Trucks, Parts, Service 0619 by Richard Street

AxleTech sold to Meritor, Allison

A NEW WAY TO HIRE Why trucking must change its technician recruitment practices

June 2019

TPSmagazine.com

Outsourcing your accounts receivable headache and risk 28

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contents

Volume 56 Number 6 June 2019

TPSmagazine.com @TPSMagazine

Cover Story

/truckpartsandservice Trucks, Parts, Service

Editorial

Editor: Lucas Deal Equipment Editor: Jason Cannon Online Associate Editor: Bill Grabarek Associate Editor, Trucking: Tom Quimby editorial@truckpartsandservice.com

Design & Production

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

Sales

Director of Media Sales: Seth Becker sales@truckingmedia.com

Corporate

Chairman Emeritus: Mike Reilly President/CEO: Brent Reilly Chief Operating Officer: Shane Elmore Chief Financial Officer: Kim Fieldbinder Senior Vice President, Sales: Scott Miller Senior Vice President, Audience: Linda Longton Senior Vice President, Acquisitions & Business Development: Robert Lake Senior Vice President, Data: Prescott Shibles Senior Vice President, Digital: Nick Reid Senior Vice President, Strategy and Marketing: Julie Arsenault

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Trucks, Parts, Service (ISSN 0895-3856) is published monthly by Randall-Reilly, LLC, 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. Periodicals postage paid at Tuscaloosa, AL and additional offices. Subscriptions: $50 for one year, outside USA add $10. For change of address and other subscription inquiries, please contact: truckparts&service@ halldata.com. POSTMASTER: Send all UAA to CFS. (See DMM 507.1.5.2); NON-POSTAL AND MILITARY FACILITIES: send address corrections to Trucks, Parts, Service 3200 Rice Mine Road N.E., Tuscaloosa, AL 35406. All advertisers for Trucks, Parts, Service are accepted and published by Randall-Reilly, LLC. on the representation that the advertiser and/or advertising agency are authorized to publish the entire contents and subject matter thereof. The advertiser and/or advertising agency will defend, indemnify and hold Randall-Reilly, LLC. harmless from and against any loss, expenses or any other liability resulting from any claims or suits for libel violations of right of privacy or publicity, plagiarisms, copyright or trademark infringement and any other claims or suits that may arise out of publication of such advertisement. RandallReilly, LLC. neither endorses nor makes any representation or guarantee regarding the quality of goods and services advertised herein.

TPSmagazine.com

2019 Special Report – Trucking’s Technician Shortage:

The challenges of tech recruitment

Features 20 How single-location dealers remain competitive 28 Outsourcing your accounts receivable headache

Departments 1 2 6 36

Editorial Staff Editorials Industry Report News

37 41 47 48

Safety Recalls Products Classified Ads Advertisers’ Index

Online Resources

Visit our website for more business and technical guidance, industry news and event and product information at TPSmagazine.com June 2019 | Trucks, Parts, Service

editorial | Lucas Deal

Recruiting: It’s always on my mind By Lucas Deal, Editor lucasdeal@randallreilly.com

find myself thinking about technician recruiting at night now. On weekends, too. That might be normal for you but it wasn’t for me. At least not until recently. I think it’s because of the conversations I’ve had and the research I’ve done for our fourpart special report on trucking’s technician shortage — Part II of which is on page 8. It’s one of those things where if you have enough conversations about a certain topic, eventually, that topic is going to seep into your everyday thoughts. It’s going to pester you and force you to ask yourself questions you may not know how to answer. I can think of many topics where such a mental lockdown would be maddening or total agony, but tech recruiting isn’t one of them. It hasn’t bothered me. I know I don’t need to be thinking about tech recruiting when I’m mowing the lawn or cleaning my garage but it doesn’t hurt anything. And, who knows? Maybe I’ll crack the equation and solve our market’s biggest problem. I haven’t yet, but that doesn’t mean it’s impossible. Hopefully you haven’t given up, either. One thing I’m sure of after another round of interviews for Part II of our series is there are a lot of very smart people working hard to fix our industry’s employment problem. “Top men,” as that guy in “Raiders of the Lost Ark” would say. The trucking industry is too important to global commerce for our employment shortage to last indefinitely, and I think if our market can evolve our recruiting tactics, I do believe there are people out there willing to

jump into your service bays. That’s probably the one thing I’m most certain about, actually. I’ll echo the words of several sources featured in the pages of this magazine and say I believe there are tens of thousands of people who would be more than willing to start a career as a truck technician if they had any idea how profitable and rewarding such a career would be. But they don’t know. Because we’re not telling them. The U.S. Census Bureau reported median household income in the United States was a record $61,372 in 2017. The fact that was a record is great, but did you know 38 percent of heavy-duty truck technicians surveyed by Randall-Reilly last year reported making $60,000 or more annually? And among that group, half said they surpassed the $70,000 mark. Don’t you think the person making $12 an hour at your local burger place or your community’s newest retail distribution center would be interested to know that? I almost guarantee they would be. A steady job and healthy paycheck cures a lot of ills. I believe that messaging is key to solving our tech shortage. Absolutely everyone needs to know the potential that exists in our industry. Cooperation between industry and education also is necessary to make technician training simple and affordable — people who want to work in our market should face no barriers to entry — but that alone won’t solve our problem. It’s time to expand our target base. It’s time to recruit everyone.

I believe there are tens of

thousands of

people who would be more than willing

to start a career as a truck technician

Trucks, Parts, Service | June 2019

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editorial | MacKay & Company

Smoke stacking By John Blodgett MacKay & Company

models, ages, average annual miles and what type of applicahave been in outside sales most of my life — primarily tions (refuse, construction, for hire carrier, etc.) because difbecause I am not office broken. I need to be let out a lot ferent applications drive different parts demand. Who are the if I am in the office. decision makers? Are decisions made at this location? I have almost always enjoyed being on the road, meeting How do you get this information? Just ask. They may not new people, going to different and new accounts and providing solutions to customers’ needs. It takes a certain personality provide it, but you won’t know until you ask. Explain you want to be a good resource to them and to be successful in an outside sales position. this information will help you do that and It takes someone with enough responsibility most will provide it. Set a goal of profiling to use his time wisely, follow up on what he Businesses a certain number of fleets a week and don’t says he will do, have good sales skills and a are skip your best customers because you think personality (preferably good, maybe bad, but you know them — you will be surprised by you have to have one; I have several). what you learn and what you are missing. You also need to have good products. In our Beat the bushes and take roads you don’t industry we have good products. Competition normally travel; businesses are not required has chased out the worst products and those they to let you know they exist. An old salesman that have bad products don’t last long. I met in one of my first jobs called it smoke If you’re good at outside sales, the indeexist. stacking (as in look for the smoke stacks, pendence and financial benefits can be very that’s likely where there is opportunity). satisfying. Most outside salespeople have Visit companies you have not in a while — maybe for good processes and tools to assist them in achieving success. reason; bad credit, bad people — but things may have changed. At MacKay & Company, we provide a number of our Start roughly estimating opportunities at these fleets clients with tools to identify and size aftermarket parts and across a few products. For example, a fleet has 10 trucks that service opportunities within markets or territories. We don’t run 75,000 miles a year. They replace lube oil filters every complete this type of analysis for everyone in the industry 15,000 miles, so roughly 50 filters a year. Use your market (but I am working on it). Many companies have their own knowledge and insights from other fleets (or ask them) to systems they provide to their salespeople, but many don’t. help estimate the opportunity at each fleet. Use the same There are a number of things you can do to help make rough estimate process on each fleet. yourself or your outside salespeople more efficient and ultiOpportunity is one thing, but if very little is purchased or mately more successful. Start with the customer data you have on your current and decided locally, that needs to be figured into the equation. past customers. What do they buy? How often? What type of Keep this data current as fleet profiles change. Most fleets don’t open their doors with 2,000 power units. products? What don’t they buy from you? At the end of the day, you want to use this customer data Start building a profile of the fleets in your market or territory. Begin with customer data, but the best next step is profil- to help you prioritize and strategize where you spend your time so your company and you can be successful. ing your customers. Know how many trucks, trailers, makes,

not required to let you know

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

Trucks, Parts, Service | June 2019

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Class 8 backlogs continue to weaken new truck orders Class 8 new truck orders fell again in April as the industry continues to feel the impact of 2018’s order boom. ACT Research reported preliminary orders of 14,800 units for the month while FTR estimated 16,400 units. The two firms marked those declines as 57 and 52 percent below April 2018, respectively. “We continue to contend that current order weakness has more to do with very large Class 8 backlogs and

orders already booked, than with the evolving supply-demand balance,” says Kenny Vieth, ACT president and senior analyst. The companies also note backlogs remain fluid with orders being rescheduled. “Near-term build slots are becoming available as fleets rearrange orders based on current needs. There still is limited cancellation activity, as fleets do not want to give up build slots they

New truck orders n ACT n FTR

may need at a later date,” says Don Ake, FTR vice president of commercial vehicles.

