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TruckPro Acquires Florida Distributor | APRA Signs Landmark Reman MOU

Employee Stock Ownership Plans THE ENTICING ADVANTAGES OF EMPLOYEE OWNERSHIP AS A SUCCESSION PLAN MARCH 2017 |

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E-commerce and the aftermarket

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Volume 53 | Number 3 | March 2017

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Cover Story

@TPSMagazine /truckpartsandservice 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

The ESOP Option

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

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Corporate

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Features 19 The nuts and bolts of an ESOP 20 E-commerce and the aftermarket

Departments 1 2 6 12

Editorial Staff Editorials Industry Focus Tech Updates

26 32 36 36

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

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Editorial | Lucas Deal

A preemptive approach to after treatment

By Lucas Deal, Editor lucasdeal@randallreilly.com

I

’m always stunned by how much after treatment service costs. The numbers are truly astounding.

Back in January when the topic came up at Heavy Duty Aftermarket Dialogue, Lee Long with Southeastern Freight Lines confessed that his fleet “spent $1 million just on [diesel particulate filters] alone” in 2016. Swift’s Gloria Pliler didn’t report any numbers, but speaking on behalf of one of the most proactive maintenance fleets in North America, Pliler said her employer is outsourcing DPF maintenance because of cost and time associated with making so many emission system repairs.

The numbers weren’t any better at the Technology & Maintenance Council (TMC) meeting in February. In releasing a new line of DPFs and diesel oxidation catalysts, Denso’s Frank Jenkins reported industry research shows after treatment system maintenance — a category that didn’t exist before 2007 — will trail only tires as the largest cost associated with fleet maintenance by the end of the decade.

Can you imagine what that must be like for fleets? A technology they had no control over was forcefully implemented into their operations, and in just a decade has become so thoroughly and exhaustively expensive that it has surpassed nearly every other cost in their business.

And those other costs didn’t go away, either. They still need to maintain their wheel ends and electrical systems and air lines and engine and everything else that

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makes a truck go, while also finding the funds for a gargantuan expense they never asked for and are struggling to control.

That does not sound fun.

The good — or the least bad thing, considering the circumstances — for fleets, is that costs in other areas have been much less volatile.

I don’t expect any of you to solve the after treatment problem The early years of after treatment corresponded to the worst years of our recent recession. Not every fleet made it out alive. But those who did survived by optimizing their service and maintenance schedules for everything else, and developing a strategy that allowed them to budget for uncertainty in one area by stabilizing others.

This is an area where I think the aftermarket can thrive.

I don’t expect any of you to solve the after treatment problem. It’d be amazingly profitable if you did, but that’s not a realistic expectation for anyone in our industry at this point. Where the aftermarket can step up and help fleets is through proactive after treatment and emission monitoring.

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What do I mean by monitoring?

Start looking at the data available in our industry on these components and their failure rates. One advantage to after treatment’s recent introduction into our industry is data availability. The life cycle and performance of after treatment components have been tracked since day one. Go find out which parts fail the most, and when.

Talk with your customers. Ask them for more information on the circumstances behind when they come to you for after treatment parts and service.

Figure out what they’re doing, what you’ve been doing to help them, and then improve it.

At TMC last month there also was a fleet panel on after treatment maintenance. Each panelist openly shared their biggest after treatment pain points and steps they’ve taken in search of a solution.

Bryan Stewart with Jones Logistics says prematurely changing air filters has saved his fleet “$1,656 per truck, per year.”

At UPS, Mark Collins says adding a wet wash for DPFs that don’t pass its bake and air blow test has netted a 2- to 25-percent performance improvement for units across four locations.

These vehicle owners are looking for solutions. They’re looking for any trick they can find to keep their trucks on the road.

It’s time to help them out by presenting ideas of your own.

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Editorial | MacKay & Company

President Trump’s policy ‘to-do’ list

By Robert F. Dieli RDLB, Inc., in-house economist at MacKay & Company

W

ith the installation of every new administration, thoughts immediately turn to what they might do and when they might do it.

From what we have seen so far, it appears that the transition team came to Washington with more of a “to-do” list than a policy agenda. And so, the first question has become what parts of that list are going to be dealt with through legislation, what parts will be dealt with through regulatory reform and what parts will be dealt with through executive order. Each of those choices will affect what gets done first and when the effects of the changes will be felt.

As recent events have shown, executive orders are the quickest way to get a policy in place. Regulatory change, once the necessary appointments have been made in the Executive branch, should also follow swiftly. Anything requiring legislative action is going to take a lot more time.

Case in point, back in 1981, when President Ronald Reagan succeeded in enacting the first part of his program on tax reform, that process took almost a full year to complete. Reagan took office in January of 1981. The Economic Recovery and Tax Act was introduced in Congress in July of that year. The law was signed by President Reagan in

August and the new tax code was put in place in October. The full effects of the changes began to be seen early in 1982.

It is going to take a while to turn promises into priorities So far, three main policy initiatives have been discussed. Topping the list is tax reform. This will require extensive legislative action, especially since both the administration and the congressional leadership are considering changes to both the personal and the corporate tax codes. Next on the list is infrastructure spending. This can be undertaken in part through existing appropriations, but anything of a more significant nature is going to require legislative action. The last major item is the border adjustment tax, which is being proposed as a means to addressing unbalanced trade flows.

The current political calculus has the first two items under the close control of the congressional leadership.

House Speaker Paul Ryan has been floating tax reform ideas for several

years and is likely to insist that his versions of the proposed tax laws be considered first. Since it is rare for any tax legislation to pass as first drafted, we can expect some give and take on both the content and the sponsorship of the final bills.

Infrastructure spending has also been a topic long under consideration in Washington. But, beyond a general agreement that there should be more infrastructure spending, there is no consensus on what kind of spending should be done first and how it should be paid for. With the confirmation of Mick Mulvaney, a deficit hawk, to be the Director of the Office of Management and Budget, it is likely that all spending proposals will receive extreme vetting before being submitted.

The border adjustment tax is currently being pushed as a separate initiative by the administration. It could, however, get folded into the larger tax bills that are expected to be considered. So far, most of the press on this issue has been negative, with firms that import a lot goods being most vocal in their opposition.

Bottom line: It is going to take a while to turn promises into priorities.

Once set, those priorities are going to be debated, perhaps at length. Once enacted, it will take some time for the changes to have a visible effect.

Robert F. Dieli is president and founder of RDLB, Inc. an economic research and management consulting firm based in Lombard, Ill. Bob regularly collaborates with MacKay & Company on economic publications as well as industry presentations such as HDAD.

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Industry Focus

Dealer News Robert Nuss, president at Minnesotabased Nuss Truck & Equipment, was named the 2017 American Truck Dealers (ATD) Dealer of the Year in January at the NADA/ATD Convention & Expo.

