Truck Parts & Service 0117

Crestview Completes Accuride Purchase | HDA Truck Pride Partners With ConMet

Thinking

BIG HOW A GOOD BUSINESS PLAN CAN HELP YOU BUILD FOR THE LONG TERM WHILE PLANNING FOR THE SHORT TERM

JANUARY 2017 |

WWW.TRUCKPARTSANDSERVICE.COM

Completing a SWOT Analysis 18

Being successful in business requires hard work, perseverance and smart decisions.

Like the decision on who to trust as a partner.

For more than 100 years, Meritor has delivered advanced technology, high-quality products and unmatched service to help customers around the world run successfully today and well into the future. Run with the Best.

Run With The Bull.

runwiththebull.com

Š2016 Meritor, Inc.

Volume 53 | Number 1 | January 2017

www.truckpartsandservice.com

Cover Story

@TPSMagazine /truckpartsandservice

Building for the long term; planning for the short term

Truck Parts & Service

Editorial

Editor: Lucas Deal Equipment Editor: Jason Cannon Associate Online Editor: Jonathan Willis editorial@truckpartsandservice.com

Design & Production

Art Director: Richard Street Advertising Production Manager: Leah Boyd production@truckpartsandservice.com

Trucking Media

Vice President of Sales, Trucking Media: Brad Holthaus sales@truckingmedia.com

Corporate

Chairman: Mike Reilly President/CEO: Brent Reilly Chief Operating Officer: Shane Elmore Chief Financial Officer: Russell McEwen Senior Vice President, Sales: Scott Miller Senior Vice President, Editorial and Research: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Vice President, Events: Stacy McCants Vice President, Audience Development: Prescott Shibles Vice President, Digital Services: Nick Reid Vice President, Marketing: Julie Arsenault

3200 Rice Mine Rd NE Tuscaloosa, AL 35406 800-633-5953 randallreilly.com All advertisers for Truck Parts & Service are accepted and published

by Randall-Reilly, LLC. on the representation that the advertiser and/ or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly, LLC. harmless from and against any loss, expenses or any other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or suits that may arise out of publication of such advertisement. RandallReilly, LLC. neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

12

Features 18 Completing a SWOT Analysis

Departments 1 2 6 10

Editorial Staff Editorials Industry Focus Tech Updates

22 26 28 28

Marketplace Classified Ads Product Spotlight Advertisers’ Index

ONLINE RESOURCES Visit us online to browse the latest industry news and products, the Buyers’ Guide and industry white papers and technical data at

WWW.TRUCKPARTSANDSERVICE.COM Truck Parts & Service (ISSN 0895-3856) is published monthly by Randall-Reilly, LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Periodicals postage paid at Tuscaloosa, AL and additional offices. Subscriptions: $50 for one year, outside USA add $10.

For change of address and other subscription inquiries, please contact: truckparts&service@halldata.com. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Truck Parts & Service 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406.

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

1

Editorial | Lucas Deal

Consolidation and the aftermarket

By Lucas Deal, Editor lucasdeal@randallreilly.com

I

f you haven’t yet noticed, we are in the midst of a massive consolidation of the truck dealer market.

The total number of mediumand heavy-duty truck dealers has been on the decline for a while, but this year the rate has increased significantly. No single OEM has been resistant to the consolidation, and in some cases, the changes have occurred at such a rapid pace that rarely more than a week goes by without news of another ownership change.

Most of the changes have been relatively small — single- or two-location dealers selling to larger, more established groups — but if you look back at the last two years or so, you can find a fair number of sizable, multi-facility transactions.

The independent aftermarket hasn’t been immune to consolidation during the same period, though we haven’t seen anything close to what’s going on with truck dealers.

I think that’s a good thing.

For the most part, the independent aftermarket operates on a smaller scale than truck dealers. Most distributors have fewer locations and employees, and while they commonly serve a wider variety of customers, the conventional aftermarket customer typically has fewer trucks than the fleets relying on medium- and heavy-duty truck dealers.

A smaller carrier or owner-operator requires a different level of service than what’s expected from a dealer, and the independent aftermarket has prospered for as long as it has because the

2

businesses within it are best suited to provide that service.

Once a dealer achieves the economies of scale to run their business across an entire region, it benefits them to find customers who are doing the same.

A customer with a dozen pre-2007 model year trucks can get good service from a truck dealer; but they’re likely never going to be the dealer’s priority.

Consolidation has created a wealth of multi-state, multi-brand dealer groups that have the size and scope to provide trucks, parts and service to customers across huge geographical areas. There are dealer groups that can service a truck from Miami to Los Angeles and back.

There are other groups that can provide regional fleets service across their entire route area, whether it be in the Northwest, Southeast or anywhere in between.

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

For a customer within those areas, knowing that network of support is out there is reassuring. But if we think back to that 12-unit used truck fleet, just because such support exists doesn’t mean it is the fleet’s best option. Once a dealer achieves the economies of scale to run their business across an entire region, it benefits them to find customers who are doing the same.

The aftermarket has thrived by servicing everyone else. And I hope it can withstand (or minimize) consolidation so it can to continue to do the same.

I should note, I don’t think a service center purchasing a second location or a three-store distributor adding a fourth is a threat to the independent aftermarket.

Not at all. I only hope as aftermarket businesses consolidate and/or expand, they don’t overlook any customers that have helped provide them the opportunity.

There are always going to be owneroperators and local municipal fleets that need hands-on customer service. There are always going to be customers searching for obsolete parts; for specialized service; for accelerated parts delivery to get their vehicle — and their livelihood — back on the road.

Independent aftermarket businesses need to maintain their versatility to service each of these customers as they expand. Dealer consolidation has created enough cracks in that business model for smaller customers to slip through. It’s time for the aftermarket to snatch them up, and keep them in the channel.

