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Volume 53 | Number 9 | September 2017

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Cover Story

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Editorial

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

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Features 12 DOTY profile: Drive Train Industries 22 The importance of corporate alignment

Departments 1 2 6 13

Editorial Staff Editorials Industry Focus Tech Updates

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Editorial | Lucas Deal

Forward thinking

By Lucas Deal, Editor lucasdeal@randallreilly.com

A

s we approach this year’s quarter pole, I want to know how much planning you’ve done for 2018?

I know everyone likely has a fiveyear plan and 2018 is obviously a part of that, but what I’m asking is how much short-term and daily operational planning discussions have you had on the upcoming year?

Have you started any projects that will conclude next year? Are you working on rolling out any product lines or services in Q1? Have you set your sales and revenue goals?

I admit, that last question is tough with three months to sell laying ahead.

The winter sales uptick is a common occurrence in the aftermarket, but whether it comes is far from a certainty. Expect it this year and it comes in January and your numbers could tank heading into the holidays. Push it off to next year and if it starts early — or worse, not at all — you begin 2018 in the kind of hole where you spend the rest of the year climbing out.

Not ideal.

But, this problem isn’t unique. Or new. Every year you’re forced to make projections for the coming year before the current one is over, and every year you do it.

So, what are you expecting for 2018?

I ask because it’s important, and it’s something I’d like to know.

In January, we will publish our biennial update on the state of the

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aftermarket industry, where we look at how the market has changed over the past two years and using your expertise and as much data as we can get our hands on, try to make predictions for what’s ahead for the next 24 months.

What are you expecting for 2018?

It’s a monster article and one I love to write, because it lets me take the pulse of our industry. I ask my fair share of “How is business?” questions during the year, but nothing to the detail and extent of what you’ll see in January.

If you’re interested, I’d love for you to be involved. I’m asking any distributors, service providers and suppliers who would be willing to talk about our industry to let me know. In past years, I’ve blasted out emails to dozens of people on both sides (and I’ll do that again), but I also want to give others an opportunity to speak up.

If you see a trend arising in your business and would like to talk about it — see if it’s spreading elsewhere — let

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me know. If you believe the aftermarket is on the precipice of a major change, let me know. If you believe the aftermarket is in danger or at risk, and want to warn others, let me know.

If you just want to provide an honest assessment of industry sales for this year and expectations for the next one, I want to hear about that, too.

The more people I interview, the better our article will be. I’ll have more information at my disposal. I’ll be able to discover more of those potential trends. I’ll be able to ask suppliers about issues posed by distributors, and vice versa.

The best way to provide a true assessment of the independent aftermarket is for the independent aftermarket to speak up. To say what is and isn’t happening, and why.

In addition to my interviews Truck Parts & Service will also send a survey to our readers this fall to ask some basic economic questions and see where this year ranks in recent memory, as well as see what everyone expects for 2018.

Ideally, that survey should confirm the information we discuss in interviews, and create a clear assessment of the industry.

If you’d prefer to only respond to the survey that’s understandable. But if you’re willing to do more, if you’re willing to share your thoughts on this industry and its future, you know where to find me.

Editorial | MacKay & Company

A Bountiful Harvest, Part II

By John Blodgett MacKay & Company

I

n last month’s Truck Parts & Service magazine, Lucas Deal wrote a good article on the opportunity for distributors to grow their aftermarket business with trucks used in the agriculture market. As I work for a company that spends a lot of time profiling the aftermarket for replacement parts and services for both on- and off-highway equipment, I thought I would use this month’s column to provide some more context to Lucas’s article. (And thanks, Lucas, for allowing me to piggyback off your article.)

Lucas is right: If you are a distributor in a rural or semi-rural area you should not overlook the opportunity related to trucks used in agriculture, and you may want to also consider possibilities related to the off-highway equipment used on farms. I am not talking about becoming an expert in agriculture equipment, but there are a lot of parts (belts, hoses, filters, etc.) that would likely not involve being an agriculture equipment expert to expand your product offering.

