fans involved throughout the season.
My thought is that producing live seminars online will both attract new participants to this learning experience, and our show-seminar attendees. The webinars will also increase the attraction of the live seminars at the shows, by promoting the speakers and style of content that are common to both venues. The net result: more towmen will receive more management education than ever before, germane to running a towing business profitably.
The American Towman Online Academy kicks off this September with renowned presenters Brian Riker, Terry Abejuela and Bobby Tuttle. Topics will address hiring issues and safety issues, such as Electrocution Hazards at Crash Scenes. Protecting Evidence-Hold Vehicles is another topic addressed. You can learn dates, times, and more at americantowman.com/Academy. By the way, the program director and technical producer is Mike Corbin, the man who led the historic Spirit Ride, the same who sings the Home of the Brave.
Sign up today to catch the live webinars and be eligible for the replays. Bring your own coffee.
News flash
TRAA Continues Fight Against Fee Regulations
The towing industry faces significant challenges related to transparency in towing fees for CMVs (Commercial Motor Vehicles) and so-called predatory towing practices. The US Department of Transportation has requested the FTC (Federal Trade Commission) to include CMV towing practices in its "junk fee" rule, which addresses unfair and deceptive fees. The FTC is considering adding consumer predatory towing practices to this rule.
The Towing and Recovery Association of America (TRAA) opposes this inclusion, emphasizing the unique nature of towing transactions, lack of sufficient research for proper rulemaking, negative impacts on traffic incident management and public safety, along with the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) over towing fee transparency. TRAA met with FTC Commissioner Melissa Holyoak and her staff voicing those industry concerns after meeting previously with the FTC Bureau of Consumer Protection.
TRAA seeks congressional support and urges the FMCSA to adopt a moderate approach, arguing that the FTC should defer to the FMCSA and state authorities. TRAA appreciates those planning to submit public comments to the FMCSA, which has extended
its comment period to August 1. This extension offers a crucial opportunity for stakeholders to voice their opinions and shape fair regulations.
Interested parties are encouraged to submit their comments by August 1, 2024, via the Federal eRulemaking Portal, mail, hand delivery, or fax. Mail: Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001. Hand Delivery or Courier: Same address as above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays Fax: (202) 493-2251. For further information, contact Larry W. Minor, Associate Administrator for Policy, FMCSA, at (202) 366-4012 or larry.minor@dot.gov.
Source: TRAA Newslettter
Florida Tow Companies Must Comply to New Statute
New laws in HB179, approved by the House, Senate, and signed by Governor DeSantis, take effect on July 1, 2024. Towing companies must review the statutes and comply with changes, which include:
-Notice of Claim of Lien letters must be sent within five business days, or no storage fees can be charged. Letters must be posted by 11:00 am EST on the 5th business day.
-Notice of Sale must be digitally posted by a third-party. Newspaper ads are required only for tows before July 1, 2024.
-Vehicles under three years old must be held 57 days with notices mailed 52 days before sale; vehicles over three years old must be held 35 days with notices mailed 30 days before sale. Law enforcement holds are limited to 30 days.
-Rate sheets must be posted and available upon request. A lien release fee up to $250 is allowed.
-Rental agreements are not proof of agency, preventing renters from releasing vehicles.
-Towing companies must accept diverse payment methods.
-Bond posting procedures and related legal processes are also outlined. Consult an attorney for details.
Source: Sunshine State Towing Association
Ontario Launches New Tow Truck Certification
The Ontario government introduced a new certification requirement for tow truck drivers, effective July 1, to combat fraud in the industry. This move marks the first of its kind among Canadian provinces. The provincial government will now oversee industry regulation, a role previously managed by municipalities.
Legislation passed in 2021 to address concerns over weak regulations and organized crime infiltration led to this change. Transportation Minister, Prabmeet Sarkaria, commented that, “The vast majority of tow truck companies operate in good faith, but bad actors have preyed on vulnerable drivers for too long.”
Since January, tow truck company operators have needed provincial certification. Earlier this week, Toronto police formed a tow truck task force in response to increased criminal activity within the industry. According to police, there have been 24 tow truck-related shootings in Toronto since the beginning of the year, primarily due to turf wars and rivalries.