Trailer production remains high despite cancellations

Sales volumes fall in used truck market

Trailer orders continued their downward slide in April, totaling less than 16,000 units for the second consecutive month, according to FTR and ACT Research. FTR’s preliminary estimate for the month was 13,200 preliminary orders; ACT estimated 14,500 units. Despite the low order totals, the industry’s order boards, backlogs and production rates remain strong. FTR believes the backlog will remain strong through the year, says Don Ake, vice president of commercial vehicles. ACT’s Frank Maly, director of commercial vehicle transportation analysis and research, agrees the backlog is strong, but notes order cancellations also are on the rise. “While new orders were actually up versus March, cancellations were significant enough to pull the net order number into the red month over month,” Maly says.

J.D. Power and ACT Research both reported used truck sales volumes were down in April. In its May Commercial Truck Guidelines industry report, J.D. Power stated it had anticipated volumes to rise and suppress price in April. The market’s opposite data was a pleasant surprise. The company reports used auction prices for 4- to 6-yearold trucks rose 4.9 percent year over year through April. Retail prices for 3- to 5-year-old trucks were up 11.7 percent across the same time period. Overall, J.D. Power says retail used truck sales volume is down 14.9 percent year over year through April while ACT reports the market is down 16 percent during that same time. “Going forward, the health of the market depends largely on whether the trade war is resolved and tariffs are reduced or eliminated,” J.D. Power says.

U.S. amps up Chinese tariffs, prepares to remove taxes on metals President Donald Trump’s administration has increased tariffs on more than $200 billion worth of Chinese imports to 25 percent. This announcement follows last year’s decision to implement 10 percent tariffs on the goods. Additionally, Trump told reporters last month the U.S. also is considering imposing new 25 percent tariffs on $325 billion worth of other Chinese

Trucks, Parts, Service | June 2019

goods that are not currently taxed, the Wall Street Journal reported. “I happen to think the tariffs for our country are very powerful,” he said. Trump also announced last month the United States-Mexico-Canada Agreement (USMCA) is a step closer to ratification now that the three countries have reached a deal in which the U.S. would lift tariffs on steel and

aluminum while Canada and Mexico would lift retaliatory tariffs on American products. The USMCA, which was signed last October, is an update of the North American Free Trade Agreement. While the signing could save the $1.2 trillion open-trade zone it created between the countries in 1994, it must still be ratified by the three countries.

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A new way to hire

Why trucking must change its recruitment practices By Lucas Deal, Editor

lucasdeal@randallreilly.com

rucking has become an industry of shortages. In the fleet community there’s a shortage of drivers. A shortage of truck build slots on the 2019 calendar. A shortage of new freight available. Shortages haven’t bypassed the parts and service channel, either. Product and employment shortages are as much a part of the aftermarket as brake shoes and filters. While production shortages commonly are tied to a strong market stressing a supply chain, the source of trucking’s employment shortages are tied to something much more serious. Trucking’s recruitment pipeline is broken. In Part II of our 2019 Special Report on trucking’s technician shortage, TPS seeks to explain how trucking’s longstanding technician recruitment tactics have crumbled, and how individual service providers and the industry at large can cooperate to help re-establish a stable recruitment strategy.

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Trucks, Parts, Service | June 2019

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Message not received A disconnect between industry and education is widening trucking’s employment gap By Lucas Deal, Editor lucasdeal@randallreilly.com

ne of the most alarming and damaging realities of trucking’s current struggle to find quality technicians is the disconnect existing between vocational education and the industry at large. What was once trucking’s strongest supporter has become an unreliable partner. Far too many technical schools are teaching curricula for a trucking industry that doesn’t exist — educating students on systems and repairs concerningly antiquated yet also somehow more advanced than what trucking’s entry-level techs require — while the industry itself continues to ignore its failures in transitioning young graduates into its ranks. The result is a broken recruiting pipeline that’s carrying almost as many young people away from service bays as into them. Trucking’s technician shortage does not exist because no one is interested in the profession; the shortage exists because those who are interested are ultimately choosing not to pursue the industry as a career. “We always talk about our shortages like there’s nobody out there who wants these jobs, that there is a shortage of people interested in our industry. That’s not true,” says George Arrants, past chairman, ATA’s Technology & Maintenance Council

TPSmagazine.com

June 2019 | Trucks, Parts, Service

service

applications,” he says. “We are sitPMs and CSA inspections. That’s what (TMC) SuperTech Competition. “We ting on more money than we have students need to learn, says Arrants. don’t have a shortage of applicants; we applicants.” Then there’s the financial compohave a shortage of qualified applicants. “[Universal Technical Institute] will nent. American Diesel Training CenThose are two very different problems.” ters (ADTC) Co-Founder and President make more than $15 million in scholArrants offers this distinction Tim Spurlock says most post-secondary arship and grant money available to because he believes it to be the lynchstudents in 2019,” adds Duane Kramer, diesel and heavy truck programs propin to the trucking industry’s current UTI vice president of education. mote the earning potential (high fivepredicament. He says service facilities Experts add this is an area where might not be receiving ideal candidates and six-figure salaries) of technical industry itself has to do better, both in for the open roles they are trying to fill, careers to entice student registrants. communicating its financial support Spurlock says that message isn’t but those businesses can’t place blame to education partners and prospective wrong so much as it is misleading for their problem on the education sysemployees. They say technicians will because it fails to convey the realistic tem alone. He says the trucking induscommit to a business that demonstrates try has done a terrible job conveying to wages students will be offered upon a willingness to financially commit to completion of their degree. Coupled schools what it expects from the next its associates the same way those assowith rising admission rates at these generation of diesel technicians. ciates committed to their new career. same schools, Spurlock says many “We don’t let other forms of govern“If your techs have student loans and ment spend our money unwisely, so why young technicians feel overburdened by you hope to keep [those techs], then the financial obligations of their new do we let the schools?” he asks. “We go you have student loans,” says Spurlock. careers almost immediately. to these [industry] meetings and talk Finally, the service about the shortage and act channel also must like education is someone go to these [industry] meetings and improve how it conveys else’s problem. It’s not. performance expectations “If schools aren’t teachtalk about the shortage and and career path potening [students] what we need tial to new employees, them to teach, we’re responsays Homer Hogg, TA/ sible for that.” Petro director of technical And what the service service. channel would like to see — George Arrants, past chairman, ATA’s Technology & Maintenance Council (TMC) SuperTech Competition Once a tech himself, taught is more than compoHogg now oversees more nent identification and basic than 3,000 technicians across TA/ “I don’t know that there is another repair instructions. Vo-tech students Petro’s national network of more than business where ‘ghosting’ is more of and prospective employees also should 220 locations. Hogg says TA/Petro has a thing than this business,” he says. be briefed on what will be expected invested heavily in a comprehensive “These guys have financial commitof them when they enter the industry, technician training and mentorship ments. If they find somewhere else what they’ll be paid and what their program to help acclimate its entrywhere they can make another dollar long-term future holds. level technicians into its business and [per hour], they’re gone.” On that first point, Arrants says it’s showcase the growth potential that Too many technical students also time for the trucking industry to wean exists within the national chain. With are entering school unaware of the educators off engine-centric instruc300 to 400 open tech positions at any financial aid opportunities that exist tion. He says many post-secondary given time, Hogg says TA/Petro can’t for them, says Brandon Eckenrode, diprograms are developed and marketed around advanced diesel diagnostics and rector of development, Collision Repair afford to lose a good technician when it is able to recruit one into its operation. Education Foundation (CREF). repair — material that draws interest “With unemployment numbers “We give out $250,000 to $300,000 from prospective students but has little where they are, there are not enough in scholarships each year, yet we practical value. Entry-level technicians people to go around as it is,” he says. probably only see a total of 150 to 200 don’t overhaul engines, they perform

“We

act like education is someone else’s problem. It’s not.”

