TPS0314 by Richard Street

Aftermarket leadership group debuts | Stone Truck Parts names top vendor

Navigating a Fleet Consolidation MANAGING GROWING CUSTOMERS REQUIRES DISTRIBUTORS TO EVOLVE

Winter sales opportunities 16 Right to repair update 21 MARCH 2014 |

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Volume 50 | Number 3 | March 2014

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Editor: Lucas Deal Online Editor: Jason Cannon Equipment Editor: Jack Roberts Contributing Editor: John G. Smith editorial@truckpartsandservice.com

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Editorial | Lucas Deal

You don’t have to do it alone By Lucas Deal, Editor lucasdeal@randallreilly.com

atching a fleet customer expand can be a nervewracking experience. On its face, a growing customer base is great for business. But when a customer grows through consolidation, growth comes rapidly. Expanding fleets can grow not just in unit size but also in geographic area. For an aftermarket distributor rooted to a specific location, watching a customer grow out and away from your business can cast doubts on your ability to continue servicing that customer. In these situations it is important to remember you don’t have to do it alone. You have options. You have resources. An expanding customer can make business tougher; it doesn’t have to make it impossible. “Fleet consolidation tends to change the dynamic of a customer-distributor relationship,” says Tina Alread, director of sales and marketing at HDA Truck Pride, “but there are programs out there to help keep the relationship going.” One option is the national fleet purchasing programs offered by buying groups HDA Truck Pride and VIPAR Heavy Duty. Designed to allow multiple independent distributors to serve a single customer as a team, national fleet programs are a resource for distributors in the battle to maintain business with growing fleets. You might not be able to service a customer that has expanded out of your

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state and into the three market areas — but your buying group can. Take advantage of the opportunity these programs can provide. When a customer starts to grow out of your control, let them know. Tell them you need help.

An expanding customer can make business tougher; it doesn’t have to make it impossible. Buying groups create relationships with the growing fleet at a national level, and then delegate purchasing orders and inventory demands to the distributors capable of servicing the fleet, says Jim Pennig, VIPAR Heavy Duty’s director of business development. You might not be able to grow with a fleet, but a national fleet program ensures you preserve as much business with that customer as you can possibly handle. And Alread adds a distributor who brings a customer to HDA Truck Pride is identified as a ‘sponsoring member’ when a national account is formed, and factors heavily into the relationshipbuilding process between the buying group and the fleet. “We work to build off of that relationship and make it better,” she says. Technology also provides an advantage. There is a multitude of inventory,

March 2014

service and general business software available to help aftermarket companies record their work. These are great resources when dealing with growing customers. Service management systems allow you to quickly access the maintenance records of your customers’ trucks. They allow you to see how the trucks operate, which allows you to identify the components you need to stock. When a customer adds new trucks to their fleet, that’s a great resource to have, says Michael Riemer, vice president of products and channel marketing at Decisiv. Rather than tracking down the fleet manager or the previous service provider for the fleet’s vehicle, you can simply input the unit’s VIN and its maintenance history is immediately provided. “You can put any asset type into the system, too,” says Riemer. “Anything you service can be recorded.” Karmak’s Adam Madsen, manager of product management, says a willingness to use technology should be something you promote when trying to keep a consolidating customer. Growing fleets want efficiency in all aspects of their business. If you can offer them ordering and purchasing efficiency due to a business system, that’s something you need to promote, he says. Customer service is still the most important factor to winning a large fleet’s business; the service just comes in a different form than it once did. So make an effort to offer it. Don’t try to handle consolidation alone.

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Editorial | Jason Cannon

Resurgence of reman By Jason Cannon, Online Editor jasoncannon@randallreilly.com

ost conscious fleets have turned to remanufactured parts for years, and lines of customers are getting longer. Very few aftermarket segments have a head of steam like reman parts. Recent movement in Washington may actually have a positive impact on trucking for once, specifically manufacturers of reman components. U.S. Reps. Gary Peters (D-Mich.) and James Lankford (R-Okla.) have introduced the Federal Vehicle Repair Cost Savings Act of 2014 (H.R. 4056), which encourages civilian federal fleet managers to use remanufactured parts when maintaining their fleet, noting the environmental, economic and product performance benefits associated with their usage. Motor & Equipment Remanufacturers Association (MERA), a division of Motor & Equipment Manufacturers Association (MEMA), has thrown its support behind the bill. Citing a March 2013 Government Accountability Office report, MEMA says there are approximately 588,000 vehicles in the civilian federal fleet. H.R. 4056 encourages the use of remanufactured parts in maintaining the fleet, thereby realizing the economic cost savings while preserving quality and performance. “In a 2012 report from the U.S. International Trade Commission, the United States is the world’s largest producer, consumer and exporter of remanufactured goods,” says Steve Handschuh,

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president and CEO, MEMA, who adds the reman industry supports more than 180,000 hard working men and women in the U.S. And they’re finding more support at parts counters than ever before.