Under the law, towers must disclose their maximum fees and take the customer’s vehicle to the desired location using the most direct route. This initiative aims to standardize the towing industry and curb criminal activities linked to a small segment of tow truck operators.
Source: www.thespec.com
Towing Industry Seeks Solutions for Unpaid Bills
In a recent session intended for truckers to voice concerns about predatory towing practices, towing company operators highlighted their own challenges, especially un -
paid invoices. While acknowledging some bad actors, industry representatives stressed their financial difficulties often arise from insurance complications, negotiations, and disputes with motor carriers. Towing operators highlighted the high costs to maintain readiness and response capabilities, which drive up rates but are necessary for efficient services. Thomas Tedford of Guardian Fleet Services noted regulators often overlook these costs.
and Recovery Association of Ohio emphasized that while there are a few offenders, most towing operators are dedicated professionals who frequently face unpaid bills. "Many of our members often don't get paid for their services," Bender pointed out.
Thomas Tedford, CEO for Guardian Fleet Services, voiced concerns to federal regulators.
"We are required to respond 24/7, 365 days a year, even during holidays and personal emergencies, to clear roadways," Tedford explained. "Incidents can occur at any time, and each situation is unique. A standardized rate cannot apply to all scenarios."
Bruce Bender from the Towing
Frances McGregor, owner of Phoenix Metro Towing in Mesa, Arizona, confirms this problem: "We’ve seen about 30% of the bills not paid. I think the problem is not enough towing insurance for trucking companies.”
Source: www.ttnews.com
Industry Leaders Celebrate Success at TowXpo
The recent TowXpo, organized by American Towman Magazine & Expositions in Fort Worth, Texas, was lauded as a significant success ◀
by participants from various sectors of the towing and equipment industry. This year's show included more than 150 exhibitors and an additional attraction: ShopXpo@WreckWeek, featuring suppliers for collision and auto repair shops, part of a collaboration with Body Shop Business Magazine.
Kansas Tow Company was one of many tow companies that reported a productive experience at the show. "We brought down five employees from the dispatch and truck side to further their skills and experience," they shared. At the conclusion, the company proudly announced the addition of two new WreckMaster certified operators to their team.
Attendance was comparable for both days of the show and exhibitors reported good traffic with tow business owners. Attendees participated in special events, seminars, as well as the USA Wrecker Pageant. A new event that spiced up the show was Garage Legends, which showcased classic and customized vehicles.
Nominate a Towing Professional for
THE ORDER OF TOWMAN
Working with Police and Fire Chiefs to foster recognition & professionalism among the towing professionals who serve our towns.
For the past ten years over one thousand police and fire chiefs in the U.S. have nominated towing professionals for The Order of Towman, presented by American Towman Magazine in recognition of their supreme dedication to their communities and to the professionalism of their trade. No one knows more than the chiefs how towers rise to the occasion to face the challenges at incident scenes. While American Towman Magazine mails nomination forms to all the chiefs in the nation, it may take more than one notice to get your chief’s attention. Should you feel you qualify as a towing company that has served your local police or fire department with exceptional service and professionalism, take this nomination form to your chief. He or she may contact me if they have any questions.
Steve Calitri, American Towman Magazine.
Nominate an Individual for the Order of Towman
Nominee (Owner or Manager): ________________________________________________________
Name of Towing Company: ___________________________________________________________
Address:__________________________ City: _______________ State: ____ Zip Code: _________
Phone Number: ____ / ____ / _______ email address: _____________________________________
Nominating Police/Fire Chief:__________________________________________________________
Police/Fire Department Name: ________________________________________________________
Address:__________________________________________________________________________
City: ______________________________ State: ____ Zip Code: _________
Position: _______________________Phone Number: ____ / ____ / _______
Signature: _____________________________________________________
Deadline: September 13, 2024 for Cross Of The Order
North 80 • August 2024 | Towman.com
Presented Nov. 22, 2024 at the American Towman Exposition
News flash
TRAA Continues Fight Against Fee Regulations
The towing industry faces significant challenges related to transparency in towing fees for CMVs (Commercial Motor Vehicles) and so-called predatory towing practices. The US Department of Transportation has requested the FTC (Federal Trade Commission) to include CMV towing practices in its “junk fee” rule, which addresses unfair and deceptive fees. The FTC is considering adding consumer predatory towing practices to this rule.