Trucks, Parts, Service | June 2019

service

Building a relationship with a tech school By Lucas Deal, Editor lucasdeal@randallreilly.com

hough potential quality technicians can be plucked from anywhere, trucking’s most fertile recruiting ground remains vocational and technical education programs. Yet as demand for technicians rises, so too has competition for graduates from such programs. Many of the more than 10,000 students who will graduate from diesel and heavy truck post-secondary programs in the United States in 2019 already have job offers; some are even working as interns in the businesses they’ll soon call home. For service operations, successfully leveraging a vo-tech program as a recruitment tool now requires more than just a booth at a career fair or call to a program instructor. To ensure they can bring young technicians into their business tomorrow, many proactive

TPSmagazine.com

service providers are learning they need to engage with their local tech programs today. “That’s been our best resource,” says Charlie Nichols, general manager, TAG Truck Center — Calvert City, Ky. “We’ve tried a lot of different ways [to recruit] over the years. Classified ads don’t work in today’s world. [Online sites] didn’t produce many good candidates. We’ve had a little success networking — where our guys have convinced friends to apply — but, overall, we are finding if we want to find a good tech, we have to grow our own.” The first step for service channel professionals looking to develop a partnership with a technical school is outreach. Industry professionals must introduce themselves to local educators and express their desire to

create a mutually beneficial partnership, says George Arrants, who spent years facilitating such meetings as past chairman, ATA’s Technology & Maintenance Council (TMC) SuperTech Competition. Once a connection is made and a relationship is established, Arrants says it’s the responsibility of the industry professional to maintain it. He says many educators are eager to work with trucking professionals but, like the rest of us, they’re busy. He says service professionals shouldn’t be discouraged if a single interaction with a tech school doesn’t immediately turn into a budding partnership. “We can’t be afraid to go in,” he says. “We can’t avoid it because we don’t know what to ask or what to do. If half of our industry just showed up [at these

June 2019 | Trucks, Parts, Service

service

schools], we wouldn’t be having this conversation.” “You can’t give up after one bad experience,” adds Brandon Eckenrode, director of development, Collision Repair Education Foundation (CREF), the technician recruitment arm of I-CAR. “It takes a lot of effort to make change.” It’s early in this relationship-building phase where industry professionals should offer assistance. This can be done through donations, such as equipment and investments into a school’s budget or scholarship fund, or pledges of one’s time to assist the school in some way. Arrants says most educators are looking for help any way they can get it and will accept any assistance they can find. Though he adds investments of time and expertise shouldn’t be overlooked for the simpler, more straightforward monetary donation. Arrants says good educators want advice and to eliminate the disconnect (see page 9) between industry and education as much as anyone. “Most schools and school districts want industry to drive the train. They want to be told what they need to do,” he says. Assisting an educational program shouldn’t be a one-time deal, either. The more involved industry is in a local school, the more likely its curriculum will fit its region’s needs and produce graduates capable of seamlessly entering the workforce. Nichols says he speaks to students and educators at his nearby school

American Diesel Training Centers relies on partnerships with trucking’s service channel to develop a curriculum that best serves students and their future employers.

nearly every semester to keep his bond with the program strong. In Fresno, Calif., Betts Company CEO Mike Betts led a group of trucking professionals who spent years engaging with the community’s school district on the importance of career technical education before finally persuading the district to invest in a new facility to support a diesel and heavy truck high school education program (see page 14). Eckenrode adds many technical schools are looking for a similar level of support. “I know a lot of instructors who are eager to bring industry into their

“I know a lot of instructors who are

eager to bring industry into their schools. They see that as support for their program, a way to attract students.” — Brandon Eckenrode, director of development, Collision Repair Education Foundation

Trucks, Parts, Service | June 2019

schools,” he says. “They see that as support for their program, a way to attract students and also show their superiors that their programs are important.” He adds, “A lot of these [instructors] work in fear that if they can’t find more students their programs will be shut down.” That is a legitimate fear, too. Nationally known WyoTech closed in 2018, and ASE research shows the number of students entering vocational education programs has stalled. Experts say industry can assist in this area, supporting recruitment initiatives by education partners to steer young people into vo-tech classrooms. Eckenrode says CREF has found success in this area by holding career fairs in conjunction with public events, such as auto shows, which are filled with car and truck enthusiasts. “It’s allowed us to showcase our industry to a captive audience,” he says.

service

Two California high schools offer blueprint to combat technician shortage By Lucas Deal, Editor lucasdeal@randallreilly.com Two students learning in the new diesel and heavy truck pathway at Duncan Polytechnical Career Pathways High School in Fresno, Calif.

he crowned jewel of a decadelong process to bring elite technical education to central California was unveiled this spring with the opening of a diesel and heavy truck career technical education pathway at Duncan Polytechnical Career Pathways High School in Fresno, Calif. Developed in partnership with the Fresno Unified School District, the Fresno Chamber of Commerce and the greater trucking industry of central California, Duncan Poly’s new program comes complete with a state-of-the-art training facility and a curriculum to match. For those in the school district, community and trucking industry who have spent the last several years tirelessly turning their dream into a reality, the Duncan Poly diesel and heavy truck program is not just another

Trucks, Parts, Service | June 2019

vocational pathway available to the students of Fresno. It’s an example of what can be done when education and industry come together and how vision and determination can transform a community. It’s also a blueprint. If the trucking industry is ever going to legitimately solve its technician shortage — to address its root cause, not its downstream symptoms — then the efforts of the men and women of Fresno should not be overlooked. The

new Duncan Poly diesel tech program (and the other new and refurbished programs in the communities surrounding it) is the future of technical education. “Fourteen months ago, we stood right here on this spot and you will recall it was a grassy field. Today a oncein-a-lifetime opportunity has arisen. A facility that is absolutely better than anything we ever could have imagined,” Fresno Unified School District Superintendent Bob Nelson said during

“This is about every high school kid having a stellar, unbelievable high school experience. And this is what our kids are going to — Bob Nelson, Fresno Unified School District superintendent receive.”

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In San Bernardino, Calif., students at Pacific High School will soon have access to a new four-bay diesel and heavy truck workshop.

their public school tuition. AdditionDuncan Poly’s ribbon-cutting event in March. “This is about every high school ally, he says SBVC plans to introduce a “non-credit” program in its fall semeskid having a stellar, unbelievable high school experience. And this is what our ter that will allow students of all ages to take any vocational course the college kids are going to receive.” Fresno’s blueprint already has started offers for just $30. Melancon says the goal of the to spread. program is to Just four hours “I think a majority of these eliminate the south in San financial barBernardino, Calif., kids didn’t know what they rier to technical construction is underway on a were going to do after high education. Rather than asking four-bay training school. But now they do students to pay for facility to support their training in diesel and heavy and they’ve found advance of their truck education career, Melancon at Pacific High says non-credit School. Berchman for it. courses will en“Kenny” Melanable students to con, instructor and earn certifications at nearby San ready to be challenged.” for completBernardino Valley ing courses they College (SBVC), — Eric Rubio, Duncan Poly instructor can then use to says the new help gain employment. He says SBVC building will enhance what already is a strong truck technician career pathway developed the program in response to local industry input as a low-risk way that exists in the community. to draw talented young people into voThanks to a partnership between tech careers. San Bernardino City Unified School “Our goal is [those students] will get District, SBVC and local industry, Melancon says high school students within a job and then come back and pay for the credits they’ve earned toward their the city are eligible to take Pacific and degree,” he says. SBVC technician courses as part of

they have a passion They are really excited

Trucks, Parts, Service | June 2019

The financial commitments made by the school districts in Fresno and San Bernardino also have been backed by significant support from trucking’s supplier community and service channel. The new facilities at Duncan Poly and under construction at Pacific will feature millions of dollars of trucks, engines, tools and equipment donated by industry partners. The schools also have introduced internship programs with area service centers to bolster their students’ education opportunities in advance of their graduation. In Fresno, Duncan Poly Instructor Eric Rubio says his students are taking note of that investment. Duncan Poly’s program already is at capacity for the fall school year and Rubio says the school is searching for a second instructor to expand the pathway’s admission capabilities. “I think a majority of these kids didn’t know what they were going to do after high school. But now they do and they’ve found they have a passion for it. They are really excited and ready to be challenged,” he says. “When I ask students what was rewarding to them about my class, a lot will say they will now be able to support themselves and their family,” adds Melancon.

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Where else can you find technicians? By Lucas Deal, Editor lucasdeal@randallreilly.com

ooperating with vocational education isn’t the only place service providers can uncover tech talent. There are other avenues that can be considered to fill open positions.

