TPS0614 by Richard Street

CAT targeted in class-action lawsuit | VIPAR adds two new members

Don’t take a sick day on your business

THE BENEFITS OF COMPANY-WIDE HEALTH AND WELLNESS PROGRAMS

A body shop opportunity 21 JUNE 2014 |

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Volume 50 | Number 6 | June 2014

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Cover Story

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Editorial

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

The scary truth about service By Lucas Deal, Editor lucasdeal@randallreilly.com

e all know that feeling. You’re at an event or listening to a webinar and someone throws a fact or figure you just can’t comprehend. Your ears perk up; you cock your head to the side and think to yourself, ‘No, that can’t be right.’ Then you do a little digging and sure enough, it is. That happened to me last month at the Global Automotive Aftermarket Symposium. I was attending an industry update presentation by MacKay & Company’s John Blodgett when I heard something I just couldn’t believe. Recent MacKay & Co. research shows 75 percent of all service hours recorded in the commercial vehicle aftermarket in 2013 were logged by end users’ technicians (fleets and owner operators). Dealers stood in second place with 9 percent, and independent service techs followed with just 8 percent. That might not seem unusual to you, but it floored me. Seventy-five percent? I think I would’ve pegged that number above 50 percent, but 75 percent never even crossed my mind. Service has been the hot topic at aftermarket trade shows for several years. I’ve heard countless industry professionals tell me fleets want to outsource service, and that service is the next great growth opportunity for the aftermarket. Blodgett says MacKay’s research continues to back that up — when asked,

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

fleets are still saying they want to outsource more service — but when you look at the raw numbers, nothing is changing. Why? According to MacKay & Co. research, Blodgett says fleet apprehension comes from three major concerns: quality of service (26 percent), cost of service (26 percent) and downtime (24 percent).

Fleets are more willing to let a truck sit in their bay than your bay. At this point fleets just don’t think there’s anyone out there who can consistently do a better job than their own guys. So how does the aftermarket change that perception? Be prepared: This is one area where the aftermarket is on the right track, as MacKay & Co. data shows training is the most sought after resource distributors and service providers request from their suppliers. Fleets want to outsource their assets to experts, and aftermarket operations willing to offer component expertise and service best practices to their employees stand a better chance of pulling in potential service work.

June 2014

Be efficient: Fleets don’t want to bring a truck to a service provider and find out eight hours later the garage doesn’t have the part they need. Running a service operation requires an ability to carry additional inventory and wider selection of parts. Fleets are more willing to let a truck sit in their bay than yours. Don’t advertise superior turnaround times if you know you can’t deliver. Be available: Though not directly listed in the top three concerns, Blodgett says fleets also have concerns about the availability of aftermarket service operations. MacKay & Co. research indicates most fleets prefer to travel less than 20 miles for vehicle repairs, with only niche repairs like collision/body shop work being worthy of a 30-plus minute drive. “We’ve had fleets question if the aftermarket even has enough techs and service bays to service them if they decided to outsource,” Blodgett says. And it’s worth noting, fleet garages aren’t perfect operations, either. They record 75 percent of all aftermarket service hours but are the final point of sale for only 61 percent of aftermarket parts. That means there’s an area to gain ground. Aftermarket service operations require less hours to install parts than their fleet counterparts. With an older fleet population (9-plus years) becoming the industry’s ‘new normal,’ Blodgett says service opportunities are more likely to increase than disappear. So take what’s yours.

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Editorial | Jason Cannon

Dealers are jumping headfirst into the used truck market; the aftermarket should follow By Jason Cannon, Online Editor jasoncannon@randallreilly.com

sed Class 8 tractors are selling for record prices – a fact that isn’t lost on some of the industry’s largest players. Recently, Penske and Rush Enterprises each announced plans to construct brick and mortar truck lots for used truck sales. Rush recently opened its first Rig Tough used truck location in Knoxville, Tenn., and the company says it plans to open “a couple more” locations this year. Penske Used Trucks currently has two locations (Torrance, Calif., and Charlotte, N.C.), and plans to open two more by the end of 2014. Rush says the Rig Tough location gives the company an additional sales outlet to reach customers in markets not currently served by Rush Truck Centers, and Rush Enterprises CEO Rusty Rush says, “[the used truck lots] will supplement used truck sales at our Rush Truck Center locations.” Penske’s venture into the brick and mortar business represents a more drastic departure from the norm than Rush. Previously, Penske moved its inventory through wholesale channels and through its website and call center. With used trucks in great demand and the supply thin, Jack Mitchell, Penske’s vice president of remarketing, says the time was right for the company to develop a new avenue for moving its used lease and rental equipment. Chris Visser, senior analyst for NADA, says more used trucks have been enter-

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

ing the secondary market due to the return to normal build rates and shorter trade cycles, and as OEMs start to pile on incentives for late-model trade-ins, expect more of the “gently used” units to become available. Out of warranty trucks are the low hanging fruit of the aftermarket and those trucks are hitting the road in record numbers.