MacKay & Company estimates there is a $5.3 billion aftermarket parts opportunity for on-highway vehicles (Class 2-8) used in agriculture. While this is only 9 percent of the total parts aftermarket, there is still a lot of potential there. This includes parts for large pickups, tractors and trucks that move

unprocessed food goods, such as milk, and take grains to rail heads or grain elevators or move livestock. In total, including trailers, there are a little more than two million vehicles driving this market-specific aftermarket.

Why not save them some time and help your bottom line?

In the off-highway market for agriculture equipment, MacKay & Company has a service called DataMac Ag, which profiles the aftermarket for replacement parts used on mobile farm field equipment. The aftermarket demand for parts on this type of equipment is about $7.6 billion a year, with most of that demand coming from farm tractors. Granted, not all product areas are likely going to be of interest to a company whose primary business is the truck aftermarket, but 12.5 percent of that $7.6 billion comes from maintenance parts and electrical parts (such as alternators,

starters, and batteries).

Auto parts stores are an example of a distribution channel that has established a good presence in this market as well as the on-highway market beyond automobiles. As farm equipment dealers stopped having a dealer in every town, the NAPA’s, Carquests and O’Reilly Auto Parts of the world have done a good job of filling this niche for many of the parts farmers previously got from equipment dealers. Auto parts stores represent almost 8 percent of this aftermarket, close to the 9 percent they have for the on-highway market.

Farmers do more of their own service work than others (that means they make the majority of the decision of where needed parts are purchased). They tend to have older and used on-highway equipment and a wide age range of farm equipment. The average tractor is over 20 years old. You probably currently have some agriculture business customers, sometimes called farmers, and you probably have some farmers that work for you if you are in a rural community.

I would start with them to understand where there might be some more opportunities to expand your business.

Farmers may be driving past your business today, traveling to the next town to get that filter they need for their tractor — why not save them some time and help your bottom line?

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.

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Industry Focus

Dealer News Valley Freightliner, Western Star Trucks of Cleveland has been named Elite Support Certified.

Breadner Trailer Sales (BTS) has been designated as the exclusive dealer of Stoughton brand refrigerated trailers in the provinces of Ontario and Quebec in Canada.

Fyda Freightliner Western Star of Northern Kentucky opened for business in Walton, Ky. Craftsmen Utility Trailer has completed the development of its new facility in Davenport, Iowa.

Enterprise Truck Rental is adding new locations in Frederick and Salisbury, Md. Bayview Kenworth has opened a newly renovated Kenworth parts and service dealership in the Jacksonville area north of Woodstock, New Brunswick.

Hino Trucks & Hino Motors

Inland Kenworth has earned the fifth annual Successful Dealer Award, presented by Automann and Premium 2000.

in eastern Kentucky and West Virginia.

Manufacturing marked the relocating and combining of their corporate offices with a groundbreaking ceremony on Aug. 4, 2017, for a new corporate headquarters in Novi, Mich.

Kenworth Ontario has relocated its Ottawa area dealership to a new and modern facility about 35 km southeast of Parliament Hill in the Canadian capital.

Talbert Manufacturing named Hale Trailer Brake & Wheel of Voorhees, N.J., as its top dealer for the ninth straight year.

Summit Truck Group of Memphis recently presented the local Ronald McDonald House Charities with a check for $11,000.

Murphy-Hoffman Company is opening its third dealership in Iowa.

K&R Truck Sales and West Michigan International have raised more than $5,000 for two local charities this summer.

Worldwide Equipment has relocated and opened four Kenworth dealerships

Fleet Engineers Earns Court Win

FleetPride Opens First New Orleans Store FleetPride has opened its first branch in the New Orleans metropolitan area, and third location in Louisiana.

“Adding New Orleans to the FleetPride footprint represents our commitment to growth,” says Jason Price, FleetPride senior vice president of operations. “The five team members at this location represent nearly 60 years of combined experience in the heavy-duty parts industry and are committed to serving the needs of the customer.”