Poaching

Offering better wages and benefits to draw technicians away from competitors has been an established hiring practice in the service channel for decades. The tactic has obvious benefits, positions are filled quickly and by experienced techs, yet many in the industry say they are trying to move away from the strategy and toward more sustainable recruiting practices. If a 50-cent per hour raise lures a technician away from his current employer into your business, what’s to stop him from leaving again if another competitor does the same, asks John Devany, general manager, Betts Truck Parts & Service. “There’s no telling how long they’ll stay,” he says. Poaching also doesn’t add new technicians into the employment pool, it just moves them around, adds George Arrants, past chairman, ATA’s Technology & Maintenance Council (TMC) SuperTech Competition. And with the industry’s employment gap widening, Arrants says searching exclusively for existing techs to fill open positions ultimately creates more job openings on a national level.

Trucks, Parts, Service | June 2019

“We should be adding techs. Our industry is growing. Yet we’re losing more every day,” he says.

Military

The U.S. Department of Defense reports approximately 250,000 enlisted service members exit active duty for civilian life annually, and many of those veterans are ideal candidates for trucking’s service channel. Homer Hogg, TA/Petro director of technical service, says that’s a good thing. Hogg has added multiple veterans to his nationwide technician roster in recent years and finds them to be capable and reliable associates. “I think the training they receive in the military gives them a base of skills we can build on,” he says. In addition to the skills Hogg references — such as work ethic, professionalism and discipline — many veterans also have experience working with heavy equipment. Each branch of the armed forces features a substantial technical division and when those service members enter the workforce, they are increasingly gravitating toward similar private sector work. “We have really started searching for people exiting the military and we’ve had good luck hiring them,” says Jim Hinton, service trainer, Summit Truck Group.

Other industries

Tim Spurlock believes trucking’s tech shortage ultimately will be solved by

Fairfield Auto & Truck Service has found success recruiting technicians from truckingadjacent industries, such as agriculture.

the people who aren’t in trucking but want to be. As co-founder and president of American Diesel Training Centers (ADTC), Spurlock says the biggest leak in trucking’s employment pipeline is the financial and time commitment expected of young people before they even get a job in the industry. He says multi-year, $30,000-plus tuition technician programs drive away more prospective employees than they graduate. Spurlock says ADTC has developed its customizable 300-hour training curriculum specifically to reduce these obstacles. “There are a lot of people out there in low-wage, high-effort jobs who want something better but can’t find it,” he says. “If we [as an industry] can offer them educational programs that eliminate those barriers, I think they’ll come to our market in droves.” Adjacent industries, such as agriculture, offer potential as well, says Chris Sterwerf, Fairfield Auto & Truck Service chief financial officer and chief operating officer. “I’ve had success getting involved with 4-H, going to farm bureaus and county fairs and finding people who have worked on tractors and done similar work” to what truck technicians do, he says.

Succeeding among

One-location dealerships are ďŹ nding ways to compete with large dealer groups. By Bill Grabarek, Online Associate Editor billgrabarek@randallreilly.com

Trucks, Parts, Service | June 2019

trucks

the giants

tanding in front of his dealership in rural Lima, Ohio, S&S Volvo Sales Manager John Morman can see two competing dealerships across the street, both part of dealer groups. “All of our competition is dealer groups; we face some of the biggest ones out there,” he says, adding those two groups own several dealerships in his market area. Such is the case for many single-location dealerships.

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As dealer groups become more prevalent in the retail new truck industry, it’s becoming more difficult for one-shop dealerships to compete. After all, dealer groups have more resources, more buying power and more staff to help them sell and service more trucks. Clearly, single-location dealers have their challenges. However, several dealerships share how they not only survive, but successfully compete with their wellheeled counterparts.

“I always tell customers, ‘We’re small enough to know you but still

big enough to serve you.’” — Keith Rutherford, owner, Eagle Truck Center

June 2019 | Trucks, Parts, Service

trucks

Fighting an uphill battle

These dealerships face several challenges in competing with dealer groups; however, a few clearly are top of mind. “The obvious one is bulk purchasing power for better pricing on parts. We buy one truckload of brake drums, for example, and [dealer groups] buy 50 truckloads of brake drums,” Morman says. And it doesn’t stop at purchasing parts, he says. It includes everything from bulk oil to tooling for the service department to office supplies. “We don’t have the buying power they do.” Ed Bennett, president, D&K Truck Co., agrees. The competing dealers are able to buy parts in such bulk that it makes it difficult for the Lansing, Mich.-based Freightliner and Western Star dealership to compete on price. “They buy trailer loads because then they ship them out to their multiple locations. We’re one store and we have to find the space to stock it,” Bennett says. “We’ve been willing to invest in a larger parts inventory so we have the

For D&K Truck Co., a key factor in the dealership’s ability to compete is in the quality of its employees.

parts and we can sell them at a competitive price.” Matching the pay and benefits of the competition to hire and retain employees also can be a challenge for singlelocation dealerships. “Because of our sales volume, we can only afford X number of dollars for a certain position,” says Keith Rutherford, owner of Shreveport, La.-based Eagle Truck Center, which sells mostly Class 4-6 Hino, Isuzu and Mitsubishi Fuso trucks. “A position pays a certain amount because that’s the volume [that department] does. With a larger group the sales are a lot higher, so the [pay] scale can be higher. Are they paying double? No, but they can be as much as 15 percent higher,” Rutherford says. Morman says S&S Volvo believes pay scale isn’t an issue but being able to offer a competitive benefits package is. Because of the dealership’s smaller number of employees, the company has difficulty getting better rates to offer its staff low-cost health insurance.

Customer service is crucial Single-location dealerships understand how important superior customer service is when competing with large dealer groups. “We don’t have a lot of fleet business. We go out and deal with the onetruck guy and treat him just like a 100-truck guy.” — Ed Bennett, president, D&K Truck Co. “I always tell customers, ‘We’re small enough to know you but still big enough to serve you.’” — Keith Rutherford, owner, Eagle Truck Center “All we need is one opportunity for a customer to deal with us and they’ll see what we can do and they won’t want to go anywhere else.” — Vanessa Ciervo, chief operating officer, H.K. Truck Center “We offer a very high level of customer service.” — John Morman, sales manager, S&S Volvo

Trucks, Parts, Service | June 2019

Hans Dabernig, president and dealer principal, Hans’ Freightliner of Cleveland, says he has eight dealerships around him and finding dependable technicians can be difficult. To combat this, the dealer pays for the certifications of all its technicians. Another advantage dealer groups have over lone dealerships is a distribution network for parts and truck inventory. If one dealer is in need of a part or truck, it can simply get them from another within its group. In the case of trucks, if a customer walks onto the lot of a single-location dealer wanting a vehicle fitted with options the dealer doesn’t have, it can be tough for that dealer to obtain it. “We can still get it but it’s usually more costly because I have to try to get that truck from another company and, even though it’s a dealer-to-dealer transfer, there’s usually a small markup there. With dealer groups, it’s just an

trucks

as 50 miles away, she adds. internal swap,” Morman says. Other dealerships offer similar Single-location dealerships also services. Hans’ Freightliner picks up must find ways to expand their base of trucks free of charge customers. “With the big when they need “With the big comservice, including a panies that have mulcompanies that have customer 100 miles tiple locations, you can cover a lot of area. multiple locations, you away. In addition to pick-up and delivery For us, the challenge can cover a lot of area. service for trucks is reaching customunder warranty, D&K ers that aren’t in our For us, the challenge Truck sends out five area,” says Vanessa delivery vehicles daily Ciervo, chief operatis to deliver parts to ing officer of South customers 75 miles Plainfield, N.J.-based away. H.K. Truck Center, a Hino and Mitsubishi ” Fuso dealer. Keys to “The way we comsuccess — Vanessa Ciervo, chief operating officer, bat that is we offer Considering these H.K. Truck Center pick-up and delivery challenges, it might service and we also have loaner cars seem single-location dealerships are here,” Ciervo says. The dealership ofovermatched. Such is not the case. fers these services for customers as far Truck dealership veterans have learned

to focus on certain aspects of the business to even the odds. One way one-shop dealers say they can get the upper hand on the bigger competition is through the personal relationships they develop. “We’re like a family here. We know everybody,” says Ciervo. “You call us and we know who you are and you know who you are talking to. I think you lose that sometimes with the bigger group dealership.” Morman says S&S Volvo turns customers into family and friends and one of the main ways it does this is by supporting the communities in its market area. The dealership has played a large sponsorship role in county fairs for more than two decades. For example, children involved in 4-H and the National FFA Organization will look for sponsors for projects they work on leading up to the county fair and then