Out of warranty trucks are the low-hanging fruit of the aftermarket and those trucks are hitting the road in record numbers. NADA data showed the average sleeper tractor retailed in March was 77 months old, had 524,564 miles, and sold for $55,840. Compared to March 2013, this truck was identical in age, mostly identical in mileage, but is now worth $5,048 (9 percent) more. Visser says the year-over-year comparison provides a good example of how

June 2014

the market has shifted over this period, with the average used truck now worth over $5,000 more despite no meaningful change in age and mileage. “Continued increases in our universal average are due mainly to an increased number of newer, lower-mileage trucks available to the secondary market,” Visser says. “Trucks of 2011 vintage are now the most common sold retail, and 2012s are slowly but surely coming on-line.” Fleets are also embracing higher mileage pre-DPF trucks (mostly model year 2006-2007), with many buyers seeing a massive engine overhaul as a wise investment for a truck that costs slightly less than $20,000. If you haven’t looked at used truck activity in your trade area, grab a laptop and get your hands on some data. Retail pricing for used trucks has likely topped out, but volumes haven’t. The aftermarket can certainly ride this wave of booming business. With truck values climbing, fleets will be looking to hold on to a used unit far longer than in years past; and with the more reliable 2011 and 2012 units streaming into the market, fleets will be looking for reliable parts and service outlets across all makes to push these trucks over and beyond the million mile mark. It’s time to evaluate your local trade area as it relates to makes of used trucks, and even inquire with some key customers about their plans to buy used units. Odds are, they are or will soon be in the market.

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Industry Focus

Dealer News

Gibson Tire converts to Marangoni retread operation

Baltimore Mack Trucks held a ceremonial ground breaking in April for a new 32,500 sq. ft. facility being built in Hagerstown, Md.

Gibson Tire Service in Charleston, S.C. has converted its retread operation to the Marangoni family of products. Gibson Tire Service is a third-generation family owned company that provides commercial tire services from new and used tires, service and repair, 24/7 road side service and a complete modern retread plant. “The switch to Marangoni offered us the ability to broaden our market, grow our market share, and be more competitive,” says John Gibson, noting profitability and the ability to be an independent retreader with control over his future were the key drivers that fueled his decision to convert.

Republic Diesel expands into Ohio Kenworth of Pennsylvania has opened a new parts and service facility in McKees Rocks, four miles west of downtown Pittsburgh.

Utility Trailer announces the opening of a new parts location in San Benito, Texas.

Trailer Wizards has opened a newly expanded branch in Delta, British Columbia.

Performance Truck has opened a new full-service Kenworth Truck dealership in Victoria, Texas.

Concord, N.H.-based Yankee Kenworth was damaged by fire in late April. First Truck Centre opened a new parts and service facility in Edmonton, Alberta last month. Doonan Truck & Equipment will open a new dealership this summer in Hays, Ks. MHC Kenworth has opened a new dealership in Conyers, Ga.

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

Kenworth of South Florida – Riviera Beach has opened a new parts and service location with eight service bays and an expanded parts department. TEC Equipment, Inc. has joined Wabash National’s trailer dealership network. The company will provide sales, parts and service for Wabash National, Transcraft and Benson brand trailers.

June 2014

Republic Diesel, headquartered in Louisville, Ky., has acquired certain of the assets of Center Automotive Machine, in Akron, Ohio. The new name will be Center Diesel & Machine, a division of Republic Diesel, and will operate at the same location, 274 E. South Street, Akron, Ohio. In addition, Republic Diesel has locations in Lexington and Prestonsburg, Ky., Jeffersonville, Ind., and Harrogate, Tenn. “We welcome the addition of Center Diesel & Machine and look forward to expanding our services to a new geographic region,” says Steve Gettelfinger, president of Republic Diesel. “This is a great opportunity to connect with new customers and to be able to better serve our current customers.”

Industry Focus

VIPAR adds new members in Texas and North Carolina VIPAR Heavy Duty has added Texasbased Wofford Truck Parts and Consolidated Truck Parts, located in North Carolina. In addition to its main headquarters in El Paso, Wofford Truck Parts serves southeastern New Mexico from its branch in Carlsbad. “Wofford Truck Parts is a strategic addition for VIPAR Heavy Duty, helping expand our footprint in west Texas and New Mexico,” says Jim Pennig, vice president of business development for VIPAR Heavy Duty. “We are glad to partner with them and help expand their product offerings and services through our industry-leading brands.” Consolidated Truck Parts is headquartered in Rockwell, N.C., and is in the midst of a 3,000 sq. ft. expansion of its

existing facility. “This is a strategic addition for VIPAR Heavy Duty providing us with added resources to service customers in this

area with our selection of industry-leading products for fleets, owner operators and independent service facilities,” says Penning.

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Redwine Garage named Truck Service Expert of the Year Jim Redwine entered the heavy-duty aftermarket in 1973 with one service bay and the best of intentions. In April he was awarded for his decision, being named the 2013 HDA Truck Pride Truck Service Expert of the Year at the organization’s annual meeting in Phoenix. “When my sons and I started out we were willing to work with good strong backs, average common sense and a hope that we could make a living,” Redwine says. Redwine opened his business, Redwine Garage Parts and Service, in a tiny building in North Carolina. The bay was so small truck mirrors had to be tucked in to fit Class 8 trucks inside. The business has now grown to support two locations with six double bays and five single-size bays. It has 18 technicians and five mobile service trucks. Untitled-34 1

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Industry Focus

People In The News Midwest Truck & Auto Parts has hired Steve Filipiak as director of marketing. Liftmore has appointed Bill Dunn its regional sales manager for the southeast United States. DuraClass adds Chad Hester and Lee Storment to its customer support team.

Filipiak

passed away last month at age 71.

Baldwin Filters announces the promotion of Theresa Yaw to director of marketing.