Vision Truck Group has been named Mack’s 2016 North American Dealer of the Year.

General Truck Sales has been named Volvo Trucks’ 2016 North American Dealer of the Year.

McBride Mack Sales recently celebrated its 50th anniversary at its Carbondale, Ill., location.

Alabama-based Boyd Bros. is celebrating 60 years in business this year.

Bruckner Truck Sales has opened a new 58,000 sq.-ft. facility in Oklahoma City.

Penske Truck Leasing has opened a new location in Katy, Texas.

Kenworth of Louisiana has opened a newly renovated 10,500 sq.-ft. full-service location.

Allstate Peterbilt Group has acquired Harrison Truck Parts’ three locations, which were formerly known as Promaxx Truck Parts.

Mid-States Utility Trailer Sales has opened a remodeled workshop in Omaha, Neb. Kenworth of South Florida has opened a new 16,000-sq.-ft. Kenworth PremierCare parts and service location.

Jack’s Truck & Equipment, a Freightliner and Western Star dealer with three stores in Wyoming, has united with Floyd’s Truck Center and Eddie’s Truck Center under the mutual ownership of the Gillam family.

Thompson Truck and Trailer has moved into its new 71,500 sq.-ft. Cedar Rapids, Iowa, headquarters.

Rush Truck Centers has opened a new 14,000 sq.-ft. facility in Farmington, N.M. Gordon Truck Centers (GTC) has announced its Pacific Truck Centers Detroit Diesel distributorship in Ridgefield, Wash., will now operate as Western Star Northwest.

Dayton Parts, ProSteering Reach Distribution Agreement

Purkeys Names Newest Distributors

Dayton Parts has signed a master distribution agreement with ProSteering Systems, Inc., to sell ProSteering’s all-makes remanufactured power steering gears for medium- and heavy-duty truck applications in the United States.

“We are pleased to expand our steering offering to include the ProSteering product and are confident it is an excellent complement to our already-established portfolio,” says Dan Young, product manager, Steering & Trailer Product at Dayton Parts.

Each ProSteering product is remanufactured, not rebuilt, and adheres to a strict remanufacturing process, including a comprehensive core inspection, complete disassembly, wear/ damage analysis, complete component replacement, and a robust black powdering coating to protect the unit from corrosion, Dayton says.

Purkeys has announced additions to its national distributor network.

The new distributors are: Advanced Battery Systems; American Body Company; Craftsmen Trailer; Fontaine Parts Source; Summit Truck Group.

These relationships allow existing and new customers immediate access to Purkeys products, reducing lead times, the company says.

“We look forward to the new opportunities that these partnerships will develop into in 2017. We remain focused on ensuring that we add value to all customers and are already seeing the mutual benefits, it is very exciting,” says Travis Atkinson, Purkeys’ director of sales and service.

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Industry Focus

TruckPro Acquires Florida Distributor TruckPro has acquired the Ft. Myers, Fla., location of Jack Lyons Truck Parts (JLTP). This transaction does not affect the Jack Lyons Truck Parts-Medley, Fla., operation which remains under current ownership.

David Roper, TruckPro’s vicepresident, U.S. Retail Stores – East, says the addition of the new location to the

TruckPro family provides growth opportunities for the combined business.

“Over time, local customers and national accounts will benefit by having

HDMA Names 2017 Board The Heavy Duty Manufacturers Association (HDMA) has announced its 2017 HDMA chairman, board officers and directors.

The HDMA board of directors is responsible for the strategic direction, performance and member satisfaction of the members of the organization.

HDMA’s strategic mission is to advance the commercial vehicle supplier industry and the business interests of its members.

The new board members are: Chairman – Tim Musgrave, president and CEO, Pressure Systems International; Vice Chair – Gary Gerstenslager, president and CEO, Hendrickson International; 2nd Vice Chair – Kevin Hawkesworth, president and CEO, Shaw Development; Immediate Past Chairman – Tim Myers, executive vice president and group president, Arconic Transportation and Construction Solutions; Timothy Kraus, president and COO, HDMA; Steve Handschuh, president and CEO, MEMA. HDMA board of directors are Richard Dauch, president and CEO, Accuride Corporation; Dennis Michels, president and CEO, Link Manufacturing; Ronald I. Parker, chairman, president and CEO, Indianhead Industries; Jack Shaffer, president and CEO, Bergstrom, Inc.; Jay Craig, CEO and president, Meritor, Inc.; Rob Phillips, president and COO, Philips Industries; Dominic Grote, president and CEO, Grote Industries.

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access to broader product lines, more inventory and an expanded distribution network delivering an enhanced level of service throughout this region,” he says.

See how you can eliminate vibrations www.hunter.com/tps

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2/17/17 7

8:38 AM

Industry Focus

Dana Acquiring U.S. Manufacturing Corporation

Power Heavy Duty Adds N.J. Distributor Port Newark, N.J.-based 1 & 9 Chrome Shop has joined the Power Heavy Duty network. The company operates locations in Elizabeth and Newark, N.J. A provider of parts and accessories for the medium- and heavy-duty truck industry, 1 & 9 Chrome Shop serves owner operators, fleets and walk-in customers.

“The Power Heavy Duty team is pleased to welcome 1 & 9 Chrome Shop to our growing network,” says Mark Iasiello, general manager of Power Heavy Duty. “Located in a densely-populated area of New Jersey, the employees at 1 & 9 Chrome Shop are committed to providing outstanding support to customers along with a robust selection of heavy duty truck parts.”

Dana Incorporated has signed a definitive agreement to purchase axle housing and driveline shaft manufacturing operations from U.S. Manufacturing Corporation (USM).

Under terms of the agreement, Dana says plans to acquire USM’s Warren, Mich., assets in exchange for $100 million in cash. This acquisition will increase Dana’s revenue from passenger and commercial vehicle manufacturers and will transition significant purchased content to vertically integrated supply. It will also provide Dana with new product and process technologies for lightweighting, the company says.

“The acquisition of USM’s Warren operation allows us to capitalize on an important opportunity that will strengthen the supply chain for several of Dana’s most strategic customers and programs,” says Jim Kamsickas, Dana president and CEO.

People In The News Jonathan Spira has joined Nikola Motor Company as chief financial officer.

Phillips Industries has promoted Rob Myers to vice president of sales.

Myers Ken Kelley is the new vice president of North American Sales for Consolidated Metco.

PSI Director of OEM sales and dealer programs Steve Robinson also has been appointed chairman of the National Trailer Dealers Association (NTDA).

Donaldson’s Anthony Ray has earned the Hustle Award from Stone Truck Parts.