In a 2012 report from the U.S. International Trade Commission, the United States is the world’s largest producer, consumer and exporter of remanufactured goods. – Steve Handschuh

According to a recent Frost & Sullivan report, over the next five years fleet managers are expected to spend a record amount on remanufactured components, along with buying fewer parts thanks to improved quality. The study suggests the entry of advanced Class 6-8 powertrain systems that comply with new emission regulations will drive revenues to record heights for the North American remanufactured replacement components market through 2020. “The enhanced reliability and

March 2014

availability of remanufactured components means that these products will continue to thrive in the face of stiff competition from new, non-original replacement parts,” says Frost & Sullivan Automotive and Transportation Research Analyst Anuj Monga. But increased quality has become a double-edged sword in the marketplace. Unit shipments of remanufactured engines, transmissions, and clutches are expected to decline because of improving original equipment quality and increasing competition from new replacement parts. The addition of newer and refined components to the powertrain system could still pose a challenge, as the lack of cores will lead to the use of newer parts in component assemblies, thereby escalating final costs. North American parts buyers are expected to see an increase in unit pricing from 1.5 percent to 5.5 percent per year. Partnerships are also expected to form in the trenches where OEMs and remanufacturing suppliers used to do battle. The study says partnerships with OEMs will be vital for remanufacturers of enhanced powertrain components to not only access key proprietary information, but also capitalize on the installed base of different OEMs. Remanufactured parts have long crawled from the shadows of the junkyard and have firmly entrenched themselves as reliable replacement components.

Accelerated Savings. If you own a 1998-2009 Cummins ISX engine, right now you can save $500 on a Genuine Cummins ISX overhaul kit and cylinder head, and up to $1,000 more on additional ISX parts that you purchase, for a total potential savings of $1,500.* Plus, with the performance and reliability of every Genuine Cummins part, you’ll continue to save money every mile down the road. For details about this ISX overhaul kit incentive program, visit quickserve.cummins.com or call 1-800-DIESELS™ (1-800-343-7357) to find your nearest Cummins distributor or authorized dealer. *Offer ends Dec. 31, 2014. Subject to certain rules and restrictions. Void where prohibited by law.

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Industry Focus

Dealer News Kyle Treadway, president, dealer principal and legal counsel at Kenworth Sales Company, was named the 2014 Dealer of the Year by the American Truck Dealers (ATD) at its annual convention in New Orleans in January. Trailer Wizards has expanded its Cornwall, Ontario location. Truman Ingram, utility and municipal account manager for Montgomery, Ala.-based Four Star Freightliner, was named an Elite Winner for 2013 during the Leland James Sales Achievement Program. Travis Body & Trailer, Inc. of Houston has named Highway Trailer Sales, Inc., its newest independent dealer in the Kansas City area. Nashville, Tenn.-based Nacarato Volvo has been named the truck maker’s North American Dealer of the Year. Indianapolis Stoops Freightliner has launched a new new alternative fuel website, StoopsAltFuels.com. Allstate Peterbilt Group’s South Saint Paul location has been named the 2013 Peterbilt Medium-Duty Dealer of the Year. JX Enterprises celebrated its 44th anniversary in January. The Walker Group, a division of Wabash National Corporation, announces the addition of Opperman & Son, Inc. to its dealer network. Houston-based Doggett Truck Group has acquired three Freightliner and one Western Star dealerships from the Opus Kane Truck Group (San Antonio and Laredo) and Eddy Vaughn Freightliner (McAllen, Texas).

Correction

In the Truck Parts & Service Distributor of the Year special section released at Heavy Duty Aftermarket Week (HDAW), Midway Truck Parts was not included in the list of previous winners. Midway Truck Parts shared the 2005 award with Point Spring & Driveshaft. Truck Parts & Service would like to apologize for the mistake.

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March 2014

Meritor debuts mobile training van Meritor is taking its show on the road. The company is rolling out two mobile service vans, which will soon embark on a five-city tour to help train customers and technicians on Meritor’s products. Meritor says the vans have already helped train upwards of 250 technicians this calendar year, and will do five citywide training across the U.S. this year. “This is a milestone for us,” says

Walt Sherbourne, senior director, field sales, North America. “We anticipate training well over a couple thousand (technicians) this year.” Each of the Nissan high-roof NV3500 trucks, wrapped in unique Meritor trailer decals, will offer hands-on training to service managers, shop supervisors, service technicians, maintenance directors, drivers and dealer-fleet trainers for drivetrain and undercarriage aftermarket components.

New buying group formed Pro Heavy Duty, Inc., an aftermarket buying group based in Ft. Wright, Ky., is announcing the formation and structure of a new group targeting the independent aftermarket heavyduty parts segment. Pro Heavy Duty will represent independent wholesale distributors and service specialists throughout North America. John Stoeckinger, president at Pro Heavy Duty, says the group has been formed to provide the best buying

group solution in the heavy-duty aftermarket arena, and to provide improved profitability to its membership. “Pro Heavy Duty is taking a different approach to the aftermarket in how we partner with our suppliers,” says Stoeckinger. “We continue to want to partner with, and structure programs that allow its supplier partners to gain market share.” Pro Heavy Duty forecasts to grow to 50-plus members and 175 locations in the group in 2014.

Industry Focus

MAHLE updates company name

Aftermarket young leadership group debuts A new, young group of heavyduty trucking aftermarket leaders have formed a new organization, GenNext, to educate, mentor and recruit the next generation of aftermarket leaders. “This group is comprised of the up-and-coming leaders of tomorrow in the aftermarket truck parts industry. While the group’s message is meant for younger executives (45 and under) any age level is welcome to join,” says Steve Hansen, GenNext president from Minimizer. “Our group can make a

difference in the future of our growing aftermarket,” adds Hansen. “All of us care so deeply for the heavy-duty aftermarket and we want to give back in terms of people development and enriching the futures of the industry’s leaders. More details on the organization are available at www.gennexthd. com. Interested parties also can follow GenNext on social media at on Facebook (Gen Next – Heavy Duty), on Twitter (@GenNextHD), or on LinkedIn (GenNext-HD).