Phillips Industries has added Brent Griffin and Andy Summers as territory sales managers, and Dave Lajeunesse as director of engineering.

GE Capital Fleet Services has named Shannon May as vice president of sales – West region.

Yaw

LeGoff

Joe “Doug” Luna, long-time executive vice president at HD America,

Lajeunesse

Four Star Freightliner has hired Byron Wise as a new and used truck sales representative for its Dothan, Ala. location.

Holly Mayfield has joined The Marx Group as marketing coordinator.

Westrans Company has hired Derek LeGoff as its new Winnipeg-based sales representative. AmeriQuest Transportation Services has appointed

Jared Butts as director of sales.

Richard Kyle has been named CEO of Timken by the company’s board of directors. He replaces James Griffith, who is retiring this year. Mayfield

Worldwide Equipment has named Bob Kelley branch manager for its Greenville, S.C. division.

Bendix names platinum distributors CAT targeted in class-action lawsuits Caterpillar is the target of nearly 10 class-action lawsuits claiming its now defunct ACERT engine line were defective — driving up costs for owners and driving down resale value — and that the company concealed the information from buyers and owners. The lawsuits, the most recent of which were filed April 30, stem from Caterpillar’s emissions controls system and specifically target 2007-2010 model year ACERT C13 and C15 engines. Plaintiffs allege the company’s Caterpillar Regeneration System (consisting of a DPF, after treatment regeneration device and an electronic control module) was defective, “causing the vehicle to not function as required under all operating conditions on a consistent and reliable basis, even after repeated emissions warranty repairs and replacements,” according to court documents. In April Caterpillar filed a motion to have the cases consolidated and transferred to a U.S. District Court in Florida or New Jersey, arguing that consolidation would prevent duplicate proceedings, as the lawsuits center on the same allegations. The judges who heard the motion have not yet made a ruling.

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

June 2014

Bendix Commercial Vehicle Systems LLC has recognized its channel partners in its Premier Distributor Program (PDP) that have delivered exceptional performance and reached the program’s highest ranking of platinum. Platinum partners reflect the top 10 percent of distributors in the comprehensive Bendix independent aftermarket distributor network. “Bendix relies on strong partnerships with our distributors to meet the needs of today’s heavy-duty aftermarket. Because of these partnerships, customers can count on having the right part in the right place at the right time, so they can keep their vehicles on the road and in the safest condition,” says Tom Otter, Bendix vice president, sales and marketing. “We are proud to have distributor partners who strive daily to provide the heavy-duty aftermarket with the highest levels of safety, performance, value, and post-sales support.”

Valley Truck Parts adds to Eaton rebuilder program Valley Truck Parts has added several new transmission models to its Eaton Authorized Rebuilder program, which includes an extended warranty period for the covered transmissions. The program now gives fleets and independent operators additional options to purchase locally remanufactured transmissions with 100 percent genuine Eaton content. “The Eaton Authorized program ensures that our customers receive a 100 percent genuine Eaton transmission, backed with the worry free support of the Eaton warranty network,” says Gary Troost, general manager at Valley Truck Parts.

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Industry Focus

FinditParts enhances website

Meritor to distribute TSE spring brakes Meritor announces a master distribution agreement with TSE Brakes, Inc. to distribute TSE’s OmniBrake and UltraLife air spring brake chambers to North American customers, effective immediately. The two TSE products will be available through Meritor’s U.S.-based distribution centers in Florence, Ky. and in Canada from locations in Brampton, Ontario and Edmonton, Alberta. Meritor says it will continue to offer customers a third air brake chamber under Meritor’s AllFit brand. “Our customers deserve the dependable availability of a single source for their wheel-end product needs, and this agreement enhances and expands Meritor’s broad product offering,” says Tim Bauer, senior director, Undercarriage Products, Aftermarket for Meritor. “The agreement also streamlines prepaid freight access to TSE’s OmniBrake and UltraLife products from Meritor’s two distribution centers.”

FinditParts.com unveiled a new website last month in an effort to “simplify the experience, making it easier to search and find the parts you need,” says CEO David Seewack. “As a leading online distributor of heavy-duty truck, trailer and tractor parts, we focused on improving the portal to better align with our customer’s needs,” he says. “Our goal is to offer a better, more streamlined customer portal that allows you to efficiently source and buy your parts.”

TRP reaches 20 This year marks the 20th anniversary of TRP Parts, Paccar Parts’ aftermarket brand. “Over the last 20 years, Paccar Parts has developed the TRP line of quality all-makes replacement parts to exceed customers’ expectations,” says Bart Lore, general marketing manager for Paccar Parts. “The breadth of the TRP line and a robust testing process have contributed in making TRP parts a compelling choice for commercial vehicle operators. Customers know that if they purchase a part in one region they’ll still be supported all the way across the country.” TRP today offers a wide range of parts from exhausts to transmissions and from brakes to LED lighting – 100,000 parts worldwide.

ADVANCED SOLUTIONS FOR TODAY’S REGULATIONS. MeritorCYA.com

STOP! YOU BETTER C.Y.A. FOR RSD AND CSA. Go to MeritorCYA.com for a free CYA T-shirt, hat and belt buckle, and to learn how Meritor Aftermarket CYA – covers your assets – when it comes to safe operations. Meritor Aftermaket has replacement RSD-compliant friction for maintaining the performance of brakes designed to meet RSD regulations. Plus, our Meritor® Tire Inflation System (MTIS™) by P.S.I. protects you from underinflation, possible blowouts and downtime. Cover your assets − ask for the box with the bull. ©2014 Meritor, Inc.