Marc Blackman, CEO at Gold Eagle, has been appointed vice chairman of the 2017 Automotive Aftermarket Suppliers

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Association (AASA) Board of Governors.

Bergstrom has named Cindi Gustafson managing director of Off-Road and BES Products for North Gustafson America, and Steve Rosella to managing director of Truck, Bus and Military Markets for North America.

Bergstrom’s Alan Leupold also has been re-elected to MACS board.

Rosella Steve Plomin of Orafol Americas has been named the new chairman of HDMA’s Heavy Duty Marketing and Sales Forum.

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Bendix Releases 2017 Training Schedule Bendix will offer 19 in-person Bendix Brake Training School sessions from spring through fall 2017.

Offered by Bendix Commercial Vehicle Systems and Bendix Spicer Foundation Brake, this year’s training school opens Tuesday, March 21, in Owosso, Mich. Classes are scheduled into November, with sessions in 14 U.S. states.

The comprehensive curriculum provides the only authorized training in Bendix products and services, including: ■ Bendix brand air disc brakes ■ Antilock braking systems (ABS) ■ SmarTire Tire Pressure Monitoring System (TPMS) by Bendix CVS ■ SmarTire Trailer-Link TPMS by Bendix CVS trailer system ■ AutoVue Lane Departure Warning (LDW) System from Bendix CVS ■ Bendix ESP Electronic Stability Program full-stability system ■ Bendix Wingman Advanced – A Collision Mitigation Technology ■ Bendix Wingman Fusion

Michelin Expands Service Network Michelin Americas Truck Tires has added Pete’s Road Service, Inc. to the Michelin Commercial Service Network (MCSN).

The third-generation family-owned business operates nine commercial locations in southern California.

“Our mission is to help our customers control and reduce the cost of their fleet by offering tires of value accompanied with exceptional service,” says Kyle Fletcher, president of Pete’s Road Service.

“Pete’s is ready to dedicate our 50 service vehicles to MCSN, making the network even stronger in the southwest area.”

START WITH THE BEST AND KEEP IT THAT WAY. Your truck’s drive line is only as strong as its weakest link. That’s why you should rely on genuine Eaton aftermarket products. Eaton aftermarket parts are made from high quality materials and incorporate the same manufacturing consistency and latest engineering designs as our production parts. There is no substitute for quality. Insist on genuine Eaton parts and get back on the road with confidence Learn more at roadranger.com/genuine

©2017 Eaton. All rights reserved.

Industry Focus

Optronics Introduces Marketing Tools For Distributors Optronics International has formally announced the introduction of a new merchandising and in-store sales support program. The program includes new packaging, retail displays, signage, posters, collateral literature and videos.

“Our new merchandising and in-store sales support program can take a distributor’s showroom to a whole new level by employing more sophisticated point-of-sale marketing techniques,” says Brett Johnson, president and CEO at Optronics.

“With our program, distributors benefit from having Optronics become their merchandising consultant for vehicle lighting.”

Optronics says the new program is offering distributors one of the widest arrays of merchandising tools in the heavyduty industry. In addition to traditional merchandising tools, Optronics also is supporting distributors with custom display services that meet the needs of specific organizations within specific geographies and markets.

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

March 14-17 March 23-25 April 21-23 April 26-28 May 3-7

The Work Truck Show, Indianapolis Mid-America Trucking Show, Louisville GenNext, CVSN Distributor Training Expo, Atlanta ITPA Spring Meeting, Detroit HDA Truck Pride Annual Meeting, Orlando

RUN WITH THE FUTURE. MERITOR AIR DISC BRAKE SOLUTIONS Unsurpassed expertise. Superior performance.

The widest offering of air disc brake components in the industry. It’s no wonder that Meritor’s Genuine and AllFit air disc brake systems are the ultimate choice for linehaul and vocational applications. Or that Meritor is leading the way in brake technology.

Run With The Bull.

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©2017 Meritor, Inc.

Industry Focus

STEMCO Builds Air Spring Testing Laboratory STEMCO has completed construction on a new lab built to design and test advances in materials, designs and technology for commercial vehicle air springs.

The 20,000-sq.-ft. state-of-the-art facility was built in response to STEMCO’s acquisition of the air springs business from former Veyance Technologies Inc. in Fairlawn, Ohio, now part of Continental AG, which produced Goodyear Air Spring products.

“Following the purchase of the Goodyear Air Springs business, we were intent on keeping the business in Fairlawn, retaining the workforce and investing where necessary to support our long-term growth. The new facility features state-of-the-art test equipment for a talented group of engineers that will

serve our production facilities and our customers well in the future,” says David Brinkman, STEMCO’s segment business leader, Air Springs.

Remanufacturing Industry Signs Landmark MOU The Automotive Parts Remanufacturers Association (APRA) has signed a memorandum of understanding with the Remanufacturing Industries Council (RIC). APRA says the agreement will enhance information sharing and advancement of the entire remanufacturing industry. The memorandum of understanding was signed by APRA, International Imaging Technology Council (ITC), Professional Electrical Apparatus Recyclers League (PEARL) and the Aeronautical Repair Station Association (ARSA).

“This is a great opportunity for APRA. Our members will benefit from the collaborative efforts between all of these associations. We look forward to working more closely with the RIC to support initiatives impacting all of remanufacturing,” says APRA President Joe Kripli.

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Tech Updates

SAFETY RECALLS Daimler Trucks North America, LLC, (DTNA) is recalling certain 2016-2017 Freightliner Business Class M2, 108SD, and 114SD trucks. The affected trucks have been modified to be equipped with both left hand and right hand instrument clusters.

Due to incompatibilities between the displays, the instrument clusters and/or turn signals may become unresponsive. Unresponsive instrument clusters and/or turn signals can increase the risk of a crash.

Daimler Vans USA is recalling certain 2015 Mercedes-Benz Sprinter 2500 and 3500 vehicles. The affected vehicles were manufactured without a driveshaft catch strap, allowing a loose driveshaft to strike the fuel tank. As such, these vehicles fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) number 301, “Fuel System Integrity.” A loose driveshaft may strike and puncture the gas tank, resulting in a fuel leak, increasing the risk of a fire.

Daimler Vans USA is recalling certain model year 2017 Mercedes-Benz Metris Vans manufactured Sept. 9, 2016, to Sept. 28, 2016. The affected vehicles have a passenger air bag that may have been

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

manufactured with an incorrect Tether Activation Unit (TAU). As a result, in the event of a crash necessitating deployment of the passenger frontal air bag, the air bag may not vent properly. An improperly vented air bag may not protect the front passenger as expected, increasing the risk of injury.