MAHLE Clevite Inc. announces the transition of its company name to MAHLE Aftermarket Inc. The changeover to the company’s name, effective Jan. 1, 2014, serves a dual purpose: to bring MAHLE in line with all of the MAHLE Global Aftermarket divisions, and to highlight the substantial diversification of the MAHLE Aftermarket product mix, the company says. “MAHLE Clevite remained the only MAHLE Aftermarket division worldwide that did not have aftermarket in our legal name,” says Jon Douglas, general manager, MAHLE Aftermarket. “We now join the aftermarket divisions in Europe, South America, and Asia/Pacific regions as one global aftermarket business unit.”

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Industry Focus

People In The News Joe Mejaly has been appointed vice president and general manager of AxleTech International. Eaton announces Aditya “A.D.” Naik has been named vice president, Finance, Vehicle Group.

Naik

Hogebuilt has appointed Kyle Denu to company president.

Meritor has hired Sandra Quick as senior vice president, general counsel and corporate secretary.

Fontaine Parts Connection has named Craig Chicks as sales and marketing manager.

Ryan Hadley has been named corporate parts manager for ATC Freightliner Group.

Bendix has appointed Thomas Doll vice president, global purchasing excellence.

Fabio Jurchaks has been named director of engineering sales, NAFTA for TMD Friction

Chicks

Karmak introduces Lisa McCloud as its director of marketing, and announces Mike Schien has graduated Doll from ATD’s Dealer Academy.

IPD has added Jorge Lucero and Charlie Kramer to its sales management team.

Jurchaks Minimizer has hired Jason Rhoads as director of marketing.

Four Star Freightliner has added Paul Dufresne as salesperson at its Valdosta, Ga. facility and Scott Dixon as fleet services manager at its Montgomery, Ala. location.

Paul Dufresne has joined Four Star Freightliner’s Valdosta, Ga. location as a new salesperson.

Fleet Engineers celebrates milestone Fleet Engineers, Inc., was recently recognized by the Michigan Legislature for its 50th year of business as an heavy-duty component manufacturer. A special tribute was presented by Sen. Geoff Hansen, to Fleet Engineers’ CEO Wes Eklund during a companywide anniversary celebration held in Muskegon on Dec. 21, 2013. “Fleet Engineers is proud and pleased to have the opportunity to serve its loyal customer base for a 51st year and beyond,” says Eklund. “We look forward to finding

new ways to add value to our suite of products and help our customers succeed. Great thanks go to all of our loyal employees and customers that helped us grow along the way. We give thanks, and feel truly blessed by our history and past, and will work and hope that our future can continue to be bright.” Fleet Engineers was founded by Louis Eklund in 1963. It has grown from a business once operated from a garage to a sprawling campus with four manufacturing plants.

Peterbilt turns 75 this year In 2014, Peterbilt celebrates 75 years of innovation and excellence with commemorative events throughout the year that include a North American tour with a specialized anniversary trailer, a limited-edition Model 579 and numerous other activities. “Peterbilt consistently sets higher standards for its products and services. It’s a 75-year tradition of excellence and innovation that has established expectations

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with an uncompromising focus to deliver the highest levels of quality, customer satisfaction and reward on investment,” says Darrin Siver, Peterbilt general manager and Paccar vice president. “This is a milestone event for our company and its customers, employees, dealers and suppliers. We will mark it with a range of events and activities honoring our storied past and exciting future.”

March 2014

ATDynamics hires Fritz Marinko as vice president of special accounts. Marinko also will be a member of the executive team. Richard Andrews, former president of Stemco and an aftermarket veteran, died Feb. 9. Donaldson announces multiple staff changes effective April 1. Charles McMurray, senior vice president and chief administration officer, has retired after 33 years with the company. Tod Carpenter has been appointed to chief operating officer and the company’s board. Thomas Scalf has been promoted to senior vice president, engine products and Jeffrey Spethmann has been named vice president, global industrial air filtration.

Dexter Axle acquires UFP Dexter Axle has completed its acquisition of Unique Functional Products UFP. “UFP has a long and successful history in the marine industry, which is an important adjacency for Dexter Axle,” says Adam Dexter, CEO of Dexter Axle – a company that designs and manufactures trailer axle, brake and suspension assemblies for industrial and utility trailer and RV markets. “We look forward to strengthening our relationship with UFP’s customers as well as offering Dexter’s customers access to UFP’s premium products.” “This is an exciting time at Dexter Axle,” Kevin Garland, Partner at The Sterling Group, a private equity firm and parent of Dexter Axle. “Dexter’s historical end markets grew nicely in 2013 and have a strong outlook for 2014.

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Tech Updates

COLD WEATHER BATTERY TIPS

nterstate Batteries says cold weather affects batteries more than any other engine component. Because they are filled with fluid containing mostly water, batteries are susceptible to freezing when not fully charged. Additionally, Interstate says cold weather thickens engine oil, forcing batteries to work harder when starting an engine.

Here are several tips Interstate gives to maintaining a battery in cold weather: Have a vehicle’s starting and charging system periodically tested. Use a battery charger to maintain charge levels and keep the battery in good condition. (Note: If the battery is more than three years old, have it tested more frequently.)