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June 2014

Industry Focus

Truck-Lite debuts training website Truck-Lite Co., LLC has produced an online series of technical courses as part of its new Truck-Lite Training Institute (TTI) program. The program offers web-based lessons that educate distributors, technicians and fleet personnel who sell, use, and maintain equipment with Truck-Lite products, the company says. By taking

MERA adds new members The Motor & Equipment Remanufacturers Association (MERA) welcomes Diesel Forward, FTI Consulting and MarmonHerrington Aftermarket as its newest member companies. “Diesel Forward, FTI and MarmonHerrington will strengthen our respective remanufacturer, affiliate and supplier membership ranks,” says John Chalifoux, president and COO, MERA. “I am sure they will contribute a great deal as MERA and its members continue to advance the remanufacturing industry.”

advantage of TTI, Truck-Lite says users can obtain the most up-to-date knowledge of ongoing advancements in the technological world of heavy-duty lighting and visibility systems.

The Expertise of Your Local Truck Parts Professional Backed by the Power of a North American Network

Alcoa updates North American website Alcoa Wheels recently unveiled a newly designed website for its North America section. Alcoa says the renovation focuses on optimal customer experience through quicker and more functional navigation; facilitated surface treatment and technical information search and significant details on the recently launched innovation, Ultra ONE wheels. “We want to ensure our audiences feel they can rely on an effective communication tool that is informative and easy to navigate,” says Brian Thomas, marketing communications at Alcoa Wheels. “We redesigned our website with that focus in mind, and look forward to the positive experience it will bring.”

There’s no beating the ease of doing business with your trusted local truck parts distributor. As part of North America’s Leading Truck Parts Network®, your local VIPAR Heavy Duty Parts Professional offers the brands you want and the expertise you need, with the strength and resources of a network of over 500 locations throughout the U.S., Canada, Mexico, and Puerto Rico. The Right People. The Right Parts. The Right Places. Find out more at www.vipar.com

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3/18/14 2/18/14 1:41 1:24 PM

Tech Updates

SAFETY RECALLS

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

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 which would increase the risk of injury in the event of an emergency.

Crane Carrier Company is recalling certain model year 2008-2014 LET2, COE, LDT2, and LE2 refuse vehicles manufactured April 16, 2008, through Feb. 28, 2014, and equipped with certain Cummins Westport Model ISL G engines. Condensation in the intake manifold may freeze during cold weather conditions and interfere with the proper operation of the intake manifold pressure sensor. The improper operation of the sensor could induce elevated exhaust temperatures or flames from the exhaust pipe, increasing the risk of a vehicle fire or burn injury to a person near the exhaust pipe.

Daimler Buses North America is recalling certain model year 2007-2012 Orion VII transit buses manufactured January 2007 through October 2012 equipped with certain Cummins Westport Model ISL G engines. Condensation in the intake manifold may freeze during cold weather conditions and interfere with the proper operation of the intake manifold pressure sensor. The improper operation of the sensor could induce elevated exhaust temperatures or flames from the exhaust pipe, increasing the risk of a vehicle fire or burn injury to a person near the exhaust pipe.

Daimler Trucks North America (DTNA) is recalling certain model year 2014 Freightliner 108SD, 114SD, 122SD, Coronado, Argosy, Cascadia, Columbia, and M2 Business Class, and Western Star 4700, and 4900 vehicles 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

DUECO Inc., a manufacturer of utility vehicles, is recalling certain Dueco-modified model year 20092011 International 4300, 2010 International 4400, 2009 and 2011 International 7400, 2010 Freightliner M2, 2008-2009 GMC C5500, and

2011 Ford F-750 vehicles, equipped with Sure Power DC-DC converters containing a particular epoxy sealing, aka ‘potting’, compound. The specific potting compound used in the subject products for insulation was found to be capable of conducting electricity after being exposed to heat. Once electrically conductive, the material is capable of melting and burning, increasing the risk of a fire. Great Dane Trailers is recalling certain model year 2013-2015 flatbed trailers. In the affected trailers, the brackets used to store aluminum J-hook cargo restraint plates may break and allowing the cargo restraint plates that are stored on the bracket to fall from the trailer. If the bracket breaks, the falling restraint plates may become a road hazard for drivers of other vehicles, increasing the risk of a crash. Mack Trucks is recalling certain model year 20142015 CXU, 2010-2015 LEU, and 2011-2015 MRU vehicles manufactured with certain Cummins Westport Model ISL G and ISX12 G engines. Condensation in the intake manifold may freeze

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5/21/14 9:37 AMEDT 5/22/14 8:40 AM