Grey-Rock Passes Reduced Stopping Distance Requirements Then and Now. Fleets today can have peace of mind that the same trusted Grey-Rock GR2015 and GG2020 friction products meet Reduced Stopping Distance requirements.* The consistent performance and high quality of GR2015 and GG2020 legacy products reduce wear and extend life cycles of brake related parts for 20,000 and 23,000 axle ratings, respectively. And, by providing one material that works for both the tractor and trailer, Grey-Rock helps to simplify inventories. Be sure it’s Grey-Rock, the brand that has passed the test of time.

*Track tests performed Transportation Research Center Inc.

Haldex.com 800-643-2374 - US 800-267-9247 - Canada

Editorial | MacKay & Company

The aftermarket and weather

By John Blodgett MacKay & Company

T

wenty years ago we started a monthly report for our clients called DataPulse Plus. It was (and still is) meant to provide our clients with feedback from truck dealers and heavy-duty distributors on how their parts and service (if they have) business performed in the last month and what was impacting their business positively or negatively. I helped write this report for five years and I typically would struggle with how to deal with the comments folks provided on weather.

In the same month, one respondent would say parts sales are up because the weather is bad and causing components to fail and another would say parts sales are down because the weather is bad and keeping the vehicles off the road. Both statements were the respondent’s best estimate of what was going on, although the cause of an actual increase in sales is easier to identify than a drop off. I don’t believe many customers call in to their local parts provider and say, “I haven’t worn out that alternator this month because we haven’t been running the truck as much because of the weather.”

You can measure the impact of some weather.

We did a study on Katrina, the hurricane that hit the gulf coast in 2005, for a client that was interested in the impact on the economic activity in that area as it related to trucking. The impact was

negative and sustained as you can guess, even with offsets from new construction and roadwork.

I don’t believe many customers call in to their local parts provider and say, “I haven’t worn out that alternator this month because we haven’t been running the truck as much because of the weather.”

Earlier this year, I had the opportunity to tour FleetNet America’s offices in Cherryville, N.C. FleetNet provides emergency road services (as well as many other services) for trucks that break down. Their call center is an amazing operation to see in action as they handle hundreds of minor and major breakdowns across the country with large status screens tracking the status of each breakdown.

On my tour, I asked FleetNet President and CEO Gary Cummings if they had an uptick in business from Chicago

in the previous week because we had a pretty big snow storm. His response was that snow storms were not as big of an issue. The biggest weather issue was extreme temperatures—cold and hot as the temperatures stress components to the breaking point.

Recently, we were asked to put together an aftermarket parts weather index with specific focus on tracking and measuring the impact of winter weather on aftermarket parts sales. For several months, we hemmed and hawed whether this was possible, in part hoping the request would go away, especially after another client told us they hired a large, well-known consulting firm to do the same thing and they told them, after billing them, that it wasn’t possible, thanks for the business.

I don’t hold out much hope that we’ll be able to put specifics to the impact of weather, but we’re going to take a shot at it (this will be part of our DataPulse Plus report—no innocent clients will be billed in the process). We have some smart folks here and at our client companies, so who knows what we may find—check back with us in a couple years.

If we do find an association with say extreme cold air and an increase in parts sales, maybe we can convince Canada to send more our way. If not, maybe that is the border we need to build the wall on, to keep the cold air out.

John Blodgett has worked for MacKay & Company for more than 20 years and is currently vice president of sales and marketing, responsible for client contact for single and multi-client projects. He can be reached at john.blodgett@mackayco.com.

4

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

Industry Focus

Dealer News Stoughton Rental and Leasing Company, LLC, has opened its doors on a new location in suburban Dallas.

Valley Freightliner celebrated its 30th anniversary last year. The company also announces ten of its Washington and Oregon facilities have rebranded as Freightliner Northwest.

Kenworth Truck Centres of Ontario recently opened a new 40,000-sq.-ft.-facility in Cambridge, Ontario, to replace its former Kitchener dealership.

Wabash National Corporation has added Maudlin International to its dealer network.

BestDrive, LLC, a commercial tire dealer and retreader, has opened a new location in Indianapolis, Ind. Great Dane full-service dealer, Central Valley Trailer Repair (CVTR), has opened a new, state-of-the-art facility in Fresno, Calif.

Eddie’s Truck Center announces its Rapid City and Fort Pierre, S.D., facilities have been named Elite Support certified locations. Sister company Floyd’s Truck Center also announces its Scottsbluff and Sidney, Neb., and Cheyenne, Wyo., facilities are now Elite Support certified.

Old River Truck Sales has acquired three dealerships in southern Louisiana.

Wiers Fleet Partners has opened a new service center in Louisville, Ky.

Kenworth of Effingham has opened a new 21,000-sq.-ft. full-service dealership.

McCoy Freightliner’s Portland and Salem, Ore., locations have been Elite Support re-certified.

The Larson Group (TLG) Peterbilt is rolling out a mobile messaging platform, which will enable customers to instantly connect with dealers via chat or text.

MHC Kenworth has relocated its full-service dealership in Ardmore, Okla.

Parker-Hannifin Purchases CLARCOR Parker-Hannifin has acquired CLARCOR, parent company of Baldwin Filters, for $4.3 billion.

First reported by Bloomberg last month, the move is Parker-Hannifin’s largest acquisition ever, and the cash offer of $83 per share was an 18 percent

6

premium over CLARCOR’s closing NYSE price from the date before the acquisition.

“We know this company very well.

We operate in the same space,” said Thomas Williams, Parker CEO, during a conference call. Williams also mentioned CLARCOR’s aftermarket presence as a

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

positive to the acquisition. “[It] makes our company much more resilient and less volatile to the business cycle,” he said.

Industry Focus

Crestview Partners Completes Accuride Purchase Accuride Corporation has officially been acquired by Crestview Partners, pursuant to the merger agreement it announced in September 2016.