SAFETY RECALLS DTNA is recalling certain model year 2014 Freightliner 108SD, 114SD, 122SD, Coronado, Argosy, Cascadia, M2 Business Class, Western Star 4700, 4900, and 6900 vehicles and Thomas Built Buses Saf-T-Liner C2, Saf-TLiner HDX, and Minotour school buses manufactured Aug. 5, 2013, through Nov. 15, 2013; and equipped with IMMI-brand L9 seat belt buckles. When the button is pressed to release the seat belt, the latch plate can become partially engaged with the buckle, making the seat belt difficult to unlatch. Thus, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 209, “Seat Belt Assemblies.” If the latch plate remains partially engaged after the button is pressed, egress from the vehicle could be hindered, resulting in an increased risk of injury in the event of an accident or emergency. DTNA is recalling certain model year 2014 Freightliner Custom Chassis MT45, MT55 and MBC Chassis manufactured Sept. 24, 2013, through Nov. 7, 2013. In the affected vehicles, due to an incorrect calibration, the speedometer may display a speed lower than the vehicle is actually traveling. With the incorrect calibration, the driver may unknowingly

Inspect the battery cables, posts and fasteners Clean the battery terminals with a wire brush or battery cleaner spray. When possible, keep the vehicle in a garage overnight or plugged in, especially in areas with extremely harsh winter conditions. Avoid damage to the battery and keep connections tight.

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

exceed the posted speed limit, increasing the risk of a crash.

in gear, increasing the risk of a crash.

Mack is recalling certain model year 2014 CXU and MRU trucks manufactured Aug. 12, 2013, through Oct. 9, 2013 and equipped with IMMI-brand L9 seat belt buckles. When the button is pressed to release the seat belt, the latch plate can become partially engaged with the buckle, making the seat belt difficult to unlatch. Thus, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 209, “Seat Belt Assemblies.” If the latch plate remains partially engaged after the button is pressed, egress from the vehicle could be hindered, resulting in an increased risk of injury in the event of an accident or emergency.

PACCAR is recalling certain 2012 and 2014 model year Kenworth K300 and Peterbilt 210 and 220 chassis equipped with Sure Power-brand battery equalizers or DC-DC converters containing a particular epoxy sealing, aka ‘potting’, compound. The specific potting compound used in the subject products for electrical insulation was found to be capable of conducting electricity after being exposed to heat. If the potting compound is exposed to heat and conducts electricity, there is an increased risk of a vehicle fire and personal injury.

PACCAR Is recalling certain 20112014 model year Kenworth T440 vehicles manufactured March 10, 2010, through Sept. 23, 2013 and equipped with Allison transmissions, Cummins Westport ISL-G engines, and NAMUX2 software. In the affected vehicles, the engine harness may have been installed incorrectly rendering the neutral start interlock inoperable. If the engine harness is installed incorrectly, the truck may be able to be started with the transmission

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March 2014

PACCAR is recalling certain model year 2013-2014 Peterbilt 587 vehicles manufactured May 8, 2012, through Oct. 24, 2013, and equipped with Inteva-brand door pad assemblies. Due to loose fasteners, the door pull portion of the door pad assembly may separate from the door when used. If an occupant is using the door pull to assist in getting in or out of the vehicle, the sudden detachment of the pull handle may result in a fall, increasing the risk of injury. PACCAR is recalling certain model year 2013-2014 Kenworth T680 chassis manufactured Jan. 1,

2012, through Oct. 14, 2013, and Peterbilt 567 and 579 chassis manufactured Jan. 20, 2012, through Oct. 11, 2013, and equipped with Inteva-brand door latch assemblies. In the affected vehicles, the doors may lock permanently while closed or may be opened from the outside even after they have been locked. If the doors latch assembly becomes permanently locked while closed occupants could be prevented from exiting the vehicle in the event of a crash or fire, increasing the risk of injury. Volvo Trucks NA is recalling certain model year 2014 VAH, VHD, VNL, and VNM trucks manufactured Aug. 12, 2013, through Nov. 14, 2013; and equipped with IMMIbrand L9 seat belt buckles. When the button is pressed to release the seat belt, the latch plate can become partially engaged with the buckle, making the seat belt difficult to unlatch. Thus, these vehicles fail to conform to the requirements of Federal Motor Vehicle Safety Standard (FMVSS) No. 209, “Seat Belt Assemblies.” If the latch plate remains partially engaged after the button is pressed, egress from the vehicle could be hindered, resulting in an increased risk of injury in the event of an accident or emergency.

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Cover Story

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March 2014

Cover Story

Distributors must evolve to manage growing customers leet consolidation can happen anywhere, and can significantly impact a fleet’s relationship with distributors. Consolidation equals change, and that can transpire any number of ways. Though not without challenges, there is money to be made for distributors willing to service large, consolidating fleet customers. When presented with a consolidating customer, industry professionals recommend distributors evaluate how the relationship with the customer would function before bidding for their business. Not every fleet consolidation benefits a distributor; but the ones that do — when properly identified and

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examined — can prove to be excellent business drivers. When dealing with a current customer’s consolidation and expansion, the first step is uncovering how much a customer is changing, says Don Purcell, partner at Stone Truck Parts. A 20-truck fleet adding five trucks might not require changes, but a customer who is adding 60 trucks and expanding into a different state is likely to require a different level of service. Purcell says communicating with an expanding customer is the first step toward handling consolidation. “You have to determine if you are still capable of servicing them,” he says. “For most distributors when a customer gets out there past 100 or 120 miles away, it

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Cover Story almost becomes not feasible [to service them] alone.” During these large-scale expansions, taking advantage of a buying group can be a significant asset, says Jim Pennig, vice president of business development at VIPAR Heavy Duty. National buying groups can service regional and national fleet accounts across their network, and can work with their distributors to help them keep their local business when a customer grows out of their market. “You have to have the footprint combined with a portfolio of premium

branded products to service these large fleets and we have that,” Pennig says. “That is a definite asset in our toolbox,” adds Harry Amoroso, president at B&A Friction and member of VIPAR Heavy Duty. Tina Alread, director of sales and marketing at HDA Truck Pride, says she advises her group’s members to contact their national fleet team whenever a customer expands out of their service area. Alread says the HDA Truck Pride team communicates with the original distributor about its relationship with the growing fleet, and then uses that infor-