June 2014

Tech Updates during cold weather conditions and interfere with the proper operation of the intake manifold pressure sensor. The improper operation of the sensor could induce elevated exhaust temperatures or flames from the exhaust pipe, increasing the risk of a vehicle fire or burn injury to a person near the exhaust pipe. Mack Trucks is recalling certain model year 20102012 CHU, CXU, GU and TD vehicles manufactured June 16, 2009, through July 18, 2011. In the affected vehicles, the Electronic Power Distribution Module (EPDM) may be contaminated from water leaks in, and around, the windshield. If exposed to water leaks, contaminants such as road salts may deposit on the EPDM. Deposits of contaminants may result in the circuits being bridged, creating a high resistance short, increasing the risk of a fire. Navistar is recalling certain model year 2014 International Prostar trucks manufactured September 2013 through December 2013, and equipped with feature code 14GXP 6X2 rear axles with ‘R’ hubs and Dual Track rear axles. In the affected vehicles, axle shafts of an incorrect length may have been installed, which can cause the splines on the axles shafts to be only partially engaged into the

side gears of the rear axle differential. The partial engagement could cause the axle shaft splines or side gears to fail, which may result in loss of power to the drive wheels causing the vehicle to stall on the roadway, increasing the risk of a crash. Paccar is recalling certain model year 2008-2013 Peterbilt 365, 367, 388, 389 trucks manufactured Oct. 6, 2007, through Sept. 23, 2013. The affected vehicles were built with 16.5 in. by 7 in. front drum brakes and Bendix ES-420 brake linings installed on front axles rated to carry between 20,001 and 22,000 lbs. GAWR and larger SLR (20.5 in. to 21.5 in.) tires, however these brake linings are not rated for this configuration. Thus, these vehicles fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) number 121, “Air Brake Systems.” The improper brake configuration could lengthen the braking distance needed to stop the vehicle, increasing the risk of a crash. Spartan Motors is recalling certain model year 2011-2014 Transit Bus Chassis Cab vehicles manufactured Feb. 17, 2011, through March 18, 2014. The affected vehicles have fuel tank mounting cross members that could crack and potentially allow the fuel tank to fall to the ground, resulting in

a fuel leak. A fuel leak in the presence of an ignition source increases the risk of a fire. Volvo Trucks is recalling certain model year 20132015 VNL trucks, and 2013-2014 VNM trucks equipped with certain Cummins Westport Model ISL G and ISX12 G engines. Condensation in the intake manifold may freeze during cold weather conditions and interfere with the proper operation of the intake manifold pressure sensor. The improper operation of the sensor could induce elevated exhaust temperatures or flames from the exhaust pipe, increasing the risk of a vehicle fire or burn injury to a person near the exhaust pipe. Volvo Bus Corporation is recalling certain model year 2009-2014 9700 coaches equipped with a wheelchair lift. In the affected vehicles, the sliding seats, which can be moved to make room for wheelchair passengers, have lock down handles which can be forced to latch in an incorrect location. Locking the seats incorrectly may cause damage to the handle and cause the seat to not latch properly. If the sliding seat is not locked in place, the seat may move forward and backward on the track, increasing the risk of injury to the seat passenger if the coach is involved in a crash.

BorgW arner

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5/22/14 8:33 AM

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Cover Story

Donâ&#x20AC;&#x2122;t take a sick day on your business

Instituting company-wide wellness programs can lower costs and increase employee performance 14

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

June 2014

Cover Story ealing with employee health is a major aspect of running a business. Everybody gets sick, but that doesn’t mean it isn’t frustrating to see productivity wane due to health-related employee absences. But in spite of that age-old problem, many businesses remain reactive to employee health and wellness. By shifting your focus to proactive health and wellness programs, you can create a work environment that helps minimize sick days, medical leave and the productivity losses they create. Here are five benefits to adding health and wellness programs in your business.

Lower insurance costs Healthy employees can have a two-fold benefit on business costs. One advantage many business owners are searching for today in the wake of the Affordable Care Act (ACA) is healthcare. Healthy people cost less to insure. “There’s a definite advantage for businesses to make sure their low-risk employees stay healthy and/or their high-risk employees become healthier,” says Brett Aprati, district manager at Interactive Health, an independently owned wellness company. Signed into law in 2010, the ACA requires all business with 50 or more full-time equivalent (FTE) employees to offer health insurance. Businesses with less than 50 FTE employees are not required to provide insurance, but must allow uninsured employees to purchase insurance from government exchange programs. The ACA also has lowered the maximum range for premiums and eliminated the option for insurance providers to withhold coverage to customers with pre-existing conditions. The changes have caused rates to rise. Businesses are now starting to fight back, says Steve Gregory, vice president of health and wellness at Shepherd Insurance. As a major insurer in the heavy-duty dealer market, Shepherd Insurance has seen a large number of its customers turn to wellness programs to combat growing premiums, Gregory says. “There’s so much motivation to do this,” he says. And Aprati says the ACA hasn’t just motivated businesses. Employees are also seeing how their well-being impacts their rates. “For better or worse, [ACA] is making a lot of people more informed about how they handle their health and shop for healthcare,” he says.

Better employee attendance The second financial benefit of workplace health programs comes from a reduction in health-related absences. Improving the overall health of your team reduces sick days, medical leave, workplace injuries and compensation claims, says Gregory. “Health plans in America today are really more like sick plans,” he says. “Most of us don’t use them until we are sick … Getting people to be

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Cover Story proactive about their health before something [bad] happens can actually help prevent the high-dollar claim.” But motivating employees isn’t easy, Gregory says. He says employers who want to help employees get healthy have to offer them assistance in areas they can use. He advises clients to first create wellness committees to identify high-risk areas before implementing a wellness plan. For example, if a business has many overweight employees, that can be an area of focus, he says. That is just one of the focus areas for the Healthy Trucking Association of America (HTAA), says Executive Director Bill Gordon. “It is our goal to look at issues in the trucking population and do what we can to help [people] deal with them,” he says. “There are probably 20 different conditions we are currently working on.” A recent Occupational Safety & Health Administration (OSHA) study estimates the implementation of injury and illness prevention programs will reduce injuries by 15 percent to 35 percent for employers who do not now have safety and health programs. Extrapolated nationwide, OSHA says “at the 15 percent program effectiveness level, this saves $9 billion per year in workers’ compensation costs; at the 35 percent effectiveness level the savings are $23 billion per year.”