The Towing and Recovery Association of America (TRAA) opposes this inclusion, emphasizing the unique nature of towing transactions, lack of sufficient research for proper rulemaking, negative impacts on traffic incident man-
agement and public safety, along with the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) over towing fee transparency. TRAA met with FTC Commissioner Melissa Holyoak and her staff voicing those industry concerns after meeting previously with the FTC Bureau of Consumer Protection.
TRAA seeks congressional support and urges the FMCSA to adopt a moderate approach, arguing that the FTC should defer to the FMCSA and state authorities. TRAA appreciates those planning to submit public comments to the FMCSA, which has extended its comment period to August 1. This extension offers a crucial opportunity for stakeholders to voice their opinions and shape fair regulations.
Interested parties are encouraged to submit their comments by August
1, 2024, via the Federal eRulemaking Portal, mail, hand delivery, or fax. Mail: Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001. Hand Delivery or Courier: Same address as above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays Fax: (202) 493-2251. For further information, contact Larry W. Minor, Associate Administrator for Policy, FMCSA, at (202) 366-4012 or larry.minor@dot.gov.
Source: TRAA Newslettter
Florida Tow Companies Must Comply to New Statute
New laws in HB179, approved by the House, Senate, and signed by Governor DeSantis, take effect on July 1, 2024. Towing companies must review the statutes and comply with changes, which include:
-Notice of Claim of Lien letters must be sent within five business days, or no storage fees can be charged. Letters must be posted by 11:00 am EST on the 5th business day.
-Notice of Sale must be digitally posted by a third-party. Newspaper ads are required only for tows before July 1, 2024.
-Vehicles under three years old must be held 57 days with notices mailed 52 days before sale; vehicles over three years old must be held 35 days with notices mailed 30 days before sale. Law enforcement holds are limited to 30 days.
-Rate sheets must be posted and available upon request. A lien release fee up to $250 is allowed.
-Rental agreements are not proof of agency, preventing renters from releasing vehicles.
-Towing companies must accept diverse payment methods.
-Bond posting procedures and related legal processes are also outlined. Consult an attorney for details.
Source: Sunshine State Towing Association
Nominate a Towing Professional for
THE ORDER OF TOWMAN
Working with Police and Fire Chiefs to foster recognition & professionalism among the towing professionals who serve our towns.
For the past ten years over one thousand police and fire chiefs in the U.S. have nominated towing professionals for The Order of Towman, presented by American Towman Magazine in recognition of their supreme dedication to their communities and to the professionalism of their trade. No one knows more than the chiefs how towers rise to the occasion to face the challenges at incident scenes. While American Towman Magazine mails nomination forms to all the chiefs in the nation, it may take more than one notice to get your chief’s attention. Should you feel you qualify as a towing company that has served your local police or fire department with exceptional service and professionalism, take this nomination form to your chief. He or she may contact me if they have any questions.
Steve Calitri, American Towman Magazine.
Nominate an Individual for the Order of Towman
Nominee (Owner or Manager): ________________________________________________________
Name of Towing Company: ___________________________________________________________
Address:__________________________ City: _______________ State: ____ Zip Code: _________
Phone Number: ____ / ____ / _______ email address: _____________________________________
Nominating Police/Fire Chief:__________________________________________________________
Police/Fire Department Name: ________________________________________________________
Address:__________________________________________________________________________
City: ______________________________ State: ____ Zip Code: _________
Position: _______________________Phone Number: ____ / ____ / _______
Signature: _____________________________________________________
Deadline: September 13, 2024 for Cross Of The Order
South 80 • August 2024 | Towman.com
Presented Nov. 22, 2024 at the American Towman Exposition
TRAA Continues Fight Against Fee Regulations
The towing industry faces significant challenges related to transparency in towing fees for CMVs (Commercial Motor Vehicles) and so-called predatory towing practices. The US Department of Transportation has requested the FTC (Federal Trade Commission) to include CMV towing practices in its “junk fee” rule, which addresses unfair and deceptive fees. The FTC is considering adding consumer predatory towing practices to this rule.