Daimler Vans USA is recalling certain 2012 Freightliner 2500 and 3500 Sprinter and Mercedes-Benz 2500 and 3500 Sprinter vehicles originally sold, or ever registered, in Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands (Saipan), and the U.S. Virgin Islands, or “Zone A.” Additionally, DVUSA is recalling certain 2009 Dodge 2500 and 3500 Sprinter and Freightliner 2500 and 3500 Sprinter vehicles originally sold, or ever registered, in Arizona, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Virginia, and West Virginia, or “Zone B.” These vehicles are equipped with certain air bag inflators assembled

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HME, Inc., is recalling certain model year 20152016 Type-6 Wildland trucks manufactured Jan. 2, 2015, to Dec. 1, 2016. The Certification label on the affected vehicles may incorrectly list the Gross Vehicle Weight Rating (GVWR) as 15,876 kilograms instead of the correct GVWR of 8,845 kg. (The Gross Vehicle Weight Rating of 19,500 lbs. is listed correctly on the label.) As such, these vehicles fail to comply with the requirements of 49 CFR Part 567, “Certification.” If there is an incorrect weight rating on the label, the operator may overload the vehicle, possibly resulting in a loss of vehicle control and increasing the risk of a crash.

Paccar is recalling certain 2015-2018 Kenworth K370, T680, T880 and 2017-2018 Peterbilt 567 and 579 trucks. The plastic fuel tee fittings on these trucks may leak fuel in the engine compartment. A fuel leak in the presence of an ignition source can increase the risk of a fire.

Learn more @PrestoliteElectric

© 2017 Prestolite Electric Inc.

Daimler Vans USA is recalling certain 2015 Mercedes-Benz Sprinter 2500 and 3500 vehicles. These vehicles were manufactured without a protective plate on the front of the gas tank and a foam ring at the filler neck. As such, these vehicles may not comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 301, “Fuel System Integrity.” Without the protective plate and the foam ring installed, impacts may damage the tank resulting in a fuel leak that can increase the risk of a fire.

Navistar is recalling certain 2017 International ProStar, LoneStar, 9900i, and TranStar trucks. The affected vehicles have a metallic battery cover latch that may unlatch and contact the battery jump start stud, causing an electrical short to ground if the jump start stud is not covered. An electrical short to ground increases the risk of a fire.

™

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as part of the passenger frontal air bag modules, and used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the front air bags, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling. An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

Assembled In

Walker Stainless Equipment Company is recalling certain 2014-2017 Food Grade Tank Trailers.

The weld joints that attach the underride guard to the trailer frame may crack. If the welds crack, the underride guard may detach from the trailer frame, becoming a road hazard and increasing the risk of a crash.

By Lucas Deal, Editor lucasdeal@randallreilly.com

Cover Story

The ESOP Option A

sk any aftermarket business owner to name the most important asset in their business and the answer nearly always comes back ‘employees.’

People are the lifeblood of the aftermarket. Equipment and technology play a major role but it takes employees to make a business thrive.

This is one of the main reasons business owners in this industry are so fiercely loyal to their people. They know

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they couldn’t do what they do without them.

It’s this same loyalty that can make exit planning so agonizing.

It’s hard for business owners to walk away from people they care about — especially when they were so influential

T R U C K PA R T S & S E R V I C E | M a r c h 2 0 1 7

to their careers and success.

For current business owners heading toward this reality and dreading it, one potentially optimal solution is an Employee Stock Ownership Plan.

Commonly known as ESOPs, Employee Stock Ownership Plans allow business owners to sell their company to the people most committed to its success, while also leveraging federal tax benefits to maximize exit earnings and develop a long-term stock-based retirement

Cover Story

[An Employee Stock Ownership Plan] can be a win-win scenario for both employees and employers.

– Wells Fargo A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan

The enticing advantages of employee ownership as a succession plan program for everyone within their operation.

Done well, an ESOP “can be a winwin scenario for both employees and employers,” writes Wells Fargo in its white paper A look at the good, the bad, and the ugly of an Employee Stock Ownership Plan.

ESOPs have existed in North American business for more than a century.

Early ESOPs sold small fractions of a company to employees as retirement

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earnings programs but allowed original ownership groups to maintain a significant controlling share of an operation.

It wasn’t until the mid-20th century that the tactic began taking hold as an option in succession planning and a true company-wide ownership program.

Today the ESOP Association — an independent organization supporting the ESOP industry — estimates 40 percent of America’s 10,000 ESOPs are solely owned by their employees, while more

than 5,000 are at least majority employee owned.

The businesses are wildly successful, too.

A recent ESOP Association survey discovered the average yearly contribution its members contributed to their ESOPs, as a percentage of covered compensation, was nearly 12 percent. The businesses also reported improved information sharing, communication, decision making, motivation and productivity increases after becoming an ESOP. Giving employees stock in their employer gives them something to work toward. When everyone is invested, everyone gets to reap the rewards, says Joe Bazzano, owner and COO at Beacon Exit Planning. “[ESOPs] typically have a different culture than most businesses in that they tend to be more open and professional,” he says. “Employees know if they work hard they’re going to get an added perk in addition to just their salary.”

Greg Klein says Inland Truck Parts has been enjoying this employee commitment for decades. The distributor was one of the first ESOPs in the independent aftermarket when its original owners sold the business to its employees in 1982. In the years since, Inland has enjoyed progressively steady growth, and now has 650 employee

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Cover Story

owners and 30 facilities in 10 states.

“I think there is a real sense of pride and loyalty” for employees within an ESOP, says Klein, Inland’s president. “I think it’s kind of like how you feel when you rent a car or house versus when you own it. It means something to people.”

“You can’t underestimate the importance of having employees who have a vested interest in your company,” adds Scott Goostree, vice president at Truck Parts & Equipment.

In his case, Goostree says Truck Parts & Equipment was founded and run as a family business for its first 75 years. But when its third-generation owner decided to exit the business in 2000 there were no familial successors available. Looking to make the right choice for everyone involved, the owner chose to create an ESOP. Goostree, who’s been with the company since before the transition, says the decision continues to pay off nearly two decades later. Employee motivation and productivity have been the biggest benefits, but Goostree says the ESOP also has all but eliminated employee turnover.

“We’ve always been a company that’s had a lot of longevity, but since the ESOP it has been incredible,” he says. “The company has grown so much since the

[ESOPs] typically have a different culture than most businesses in that they tend to be more open and professional.

– Joe Bazzano, owner and COO at Beacon Exit Planning

16

Truck Parts & Equipment

We’ve always been a company that’s had a lot of longevity, but since the ESOP it has been incredible. The company has grown so much since the ESOP and I think that’s been a huge key to it.

– Scott Goostree, vice president at Truck Parts & Equipment

ESOP and I think that’s been a huge key to it.”