Accuride’s shareholders adopted the merger agreement at the company’s special meeting of shareholders held in November.

“Today marks the start of a new and exciting chapter for our storied company. As a stand-alone business within

Crestview’s portfolio of companies, Accuride will serve as a platform for further growth and consolidation in the global wheels and wheel-end sectors as we

continue to deliver world-class operating performance and products for our customers,” says Accuride President and CEO Rick Dauch.

Visit us at HDAW Booth #431

Doonan Trailer Building New Plant Doonan Specialized Trailer has gutted a 25,000 sq.-ft.-manufacturing plant, previously used to stall build custom trailer products, to create a new, high-efficiency flatbed trailer plant.

Doonan will still build custom trailer products in its main factory, separate from its new high-efficiency flatbed trailer plant. The new plant will allow Doonan to be more price competitive in the volume build flatbed trailer market, the company says.

TransAxle Named OMSI Distributor TransAxle has been selected by OMSI Transmissions, Inc., as its Northeast region Authorized Distributor, Service Center and Warranty Center. The authorized region consists of all states between Maine and Georgia along the eastern seaboard and Ohio to Tennessee in the Midwest.

TransAxle says the product grouping consists of all of OMSI’s axles, gearboxes, hydro-mechanical drives, power take-offs, transfer cases, and railway units.

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

THE HOME OF THE BRANDS YOU TRUST CVG HAS A FULL RANGE OF PRODUCTS TO SERVE THE NEEDS OF ALL CUSTOMERS •

SEATING SOLUTIONS FOR BOTH ON AND OFF-HIGHWAY

•

TRUCK MATTRESSES

•

ALL-MAKES WIPER MOTORS

•

QUALITY ALL-MAKES TRUCK MIRRORS

•

ROAD SURFACE TEMPERATURE SENSORS AND VEHICLE TRACKING

®

1-800-459-7328

AFTERMARKET@CVGRP.COM WWW.CVGRP.COM

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

7

Industry Focus

HDA Truck Pride, ConMet Announce Exclusive Agreement HDA Truck Pride has announced an exclusive supplier program with Consolidated Metco (ConMet).

In the new partnership, ConMet has made available a full line of OEM equivalent aftermarket hub assemblies for trucks and trailers.

The company says these new part numbers are direct replacements for hubs installed as original equipment.

Additionally, ConMet says it has provided a mobile app for HDA Truck Pride members that provides a quick cross reference of an OEM part number to the correct Aftermarket replacement.

This new application can be downloaded for Android and Apple devices.

“We are excited about the opportunity to partner with one of the most recognized groups of independent parts and service providers in the commercial vehicle aftermarket,” says Larry Sanford, ConMet’s vice president of Aftermarket.

Nikolai Setzer, head of Continental’s global tire business worldwide, speaks at the company’s groundbreaking ceremony in 2016.

Continental Building Truck Tire Plant In Mississippi Continental Tire has broken ground on its state-of-the-art commercial truck tire plant in Clinton, Miss.

The plant will augment the company’s North American commercial truck tire production alongside its existing facility in Mt. Vernon, Ill. Continental will invest nearly $1.4 billion in its Clinton facility in the next decade, making it the largest plant investment in company history and the second-largest economic development project in Mississippi’s history. When fully operational, the plant is expected to employ as many as 2,500 people, Continental says.

People In The News Brake Parts. Inc., (BPI) has promoted Rick Woodside to the position of general manager, hydraulics, drums and rotors.

Wastequip has named Steve Klueg as chief financial Woodside officer.

FinditParts has appointed John Hunter as its new vice president of business development.

Jim Wright has joined Truck Master Warranty as a Hunter regional sales manager.

East Manufacturing has named Bill Wallace as platform product manager, in addition to his current position as Northeast regional sales manager.

8

Marangoni Expands Retread Network

Jeff Kolner has been named general manager of the Fontaine Modification operation in Garland, Texas.

SKF USA has appointed George Garner as director of OES Truck Sales for the Kolner SKF Vehicle Service Market (VSM), North America Business Unit.

Randy Wingenroth has been appointed vice president of Operations for Palfinger North America.

Nick Orlando has been named Dayco’s new CEO.

Wingenroth

Daimler Truck Financial has named Tobias Waldeck as vice president of Sales, Marketing and Remarketing.

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

Hancock County Tire & Retreading in Bluffton, Ohio, is now a member of the Marangoni Tread North America family of independent retreaders, the company has announced.

Hancock County Tire & Retreading was opened in 2011 by Sumerel Tire Service, Inc., which has other locations in Ohio, Indiana and West Virginia.

“Hancock County Tire & Retreading added the Marangoni Ringtread system because we like to be different in the way we go to market. Everyone sells precure treads but the Ringtread separates us from the others,” says Bob Majewski, chief technical officer for Sumerel Tire Service.

Industry Focus

Knorr-Bremse Closing In On Haldex Acquisition The Haldex Board of Directors has cleared the way for the company to be acquired by Knorr-Bremse AG and recommended the more than half a billiondollar transaction proceed.

Knorr-Bremse is the parent company of Bendix Commercial Vehicle Systems “We appreciate that the Haldex Board

has highlighted the attractiveness and the superior economics of our offer to shareholders,” says Klaus Deller, Chairman of the Executive Board of Knorr-Bremse AG. “We are convinced that the combination of Knorr-Bremse and Haldex will benefit Haldex’ employees and customers alike. Combining competencies in the

field of trucks and trailers has a compelling industrial logic as we expand our position as one of the leading systems suppliers in the industry.”