The Towing and Recovery Association of America (TRAA) opposes this inclusion, emphasizing the unique nature of towing transactions, lack of sufficient research for proper rulemaking, negative impacts on traffic incident management and public safety, along with the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) over towing fee transparency. TRAA met with FTC Commissioner Melissa Holyoak and her staff voicing those industry concerns after meeting previously with the FTC Bureau of Consumer Protection.
TRAA seeks congressional support and urges the FMCSA to adopt a moderate approach, arguing that the FTC should defer to the FMCSA and state authorities. TRAA appreciates those planning to submit public comments to the FMCSA, which has extended its comment period to August 1. This extension offers a crucial opportunity for stakeholders to voice their opinions and shape fair regulations.
Interested parties are encouraged to submit their comments by August 1, 2024, via the Federal eRulemaking Portal, mail, hand delivery, or fax. Mail: Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001. Hand Delivery or Courier: Same address as above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays Fax: (202) 4932251. For further information, contact Larry W. Minor, Associate Administrator for Policy, FMCSA, at (202) 366-4012 or larry. minor@dot.gov.
Source: TRAA Newslettter
◀
Florida Tow Companies Must Comply to New Statute
New laws in HB179, approved by the House, Senate, and signed by Governor DeSantis, take effect on July 1, 2024. Towing companies must review the statutes and comply with changes, which include:
-Notice of Claim of Lien letters must be sent within five business days, or no storage fees can be charged. Letters must be posted by 11:00 am EST on the 5th business day.
-Notice of Sale must be digitally posted by a third-party. Newspaper ads are required only for tows before July 1, 2024.
-Vehicles under three years old must be held 57 days with notices mailed 52 days before sale; vehicles over three years old must be held 35 days with notices mailed 30 days before sale. Law enforcement holds are limited to 30 days.
-Rate sheets must be posted and available upon request. A lien release
fee up to $250 is allowed.
-Rental agreements are not proof of agency, preventing renters from releasing vehicles.
-Towing companies must accept diverse payment methods.
-Bond posting procedures and related legal processes are also outlined. Consult an attorney for details.
Source: Sunshine State Towing Association
Ontario Launches New Tow Truck Certification
The Ontario government introduced a new certification requirement for tow truck drivers, effective July 1, to combat fraud in the industry. This move marks the first of its kind among Canadian provinces. The provincial government will now oversee industry regulation, a role previously managed by municipalities.
Legislation passed in 2021 to address concerns over weak regulations and organized crime infiltration led to
this change. Transportation Minister, Prabmeet Sarkaria, commented that, “The vast majority of tow truck companies operate in good faith, but bad actors have preyed on vulnerable drivers for too long.”
Since January, tow truck company operators have needed provincial certification. Earlier this week, Toronto police formed a tow truck task force in response to increased criminal activity within the industry. According to police, there have been 24 tow truck-related shootings in Toronto since the beginning of the year, primarily due to turf wars and rivalries.
Under the law, towers must disclose their maximum fees and take the customer’s vehicle to the desired location using the most direct route. This initiative aims to standardize the towing industry and curb criminal activities linked to a small segment of tow truck operators.
Source: www.thespec.com
Nominate a Towing Professional for
THE ORDER OF TOWMAN
Working with Police and Fire Chiefs to foster recognition & professionalism among the towing professionals who serve our towns.
For the past ten years over one thousand police and fire chiefs in the U.S. have nominated towing professionals for The Order of Towman, presented by American Towman Magazine in recognition of their supreme dedication to their communities and to the professionalism of their trade. No one knows more than the chiefs how towers rise to the occasion to face the challenges at incident scenes. While American Towman Magazine mails nomination forms to all the chiefs in the nation, it may take more than one notice to get your chief’s attention. Should you feel you qualify as a towing company that has served your local police or fire department with exceptional service and professionalism, take this nomination form to your chief. He or she may contact me if they have any questions.
Steve Calitri, American Towman Magazine.