There is a lot of technology currently available to help aftermarket businesses navigate fleet consolidation. “In this day and age you really can’t handle a 10,000 unit fleet on a piece of paper or a white board,” says Adam Madsen, manager of product management at Karmak. “You need a more sophisticated system.” Madsen says Karmak’s business systems allow distributors to set price, shipping and invoice notices for national fleet customers in accordance with buying group rates. Similar to VIPAR Heavy Duty’s price-correction tool, this technology ensures a large customer is charged correctly for any part prices it has negotiated. The software also can sync up with localized prices for other components. Madsen says that transparency across multiple locations is something larger fleets appreciate. “It can make you attractive to that customer,” he says. That simplicity is visible in service shop technology, too. In addition to its parts notices, Karmak’s service software also can record negotiated labor rates, says Jason Goby, product owner. At Decisiv, Vice President of Products and Channel Marketing Michael Riemer says his company’s service management platform allows technicians to access maintenance information in seconds. By entering a VIN into Decisiv’s program, a technician can pull up a complete vehicle history on any unit saved into its cloud-based system. The lookup is filled with factory and aftermarket spec’ing information, previous repairs, PM schedules and fleet contact information for any future work. And Riemer says once a fleet (or service provider) enters a vehicle’s information into the program it is there to stay; and can be accessed in the future at any time. When handling a new unit after consolidation, that’s a major time saver, he says. “It fundamentally changes the way service providers can work with customers,” Riemer says. “Service recording, vehicle history, customer approval requests ... it makes everything more efficient.”

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March 2014

mation to build a sales pitch to the fleet. A successful pitch allows the distributor to maintain its original business while offering the rest of the fleet’s business to the group’s national network. “If Stone Truck Parts is servicing a customer in North Carolina and [the customer] expands into Florida, our role is to introduce the customer to other members who can cover that spread,” she says. But it’s important to note that when a local customer consolidates into a regional or national fleet, their business practices also commonly change. Fleets gain buying power as they grow, and this power can lead to requests for standardized pricing, central billing and ordering. In some cases, this can be seen as a drawback. Amaroso says direct customer to distributor relationships are regularly minimized during consolidation in favor of national relationships with buying groups. While this approach helps the distributor network overall, it can neutralize years of hard work a distributor puts in with a specific customer representative. There’s “no personal relationship” with the fleet’s national purchasing manager, he says. “What you’ve done in the past is not an advantage anymore.” Alread and Pennig say their groups offer customers the option of a national or localized billing and ordering approach. A national customer focused solely on price is likely going to accept the central billing/ordering option, Alread says, but HDA Truck Pride makes sure the foundation that started the business relationship shines through. “We try to be very cognizant of the relationship with the customer that started the business,” she says. For customers choosing the centralized option, Pennig says VIPAR Heavy Duty tries to make the financial aspect of transactions as efficient as possible.

Cover Story The company’s software has a pricecorrection tool that ensures customers are charged their agreed upon flat rate for all parts, and invoices and orders placed to the national network are routed directly to the local distributor. This simplicity allows the distributor to focus solely on stocking and delivering the right part. Other opportunities can come out of these programs as well. Purcell says Stone Truck Parts has a 100 percent commitment to stock components required by HDA Truck Pride’s national accounts in its region. In some cases that guarantee might only net sales of a specific part a fleet requires, but at least it introduces the distributor to a customer it otherwise would not have. “It gets our foot in the door,” Purcell says. “Once we establish that relationship we can look to grow the business.” That’s an advantage that should not be overlooked, adds Amaroso. A consolidating fleet requiring a regional or national account might lead to a margin slip, but it also can lead to a new crop of prospective customers. Amaroso says his company recently won the business of one regional fleet and did so well they were later contacted by several similar fleets with similar distribution requests. B&A Friction is now serving the entire group. “We’re still doing business on an individual basis but with an established group,” he says. But it’s important to note that not every fleet consolidation works for every distributor. Sometimes a customer will expand or enter a market in such a way that a distributor simply can’t make servicing them a viable option. Purcell says that’s why research is so important before entering into a business agreement. “You want to determine if the relationship makes good business sense for

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both parties,” he says. Looking ahead, Pennig anticipates consolidation to continue, and says distributors willing to evolve with these growing fleets should have more chances

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to succeed. “We see national fleets as a big opportunity moving forward,” he says. “It’s going to become very important for distributors to be involved.”

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12/12/13 8:28 AM

By Lucas Deal, Editor lucasdeal@randallreilly.com

Service Bay

Selling in a winter wonderland When temps fall, aftermarket trailer part sales go up

aintaining heavy-duty equipment is a tough job. But during a winter like this one, where the Polar vortex and arctic temperatures have covered most of North America for months, it can feel downright impossible. Snow, wind, freezing rain, road chemicals and frigid temperatures all have adverse effects on heavy-duty components. This is especially true for commercial trailers, where nearly all components are completely exposed to winter elements. To keep a trailer operating at peak performance levels during a winter like this, fleets and owner-operators must be diligent in inspecting equipment for breakdowns and spec’ing the right aftermarket parts. That’s where your business comes in. Distributors and independent service

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

[Weather] extremes one way or another can have an effect throughout a trailer. – Jeff Driver, vice president of sales and marketing for Vanguard National Parts

shops prepared to serve customers during this punishing weather have a significant advantage in the marketplace. “[Weather] extremes one way or another can have an effect throughout a trailer,” says Jeff Driver, vice president of sales and marketing for Vanguard National Parts. “In the winter we don’t necessarily see more repairs — but there are a lot more breakdowns.” Arguably the biggest hindrance to commercial trailers during winter months is corrosion. “In the winter it doesn’t take long” for corrosion to become a major problem,