Truck Parts & Service Calendar Event information can be submitted at: www.truckpartsandservice.com/story-ideas/

Jan. 22-23

Service Opportunities Learning Days, Las Vegas

Jan. 23

Heavy Duty Aftermarket Dialogue, Las Vegas

Jan. 23-26

Heavy Duty Aftermarket Week, Las Vegas

Feb. 27-March 2 Technology & Maintenance Council (TMC) Annual Meeting, Nashville

NICE TRY

NAILED IT

Typical greasy mess Guaranteed to require upkeep

New 5th Wheel Slick Plate Guaranteed for 5 years!

Times change. So should you.

TOOL BOXES

TIRE BENCH

TOOL BENCH

FENDERS

FLOOR MATS

TESTED AND TORTURED MINIMIZER POLY PRODUCTS

TESTED AND TORTURED • FIND A LOCAL DISTRIBUTOR• AT MINIMIZER.COM OR CALL 800.248.3855 TM

DAILY BY TRUCKERS FOR TRUCKERS

Untitled-1 1

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

12/9/16 10:12 AM

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

9

Tech Updates

MAINTAINING A SWINGER GLADHAND

P

hillips Industries has released the following tech tips for service providers to best maintain swinger gladhands.

Designed to help eliminate damage due to pull-away or tight/jack-knife turns and reduce impact where straight or angled gladhands are exposed to damage, Phillips says preventive maintenance should be performed on swinger gladhands at each scheduled preventative maintenance interval or every three to six months.

General Gladhand Care Gladhand Seals: Gladhand seals should be checked for wear and cracks that can cause leaks. Replace where any type of damage is present. If gladhand seals have dust flaps, replace when any flaps are torn or missing. If using filter screens, replace when damaged, torn or filled with debris.

Signs of Corrosion: Gladhands that show substantial signs of corrosion on the body, connector and/or detent plate should be replaced. It is suggested to use powder coated or anodized gladhands in highly corrosive environments.

Connector Plate: Make sure the small dimple on the connector plate is not worn down. If the dimple is worn down, replace

SAFETY RECALLS Daimler Trucks North America (DTNA), is recalling certain model year 2016-2017 FCCC XBR, XCL, XCM, and XCR recreational vehicle chassis manufactured Jan. 1, 2016, to Oct. 12, 2016, equipped with Cummins ISL engines. The power steering hose on the affected vehicles may be routed incorrectly, and thus the hose may rub against the power stud on the starter motor, possibly causing electrical arcing and a power steering fluid leak. Electrical arcing in the presence of leaking power steering fluid can increase the risk of a fire.

Navistar is recalling certain model year 20112016 IC Bus CE school buses manufactured Nov. 3, 2009, to Feb. 26, 2015, and 2012-2015 IC Bus BE school buses manufactured Aug. 2, 2010,

10

the gladhand. If not replaced, coupled gladhands will leak air because they will begin to lose the ability to seal properly.

Detent Plate and Rivets: Look for heavy wear to the detent plate as well as loose or corroded rivets. If the detent plate becomes loose it can eventually break off, making coupling impossible. Replace the gladhand where signs of heavy wear or corrosion are present.

Care of Swinger Arm and Mounting Plate/Hardware Swinger Arm/Spring: Joints should be blown clean during preventative maintenance inspections. A shot of penetrating spray can be used to keep the swinger operating properly.

Mounting Plate/Bracket and Hardware: Check for loose bolts and tighten where necessary to the proper torque. Check for signs of corrosion on the mounting plate and hardware. Replace if significant signs of deterioration are present that can jeopardize secure attachment of the swinger gladhand to the trailer.

The following are safety recalls issued by the National Highway Traffic Safety Administration:

to Sept. 15, 2014. It also is recalling certain model year 2011-2016 IC Bus CE transit buses manufactured July 1, 2010, to Feb. 4, 2015, and one IC Bus BE transit bus manufactured on November 2, 2010. The affected vehicles have a water shutoff valve, inside, forward of driver heater (feature code 48PPJ or 48PPP) that has a formed heater hose that over time, may fatigue and split resulting in hot engine coolant fluid leaking into the driver’s foot area. If hot, pressurized coolant suddenly spills into the operator’s foot area, there is an increased risk of a burn injury or a crash.

Paccar is recalling certain model year 2017 Kenworth K370, T270, T370, T440, T660, T800 trucks manufactured Feb. 2, 2016, to

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

Oct. 13, 2016, and Peterbilt 330, 337, 348, 367, 389, 567, and 579 trucks manufactured March 7, 2016, to Oct. 5, 2016. The affected vehicles are equipped with certain Goodyear LHS Load Range G tires, size 295/75R22.5 G399A, that due to incomplete adhesion, have a tire tread that may partially separate. A partial tread separation may increase the risk of a crash.

Volvo Bus Corporation is recalling certain model year 2008-2017 9700 buses manufactured Jan. 7, 2008, to Aug. 25, 2016. The affected vehicles are equipped with a power feed relay for the engine and transmission which may be undersized for the application, causing the relay to fail and the engine to stall. An unexpected engine shutdown increases the risk of a crash.

ADZ FRAME BRACKET ADZ HEAVY-DUTY TRUCK SUSPENSION

FW35

ADZ V-ROD

MOUNTING BRACKETS RELEASE HANDLES

AIR SPRINGS

CLASSIC™

CRUCIFORM SERIES

ATLAS 55™

CBX SERIES

MUSHROOM SERIES

MECHANICAL SUSPENSION KITS

LOCK-N-LEAVE™ KINGPIN LOCK

AIR CYLINDERS

BUSHINGS

SHOCK ABSORBERS

LOCK REBUILD KITS

L SERIES AIR SPRINGS

BUSHING KITS

PINTLE HOOKS & DRAWBARS

DB-610-30

PH-410

DOLLY JACKS

DB-1245 CRANK HANDLES, FOOTWARE AND ACCESSORIES

PH-30RP41

Call 800.876.3929 safholland.us

ORIGINAL SERVICE PARTS TO KEEP YOU ROLLING

Cover Story

By Jonathan Willis, Associate online editor jonathanwillis@randallreilly.com

Thinking

12

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

Cover Story

big

How a good business plan can help you build for the long term while planning for the short term

N

o matter the industry, generally each business owner has a long-term goal in mind.