ESOPs also feature several wonderful financial selling points.

For purchasers, there may be no lower-risk business acquisition in place today. Individual employees have no upfront financial requirements entering an ESOP transaction.

Wells Fargo says ESOPs may borrow money to purchase qualifying employer securities, and that those specific funds are not acquired by the actual employees but the larger group or the seller himself, who then lends the funds to the ESOP for a transaction.

“An ESOP is the only tax-qualified retirement plan that can be leveraged,” Wells Fargo says. “The plan can borrow money from a lender [a financial institution, the plan sponsor, or an owner] to acquire qualifying employer securities.

The plan may, for example, borrow money to buy newly-issued common

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stock from the company; the company then makes tax-deductible contributions to the ESOP, which are used to repay the loan.”

This allows the company to raise cash and deduct both the principal interest and interest payments on the ESOP loan, Wells Fargo says, and over time, “shares of stock purchased with the loan are used as collateral for the loan and are held in ‘suspense.’ As the loan is repaid, shares are released from suspense and allocated to the ESOP accounts of the plan participants.”

Additionally, the National Center of Employee Ownership (NCEO) adds that employees within an ESOP pay no tax on contributions to the ESOP, only the distribution of their accounts, and that even then they “can roll over their distributions in an IRA or other retirement plan or pay current tax on the distribution, with any gains accumulated over time taxed as capital gains.

Cover Story

The people at Inland Truck Parts have created a slogan that demonstrates their commitment to their business and employee ownership.

“The income tax portion of the distributions, however, is subject to a 10 percent penalty if made before normal retirement age.”

And that’s just the tip of the taxbenefit iceberg.

NCEO says sellers in a C corporation can receive a tax deferral once an ESOP owns 30 percent of shares in a company through the reinvestment of the proceeds of the sale in other securities, and then defer any tax on the gain. In S corporations, NCEO says the percentage of ownership held by an ESOP is not subject to income tax at the Federal level, which means, for instance, that “there is no income tax on 30 percent of the profits of an S corporation with an ESOP holding 30 percent of the stock, and no income tax at all on the profits of an S corporation wholly owned by its ESOP.” Finally, NCEO adds that “reasonable dividends used to repay an ESOP loan, passed through to employees, or

reinvested by employees in company stock are tax-deductible.”

Bazzano says the tax benefits are so advantageous that some sellers can ultimately net a higher bottom-line return selling to an ESOP than making a deal with another person or business for a higher initial price.

Bill Dudek says he discovered that when he started considering ESOPs before selling his company, Acme Truck Brake & Supply. With exit planning goals to maximize his earnings while positioning the business and people for longterm prosperity, Dudek says it didn’t take long to see that an ESOP was the way to go. He sold 40 percent of his company in 2011, and then the remaining 60 percent to his employees last year.

Early returns have been tremendous.

“When I sold the first part I still had the majority interest so I knew I could reverse [the ESOP] if it became problematic,” says Dudek, who still serves as

Reasonable dividends used to repay an ESOP loan, passed through to employees, or reinvested by employees in company stock are tax-deductible.

– National Center of Employee Ownership

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president. “But when we got that 40 percent paid off [a year ahead of schedule] it became pretty clear that it was going to work out.”

And Dudek says employee response to the ESOP has been incredible.

“There is a personal commitment from everybody in the company,” he says. “Everyone is accountable to everyone else.”

Klein agrees, noting that at Inland, the company’s pride in its ESOP has become a way of life.

“A couple years ago we held a vote to pick slogans for the company. My favorite one and the one we started using was ‘We act like we own the place. Because we do.’

“I think that really epitomizes the value” of the ESOP, he says. “Employees here aren’t as tolerant of other employees not living up to our work ethic and standards because they feel it reflects on them as well.”

Yet ESOPs aren’t perfect for everyone.

The complicated financial management of such a program requires an expert understanding of tax law and stock management far beyond what is required in most aftermarket businesses.

Klein, Goostree and Dudek each rely on outside firms to properly operate their ownership programs. Bazzano

Cover Story

says such firms evaluate the financial performance of each company on an annual basis to determine the company’s available funds to be contributed to an ESOP, then distribute the funds as shares to each employee based on the structure affirmed in the company’s ESOP parameters. Additionally, a company also must designate a trustee — someone who may or may not work in the business — to speak as a fiduciary on the employee’s behalf when determining exact rates for contributions and pay outs.

Klein says finding the right financial advisor to manage an ESOP is a necessity. A good one can be expensive, but the alternative is far more damaging. An inferior firm can open a business up to investigation and weaken the potential

retirement earnings for everyone involved.

“There are a lot of financial advisors who don’t understand [an ESOP] and so they’ll say not to do it. I’ve also seen people get into problems because they had an advisor who didn’t know ESOPs well enough,” Klein says.

Once a company commits to an ESOP employees must be kept in the loop as well. John Minor says Midwest Wheel has used regular corporate meetings to update and answer questions regarding its ESOP since introducing the program in 2009.

“Part of that meeting is to remind [everyone] of their ownership in the company,” says Minor, the company’s president.

There’s also the cash flow factor.

Acme Truck Brake & Supply has converted to an ESOP with two transactions over the past decade.

ESOPs are paid off through company profits. If a business stumbles and lacks the cash on hand to cover its losses, everyone suffers.

“It’s a cash flow forecast exercise,” says Bazzano. “The corporation is taking on new note and significant debt and has to be able to service that debt.”

Adds Goostree, “You have to be confident in the people running the business.

They have to be able to see opportunities for growth.”

The Nuts and Bolts of an ESOP While no two ESOPs are alike, the most common themes found around such programs are eligibility and enrollment requirements.

In the aftermarket, most distributors require an employee to work a minimum of 12 months.

After that period is completed the employee enters the ESOP at the next available joining date, typically January 1 or July 1.

Once an employee enters an ESOP, stock is commonly awarded as follows: • After the conclusion of the year a company undergoes its annual financial audit, during which the company’s financial advisor determines the valuation of the company’s stock.

• For companies still paying off an ESOP, funds required for the purchase of the business are allocated.

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• Using the company’s valuation and profit figures, corporate leadership works with a trustee to determine how much money will be converted to stock and contributed into the ESOP. • Using parameters developed during the creation of the ESOP, a financial advisor determines how much stock each employee will receive. These parameters are regularly built around hours worked during the year and payment compensation levels.

• The stock ownership adjustments are made to each employee’s account. Employees new to the ESOP are awarded stock for the first time.

• Balance statements are mailed to each employee noting the stock ownership and valuation changes.

Because ESOPs rely on end-of-year financial data, the calculation and distribution of stock regularly comes six to nine months after the close of the prior year.