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June 2019 | Trucks, Parts, Service

reaching customers that aren’t in our area.

trucks

S&S Volvo clearly is finding ways to compete. It was the Volvo North American Dealer of the year in 2017.

auction those projects at the fair. S&S sponsors projects and then buys many of them at the fairs. Beyond the philanthropy of supporting the community, the dealership’s involvement develops a connection with its customers. “It’s name recognition,” Morman says. “And all the trucking company owners and executives have kids with these projects so they definitely recognize who goes in and purchases their

children’s projects.” Eagle Truck Center is always looking for ways to optimize communication with its customers, whether it’s a phone call, text or email, “not only during a repair or sales process, but after,” Rutherford says. “I also want to get more into surveys to find out what we did right, what we did wrong, how we can improve,” he says. “If someone is dissatisfied, I want to meet with them and nip it in the

“The way we thrive is by investing in people. While they’re spending money on locations, I invest in people.” — Ed Bennett, president, D&K Truck Co. 24

Trucks, Parts, Service | June 2019

bud — give us the opportunity to make it right.” Expanded hours for the parts, service and sales departments is another way single-location dealerships compete with dealer groups. H.K. Truck Center has extended service hours until 10 p.m. on Tuesdays, Wednesdays and Thursdays. “If a business’ day ends at 5 p.m., you can drop off your truck for service and it will be ready for you first thing in the morning, whether we deliver it back to your location at night or you can stop and pick up your truck in the morning when we open at 7 a.m.,” Ciervo says. In addition, the dealership’s service and parts departments

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are open on Saturdays from 7 a.m. to 3:30 p.m. The parts and service departments at Hans’ Freightliner are open from 7 a.m. to 11 p.m., Tuesday through Friday, and from 8 a.m. to 4:30 p.m. on Mondays and Saturdays, “which are better hours than our competitors,” Dabernig says. Eagle Truck Center will open its service department on a Saturday if it can schedule at least two or three trucks. “We’ll come in, knock those jobs out in the morning and those customers are ready to go. We’ll do the work while they wait,” Rutherford says. S&S Volvo parts and service departments are open 7 a.m. to midnight, Monday through Friday, and from 7 a.m. to 4 p.m. on Saturdays. The dealership also offers after-hours emergency service. What’s more, Morman says customers “have all of our contacts, whether it’s sales, service or parts. There is a

Eagle Truck Center is always looking for ways to optimize communication with its customers, whether it’s a phone call, text or email.

way for our customers to get a hold of us after hours and we come in and take care of what we need to take care of.” Morman adds that being a single location enables the dealership to be nimble and make decisions quickly. For D&K Truck Co., Bennett says a key factor in the dealership’s ability to compete is in the quality of its employees. “The way we thrive is by investing in people. While they’re spending money on locations, I invest in people,”

H.K. Truck Center has extended service hours until 10 p.m. three nights a week. It also offers loaner cars and pick-up and drop-off service.

Trucks, Parts, Service | June 2019

Bennett says. “I just think my people are better — my sales manager, parts manager and service manager. I’m paying a little more to get the better people, but I still think that helps.” Though competing with dealer groups can seem daunting at times, several single-store dealerships are proving they can compete with them through strong relationships, communication, pick-up and drop-off service, extended parts and service hours and quality employees.

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Outsourcing headaches and risk

ccounts receivable is a doubleedged sword for dealers and aftermarket parts and service providers. On one side, invoices represent parts sold and services rendered. And, that’s good. On the other side, those same accounts receivable invoices can bring with them a host of time-consuming headaches preventing a dealer or distributor from

Trucks, Parts, Service | June 2019

concentrating on serving its customers. And, that’s bad. “Our typical customer is focused on selling parts, providing service and running their business,” says Steve Williams, national sales director, Interstate Billing Service (IBS). “Managing receivables represents a huge headache, one which most business owners would prefer to avoid.” Outsourcing accounts receivable

duties to a third party not only enables a business to foist those headaches onto a financial services provider, but there are other positive benefits as well. It’s a switch members of the dealer and aftermarket communities might want to consider if they haven’t already. While running a business, a third party can provide good, eliminate the bad and help companies avoid the ugly.

parts

Handing off accounts receivable tasks to a third party enables parts and service businesses to focus on what they do best — provide parts and service. By Bill Grabarek, Online Associate Editor billgrabarek@randallreilly.com

The good

One of the primary benefits of outsourcing accounts receivable tasks to a third party is quicker access to cash. A business might have 30-day payment terms with customers, for example, but when a sale is made, an accounts receivable service provider takes ownership of that invoice and the distributor can have cash from that sale within two weeks or even the next

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focus on your business. The cash keeps day, depending on the provider. up with us as we keep growing. We’ve “With IBS, it’s as if all your customgone from a 10,000 sq.-ft. building on ers are paying your business with a one acre to a 50,000 sq.-ft. building on credit card. Simply send us the invoice 7.5 acres.” and we will fund 100 percent, minus Having a third party manage acour fee, and deliver your money within 24 hours. That is cash you can put back counts receivable comes with other benefits, too. In into your business addition to guaranimmediately,” says “Clients teeing payment of Williams. invoices, CorcenThis means of tric’s solution quick access to cash provides a website is especially attracportal for its clients tive to companies them, and their customers in an expanto view invoices, sion phase, adds so they’re able to focus among other Rebecca De Paula, on their business of features. IBS vice president “It’s a repository and national sales of all the transacmanager. tions clients have “If a business is had with a cusin heavy growth .” tomer,” says Dave mode, access to Lindeen, Corcenquick cash is defi— Dave Lindeen, senior vice president of sales, financial process automation, Corcentric tric senior vice nitely something president of sales, that attracts people financial process automation. to a service like ours. Unlike a tradi“All of that historical information is tional bank loan, IBS will not enforce stored within our system so both para cap. We essentially provide as much ties, the customer and the distributor, cash flow as you and your business can has access to, for example, what busisell,” De Paula says. ness they did last quarter, last month,” Ben Bandimere, president, MDI Lindeen says. Distributors can run Truck Parts and Service, says his detailed reports of transaction histories Denver-based company has been with and can enable their customers to run IBS since 2016 and the move has enreports, too, or limit them to viewing abled his business to grow by leaps and invoices, he adds. bounds. “We are a cloud-based system that’s Outsourcing accounts receivable with a company like IBS “lets you grow updated quarterly. You’re bringing a as fast as you want to grow because you business solution that’s going to give your customer the latest technology have instant cashflow every 24 hours. The more you bill, the faster your cash- and it’s going to make it easier for them to do business with that distributor,” flow comes in and cashflow is king,” Lindeen says. Bandimere says. Corcentric also is monitoring the “If you’re in growth mode, you’re financial history of distributors’ crazy not to,” he adds. “You can just

aren’t chasing someone who’s not paying

making sure their customers’ trucks get fixed

June 2019 | Trucks, Parts, Service

parts

Interstate Billing Service has a staff of approximately 120 employees dedicated to helping companies that choose to outsource their accounts receivable tasks.

customers to assist with changes to their business. For example, a customer might have an unusually high number of trucks that need servicing one month. Corcentric will notice this and raise the credit limit for that customer.

The bad

In addition to the positives of getting paid quicker, enabling businesses to grow and provide reporting capabilities, outsourcing accounts receivable also reduces or eliminates the negative aspects of performing it in-house. The initial benefit of outsourcing accounts receivable businesses likely will notice is the time saved and the unneeded staff. “It’s super time consuming,” says Bandimere. “We’d need a staff of three people for calling customers, sending and re-sending invoices, answering questions customers have about their statements, checking on payment, processing payments. It’s a lot of work.”