Distributor and service providers’ longterm goals could be something far-reaching they hope to accomplish for their business, whether that’s related to how many storefronts they open, how many service shops they operate or how much capital they hope to earn.

There are many separate and distinct ways of reaching a final goal, and planning carefully is an important part of that process.

In developing plans to reach ultimate goals, it can be useful to separate planning into phases. This allows for a business to track immediate improvements while evaluating progress toward eventual goals and targets.

The different time frames of the planning process place the focus on time-sensitive aspects of the company’s structure and environment.

Dave Settles, president of Weldon Parts, says his company talks about its plans for the next several years before business planning each year.

“We talk about the things that we want to accomplish three, four or five years down the road, but we only sit down and put on paper what we are looking at for that year,” Settles says.

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

13

Cover Story

“We look at what will get us to that point in the future.”

Known as short-term planning, this strategy allows a company to look at its operation in the present and develop strategies to improve into the future.

According to business planning software LivePlan, creating a shortterm business plan to reach goals is not without challenges. The company cites employee attitudes and equipment as two viable short-term concerns.

To address these issues, LivePlan advises putting in place short-term solutions to address problems. Employee training courses, equipment servicing and quality fixes are short-term solutions. These solutions set the stage for addressing problems more comprehensively in the longer term, the company says.

Medium-term planning applies more permanent solutions to short-term problems.

In the long term, companies want to solve problems permanently and reach their overall targets, LivePlan says.

No matter the length, effective business planning is critical to a company’s long-term success, and its ability to raise capital and grow successfully.

A properly prepared business plan should tell a company’s story, make an argument and conservatively predict the future. Since all companies have different stories to tell, there is no hard “set in stone” plan to follow, says Azhar Kozami in the book “Business Policy and Strategic Management.”

Every business must choose what’s best for its own individual needs.

A well-written business plan also should lay out an optimal growth path and strategy, as well as the rationale for selecting one strategy over other alternatives.

LivePlan says growing a business requires setting short- and long-term goals. Often the short-term goals are the steps necessary to achieve the longerterm goals, and LivePlan says businesses should choose related areas such as advertising and revenue, and base short- and long-term goals within these categories.

An example of a short-term goal is to increase your advertising budget each month for the next three months. An example of a long-term business goal that the short-term goal helps achieve is to double business revenue by the end of the fiscal year.

Short-term goals are goals a business sets out to accomplish in six months or less, and typically are flexible.

When you look at things at six-month increments, you get a better idea of what’s really taking place.BBB – Dave Settles, president of Weldon Parts

14

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

“When you look at things at sixmonth increments, you get a better idea of what’s really taking place,” Settles says.

When it comes to achieving shortterm goals, a good place to start is determining what you can do in the time you have available.

For example, suppose an aftermarket distributor’s long-term goal is to double its customer base. To do so, it creates a plan that involves a series of short-term objectives. The company then moves from one short-term objective to the next, knowing that each completed objective brings it closer to its overall goal.

That may require developing advertising plans, customer service goals or cost cutting measures. There are many variables to look at when deciding the best options for a short-term goal.

“Our fiscal year starts on July 1, so I spend the previous couple of months planning for that,” Settles says. “In December we look at the numbers compared to what we projected in July and see if it’s real. We talk with our managers and see what’s what, what’s realistic, and start from there.”

Weldon Parts must do that when considering plans to roll out across its 18 locations.

“We have to look at it by region and then down to the specific stores when we

Cover Story

At Weldon Parts, short- and long-term planning meetings are held on a regular basis to keep the business focused and on the right track toward reaching its business goals.

are planning,” Settles says.

“For example, Florida is different from Nebraska, so we have to take all of those factors into account.”

He adds that looking at goals and patterns based on six-month increments has

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

been a strategic value for the company.

“When December rolls around, we can adjust and make different plans from what we put in place in July. You have to deal with what’s real,” he says.

Additionally, what counts as a

short-term objective depends on a business’s needs.

A company might set short-term goals for longer periods to accomplish its long-term goal in several years. For example, a business that hopes to expand

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

15

Cover Story

Harman Heavy Vehicle Specialists decided to build a new expanded, warehouse facility after a series of business planning meetings determined a new facility would best position the company for longterm growth.

into another region might break down its long-term growth strategy into a series of short-term plans, such as implementing more service features at a later date.

Short-term objectives also must be verifiable to be valuable, says Kozami.

An example here could be an aftermarket business that aims to improve the company’s customer service department may implement customer surveys over the course of several months and measure changes in consumer attitudes, tracking whether they are meeting shortterm goals that have been set in place.

And while planning carefully, even the best long-term plan can fail, which is another reason short-term objectives are important.

If an aftermarket distributor is failing to achieve its short-term goals, that’s a sign it should reevaluate its strategies.

Being able to adjust also is an important key to any short-term plan. Many factors in the market are often unpredictable and cannot be considered when plans are made, so the ability to shift gears is a necessary component.

“We set budgets and put marketing plans and sales goals in place each year, but we have to be flexible because things change,” says Ian Johnston, vice president of operations and marketing for Harman Heavy Vehicle Specialists.

“We have to look at new product lines, whether new processes or equipment are needed, look at the year to year cost

We set budgets and put marketing plans and sales goals in place each year, but we have to be flexible because things change.BiiB – Ian Johnston, vice president of operations and marketing for Harman HVS

16

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

effectiveness of everything we are doing.

“From a sales standpoint we are more flexible from our plans because so many variables can change. Sometimes what we do is affected by vendors and other things that we can’t control.”