Payment for exiting employees can take even longer.

ESOP rules require businesses to repurchase any departing employee’s shares at full market value, but do not require the repurchase and payment for the shares to be made simultaneously or instantaneously. Businesses can dictate when forming an ESOP how employee exits will be paid out—through single payments or over time. The latter can be especially advantageous for small businesses as it minimizes the risk of long-term employee payouts weakening the temporary liquidity of a business.

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

Sales & Marketing

Get IN line or be ON line Aftermarket distributors realizing growth through e-commerce

“D

oing business as usual” just can’t be the standard any longer.

That’s the message resonating throughout the aftermarket world.

As the widespread use of technology creeps into our daily lives more and

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more, the aftermarket can no longer turn its head and cover its ears. A new sales e-commerce channel is forming, and it’s time for aftermarket distributors to take advantage of the many opportunities this creates.

According to a recently released joint

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survey conducted by MacKay & Company and online distributor FinditParts, 55 percent of respondents have already purchased a Class 6-8 truck or trailer part online.

Additionally, of the 45 percent of respondents who had never purchased

Sales & Marketing

a heavy-duty part online, nearly half of those (47 percent), said they would consider doing so in the future.

The survey found the most important reasons for purchasing parts online were affordability/price (75 percent), availability of parts (69 percent) and

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convenience (62 percent).

The primary reasons given for not purchasing parts online were long delivery/wait times (50 percent), desire/need to speak with a salesperson (47 percent) and loyalty to an existing distributor (39 percent).

“The results of our initial survey validate the fact that buying online is safe, efficient and affordable, and is often meeting the delivery times required to satisfy the needs of most buyers,� says David Seewack, CEO of FinditParts.

The two groups plan to release a

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Sales & Marketing

larger, more comprehensive look at online buying later this year.

“Through our initial survey, we have just scratched the surface of the online heavy-duty parts buying topics and issues,” says John Blodgett, vice president sales and marketing at MacKay & Company.

If that deeper dive into the habits of online buyers produces the expected outlook, distributors will get to see where they stand in an ever-changing marketplace.

What they are likely to find is that e-commerce is a much needed if not must-have tool in today’s market.

With a major shift in the demographics of buyers, e-commerce opens new opportunities to customers looking to buy online.

“As we all know, the demographic of the end user is changing,” says Jeff Paul, director of marketing for VIPAR Heavy Duty.

“There’s a younger generation that doesn’t do business the old way. They want to use e-commerce as their primary source of doing business.”

E-commerce can be an efficient way of doing business. Distributors, suppliers and end users are all able to access products in a reliable, straight-forward format that cuts out a great deal of the confusion about product availability and product information, if the website is done correctly.

VIPAR Heavy Duty launched VIProParts.com in 2015 as a way to help end users purchase heavy-duty truck

ConMet demonstrated its new mobile app during Heavy Duty Aftermarket Week in Las Vegas in January.

parts. The website is a full-featured online store where end users can find the industry’s leading brands of aftermarket products, which are then delivered through the VIPAR Heavy Duty network of participating distributors.

Paul says the organization recognized a shift in the buying habits of some truck parts purchasers and wanted to find a way to connect customers with the group’s distributors.

“One of the main reasons we launched VIProParts.com was to make sure that our distributors could connect with the customers,” he says.

“We designed the site with product search capabilities to enable buyers to shop and purchase parts easily when it best suits them.”

When visitors enter VIProParts.com, they are prompted to select a local participating distributor to fulfill their order.

Specific catalog information for that distributor is displayed to end users, as well

There’s a younger generation that doesn’t do business the old way.

They want to use e-commerce as their primary source of doing business.

– Jeff Paul, director of marketing for VIPAR Heavy Duty

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as location and technical support contact information providing the expertise of a local parts specialist when needed. The order, payment and delivery are then fulfilled through that local distributor with multiple shipping and delivery options.

“Local expertise plays an important role in the aftermarket industry,” Paul says.

“People feel comfortable shopping in the areas they know. Through this site, the orders are filled by local distributors.

This is similar to the way Amazon works as far as having the orders filled through different distributors.”

Paul says the site has been a learning process over the past couple of years, but it’s a good source of connecting distributors and customers.

Bill Burns, chief operating officer of HDA Truck Pride, said his organization uses an online library of all the images of the products that their vendors offer.

Burns says there is a “big monster out there called Amazon” and distributors have to be prepared to offer the accessibility that sources like that offer.

“We have to be able to assist our members,” he said.

There is an ongoing initiative aimed at helping HDA Truck Pride members with an e-commerce platform, Burns said.

Sales & Marketing

Dana Nevins, CEO at Web Shop Manager, produces comprehensive websites for businesses in several industries, and has created more than 300 for the automotive industry alone, including the heavy-duty aftermarket. He says the heavy-duty market is one that is ready to “grow exponentially.”

Nevins says aftermarket businesses can thrive by starting small, focusing on their strengths and developing a website that caters to their existing customer base.

For distributors looking to grow or enhance their e-commerce platforms, Nevins says being selective and choosing the right system is key.

“This is a new frontier for a lot of people in the industry,” he says. “It’s not a bad thing to look at things as ‘if it ain’t

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It’s not a bad thing to look at things as ‘if it ain’t broke, don’t fix it.’

But, at the same time, you have to change with the times.

– Dana Nevins, CEO at Web Shop Manager

broke, don’t fix it.’ But, at the same time, you have to change with the times.”

One issue that Nevins sees working with folks just entering the e-commerce business is that many feel as if they have to go “all in.”

“A lot of them think ‘I have to do

everything just right’ and they build it up in their head. But, when you set out to run a marathon, you don’t start by running a marathon. You start by walking or jogging in the evenings and you build your way up,” he says.

He adds that “going all in” in ecommerce is essentially starting a new business.

“It is better to start small and add components and build on the business,” Nevins says. “It may be as simple as training one tech to help expand your services initially. It allows businesses and business owners to adapt quicker and then you can add to it later.”

Distributors may want to start by adding a certain number of products online, such as 100, 200 or 500.

“The advantage to having your top

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Sales & Marketing

selling products online is that it makes it available to the customer 24/7, they can order them anytime,” Nevins says.

The instant access to products is an important part of any business in today’s market. No distributor or supplier wants to lose a customer’s business simply because it’s easier to order the product somewhere else.

Websites can be designed to incorporate technology, branding and design, product data and to hit the right marketing channels.

Nevins says that many successful e-commerce websites demonstrate a specialty or an “expertise” in a certain product. He also says that using product catalogs and tech articles to attract customers to a site are helpful.

“Having product data even without a catalog is a good first step in building a successful e-commerce site,” Nevins says.