Nominate an Individual for the Order of Towman
Nominee (Owner or Manager): ________________________________________________________
Name of Towing Company: ___________________________________________________________
Address:__________________________ City: _______________ State: ____ Zip Code: _________
Phone Number: ____ / ____ / _______ email address: _____________________________________
Nominating Police/Fire Chief:__________________________________________________________
Police/Fire Department Name: ________________________________________________________
Address:__________________________________________________________________________
City: ______________________________ State: ____ Zip Code: _________
Position: _______________________Phone Number: ____ / ____ / _______
Signature: _____________________________________________________
Deadline: September 13, 2024 for Cross Of The Order
• August 2024 | Towman.com
Presented Nov. 22, 2024 at the American Towman Exposition
TRAA Continues Fight Against Fee Regulations
The towing industry faces significant challenges related to transparency in towing fees for CMVs (Commercial Motor Vehicles) and so-called predatory towing practices. The US Department of Transportation has requested the FTC (Federal Trade Commission) to include CMV towing practices in its “junk fee” rule, which addresses unfair and deceptive fees. The FTC is considering adding consumer predatory towing practices to this rule.
The Towing and Recovery Association of America (TRAA) opposes this inclusion, emphasizing the unique nature of towing transactions, lack of sufficient research for proper rulemaking, negative impacts on traffic incident management and public safety, along with the jurisdiction of the Federal Motor Carrier Safety Administration (FMCSA) over towing fee transparency. TRAA met with FTC Commissioner Melissa Holyoak and her staff voicing those industry concerns after meeting
previously with the FTC Bureau of Consumer Protection.
TRAA seeks congressional support and urges the FMCSA to adopt a moderate approach, arguing that the FTC should defer to the FMCSA and state authorities. TRAA appreciates those planning to submit public comments to the FMCSA, which has extended its comment period to August 1. This extension offers a crucial opportunity for stakeholders to voice their opinions and shape fair regulations.
Interested parties are encouraged to submit their comments by August 1, 2024, via the Federal eRulemaking Portal, mail, hand delivery, or fax. Mail: Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001. Hand Delivery or Courier: Same address as above, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays Fax: (202) 493-2251. For further information, contact Larry W. Minor, Associate Administrator for
Policy, FMCSA, at (202) 366-4012 or larry.minor@dot.gov.
Source: TRAA Newslettter
Florida Tow Companies Must Comply to New Statute
New laws in HB179, approved by the House, Senate, and signed by Governor DeSantis, take effect on July 1, 2024. Towing companies must review the statutes and comply with changes, which include:
-Notice of Claim of Lien letters must be sent within five business days, or no storage fees can be charged. Letters must be posted by 11:00 am EST on the 5th business day.
-Notice of Sale must be digitally posted by a third-party. Newspaper ads are required only for tows before July 1, 2024.
-Vehicles under three years old must be held 57 days with notices mailed 52 days before sale; vehicles over three years old must be held 35 days with notices mailed 30 days before sale. Law enforcement holds are
limited to 30 days.
-Rate sheets must be posted and available upon request. A lien release fee up to $250 is allowed.
-Rental agreements are not proof of agency, preventing renters from releasing vehicles.
-Towing companies must accept diverse payment methods.
-Bond posting procedures and related legal processes are also outlined. Consult an attorney for details.
Source: Sunshine State Towing Association
Ontario Launches New Tow Truck Certification
The Ontario government introduced a new certification requirement for tow truck drivers, effective July 1, to combat fraud in the industry. This move marks the first of its kind among Canadian provinces. The provincial government will now oversee industry regulation, a role previously managed by municipalities.
Legislation passed in 2021 to ◀
address concerns over weak regulations and organized crime infiltration led to this change. Transportation Minister, Prabmeet Sarkaria, commented that, “The vast majority of tow truck companies operate in good faith, but bad actors have preyed on vulnerable drivers for too long.”
Since January, tow truck company operators have needed provincial certification. Earlier this week, Toronto police formed a tow truck task force in response to increased criminal activity within the industry. According to police, there have been 24 tow truck-related shootings in Toronto since the beginning of the year, primarily due to turf wars and rivalries.
Under the law, towers must disclose their maximum fees and take the customer’s vehicle to the desired location using the most direct route. This initiative aims to standardize the towing industry and curb criminal activities linked to a small segment of tow truck operators.
Source: www.thespec.com