Deviating from a plan is occasionally going to be necessary.

“You can’t sit back and rest on your plans that you have in place on paper,” Johnston says.

“You have to be receptive to the marketplace and what’s going on around you.

You can have a plan in place and then a vendor has something that they want you to be a part of and everything changes.

You just have to be willing to adjust.”

And short-term plans allow for quick adjustments. It’s better for any business to know early on that they are stalled or heading in the wrong direction.

A business owner who fails to measure their progress with short-term objectives might waste years on an ineffective strategy.

Sales & Marketing

18

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

By Jonathan Willis, Associate online editor jonathanwillis@randallreilly.com

?

Sales & Marketing

SWOT’s up Self-analysis helps all businesses in planning

R

unning a profitable business requires a commitment to strategic planning. And for businesses tasked with a big decision, there are few analytical tools more valuable than a SWOT analysis.

SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an analytical tool that creates awareness around the internal and external factors that influence a company’s productivity and performance.

Existing businesses can use a SWOT analysis at any time to assess a company’s progress related to its goals.

For example, if a distributor is looking to improve its customer service results as part of its

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

short-term business goal process, it could look at all the areas in which they’ve been successful, and of course, the areas that are lacking.

New businesses can use a SWOT analysis as a part of their planning process as well. For example, when developing a marketing plan for a new facility, you can look at all the items that are available, see who your competitors are and who they are targeting and see what options best suit the business.

Generally, owners, managers and various personnel groupings take place in the SWOT process so that varying opinions can be generated. The SWOT process is very much a “thinking game” where ideas are bounced around among a diverse group of peers.

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

19

Sales & Marketing

A successful SWOT analysis focuses equally on each element of the acronym, and allows a business to identify all forces that influence their strategies, actions or initiatives.

Managers and executive staff who are able to provide input on these positive and negative elements ensure a SWOT analysis effectively examines all aspects of an operation.

How to build a SWOT analysis Drafting a SWOT analysis typically starts with a table split into four columns where you can catalog the traits of your business.

Strengths and weaknesses won’t typically match listed opportunities and threats, though they should correlate somewhat since they’re tied together in some way.

The first two letters in the acronym, S (strengths) and W (weaknesses), refer to internal factors, which means the resources and experience available at that time. According to business planning software, LivePlan, examples of areas typically considered include: ■ Financial resources, such as funding, sources of income and investment opportunities ■ Physical resources, such as your company’s location, facilities and equipment ■ Human resources, such as employees and target audiences

We look at whether new equipment or processes are needed and the new product lines and how they fit. We take a good look at every aspect of the business and see what things are working and what areas we need to improve.

– Ian Johnston, vice president of operations for Harman HVS

■ Access to natural resources, trademarks, patents and copyrights ■ Current processes, such as employee programs and software systems LivePlan says external forces influence and affect every company. Whether or not these factors are connected directly or indirectly to an opportunity or threat, business owners should take note of and document each one. This is the O (opportunities) and T (threats) of the analysis.

LivePlan says external factors typically reference things that a distributor or dealership does not control, such as: ■ Market trends, like new products and technology or shifts in audience needs ■ Economic trends, such as local, national and international financial trends ■ Relationships with suppliers and partners ■ Political, environmental and economic regulations Once you’ve finished your analysis, it’s

[Leveraging discovered strengths and opportunities to overcome weaknesses and threats] is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge.

– Linda Pophal, owner and CEO of Strategic Communications

20

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

time to determine what you can do based on the results.

Linda Pophal, owner and CEO of Strategic Communications consulting firm, says one common approach after completing a SWOT analysis is building a business plan that focuses on leveraging discovered strengths and opportunities to overcome weaknesses and threats.

“This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the first place,” Pophal says.

Ian Johnston, vice president of operations for Harman HVS, says his company does a SWOT analysis each year around November or December when the market slows.

“We look at the past year and the upcoming year and see how things fared and what we can do to improve,” Johnston says.

“We look at whether new equipment or processes are needed and the new product lines and how they fit. We take a good look at every aspect of the business and see what things are working and what areas we need to improve.”

Johnston says the SWOT analysis gives the company a better understanding of changes needed in their short and longterm business planning process.

“There are areas where we can be flexible and some where we can’t. The SWOT helps us in planning our goals.”

Marketplace

The Buzz The five hottest products as determined by readers of truckpartsandservice.com

New fan and fan drive Horton announces two new offerings that enhance its expanding product portfolio – the HTEC 1800 fan and RCV1000 fan drive.

Horton says the new products provide enginecooling solutions for customers in the off-highway industry seeking increased productivity, fuel efficiency, reliability and noise reduction.

Group of former dealeronly parts Dorman HD Solutions has introduced new former dealer only parts to its heavyduty aftermarket product offering.

The company says the parts include a battery cover, brake light switch, accelerator pedals and coolant reservoirs.

Fifth wheel lamp Purkeys has developed a fifth wheel lamp to help illuminate the kingpin lock-jaw position for drivers during hookups and help greatly reduce dropped trailers.

The Fifth Wheel Light is a coupling light or trailer-hitch light that eliminates shadows on the locking mechanisms and removes the need for a flashlight.

Purkeys says the light makes it easier for drivers and technicians to verify that everything is properly connected.

Collision replacement parts Air disc brake pads STEMCO has released its Lunar line of air disc brakes.

The Lunar product line complements STEMCO’s established lines of brake products including brake drums, friction components and automatic brake adjusters. The air disc brake product line includes two conventional air disc brake pads. Lunar is a high-quality aftermarket air disc pad made to fit form and function as well as or better than OE, STEMCO says.

22

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

Navistar has added a new line of collision replacement products for a wide variety of heavy-duty truck applications to its Fleetrite brand.

Navistar says the all-makes trucks parts line of bumpers, hoods and grilles is designed to provide the same quality and effectiveness that customers expect from an OEM.