He even encouraged small distributors to test the waters by using sites such as eBay to gain familiarity with the process.

For some, e-commerce expansions have been an ongoing concept for quite some time.

For example, Consolidated Metco (ConMet) recently rolled out a new website platform that includes the use of videos to help provide end users with even more useful information on the product needed. On its site, one of the videos depicts the benefits of replacing wheel ends

Dana Nevins, CEO of Web Shop Manager, spoke to aftermarket distributors about the importance of online marketing during Heavy Duty Aftermarket Week (HDAW).

with preset aftermarket hub assemblies as opposed to rebuilding them.

“We have found that the use of videos is an ideal way of helping explain a message to the customers in a clear, handson way,” says ConMet’s Senior Marketing Manager Mark Jorgensen.

The company’s website shows where distributors are located throughout North America so end users can more easily access the locations where their products may be purchased.

ConMet even took its technological branding to a new level and released a free app that can be used on several digital platforms, including tablets and smart phones.

“The app is beneficial because someone can look up the part number they

Aftermarket e-commerce websites can be used in a variety of ways, ranging from basic informational sites to including full online shopping capabilities.

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need and where the nearest distributor is located even if they are stranded roadside somewhere,” Jorgensen says.

Companies also can build websites as informational platform tools.

That’s what drive-line maker Neapco did in January, releasing a new website that tells more about its product line than previous platforms did.

“This website shows our products and describes them in a better way,” says Cal Settle, Neapco market research and publications manager for the driveline aftermarket group.

Still, others take their digital efforts in an altogether different direction. For example, Tectran and Gray Manufacturing place a catalog inventory of their products online.

Whether a site allows full functionality in purchasing items or is best used for informational purposes, most all agree that technology and e-commerce are vital parts of the industry.

“You have to stay up to speed or you’ll get left behind,” Nevins says.

VIPAR’s Paul agrees.

“Business as we know it has changed.

E-commerce will continue to play a vital role in our distributors’ way of doing business as we move forward.”

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Marketplace

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

Selection of former dealer only parts Dorman HD Solutions has introduced five more parts to its former dealer-only heavy-duty product offering.

The company says the new products include a power steering fluid reservoir, coolant reservoir, engine crankcase pressure sensor, and more than five SKUs each for a turbocharger boost sensor and exhaust manifold.

Trailer brake drum Webb Wheel Products has released a new aftermarket brake drum optimized for use in trailer applications.

The new lighter, cooler 66764F drum features patented Webb CRT (Cool Running Technology) vents and was engineered specifically for 20K trailer axles, the company says.

Additionally, Webb says the innovative engineering of the drum provides a high strength to weight ratio offering the lowest weight in its class at only 99 lbs.

Air hose assemblies Midwest Truck & Auto Parts‘ World American has introduced a large collection of air hose assemblies.

World American says the new assemblies are all U.S. manufactured, Department of Transportation approved and feature one fixed and one swivel end. The assemblies come in three sizes, 1/2 in. assemblies with a 3/8 in. 18 NTPF ends, 3/8 in. assemblies with 1/4 in. 18 NTPF, and 3/8 in. assemblies with a 3/8 in. NTPF ends.

There are 24 hoses available for each size, with lengths ranging from 18 in. to 84 in., the company says.

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Reman transmissions and differentials TRC Reman has expanded its remanufactured automated manual transmission (AMT) and differential product lines.

TRC says it is now offering Volvo I-Shift, Mack mDrive, Detroit DT12 and Eaton AMTs. On the differential side, TRC is now offering remanufactured Mack CRD and Detroit Alliance RT products.

The company says its newest axles and differentials include 100 percent complete disassembly and inspection of all parts and components and 100 percent replacement of all wear parts including bearings, gaskets, ring gear bolt kits, snap rings and shims.

Surface-mount LED lamp Optronics International introduces its new Fusion Thinline surface-mount LED combination stop, tail, turn and backup lamp.

The new lamp is the first to combine stop, tail, turn and backup functions in a common bar light format, so named for its long, thin configuration, the company says.

At 20.5 in. long, 1 in. wide and just 0.75 in. thick, Fusion Thinline surface-mount LED combination stop, tail, turn and backup lamps can be mounted virtually anywhere on a vehicle, including vehicle body panels, frame posts, docking plates or gussets, Optronics says.

Marketplace

New aluminum wheel line Growing king pin product line Meritor has introduced 45 new no-ream kits as an expansion of its FastSet King Pin Kit aftermarket product line.

Meritor says using the new kits mean king pin bushings do not need to be reamed after they are installed into the steering knuckle. Additionally, instead of pressing in the bushings during installation, customers can use the kit to easily install spiral bushings by hand.

Maxion Wheels has introduced a forged aluminum truck wheel product line to its North American commercial vehicle lineup.

Maxion’s new line features four wheels carefully selected by the company to best serve the needs of the North American marketplace.

The wheel sizes are 22.5 x 8.25 in., 24.5 x 8.25 in., 17.5 x 6.75 in., and 22.5 x 14 in. A standard five-year limited warranty is included with each wheel, the company says.

Two new tire sizes

Light-, medium-duty starters and alternators LoadHandler announces its Power Products starter and alternator line now offers coverage of popular Chevrolet and GMC light- and medium-duty vehicles.

The 100-percent new LoadHandler Power Products starter and alternator designs meet or exceed application needs for many popular Chevrolet and GMC light- and medium-duty vehicles. This latest product launch will include starters and alternators for 2002-2007 Chevrolet Silverado/GMC Sierra 1500HD/2500HD, 2002-2007 GMC Sierra 3500/3500HD, 2005-2010 Chevrolet Express/GMC Savana, and 2006 Yukon/Yukon XL vehicles.

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Toyo Tire has announced a size expansion for two of its commercial tire products, the Toyo M920 drive tire, and the Toyo M149 Super Single.

Toyo says new sizes added to the M920 lineup include a 315/80R22.5 with a Load Index of L, also an 11R24.5 and a 285/75R24.5. The M920 size range now totals eight products, with ply ratings from 14 to 20 and load indexes of G, H and L. In addition to a 385/65R22.5 size, the M149 is now also available in a larger 425/65R22.5 size tire. Both sizes feature 20-ply load ratings, the company says.

Marketplace

Engine cleaning additives

King pin removal system

Penray has introduced two new products designed to extend engine life and restore engine performance: the 2-Step Oil and Fuel Treatment Kit and 3-Step Premium Oil System Cleaner Kit. Penray’s 2-Step Oil and Fuel Treatment Kit (#7702) features Penray’s Total Fuel System Cleaner as well as Penray’s exclusive oil treatment.