Improved morale/ performance It’s no secret feeling healthy also boosts self-esteem and morale, says Gregory. “Once someone starts feeling better [physically], that can rub off on other areas of their life,” he says. Health and wellness programs inject positivity into businesses on a much larger scale. Rather than a single employee feeling good, entire teams can come to

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

Interactive Health’s wellness programs begin with risk assessment screening. Interactive Health says 58 percent of all people screened are advised to seek additional medical treatment for illnesses or ailments.

work rip-roaring and ready to go. That physical boost can result in increased productivity and an improved work atmosphere. For businesses that choose to add wellness programs to curtail healthcare costs, Gregory likes to promote those benefits as additional features. “Wellness programs can really help get people engaged,” he says. “Sometimes businesses don’t really think about that when they start them, but then people start feeling better, doing better on the job and you really get to see all of the benefits of the program.” OSHA adds that studies show a direct correlation exists between a company’s performance in safety and its subsequent performance in productivity and financial results. According to a 2009 study produced for OSHA, 43 percent of businesses with health and wellness programs identified “increased productivity” as the top benefit of their program, while six percent named “better employee morale and greater job satisfaction” as their top benefit. “It helps to just feel better,” says Aprati.

June 2014

“It is good business to make health and wellness a priority,” says Gordon, adding when employees start missing time due to poor health. “That impacts your ability to move product and do your job.”

“You saved my life” For people unaware of their health status, wellness programs can literally be life-savers. “We’ve received several phone calls from people we’ve tested who will say ‘You saved my life,’” Aprati says. “There are a lot of people who are sick and don’t know it yet.” Aprati says 3 percent of Interactive Health’s risk assessment screenings reveal previously undiagnosed critical or lifethreatening issues. In each case, Interactive Health immediately contacts the person, informs them of their condition and offers advice for additional treatment. “We make sure they know exactly what they need to do,” he says. While it may sound a little Hollywood, Gregory says the last-second health discovery is more common than you’d guess.

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Cover Story “If you have a significant number of employees and you commit to doing a wellness program … at some point it’s going to happen,” he says. “Someday someone will raise their hand and say ‘You saved my life. I found out I had cancer and I was able to get treatment’ thanks to this [program].” And Aprati says moments like that aren’t just emotional for the employee. “I think when you hear about a lifesaving event it makes everything worth it regardless of what your program costs,” he says. “It really shows the true value of a wellness program.” Wellness programs work best when they offer clear physical and/or financial benefits for all employees.

Employee retention/ recruitment Wellness programs also are great retention and recruitment tools, says Gordon. Employees appreciate working for a business with their best interests at heart. While Gordon notes this is true for all industry jobs, it is especially important for positions where talent is in short supply — like drivers and technicians. “There is a severe driver shortage

right now,” he says. “There is a lot of competition to find good drivers and once you have them to keep them. I think fleets have realized it’s beneficial to offer programs that will help these drivers stay healthy and keep their jobs. “And that makes sense for all businesses.” But to get maximum value out of a wellness program, Gregory says a

Selecting the right program Once you decide to add a health and wellness program it’s time to pick out the best option for your business, says Brett Aprati, district manager at Interactive Health. “There are a lot of options available for businesses today,” Aprati says. “We like to meet with our clients and work together to build the best strategy for their business.” One simple wellness option is having your employees participate in a health risk assessment test. At Interactive Health, Aprati says the company’s team travels to a client’s business and sets up a clinic where it draws the blood of every willing employee and submits each sample for testing. Employees are then contacted directly about their results and whether they need to seek additional medical attention. “About 58 percent [of participants] we will refer to follow up with a physician,” he says. Another way to make wellness a priority is to offer your employees tools for a healthy lifestyle. This can include discounts on membership

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

to local health clubs, on-site workout facilities, healthy snacks and meals during company events and voluntary contests, such as “The Biggest Loser.” The latter can be valuable in motivating employees, says Steve Gregory, vice president of health and wellness at Shepherd Insurance. “Sometimes gym memberships are only helpful for those who already go to the gym,” he says, “so it helps to do something in house.” Incentive-based programs provide another option, and commonly offer the biggest rewards, Aprati says. Thanks to a provision in the Affordable Care Act, Aprati says employers may now contribute up to 30 percent in employee’s healthcare premiums. The previous threshold was 20 percent. Gregory says offering those additional contributions as rewards for healthy living is a good way to motivate employees to change. “Financial incentives can motivate those who might not otherwise want to change,” he says.

June 2014

business must completely commit to the program. Offering blood tests and health risk assessments one day a year is great, but if nothing else is done, employees will fall back into the status quo after a few weeks. Creating motivation for wellness is best for both sides. Gregory says incentives (insurance contributions, weight-loss contests, etc.) keep employees engaged in wellness year round and create a healthier workforce with lower insurance premiums and accident risk. Like weight loss, return on investment doesn’t happen immediately. But Gregory says over time financial benefits can become apparent. “I think wellness programs add big value,” Aprati says, adding Interactive Health recommends its clients promote its wellness programs as part of benefit packages. “It’s an enticing program to offer.” Adds Gregory, “It’s a perk. ‘If you work here you also get access to this.’ “And from a retention standpoint, if you’re trying to hold down costs and compete with the guy down the street it allows you to create a cost structure that’s more competitive.”