Marketplace

LED strobe lamps Larson Electronics has released a 32-watt mini LED strobe light equipped with a 16 ft. cord terminated in a general area cord cap for connection to 120 to 240

volts AC power sources.

This compact mini strobe light features two 50 lb. grip magnets integrated with suction cups, providing operators

with the ability to mount the unit on a smooth surface such as glass, as well as metallic surfaces such as vehicle roofs and equipment railings.

Booster cables Clore Automotive introduces a new lineup of Jump-N-Carry booster cables that the company says cover boosting applications from occasional use passenger vehicle boosting to heavy-duty boosting of on-highway trucks and heavy agricultural equipment.

The new offering features five commercial grade models, which range from a 12 ft., 10 gauge cable set to a 25 ft., 2/0 cable set.

Expanded oil product line TRP has expanded its product lubricant product offering with TRP Engine Oil, TRP Synthetic Transmission Oil and TRP Synthetic Gear Oil. Formulated to guard against wear and corrosion in demanding applications, the four products in the TRP Lubricant Program protect axle components, transmissions and engines for longer life and smoother operation across a wide range of operating conditions, the company says.

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

23

Marketplace

Trailer and maintenance tools Minimizer has released its fifth and sixth new products of 2016 – the Trailer Slick Plate and the Tool Caddy.

The Trailer Slick Plate is a self-lubricating polymer plate that attaches to a trailer’s upper coupler.

The Tool Caddy has been added to Minimizer’s Maintenance Line.

The product attaches to a tire and creates a space to store up to 100 lbs. of tools and gear. It is designed to fit three applications – standard tires from 245 to 295, Super Single tires and flatbed trailers.

Off The Line Spotlighting a new OEM innovation

Aftermarket engine, turbo parts MAHLE Aftermarket released more than 80 new part numbers.

MAHLE Aftermarket’s 81 new part numbers are for a variety of pistons and piston rings, filters, thermostats, engine bearings, and turbochargers now available for both light vehicle and heavy-duty applications.

Nikola Motor Company unveils fully electric Class 8 tractor Nikola Motor Company formally introduced its fully electric, 1,000 horsepower, zero emission Class 8 tractor, Nikola One, last month.

Per the company, the revolutionary tractor’s electricity is supplied on-the-go by a hydrogen fuel cell and regenerative braking, giving it a range of more than 1,200 miles and more than 1,000 horsepower with 2,000 ft. lbs. of torque.

“Hydrogen is more efficient and there’s no emissions on it,” Nikola Founder and CEO Trevor Milton says. “It’s 100 percent zero emissions. The end goal, and the desire of us, is to be 100 percent emission free.”

Nikola says the Nikola One will be available as a full-service 72-month lease tractor, and will run between $5,000 and $7,000 per month depending on options.

24

T R U C K PA R T S & S E R V I C E | J a n u a r y 2 0 1 7

DOT-approved headlight replacements Grote Industries has introduced its newest Forward Lighting product addition — DOT-approved 4×6 in. headlight systems available as a halogen or HID lamp replacement.

Available in both low and high beams and providing 630 and 900 effective lumens, Grote says its lights are constructed with a die cast aluminum housing and includes a hard coated, UV protected lens that is resistant to cracking and yellowing. The lights are operable with 12- or 24-volt systems.

Marketplace

Trailer dome lamps

Various replacement parts PAI Industries has added more than a dozen new products to its heavy-duty aftermarket product offering.

The new parts include flasher signals, an air solenoid valve, control throttle, air spring, grille bezel, tachometer, cab lift pump, intercooler core, cab air filter, transmission oil pump, clutch release yoke, exhaust valve, oil pan, check valve, exhaust manifold hardware kit and accessory drive shaft.

Phillips Industries has released brighter and more efficient trailer dome lamps, with or without motion sensors, for commercial trailers.

The new lamps are multi-volt allowing them to run on a 12- or 24-volt system, and offer consistent lamp light output throughout the voltage range. They are designed to work in extreme temperatures of -40°F to 176°F (-40°C to 80°C) and a silicone seal protects components under the lens from moisture build up.

Expanded turbocharger line PurePower Technologies has expanded production of its turbocharger product offerings to include turbochargers for light-, medium- and heavy-duty truck engines.

Offering assembly, remanufacturing

and test lines for high-volume OEM-quality turbochargers, PurePower Technologies says it uses a modular approach for an assortment of all makes, sizes and model engines including wastegate and variable geometry turbochargers.

CALCULATE YOUR MPT SAVINGS.

CONTINUOUS TIRE INFLATION FOR CONTINUOUS TIRE SAVINGS.

Maximizing your MPT™ – miles per tire – is essential. And Meritor® is the MPT leader. Our Meritor Tire Inflation System (MTIS™) by P.S.I. extends tire life by up to 10 percent. And our ThermALERT™ option adds protection from wheelend overheating. When you total all the benefits, MTIS can pay for itself in under one year. Visit our online MTIS payback calculator at MeritorCYA.com. ©2016 Meritor, Inc.

W W W . T R U C K PA R T S A N D S E R V I C E . C O M

J a n u a r y 2 0 1 7 | T R U C K PA R T S & S E R V I C E

25

203-637-1900

info@wash-bots.com

Call Brad Holthaus 205-248-1278 or visit www.truckpartsandservice.com

Classified Advertising

Classified Ads

Indoor & outdoor use Electric, battery & diesel power Minimize water & detergent use Turn one person into a wash crew Soap, brush & rinse a trailer in 6-8 min

Replace Your Rusted Coolant Tubes With Stainless Steel

FREE

SHIPPING Mention this ad!