Penray’s 3-Step Premium Oil System Cleaner kit, (#7603) is an updated that kit includes the same oil and fuel supplements as the 2-Step kit, and adds Penray’s Crankcase and Differential Cleaner.

STEMCO introduces the QwikXtract king pin removal system.

Suitable for use with most wheel end configurations, STEMCO says the QwikXtract system consists of an integrated cart and self-aligning industrialstrength press.

The QwikXtract system features interchangeable hub mounts that allow it to be used with different wheel end configurations with minimal changeover time. It is capable of supporting wheel ends up to 350 lbs., the company says.

Off The Line Spotlighting a new OEM innovation

New Class 7 truck entering market Alkane Truck Company has signed an agreement with Brazilian truck manufacturer, Agrale, that gives the South Carolina-based truck manufacturer sole representation for sales and service in North America.

Together, Alkane and Agrale will offer a new Class 7 truck line and various commercial chassis options for recreational and public transportation vehicles.

“We are very excited about having exclusivity with Agrale in the North American market,” says Alkane CEO Bob Smith. “The unique vehicles we will be offering through Agrale will fill existing market voids.”

Alkane says it brings the market a unique production and distribution model. It imports the main body and chassis as an assemblage of parts and incorporates U.S.-manufactured components such as engines, transmissions, fuel systems, wheels, tires, brakes, safety elements and other key components required for DOT compliance, the company says.

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Trailer cargo securement product Ancra International has added the Retract-A-Roll 3 to its cargo securement product offering.

Ancra says the Retract-A-Roll is state-of-the-art in pneumatic roller track system for new and used trailers.

The Retract-A-Roll 3 features a heavy-duty top plate with a dual skate wheel design and a high-strength, 11-gauge stamped steel top plate has a galvanized finish to fight corrosion, Ancra says.

New commercial fluid and additive line Royal Purple is rolling out a new Commercial and Fleet Vehicle product line, including high-efficiency hydraulic fluid, multi-purpose tractor fluid, fuel additive, coolant supplement and chassis lube.

Royal Purple says the product line is specially formulated for fleet applications including tractors, construction vehicles, over-the-road trucking, mining, agriculture and off-road fleet vehicles.

Marketplace

Emission control parts Denso has added to its PowerEdge heavyduty replacement parts lineup.

The company has partnered with Clean Diesel Technologies, Inc., (CDTi) to introduce a new line of aftermarket emission control products under the company’s PowerEdge brand.

Denso says the all-makes replacement parts are currently available and feature

60 DPF part numbers covering more than 260 OE-quality products and seven Diesel Oxidation Catalysts (DOC) part numbers for heavy duty on and off-road

trucks and equipment. The companies also plan to expand the line with an additional 20 DPF and 15 DOC part numbers later this year.

New wheels and alloy coating Accuride has released two new versions of its Accu-Lite 22.5 in. x 8.25 in. steel wheels.

Accuride says the new two- and fivehand-hole wheels are each 3 lbs. lighter than the previous models.

Accuride also has introduced Quantum 99 aluminum alloy. The company says the allow is 20 percent stronger than its previous alloy, and reduces the weight of the company’s most popular standard lightweight aluminum wheel by 11 percent to an industry-best 40 pounds.

Quantum 99’s initial launch will be a standard 22.5 in. x 8.25 in. wheel and will be available after mid-year. Quantum 99 will become the company’s standard aluminum alloy wheel.

Engine parts and kits AFA Industries has introduced 108 new aftermarket engine parts and kits.

More than two dozen different components are featured in the 108 parts.

The new components fit a variety of popular Caterpillar, Cummins, Detroit Diesel, Navistar, Mack and Volvo applications, AFA says, and are available through AFA’s sales representatives and distribution centers.

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Blaine Brothers, 2016 Distributor of the Year

Truck Parts & Service needs your help to honor the top distributors in the heavy-duty aftermarket.

Nominate your favorite independent aftermarket businesses for the next Distributor of the Year Award.

To submit your nomination starting Monday, April 3, visit dotynominations.com.

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Classified Ads

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

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RUN WITH DEPENDABILITY. Run with Meritor’s permanently lubricated and sealed Permalube™ RPL drivelines and Meritor’s Xtended Lube MXL™ drivelines, with 100,000-mile lube intervals. Run with exceptional range, lower maintenance and higher ROI. Run With The Bull.

©2017 Meritor, Inc.

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March 2017 3/18/16 2:12 PM

Ad Index Company

Contact Info

Page

Company

Contact Info

Page

ProMiles

800-324-8588

31

randallreilly.com

29

Automann

888-288-6626

BC, 36

Bergstrom - Kysor

kysorhvac.com

11

Rig Dig BI

turbo.borgwarner.com

17

S & S Truck Parts, Inc.

800-621-1553

IBC

ccjsymposium.com

23

SAF Holland Original Parts

800-876-3929

3

dotynominations.com

32

roadranger.com/genuine

9

Classified Advertisers

800-633-5953

27

BITIMEC International

877-637-1900

33

hortonrcv250.com

25

Direct Equipment Supply Co.

800- 992-1478

34

lkqheavytruck.com

33

Majestic Lubricants

713-674-3333

35

meritor.com

34

BorgWarner

CCJ Spring Symposium Distributor of the Year Award Eaton Great American Trucking Show Horton Hunter Engineering Co.

hunter.com

7

Meritor, Inc.

meritor.com

IFC, 10, 36

LKQ Heavy Truck

Midwest Truck Parts

800-934-2727

13

Meritor, Inc.

Minimizer

800-248-3855

5

Radiator Works

877-723-9675

34

idleproextreme.com

12

Southpointe

888-943-4434

34

Prestolite Electric

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.

Poly & Rubber Catalog MERITOR AIR DISC BRAKE SOLUTIONS FOR THE AFTERMARKET

AuTomAnn# CAT-RP300 624 pages with over 5,000 parts and kits covering: n mounts - Cabin, Exhaust, Hood, motor, Radiator

Meritor offers the widest selection of aftermarket air disc brake components in the industry, unsurpassed expertise, and superior solutions for linehaul and vocational applications. Meritor is your one-stop shop for pads, rotors, brake chambers, and all hardware and service kits.

n Bushings - Beam, Leaf Spring, Spring Hangers, Torque Arms n Insulators & Load Cushions for suspension applications Included are 100 page torque rod section with both size and type charts (listing bushings, angles and possible alternative); comprehensive suspension bushing chart for quick identification; separate section that lists all Fifth Wheel components and 65 page cross reference with over 10,000 crosses from 137 different makes.

For more information, go to meritor.com/LOD and search publication SP-1707.

Š2017 Meritor, Inc.

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1/3/17 4:57 PM

meritor.com/LOD

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4/19/12 9:06

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