Aug. 20-21, 2014 Wednesday, 11:00 a.m. - 5:30 p.m Thursday, 7:00 a.m. - 11:00 a.m.

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Service Bay

Opportunity knocks An aging vehicle population means increased demand for body shop services

ave you ever considered building a body shop? If you haven’t, now might be the time. Adding body shop capabilities to an existing repair facility allows heavyduty service providers to capitalize on an underserved market with increasing demand, says Don Putney with Collision Equipment Experts. “There aren’t a ton of businesses out there offering heavy-duty [body shop] service,” he says. “So many service facilities are started by technicians … and they are so focused on what they are doing mechanically they don’t really think about the body shop side [of service].” Customers love the concept of onestop shopping, but very few heavy-duty service providers truly offer it. Dave Chandler, president at Chandler Services, Inc. in Mokena, Ill., says that’s

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one of the reasons his business entered the body shop business in 2013. “We wanted to be able to cover all the bases for our customers,” says Chandler. “We’ve been in the truck repair business for 32 years, but [body shop service] was one area we had not entered.” Chandler says he started considering body shop service when he noticed growing concern among his customers’ with their current body shops. They didn’t enjoy relying on multiple shops for different areas of service. “We had one customer in particular who was very vocal,” Chandler says. “They told us we were doing everything else and if we also did that [body work], it would make it easier on them.” Body shops also offer service providers an opportunity to capitalize on a recent insurance trend to fix, not total,

Frame straightening and alignment service is regularly required during collision repairs and body shop related work.

crashed trucks. “I think we’re going to see a whole lot more of that down the road,” says Greg Witt, vice president of operations for Virginia Truck Centers in Harrisonburg and Richmond, Va. “With these new engines being so much more expensive, it makes sense.” He adds, “For a while the used truck market dropped and insurance companies were totaling them out, but now their value is coming back up and we’re

J u n e 2 0 1 4 | T R U C K PA R T S & S E R V I C E

Service Bay repairing more of them.” “I talked to a customer recently who had a truck with more than a million miles get into an accident and he said they were going to get it fixed,” says Doug Edwardsen, national sales manager at Bee-Line. “The cost to repair the truck is less than the price of a new one, so the insurance company wants to get it fixed.” Putney says service providers willing to enter the heavy-duty body shop market will have an opportunity to grab this increased customer supply. “The market is going to grow,” he says. But adding body shop and collision repair to a service facility takes more than dedicating a bay for the work. Putney says the body shop and crash service is substantially different than mechanical heavy-duty repair, and requires different facilities, equipment, tools and technicians. “Collision repair usually takes a lot longer, and is much more labor intensive,” he says. Chandler worked with Collision Equipment Experts to prepare for his operation’s entrance into the body shop

A recent MacKay & Company survey discovered fleet customers are willing to drive farther (nearly 30 miles) for quality body shop and collision repair work than any other type of service.

world. He says the two spent months outlining how Chandler Services’ existing location would be retrofitted to create a working body shop. Putney says body shops have different requirements for bay availability and workflow than regular service facilities. Businesses that attempt to build a body

A heavy-duty body shop requires a lot of space. Collision Equipment Experts recommends building body shops away from mechanical service due to the space, tools and service needed.

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

June 2014

shop without accounting for those differences can meet significant obstacles, he says. “Flow is really key,” he says. “You don’t want to move anything more than you have to, and it’s best if a vehicle never has to be backed up.” Chandler says his bays are designed so a vehicle can be repaired, then brought through a paint prep area and eventually a paint booth. And when possible bay space is limited it’s a good idea to rely on a supplier’s expertise, adds Mike McCoy, Midwest region sales manager at Bee-Line. “Our products are very versatile,” he says. “We try to get with a prospective customer and decide how we can best fit their needs in their new shop.” Opening a new body shop also requires a different breed of technician, one that isn’t always easy to find. “Staffing a body shop is different than typical heavy-duty service,” Putney says, noting it can be easier to transition a light-duty collision service expert to heavy-duty work than to move an existing heavy-duty maintenance technician.

Service Bay “The best way to do it is find an oldschool guy who has done the job and recruit students from automotive body shops, then have a training program in house,” Putney says. “They will learn the basics in tech school and your older guy can train them on your operation.” Scott Witt, vice president of operations at Virginia Truck Centers’ Roanoke location, says his dealership uses a mentoring program to strengthen its body shop/collision center team. With a significant veteran presence within its 20-plus member unit, Witt says the company is constantly preparing its younger technicians for the future. Though it isn’t working with tech schools yet, Witt says Virginia Truck Centers has identified trade programs as its best option for finding future employees. Future customers, however, can be found throughout the industry. “If you spend $200,000 on a piece of equipment, you’re going to want to keep it for a while,” says Richard Perry, global region product manager at Chief Automotive. “A single truck owner these days can’t afford to get rid of a truck because it’s been damaged.” But just because customers require body work doesn’t mean they’re actively searching for options. Because of the market’s underdevelopment, new entrants must be energetic in promoting their business. Virginia Truck Center promotes its body shop as an all-makes operation, and the Witts are active in getting that message out in their market areas. “Some customers might think of us as a Freightliner and Mack dealer and think that’s all we work on,” Greg Witt says. “That’s not true. We are truly an allmakes operation in our body shop and we tell customers that every day.” Chandler Services’ best marketing tool has always been its quality work, and

Dave Chandler hopes to build a similar reputation with his body shop. “I’m happy with the way things are going,” Chandler says. “There is definitely an opportunity for us within our area

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and I think the [body shop] has a lot of potential.” Adds Perry: “There is a lot of money in the collision repair business. Now is a good time to get into it.”