March 2014

says Tom Draper, marketing manager at Grote Industries. Corrosion occurs when water and road chemicals seep into a component and begin compromising the integrity of the product. Though most commonly identified in electrical systems and brakes, corrosion can cause problems throughout a commercial trailer, says Draper. “Salt water and electricity creates kind of a perfect storm for corrosion,” adds Dennis Damman, national fleet sales manager at Phillips Industries. Today’s aftermarket suppliers offer a

Service Bay

Corrosion is a serious risk for all electrical components during the winter months. This connection was destroyed by water and road chemicals that created corrosion.

multitude of products designed specifically to minimize the impact of corrosion. When fighting an arctic winter like this one, these are must-stock products. In the lighting and electrical product category, the options are voluminous. Most OEMs today offer completely sealed, corrosion resistant electrical harness options for their new trailers. These harnesses commonly come with a warranty, but can begin to break down and incur damage after years of heavy use. That’s where aftermarket replacement products come in. “[Electrical] connections exposed to the winter environment Peterson Manufacturing offers a completely sealed trailer lighting harness to eliminate the risks of corrosion.

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

must be inspected and maintained or they won’t hold up,” says Damman. Tim Gilbert, corporate director of heavy-duty sales at Peterson Manufacturing, says his company offers its OEM sealed lighting harness in the aftermarket. Designed specifically to remove the possibility of corrosive chemicals entering an electrical system, Gilbert says the product can replace an aging system in any trailer and provide elite performance. And because it’s completely sealed, once it has been installed there’s no maintenance requirement. The system is designed specifically to not be altered or unsealed. That’s a value-added benefit for customers, Gilbert says. “If you don’t take

Corrosion can move quickly through an electrical system, as shown in this demonstration from Grote Industries.

it apart we don’t have to worry about something getting into those connections and causing any failures.” But not every trailer requires a new electrical system. “Winter [weather] is obviously stressful for trailer lighting and electrical systems, but physical damage is also another very common failure mode,” adds Brad Van Riper, chief technical officer at Truck-Lite. In cases of an isolated lighting or electrical failure, aftermarket manufacturers recommend stocking LED lighting products. Van Riper says new LED lights require less electricity and offer better visual output than incandescent bulbs, and are built to withstand much more harsh operating conditions. “If you have incandescent lights you’re going to have failures,” says Draper, noting that on average, a fleet of 2,000 trailers will see six incandescent failures per day. Conversely, when one diode fails in an LED light the rest of the lamp will still

M a r c h 2 0 1 4 | T R U C K PA R T S & S E R V I C E

Service Bay work, says Brett Johnson, president and CEO at Optronics. And that durability isn’t something to sneeze at, he says. When a customer has been forced off the road because vibration knocked out a tail light, they likely don’t want to replace it with the same bulb. Johnson says LED lamps are designed specifically to handle the beating a harsh winter provides. “I still think the most important part of maintenance is design and technology,” he says, “and producing a light to make sure these [failure] problems never happen.” After trailer lights, Driver notes brakes, springs, suspensions and landing gear also are commonly susceptible to winter weather-aided problems. The latter of which are not only impacted by weather, but by the destruction winter can have on roadways. Every pothole makes a difference. “A lot of that is just due to wear. They don’t necessarily break down,” Driver says. “The sheer weight of those jobs and the constant raising and lowering of the trailer has an impact.” “Breakdowns occur at all times of the year. However, frozen air systems, locked up brakes and water damage occur more in inclement weather,” adds Jack Scarff, director of operations at Wabash National Trailer Centers.

Fleets with regular scheduled maintenance programs consistently have a lower total cost of ownership. – Jack Scarff, director of operations at Wabash National Trailer Centers

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

Not all winter trailer part needs are due to corrosion. Tough driving conditions also can negatively impact springs, suspensions, brakes and other related components.

Lonnie Wright, parts and service manager at Timpte’s Council Bluffs, Iowa location, notes that application-specific trailer components also can take a beating during the winter months. All grain trailers are equipped with specialty trap doors underneath the trailer to allow grain to be unloaded into below-ground pits. Because of their low-riding positions, these trap doors and the bearings required to open them are prime candidates for corrosion from snow and road chemicals. Wright recommends distributors educate customers to perform basic visual inspections of these components as much as possible. A failure to do so can result in a difficult repair for both parties. “You really don’t want to have to try and fix that under a loaded trailer,” he says. Scarff agrees, and notes distributors should be active in recommending inspections to customers when supplying replacement parts. Inspections ensure wearing components are found and immediately replaced — minimizing the risk of larger failures. “Fleets with regular scheduled

March 2014

Greasing electrical connections can minimize the risks of corrosive elements entering an electrical system.

maintenance programs consistently have a lower total cost of ownership,” Scarff says. As for the components themselves, Driver says premium products are the best way to help a customer withstand winter’s barrage. “The value is to buy the more robust product up front,” he says. Gilbert agrees. “The best maintenance is to pay the upfront money on acquisition costs and save money down the road.” Wright notes those spec’ing decisions also can lead to extended trailer life. “We have [customers] that are still getting parts for trailers from the 70s,” he says. That type of customer loyalty is something any distributor should desire.