SouthpointeRadiator.com Family Owned for Over 30 Years

1-888-943-4434 1-888-780-4894 Circle No. 105 on Response Card

Visit us at MATS booth #66209

Southpointe Radiator_TPS1216_PG.indd 1

DirectEquip_CCJ0909_Pg.indd 1

11/28/16 2:19

8/6/09 2:44

Call Our Experts!

• Air Brake Components • Air Springs • Bearings & Seals • Clutch Assemblies & Parts – All New • Differential • Transmission Visit us at • Driveline HDAW Booth • Electrical #913 • Engine • Hydraulic PTO, Pumps & Tanks • Power Steering • Suspension • Wheel Attaching

800-934-2727

Log on to our web site for:

• Industry Headlines • Industry Calendar • Full-text versions of current and past articles.

• Subscription information

sales@WorldAmerican.com

26

T R U C K PA R T S & S E R V I C E |

TPS 1-6th Page 2016.indd 1

January 2017

12/15/2016 9:35:23 AM

• Staff contact information • New Products • Tech Updates • And MUCH more…

www.TruckPartsandService.com

Ad Index Company

Contact Info

Page

Company

Contact Info

Page

Automann

888-288-6626

28

Minimizer

800-248-3855

9

Automann

888-288-6626

BC

ProMiles

800-324-8588

23

Commercial Vehicle Group, Inc.

800-459-7328

7

S & S Truck Parts, Inc.

800-621-1553

IBC

Flight Diesel

717-932-7000

15

SAF-Holland Original Parts

800-876-3929

11

GenNext

gennexthd.com

17

Great American Trucking Show

800-633-5953

21

Haldex

800-643-2374

3

BITIMEC International

877-637-1900

26

Classifieds

Meritor, Inc.

meritor.com

IFC

Direct Equipment Supply Co.

800- 992-1478

26

Meritor, Inc.

meritor.com

25

FinditParts

finditparts.com

26

Meritor, Inc.

meritor.com

28

Majestic Lubricants

713-674-3333

27

Midwest Truck Parts

800-934-2727

5

randallreilly.com

26

Midwest Truck Parts

800-934-2727

26

888-943-4434

26

Rig Dig BI Southpointe

Sponsored Product Spotlight

This advertisers’ index is a service to readers. Although every effort is made to maintain accuracy, Truck Parts & Service cannot assume responsibility for errors or omissions.

MERITOR® ALLFIT PREMIUM TAPERED ROLLER BEARINGS BROCHURE These all-makes bearings are manufactured using the same processes as Meritor production bearings, the AllFit offering is a costeffective bearing solution designed for differentials, transmissions and wheel ends — including steer, drive and trailer axle applications.

The portfolio includes an extensive product range with “drop-in” replacements for full interchangeability with other manufacturer’s bearings. AllFit bearings also are packaged for optimal anti-corrosion protection, keeping quality in and unwanted elements out.

For more information or to download this brochure, go to meritor.com/ LOD and search publication SP-1522.

AN INDUSTRY TRIPLE PLAY FROM AUTOMANN

Meritor, Inc. MeritorPartsOnline.com

Automann USA www.automann.com

Log on to our web site for:

MERITOR® ALLFIT PREMIUM TAPERED ROLLER BEARINGS

• Industry Headlines • Industry Calendar • Full-text versions of current and past articles.

ENGINEER-ENHANCED ALL-MAKES BEARINGS FOR A SUPERIOR, COST-EFFECTIVE SOLUTION.

28

Automann offers three reference catalogs: • Air Spring: 250 pages with more than 500 air springs, bellows charts and extensive cross references.

• Steering: 408 pages with more than 1,200 detailed pictures, progressive size and OEM charts and an index with more than 6,000 cross references.

• Suspension: 1,432 pages with more than 300 schematics across 47 makes, including 35 new models.

More than 3,500 detaled pictures, dozens of charts and OEM and industry cross references.

T R U C K PA R T S & S E R V I C E | J9/28/16 a n u a r y8:01 2 0AM 17

Meritor Lit Review_TPS1016PG032.indd 1

• Subscription information • Staff contact information • New Products

• Tech Updates • And MUCH more…

www.TruckPartsandService.com

TPS website 6thV.indd 1

4/7/16 10:13 A

THE FUTURE OF ONLINE TRUCK PARTS ORDERING IS COMING

OUR REVOLUTIONARY E-COMMERCE EXPERIENCE AVAILABLE 2017 www.sandstruck.com/tps We will be showcasing the website at Heavy Duty Aftermarket Week, Las Vegas, 23RD- 26TH January 2017 – Booth #1113

FEATURES OF THE NEW WEBSITE: DETAILED SEARCH OF OVER 40,000+ NEWSTAR PARTS

360° VIEWS OF TRUCKS AND THEIR PARTS

www.sandstruck.com/tps

ORDER 24/7 USING INTERACTIVE SCHEMATICS

Customer Service Order Desk:

844.446.7388

All parts supplied are S&S Truck Parts, LLC/NEWSTAR. Use of other manufacturer’s names, part numbers, or trademarks are solely used for informational/identification purposes

SandS Advert final artwork.indd 1

16/12/2016 17:37

OVER

20,000 PARTS AVAILABLE

Air BrAke & Wheel Air SpringS & ShockS

electricAl

chrome hrome & St StAinleSS SS

exhAuSt

leAf SpringS

lighting

poly & ruBBer er

Steering

SuSpenSion Su

induStry leAding WeBSite & cAtAlogS n n n n

Body & cABin

Streamlined interchange & ordering 360° views product Wizards & Schematics detailed product charts

trAiler

cooling

driveline

miScellAneouS

four StrAtegic locAtionS n n n n

ontario, cA Somerset, nJ Arlington tx Brampton, on canada

iSo9001:2008 certified operAtionS

Superior cuStomer Service

n in-house team of product managers & engineers

n Same-day Shipping n Bilingual representatives n direct Sales force

www.automann.com

1-888-AUTOMANN (288-6626)