Trucks, Parts, Service | June 2019

Another benefit of outsourcing accounts receivable is reducing financial risk for the parts and service provider. And that risk can take the form of extending credit to customers or when expanding the business. If businesses do their accounts receivable in-house, they will have the customers fill out a credit application and then have to vet those customers themselves to determine their credit limits or if they should even have an open account, says Vic Watson, DSI Solutions CEO. DSI Solutions is a business management system provider for independent repair shops and parts distributors, medium- and heavy-duty truck dealers

and trailer dealers. DSI, recognizing the many advantages of outsourcing accounts receivable, formed a strategic alliance with IBS approximately four years ago and fully integrated with them. For DSI clients that are IBS customers, DSI automatically sends its clients’ invoices to IBS electronically. When the payment comes through the next day, DSI processes all the payments against its clients’ customer accounts, Watson says. “One way I explain risk is to ask a distributor what would happen if they sell a product worth $5,000 to a customer and 30 days later that customer closes their doors. They’re gone and you don’t recuperate your money

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Truck Parts & Service

parts

“If a business is in heavy growth mode, access to quick cash is definitely something that attracts people to a service like ours. We essentially provide as much cash flow as you and your business can sell.” — Rebecca De Paula, vice president and national sales manager, Interstate Billing Service

because you extended 30 day-terms to them,” Williams says. “With IBS, that loss would be on us because we assume the risk for you. From a risk standpoint, that’s a huge advantage with our program.” Another way IBS mitigates risk is when companies are expanding into new markets with which they might not be completely familiar. A bank typically will provide 60 to 70 percent of receivables on a line of credit and, if the company is doing well, the bank won’t increase the credit until it is able to review a full year of financial statements, Williams says. “IBS allows you to grow your client base by buying those receivables. Essentially, your growth potential is unlimited. If you can sell $100,000 this month, $300,000 next month and $500,000 the following month, that’s fine with us,” he says. “Banks don’t really allow for growth like that.”

The ugly

Outsourcing to a third party eliminates the ugly side of accounts receivable duties, such as chasing down delinquent payments, and makes addressing disputed invoices easier. Doing accounts receivable in-house means having to handle all of the collection activity. “You have to make the collection calls; you have to be the bad guy. All of that disappears,” Watson says. Williams concurs. “Switching from a business that sells to a business that has to collect on late payments can put anyone in an uncomfortable position. Nobody likes to be the collector;

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June 2019 | Trucks, Parts, Service

parts

President Ben Bandimere says MDI Truck Parts and Service has been with Interstate Billing Service since 2016 and outsourcing his accounts receivable duties has enabled his business to grow.

“Clients aren’t chasing someone nobody likes to be the bad guy and ask who’s not paying them, so they’re able for payment on something they sold 45 to focus on their business of making days ago,” says Williams. “IBS steps in sure their customers’ and follows up on “Don’t try to do trucks get fixed and receivable duties.” back on the road,” Bandimere says stuff outside your Lindeen says. outsourcing freed And in the event up a lot of time for wheelhouse. of a disputed invoice, his sales staff and companies like IBS helped them avoid and Corcentric act as uncomfortable the middle man. discussions about “If the customer unpaid invoices. says to us there’s an “As a sales rep or .” issue with an invoice, an owner you never then we work with want to call a cus— Ben Bandimere, president, MDI Truck Parts and Service the distributor to tomer to have that get the issue solved,” type of conversation, Lindeen says. which can get a little tough. You get IBS handles disputes similarly, acting removed from that completely because as a neutral party. “If a customer has it’s a third party handling it,” he says.

Focus on what you’re good at and don’t be the bad guy

Trucks, Parts, Service | June 2019

an issue with an invoice, IBS communicates that to us via email and we address it and get our response back to IBS, which immediately sends that information back to the customer and everything moves along,” says Bandimere. “The flow of information is faster” with the third party versus using MDI Truck Parts and Service staff to handle these issues in-house — and customers are satisfied with the response time, he adds. “The biggest thing as a business owner is [outsourcing accounts receivable] lets you focus on your business and grow and not play the money game,” Bandimere says. “Don’t try to do stuff outside your wheelhouse. Focus on what you’re good at and don’t be the bad guy.”

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Platform Science partners with Noregon to add fault diagnostics Platform Science has announced a partnership with Noregon that leverages the latter’s diagnostics expertise to bring detailed, remote fault code information to Platform Science’s connected vehicle open platform. In conjunction with Noregon, Platform Science’s latest offering,

Vehicle Fault Diagnostics, uses an all makes and models approach to present diagnostic information about all electronic components on the vehicle, the company says. “Vehicle Fault Diagnostics is a challenging framework to understand so it was imperative to find a partner that

could assist us with those challenges,” says Devin Smith, product manager, Platform Science. “With the quality and scope of Noregon’s offerings, our integrated solution will provide fleets with comprehensive actionable plans for immediate improvements in productivity and efficiency.”

brick & mortar

Dayton Parts has completed the relocation of its corporate headquarters and distribution center to Shiremanstown, Pa. The company’s spring manufacturing and supporting functions will remain at its Harrisburg, Pa., facility while all corporate and customerfocused functions will move to the Shiremanstown location.

Palmer Trucks’ Kenworth of Louisville operation has expanded to southern Indiana with a TRP parts store. The parts-only store, TRP of Sellersburg, is at 2111 Future Drive, Sellersburg, Ind.

Kenworth broke ground on a $140 million state-of-the-art paint facility at its Class 8 production facility in Chillicothe, Ohio.

Penske Truck Leasing has opened commercial heavy-duty electric vehicle charging stations with 14 highspeed chargers at four of its existing facilities in Southern California. RDO Truck Center has moved to a new 50,000 sq.-ft. facility on 10 acres off I-80 in the western part of Omaha, Neb. Fort Garry Industries has opened a new 42,000 sq.-ft. facility in Saskatoon, Saskatchewan, around the corner from its former 27,000 sq.-ft. facility. Paccar Parts celebrated the opening of a 160,000 sq.-ft. parts distribution center (PDC) in Toronto. The PDC uses advanced technology such as voice-activated order picking and automated banding conveyance.

Trucks, Parts, Service | June 2019

Permatex has moved its business operations from Hartford, Conn., to its Solon, Ohio, facility where manufacturing and distribution centers are already in place. The facility consists of a 180,000 sq.-ft. distribution center and 170,000 sq.-ft. facility that supports the manufacturing and business operations.

California Truck Centers is expanding its operations having purchased more than nine acres for a new, larger Santa Maria, Calif., location. The dealership, to be located on West Stowell Road at Hanson Way, will provide a larger inventory of parts,

more service bays and technicians and a larger inventory of Freightliner and Western Star trucks. SAF-Holland will open its new 45,000 sq.-ft. western region aftermarket distribution center in Phoenix in September.

mergers & acquisitions Meritor to purchase AxleTech Meritor has entered into an agreement with an affiliate of investment firm The Carlyle Group to acquire AxleTech. Meritor says the acquisition will be for approximately $175 million in cash, adjusted for changes in working capital at closing. Meritor says the transaction advances its objectives to accelerate global sales and growth by leveraging the company’s core competencies to grow strategically in adjacent markets. AxleTech enhances Meritor’s growth platform, the company says, by bringing a complementary product portfolio across the off-highway, defense, specialty and aftermarket segments. AxleTech provides independent suspensions, axles, braking solutions and drivetrain components. “The addition of AxleTech is a compelling value-creating opportunity to broaden our position in attractive, adjacent markets,” says Meritor President and CEO Jay Craig.

AxleTech sells electric vehicle division to Allison Prior to Meritor’s announced plans to acquire AxleTech, Allison Transmission acquired the company’s Electric Vehicle Systems division. AxleTech says the transaction consists of assets, intellectual property, products and people involved in AxleTech’s integrated electrification solutions. “The advanced integrated electric vehicle systems will fit well within our electrification strategy,” says David S. Graziosi, president and CEO, Allison Transmission.

Truck Center Companies adds two locations

Cleveland-based dealer adds two locations

Truck Center Companies has acquired facilities in Dodge City and Liberal, Kan. The two stores bring Truck Center Companies’ network of Freightliner dealerships to 10, located throughout Nebraska, Kansas and Iowa. The Dodge City location was formerly Maupin’s Truck Parts; the Liberal location was Freightliner Liberal. “We are excited to expand into southwest Kansas. We plan on making a substantial investment to improve the facilities and bring them up to Truck Center Companies’ standards,” says Truck Center Companies CEO Trey Mytty.

Cleveland Freightliner, part of the Valley Truck Centers organization, announces it has acquired the assets of Midway Freightliner in Monroeville and Mansfield, Ohio. “Our dealership group is very excited to expand our offerings into these two new markets. This further confirms our commitment to provide better and broader coverage of services for our customers,” says Chris O’Donnell, chief operating officer. “With growth comes opportunity to improve facilities and take them to DTNA Elite Support Dealer status.”