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Service Bay

Taking it up a notch Heavy-duty follows auto industry to negotiation table

he heavy-duty right to repair debate is ratcheting up. Only two months after the automotive industry resolved its right to repair puzzle with a national Memorandum of Understanding (MOU), representatives from both sides of the heavy-duty debate have initiated discussions toward a possible compromise. Earlier this year a meeting took place between the independent aftermarketâ&#x20AC;&#x2122;s Commercial Vehicle Right to Repair

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

Members of the Commercial Vehicle Right to Repair Coalition and Engine Manufacturers Association met earlier this year to discuss the possibility of negotiating a heavy-duty right to repair compromise.

Coalition and the Engine Manufacturers Association (EMA). By sitting down with the Coalition, the EMA has taken the lead on behalf of heavy-duty OEMs and their dealer networks to work toward a compromise for the industry.

The meeting is the culmination of an issue thatâ&#x20AC;&#x2122;s been building in the aftermarket for some time. Also known as the access to repair information initiative, right to repair has been a hot-button topic for several years. The issue was initially identified

M a r c h 2 0 1 4 | T R U C K PA R T S & S E R V I C E

Service Bay

when the first wave of trucks featuring onboard computers and advanced diagnostic software entered the independent aftermarket. These advancements required proprietary technology to identify and clear most engine and advanced component fault codes. Without access to this information, independent service providers were forced to take these vehicles to their nearest dealers to have the codes identified and reset. In recent years, the independent service channel says these occurrences have only increased. The independent aftermarket has responded by taking action. The channel wants to sever its reliance on dealers to complete these repairs, and has decided it is willing to pay to acquire the repair and diagnostic information necessary to do so. By forming the Commercial Vehicle Right to Repair Coalition, the independent service channel hopes to gain access to this information through negotiation or legislation. “Our goal is to make sure a level playing field exists between the dealer and the service provider,” says Marc Karon, Coalition president. “We need to have the information necessary to repair the truck. We should not have to travel to a dealer to complete a repair.” But acquiring this information has not been easy. To this point diagnostic service has been exclusive to the OEM dealer channel, and that’s not something manufacturers or dealers want to give up. “Our supplier members sell to both OES and independent channels. If you look at this from the OEM dealer’s perspective, many of the larger [dealer groups] spend more than $1 million training their techs every year to be authorized service centers for this technology,” says Tim Kraus, HDMA president

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

and COO. “They invest heavily for that access and they don’t want it given to anyone without the same requirements and qualifications.” “We’re concerned about the dilution of our niche in that market,” adds Kyle Treadway, president at Kenworth Sales Company. OEMs have other concerns as well, Kraus says. They fear distributing proprietary information to the aftermarket increases the risk of competitors’ incorrect use of the technology, with possible violation of intellectual property laws.

Our goal is to make sure a level playing field exists between the dealer and the service provider. – Marc Karon, Commercial Vehicle Right to Repair Coalition president

Even if diagnostic code information is something they are willing to give up, Kraus believes OEMs won’t do so unless they have some assurances; like not using the information for reverse engineering purposes, and training technicians to use it correctly. Karon, who also serves as president of Total Truck Parts, says the Coalition has been aware of this concern for some time. It does not aspire to gain more than is necessary to complete a vehicle repair and has been adamant in its willingness to pay for that information, he says, as long as the cost is not greater than what a dealer would pay for the same information. This is an unusual negotiation and must be treated like one, Karon says. “Typically in negotiations you always

March 2014

try to create a scenario where both sides come out a winner. But there is nothing in the way of a financial gain in this negotiation for the OEMs and we know that,” he says. “They currently have an exclusive situation and we are asking them to change.” “Their win in the negotiation is better service for their customers, who buy their vehicles.” That approach is one of two reasons that led EMA to the negotiation table. The other is the Coalition’s efforts in Massachusetts with the automotive aftermarket to create a state right to repair law. Officially signed in November, Massachusetts’ right to repair law was the first of its kind in the United States. The automotive aftermarket used the momentum of the law to create its MOU and avoid further state legislation. Joe Suchecki, EMA vice president of public affairs, believes the heavy-duty industry would benefit from a similar strategy. “The industry OEMs are not interested in having this battle in every state,” he says. “We do think the best option is sitting down and talking.” To this point, that is one aspect of a resolution all sides can agree on. “It’s not practical” to have legislation in every state, says Treadway. Karon agrees, adding “we don’t want only legislative solutions.” Moving forward, Suchecki says the EMA will do what it can to relay the Coalition’s requests to OEMs and offer possible solutions. “As a trade association, if we come up with a solution and a member company doesn’t want to do it we can’t make them,” he says. “But we can try to come up with an agreed upon set of rules, or a set of practices that our members would accept.”

Service Bay

Customer satisfaction will be an important aspect of any solution. A heavy-duty right to repair solution should ultimately not only be acceptable to both sides, but should most importantly be designed to minimize customer downtime, says Kraus. “I think both sides are in agreement that customers need to be taken care of fairly,” Treadway says. Aaron Lowe, vice president, government affairs for the Automotive Aftermarket Industry Association (AAIA), says the automotive right to repair debate didn’t really take off until the public was involved. Customers demanding freedom for repairs is a significant negotiation tool, he says. But fleet and OEM dealer customers

have yet to enter the heavy-duty debate, says Ann Wilson, MEMA vice president of governmental affairs.

The industry OEMs are not interested in having this battle in every state. We do think the best option is sitting down and talking. – Joe Suchecki, EMA vice president of public affairs

“There have not been any complaints in Massachusetts to the Attorney General’s office” regarding right to repair,

she says, “and MEMA has not received feedback that heavy-duty [right to repair] needs to be addressed.” Without customers pushing both sides, an immediate resolution seems unlikely. More than anything else, Suchecki says it is customers that will push OEMs to compromise. “From the OEMs perspective, customer satisfaction is one of their key issues,” he says. “A customer should be able to go to the guy that has the best service,” adds Karon. “Independent or dealer, it shouldn’t matter.” In the meantime, the Coalition and EMA will continue to meet and look for possible compromises. “I think this is a great first step,” Karon says.