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SKF Trucknowledgy Sharing technical expertise to take your fleet farther SKF provides more than just premium solutions that improve wheel-end reliability and driver safety. We’re also a resource for the latest technical, product and industry information and training. Delivering valuable knowledge and a broad range of solutions, we take the world’s top fleets farther. Find out how we can do the same for you. Contact your SKF distributor or visit www.vsm.skf.com.

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Marketplace

Stainless Steel Fender Hogebuilt has introduced a new 34in. premium stainless steel quarter fender, the Q134. The new fender has a 304 mirror finish and is equipped with a heavy-duty 12 gauge universal post mount triangle arm, the company says. This new option expands the quarter fender line with sizes available from 24- to 34-in. The Q134 also contains Hogebuilt’s signature 3 in. side flange.

Oil Drain Valve Global Sales Group introduces the new EZ Oil Drain Valve for trucks, buses and industrial equipment. According to Global Sales Group, the valve works by replacing the standard drain plug on all engines for clean and easy oil changes. Just turn the lever to drain oil, and the lever locks closed to prevent accidental openings, the company says. The valve comes with optional hose ends that allow easy hose connections to drain oil away from the engine, the company says. Global Sales Group, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

Heavy-Duty AC Compressors Sunair Products has released 10 new super heavy-duty A/C compressors for the Class 8 truck market. Sunair says the compressors represent the company’s growing product development initiatives. The company also will release a newly redesigned catalog in May 2014 highlighting its expansion.

Hogebuilt, Text INFO to 205-2893544 or visit www.tpsdigital.com/info

APU System RigMaster Power International has released its newly enhanced dual blower HVAC box. The new product provides 24,000 BTU cooling 13,500 BTU automotive-style heating, and 600 CFM. Rig Master says the unit is 14 in. by 9.25 in. by 9.25 in, and can fit comfortably under the bunk of a Class 8 truck. The blower is hooked into an OEM ductwork system. With a thermostat built in to the blower’s cabin controller, RigMaster says the blower is easy to program and can be set to auto-start. RigMaster, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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

Expanded Wheel End Bearing Line

New Axle Ratio Offering Meritor has added optimized axle ratios to its 14X reardrive axle portfolio. Meritor’s 14X tandem drive axles with a 2.79 ratio will be available for production this month, and a 2.85 ratio will be ready later this summer. When used in the correct combinations, Meritor says the axles improve fuel efficiency through downspeeding. The ratios are supported by DriveForce and OnTrac. Meritor, 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 |

NTN Bower has expanded its line of heavy-duty wheel end bearings for commercial vehicle applications to now include pre-adjusted hub bearing sets. This product line will include sets that range from SET427 to SET432. NTN Bower says wheel end bearings for pre-adjusted hub applications allow installers to achieve the proper wheel bearing end-play, eliminating the need for manual bearing adjustment. Additionally, NTN’s pre-adjusted hub bearing sets enable installers to re-use the current OE spacer to increase maintenance intervals and reduce fleet down time, the company says. NTN Bower, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

June 2014

Marketplace

Tire and Wheel End Alert System STEMCO Intelligent Transportation Systems (ITS) has updated its Aeris line of high-performance automatic tire inflation systems. Aeris SmartSense technology features an advanced driver alert system that identifies which wheel ends are taking air for faster corrective action. According to STEMCO, the Aeris SmartSense driver alert system also features Zero Power Technology, which notifies the maintenance team which tires need service even when the trailer is disconnected from power. When power is disconnected, service icons remain displayed on the indicator to inform the technician of which tires

took air during the last trip and which wheel ends are frequently taking air. STEMCO, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

Windshield Wash Solution Kafko introduces its new Clear Vision concentrated windshield wash, featuring unique plant-by-product chemistry making it the first windshield wash to be free of petrochemicals. The eco-friendly, zero VOC alternative to traditional wash fluids easily removes bugs, bird droppings, tree sap, traffic film and road grime and leaves glass crystal clear, the company says. Kafko says Clear Vision is non-toxic, biodegradable, non-corrosive and contains no methanol and does not lower freeze point. Kafko, Text INFO to 205-289-3544 or visit www.tpsdigital.com/info

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FinditParts

888-312-8812

FinditParts

844-689-7799

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866-241-2110

Great American Trucking Show

888-349-4287

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800-934-2727

Hunter Engineering Company

800-448-6848

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321-689-6568

Luber-Finer, Inc.

800-882-0890

Rig Dig

800-633-5953

Meritor, Inc.

800-668-5560

S & S Truck Parts, Inc.

800-621-1558

Meritor, Inc.

888-725-9355

IFC

S & S Truck Parts, Inc.

800-621-1558

Minimizer

800-248-3855

Water Cannon

800-333-9274

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