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news

safety recalls

The following are safety recalls issued by the National Highway Traffic Safety Administration: Autocar is recalling certain 2019-2020 Xpeditor vehicles. The brake chamber clevis pin retainer may not have been installed, possibly increasing the distance needed to stop the vehicle. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 121, “Air Brake Systems.” Additional distance needed to stop the vehicle may increase the risk of crash. Daimler Trucks North America is recalling certain 2019-2020 Thomas Built C2 Saf-T-Liner school buses built on an FCCC chassis. The clamp for the steering gear return hose may have been improperly installed, allowing the hose to separate from the steering gear. If the hose separates from the steering gear, there may be a loss of steering assist, which could result in a potentially disabled school bus. If the school bus is occupied when the steering assist is lost, the occupants would need to exit the vehicle and be transferred to another vehicle, increasing the risk of injury. Navistar is recalling certain 2017-2020 International DuraStar and WorkStar, 2018-2020 IC Bus CECB, International HV and MV, 2018-2019 IC Bus 1300 FBC and HCCB, and 2017-2020 IC Bus TCCB vehicles equipped with Cummins B6.7 diesel engines with fuel module option number FS90301 or FS90453. The electric fuel heater within the fuel module may overheat and cause plastic in the fuel heater to melt and potentially catch fire. It may also lead to engine stalling. A fire increases the risk of injury. An engine stall can increase the risk of crash. Paccar is recalling certain 2018-2020 Kenworth T680 and T880 tandem axle vehicles equipped with a parking brake on a single axle and certain models of automated manual transmissions. During cold temperatures, the signal from the park brake pressure switch to the transmission controller may be delayed possibly resulting in the vehicle moving unexpectedly. Unexpected vehicle movement may increase the risk of a crash or injury.

June 2019 | Trucks, Parts, Service

news

Dana expands training series to include EV guidance Dana Incorporated has expanded its “Driveline Forensics” training series to include videos covering key safety and maintenance tips for electrified vehicles. As fleets and vehicle operators begin to adopt electrified technologies, Dana says its new “Driveline Forensics” electrification videos provide vital information on the care and servicing of these vehicles. “The safety of our people and products is our first priority and this training installment succinctly covers critical safety and maintenance fundamentals for servicing hybrid and electric applications,” says Mark Wallace, president, Dana Commercial Vehicle Driveline Technologies.

Interstate Billing, Karmak announce partnership Interstate Billing Service (IBS) has announced a strategic partnership with Karmak, which will bring mutual customers closer to seamless service integration, the company says. Together, Karmak and IBS will work to simplify the exchange of invoice batch files, payment clearing, automate credit approvals, and provide reporting and automated approvals, the companies say. “Our goal in aligning IBS services with Karmak Fusion is to simplify business processes,” says Steve Williams, IBS senior vice president of sales. “Both IBS and Karmak are committed to creating an integrated experience for the Fusion customer.”

Turbo Solutions earns Manufactured Again certification Turbo Solutions announced it has been certified by the Association for Sustainable Manufacturing as part of its Manufactured Again Quality Process Certification Program. “The Manufactured Again Certification is a symbol of our ongoing commitment to quality remanufacturing,” says John Ferry, vice president, Turbo Solutions. The association states the certification is only given to facilities meeting standards equivalent to new manufacturing.

people in the news Axalta Coating Systems has promoted Ashish Jawadiwar to chief information and digital officer. Rajeev Rao and David Heflin have been appointed to serve as co-heads Jawadiwar of Axalta’s Industrial Coatings business. Brian Berube was named senior vice president, general counsel and corporate secretary, effective July 15, 2019. HDA Truck Pride has appointed Tina Hubbard chief operating officer.

Berube

Kinedyne has appointed Roger Perlstein vice president, sales and marketing. The Goodyear Tire & Rubber Company has named David E. Phillips senior vice president and general counsel. The company also appointed Dan Young secretary and associate general counsel.

Trucks, Parts, Service | June 2019

Phillips Connect Technologies has promoted Bill Ellis to president. NTN, the parent company of BCA Bearings, has hired Charles Harris as director of automotive aftermarHarris ket sales and appointed Ed Magruder director of special market sales. CDK Global announced Mahesh Shah has joined the company as executive vice president, chief product and technology officer.

Magruder

Kyle O’Dell has been named engineering manager for Optronics International. Luz Elena Jurado has been appointed managing director for Volvo Trucks Mexico and Mack Trucks Mexico. Dorman Products has hired Scott Leff as senior vice president and chief human resources officer.

Denso has appointed Denise Carlson executive lead of its North American diversity and inclusion initiatives. Buyers Products appointed Chris Boozer district sales manager for North Caro- Carlson lina, South Carolina and Virginia. Boozer replaces Ernie Kish, who is retiring after over two decades with the company. Accuride Corporation has appointed Robin Kendrick Boozer president and CEO. Jason Luo, interim president and CEO, has been named chairman of the board of directors. Permatex has reorganized its sales force. The heavy-duty group will be led by Ben Patterson, national account manager – Heavy Duty Segment. Doug Johnson, national account manager, will oversee the OE and aftermarket part manufacturers and specialty distributors.

news

High event satisfaction at CVSN Distributor Training Expo Another GenNext and Commercial Vehicle Solutions Network (CVSN) Distributor Training Expo concluded to rave reviews. The fourth annual event, held in April at the Hyatt Regency in Atlanta, welcomed 200 sales associates from more than 50 independent distribution businesses for more than 16 hours of hands-on, classroom and engaged discussion training. This year’s event earned a 94 percent approval rating (58 percent of attendees were very satisfied and 36 percent were somewhat satisfied). “I was impressed when we asked how many distributors were here for the first time. It appeared like every hand went up,” says Minimizer’s Steve Hansen, outgoing DTE chairman. This year’s updated expo was built around classroom education that enabled distributor associates to attend 10 supplier training courses, attend up to six hours of hands-on product training at a supplier booth show and learn more about their respective buying group associations.

CVSN adds DeCarolis The Commercial Vehicle Solutions Network (CVSN) announces DeCarolis Heavy Duty Parts has joined its association. DeCarolis is routinely recognized by The Rochester Business Journal’s RBJ75, which recognizes the top 75 local businesses and organizations in the area. A member of HDA Truck Pride, DeCarolis is a full-service truck leasing and rental business serving Upstate New York. General Manager Greg Rawleigh says, “One takeaway for joining CVSN is to get more involved with CVSN’s training and networking.”

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Eliminate vibrations ForceMatch: % Quickly measures runout % Ensures accurate weight placement % Minimizes weight usage

June 2019 | Trucks, Parts, Service

news

Howes updates corporate brand Howes announced an update to its nearly century old brand. The new brand look is centered around clarity and improved messaging, making it easier for customers to quickly grab the Howes product that best suits their needs, the company says. “We want our customers to know that we are more than just a winter additive company and that we offer the best performing products for all of your additive needs,” says President Robert Howes.

Ohio Machinery acquires Magnam Truck location Ohio Machinery Co., dba Ohio Cat, Northern Ohio Peterbilt and Ohio AG Equipment, has acquired the property and buildings of Magnam Truck and Equipment in Lima, Ohio. The property includes approximately 198 acres of land located at Interstate 75 and Bluelick Road in western Ohio, and includes three separate operating facilities totaling approximately 42,100 sq.-ft. An authorized Caterpillar, Peterbilt and AGCO dealer, Ohio Machinery says the facilities will offer products and services from its range of product lines and the land offers opportunities for equipment demonstrations and events.

BorgWarner ups stake in battery-electric market with JV BorgWarner will continue to build its electrification portfolio and systems expertise through a new joint venture with Romeo Power Technology, a battery module and pack supplier, the company says. The JV will be split 60/40 with BorgWarner obtaining the larger share. “This joint venture will not only complement our strong existing propulsion portfolio, but we expect it to fill a gap in the marketplace between battery cell manufacturers and hybrid and electric vehicle customers,” says Joel Wiegert, president and general manager, BorgWarner Morse Systems.

New distributor enters Colorado market, joins HDA Truck Pride Recently founded aftermarket distributor C&W Truck and Trailer Parts has joined HDA Truck Pride. The aftermarket’s newest greenfield business is located in Fort Collins, Colo., and was founded by three experienced heavy-duty aftermarket veterans, Steve Back, Steve Duszak and Joe Falsetto. Back, the company’s president, says joining HDA Truck Pride was a necessary step for the new business. “The return of this partnership is eagerly anticipated and will position C&W well into the future. Buying power, marketing strength and ancillary program availability are crucial to developing our new business’ momentum now, and in the long run,” he says.