Text INFO to 205-289-3544 or visit www.tpsdigital.com/info Untitled-8 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

2/12/14 8:25 AM

M a r c h 2 0 1 4 | T R U C K PA R T S & S E R V I C E

Marketplace

Updated Reman Transmission Lineup Eaton says it has made multiple improvements to its lineup of Flex Reman transmissions to better equip dealers to meet the aftermarket needs of their customers. Among the improvements to the Flex product line is changing the part numbers to a model based part number, Eaton says. This change eliminates the need to cross reference part numbers with model numbers making it easier to find the correct part number. In addition, Eaton says a new pricing structure has been introduced for Flex products with logistic center, direct ship and truck-down orders all priced the same. Eaton, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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LED Replacement Headlamp

ECCO introduces its Equinox LED worklamp line. With a modern housing shape, ECCO says Equinox is a universal worklamp that shines brightly in any work environment. Additionally, the EW2102 model features Lo-Glo, an illuminated ECCO logo that provides both a modern look and offers additional safety as an obstruction marker light, the company says. All models feature a polycarbonate lens, aluminum housing, IP67 protection rating and a three-year warranty. ECCO says the EW2102 series has the added benefits of a UV hardcoated lens and a Gore vent for superior environmental protection.

Federal-Mogul’s Wagner Lighting brand has introduced LED sealed beam replacement headlamps for commercial applications. The new LED lamps are available through any Wagner Lighting distributor or retailer. Federal-Mogul says the new lamps’ bulb-free LED design virtually eliminates damage caused by road shock and vibration while projecting a brighter, whiter and crisper light that extends the driver’s field of vision as compared to standard halogen headlamps. Each new lamp is compliant with U.S. Department of Transportation requirements and has been certified by Wagner quality engineers to meet or exceed original equipment specifications, the company says.

ECCO, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

Wagner Lighting, Text INFO to 205-289-3544 or visit www. tpsdigital.com/info

New Air Spring Line Veyance Technologies announces the launch of its new air spring line, Springride, designed for second- and third-time commercial vehicle owners. Springride air springs provide an economical alternative to the brand’s premium Super Cushion air springs preferred by first-time owners and original equipment manufacturers, the company says. Veyance says Springride air springs provide better service life than offshore brands through resistance to ozone cracking and corrosion. Springride air springs come with a two-year warranty and fit most popular heavy-duty applications. Veyance, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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

March 2014

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Marketplace

New Portable Oil Monitor Racor’s Oilcheck oil monitor measures the effects of all contaminants and electro chemicals that occur in synthetic and petroleum based oils by detecting and measuring the oil’s dielectric constant, the company says. By comparing the measurements obtained from used and unused oils of the same make and grade, the oil monitor is able to determine the degree of change in the oil’s dielectric constant. Dielectric

change is directly related to the contamination level and degradation of the oil and may allow the user to achieve longer intervals between oil changes, and immediately detect increased mechanical wear and coolant dilution, resulting in the loss of the oil’s lubricating properties.

efficient installation. RSS-233 suspensions are manufactured with a dual draw key kingpin design to extend kingpin life and fully cast axle ends for increased strength and durability.

Dorman HD Solutions has launched its new 2014 HD Solutions New Product Guide, featuring hundreds of formerly ‘Dealer Only’ parts for Class 4-8 vehicles. These new Dorman aftermarket parts reduce dependency on the OE dealer and give customers a better choice in heavy duty replacement parts, the company says. This new guide was designed to provide a section outlining all of the new heavy-duty parts Dorman introduced in the last year, a complete category listing of the entire HD Solutions line divided by vehicle make, and a section on newto-the-aftermarket medium-duty diesel coverage, the company says.

Ridewell, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

Dorman HD Solutions, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

Racor, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

New Lift Axle System Ridewell Suspensions has released the RSS-233, a steerable auxiliary lift axle suspension system. Ridewell says this completely new suspension design includes a compact mounting envelope and an easy mount, adjustable hanger system. This suspension also ships fully assembled for

New Dorman Product Guide

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Text INFO to 205-289-3544 or visit www.tpsdigital.com/info Untitled-2 1

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1/27/14 1:31 PM

March 2014

Marketplace

Heavy-duty Booster Cable Buyers Products introduces new heavyduty booster cable with plug-in connector. The cable measures 22 ft., plus a 6-ft. permanent connector. The new cable is polarity protected and offers 600-amp, heavy-duty clamps with copper conductors. Buyers Products adds the insulated cable can be used with most side- or top-post batteries. Buyers also offers booster cable quick-

connect replacement kits and a 6-ft. battery cable with quick-connect separately. Buyers Products, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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New Truck Tire Continental Tire the Americas, LLC is launching a completely new truck tire generation for the long haul goods sector – the Conti EcoPlus HT3. Continental says the new premium tire for the trailing axle has been developed for maximum cost effectiveness, incorporating greater fuel efficiency, long service life and retreadability. The Conti EcoPlus HT3 is the latest truck tire of a completely new family that Continental will continue to launch in 2014. This addition to the Generation 3 tire range has been developed with a clear focus on maximum efficiency on the trailer axle, in order to help fleets optimize their driving costs and successfully navigate today’s competitive market, Continental says. Continental, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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

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