Parts for Trucks expands Parts for Trucks Inc. has acquired Malmberg Truck Trailer Equipment’s operations in Ottawa, Ontario, and Gatineau, Quebec. “Parts for Trucks is delighted to be welcoming the Malmberg team to our group as we celebrate 100 years in business,” says Corey Miller, Parts for Trucks president. “The two companies share the values of customer service excellence, safety, family and community involvement.” The three Malmberg locations operate under the Malmberg brand with all operational staff staying with the business, Parts for Trucks says.

industry calendar July 30-Aug. 2 Aug. 22-24 Sept. 5-7 Sept. 14-19 40

Association of Diesel Specialists (ADS) Convention, Orlando, Fla. Great American Trucking Show (GATS), Dallas North American Trailer Dealers Association (NATDA) Show, St. Louis ATA’s Technology & Maintenance Council (TMC) Fall Meeting, Raleigh, N.C.

Trucks, Parts, Service | June 2019

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

Dozens of new replacement parts offered Dorman HD Solutions has added more than three dozen new replacement parts to its heavy-duty product offering. Dorman says the components include fuel injector O-ring kits for Cummins engines, exhaust pipe bellows for International trucks, a direct fit replacement power window switch for International trucks and IC buses, and a side marker light assembly for International trucks. Also new are diesel primer pumps, turbocharger outlet gaskets, air tank assemblies and washer fluid reservoir caps.

Long-haul single drive tire Hankook Tire has introduced its latest ultra-super single drive tire to the company’s truck and bus radial lineup. The company says the new e3 WiDE DL21 gives greater longevity and mileage over its predecessor, the DL07. Testing has indicated e3 WiDE DL21 provides a 2 percent increase in mileage and a 10 percent increase in rolling resistance over the DL07. The e3 WiDE DL21 tread pattern features Hankook’s 3-D siping technology helping to increase the tire’s overall traction, lifespan and performance. The redesigned tread includes seven main grooves, reducing tread block cracking throughout its longer lifespan, Hankook says.

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New copperfree ADB pad material TMD Friction has released its first copper-free air disc brake (ADB) pad material, TX7400N, into the North American marketplace. TMD says the product has been received by an OEM that decided to production-release the TMD copper-free pad, bypassing the interim step of copper reduced material. This release is five years ahead of the 2025 requirement, the company says.

New line of air, electrical accessories Haldex has announced its new line of Midland 3IN1 ConnectSets, seven-way cable assemblies, tractor-trailer jumper air lines, tender kits and an expansion of brake hose assemblies that include dual live swivel fitting configurations.

Hose nozzle, mini ﬂoodlight hit market The Snap-on NOZZLEGRP is made with aircraft-grade aluminum, stainless steel, durable plastic and Santoprene rubber and has a handle grip which can be locked in either a pistol or in-line position, the company says. A twist takes the nozzle’s water flow from a fan-style to a powerful jet pattern for tough shop grime. The ECFD0102 900 lumen mini floodlight is a water- and dust-resistant, pocket-sized floodlight with up to six hours of run time for hard-to-reach locations. The magnet bracket, M8 hole for tripod support and 180° swivel base ensures visibility on the job, Snap-on says.

June 2019 | Trucks, Parts, Service

products

Diagnostic kit for buses with Cummins engines NEXIQ Technologies has released its Pocket HD School Bus Kit. This all-inclusive kit has everything needed to manage school bus fleets with Cummins engines. In addition to the

Pocket HD scan tool, NEXIQ says the kit comes with the School Bus Software Suite, which includes HDS, LMT 2016, Cummins Lite, All Makes DPF Regen, Allison Lite and the ABS brake suite.

Off The Line

Spotlighting a new OEM innovation

Autocar Trucks launches its ﬁrst conventional truck in 31 years Autocar Trucks has announced the launch of the Autocar DC-64R, a completely new conventional truck the company says is purposebuilt from the ground-up for severe-duty refuse applications. The new tractor’s cab was designed for productivity, durability and safety, the company says. The workspace of the cab maximizes productivity for drivers with everything visible and within easy reach. The cab also easily fits three, so work crews can get to and from their routes comfortably. The Autocar DC-64R features high-strength 160,000 psi steel frame rails, 24 percent stronger and lighter than the rails on other trucks on the market, completely eliminating the need for frame liners in nearly all refuse applications, the company says. The primary benefit for the waste hauler is a significant weight savings that directly increases effective payload and profitability.

Trucks, Parts, Service | June 2019

The company adds the Pocket HD scan tool is the perfect handheld for use in roadside, triage situations. Included are two adapters (9-pin and 16-pin), a 26-pin data cable and a soft carrying case.

Tire for loaders and articulated trucks TBC Brands has introduced a radial tire for loaders and articulated trucks, the Power King xERT-3HD, an addition to the Power King xERT-3 value line and is rated for E-3 and L-3 service. The xERT-3HD’s self-cleaning tread provides traction in all off-road conditions, the company says. It’s wide, flat footprint coupled with the increased tread-to-void ratio improves the stability and tread life of the tire. TBC says the radial is available in four sizes: 20.5R25, 23.5R25, 26.5R25 and 29.5R25.

Expanded hub cap line Tectran has expanded its hub cap line with new 6-hole and Propar spin-on style hub caps. According to Tectran, its new hub caps feature durable, high-quality cast aluminum housing that prevents warping and disperses heat. The 6-hole hub caps include fill plug, side plug and six 5/16 in. bolts; the Propar style hub caps include fill plug, side plug and O-rings. The hub caps also feature clear polycarbonate oil sight window with level markings, vented center fill plug and are impact resistant.

New 430 mm clutch Illinois Auto Truck Co. Inc. (IATCO) has introduced a new 430 mm clutch, which is built for the Volvo I-Shift and Mack mDrive application. IATCO’s 430 mm clutch is all new, no core, made in the USA and designed utilizing a pre-damper disc design. The company says the clutch will fit transmissions on 13-liter engines.

products

Expanded commercial lubricants lineup Amsoilâ&#x20AC;&#x2122;s easy-pack lineup now includes three commercial lubricants that previously were available only in plastic quart containers. The easy-pack container is designed for durability in tough environments and improved maneuverability, the company says. The lubricants are Synthetic Manual Transmission and Transaxle Gear Lube, which is formulated to help reduce friction and protect against wear and heat, and Severe Gear 75W-110 Synthetic Gear Lube and 80W-90 Synthetic Gear Lube, which are designed to help reduce operating temperatures while delivering added film strength to resist thermal breakdown, the company says.

Pistonless in-frame kits for Detroit Diesel Series 60 AFA Industries has announced the availability of in-frame kits for Detroit Diesel Series 60 14.0-liter engines. The kits come with cylinder liners, liner seals, piston rings, gasket sets, connecting rod bearings, main bearings and thrustwashers. AFA says features of its kits include a special proprietary coating on the piston rings; induction hardened liners; AFAâ&#x20AC;&#x2122;s AFAGRAPH graphite cylinder head gasket with steel staked water jacket grommets, stainless steel fire rings and a rigid steel core; and advanced alloy rod and main bearings.

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June 2019 | Trucks, Parts, Service

products

Mixed-service tire for construction trucks Cooper Tire has announced a new mixed service wide base all-position (WBA) tire as part of its Severe Series lineup for mixers and dump trucks.

The Cooper Severe Series WBA features a five-rib design with a zigzag rib in the center. The tire is designed to provide traction and cornering in

slippery construction site conditions. Special cut, chip and chunk resistant compounds, plus Cooper’s Scrub Guard technology, help the tire withstand scrubbing, curbs and other obstacles encountered during operations to ensure longer tire life while maintaining casing integrity, the company says. Tie bars stabilize the center rib to enhance driving performance, and a five-inch steel band reinforcement in the lower sidewall provides reinforcement and casing durability, Cooper says. The tire is available in 385/65R22.5 and 425/65R22.5 sizes, in load range L.

Updated fuel line valve EZ Oil Drain Valve introduces the EZ Fuel Line Valve. Designed for fuel supply line emergency shut-off applications, EZ Oil Drain Valve says the new valve features the same lever locking design, but the lever locks in the “open” position instead of the “closed” position. Other new features include an adjustable lock nut and a red handle. EZ Oil Drain Valve says the lock nut can be used to adjust the final position of the valve, which enables operators to install the valve in any position. The red handle improves visibility and allows easier access of the handle when the fuel needs to be shut off immediately, the company says.

Trucks, Parts, Service | June 2019

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