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Fleet Engineers, Inc., has earned a favorable judgment in the matter of Fleet Engineers, Inc., v. Tarun Surti and Mudguard Technologies, LLC. In court documents, Fleet Engineers alleged Mudguard committed tortious interference with business relationships, while Mudguard counterclaimed patent infringement and breach of contract against Fleet Engineers.

In the summary judgment decision, dated June 8, 2017, the Hon. Paul L. Maloney ruled that the Fleet Engineers AeroFlap does not infringe US Patent No. RE44,755, and also denied Mudguard’s counterclaims.

“We are pleased with the Court’s decision, which affirmed our longstanding belief that the AeroFlap did not infringe Mudguard’s patent,” says Wes Eklund, CEO of Fleet Engineers, Inc.

Industry Focus

Truck Service Opens Indiana Service Facility Truck Service, Inc., has opened its seventh location, Truck Service Columbus in Edinburgh, Ind. Like its six other sister locations, Truck Service

says its Columbus 14-bay facility specializes in the maintenance, service and repair of light, medium and heavy-duty vehicles.

“With multiple locations in Ohio, Indiana and Florida, we identified a gap within the marketplace,” says Dennis Meyer, president of Truck Service.

People In The News Bergstrom Parts division president Bill Gordon is retiring.

Marx Group has appointed Lisa Gill to account director.

Jay Delaney has joined TMW Systems as senior director of Product Management.

Mack Trucks has named Joe Favia regional vice president for the U.S. Central Region.

Tim Denoyer has joined ACT Research in the position of vice president and senior analyst.

Craig Kruckeberg, CEO and chief visionary at Minimizer, is a finalist for Minnesota Business magazine’s Executive of the Year Award.

Omaha Standard Palfinger has appointed David Phillips to regional sales manager covering the Midwest territory.

Trudell Trailers has hired Steve Smith as its newest director of sales.

Daniel A. Ninivaggi has been named to Navistar’s board of directors.

J&J Truck Bodies & Trailers and J&J Truck Equipment have announced Adam Bowers and Quintin Wyandt have joined J&J’s inside sales teams.

The Board of Directors of Work Truck Solutions, Inc., has appointed David Thawley as an independent director of the firm.

Vincent Joseph Brozek, long-time vice president at Connecticut Wheel & Rim Company, has died. He was 96.

Tod E. Carpenter, president and CEO at Donaldson, has been named chairman of the company’s board of directors.

He replaces non-executive chairman Jeffrey Noodle, who is not standing for re-election. Current director Willard D. Oberton also will serve as lead independent director.

Fabio Jurchaks has been promoted to the position of executive director, TMD NAFTA.

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Industry Focus

PPG Brings LKQ Into Commercial Parts Listing Program PPG has expanded its AdjustRite commercial estimating system Commercial Parts Listing Program with the addition of LKQ Corporation to its supplier data base.

LKQ has been a parts source for AdjustRite customers since 2008 and now enhances its presence through the listing program, the companies say.

“We’ve worked with AdjustRite for several years and are pleased to expand our role within the program,” says Steve Simmons, region vice president of LKQ Corporation’s Heavy Truck division.

“It’s a pleasure to add LKQ Corporation to our parts resource network,” adds Ryan Woolfenden, PPG marketing manager, commercial value-added programs. “With LKQ as an available resource, our customers have direct access to a company internationally recognized for its parts quality, variety and competitive pricing.”

Tire Maker Opens New HQ

SIRCO Updates Corporate Branding

TP Commercial Solutions has a new office headquarters in San Diego.

The company’s move caters to its expansion in the U.S. and Canada for truck, agricultural and off-road tires. TP Commercial Solutions LLC is part of Prometeon Tyre Group, the fourth largest commercial tire group in the world.

“This is an exciting time for the company. This move gives us a fresh new start and focus to strengthen our premium truck and fleet business for the North American market. Moving into our own dedicated headquarters will also enable us to implement our growth strategy throughout North America,” says Alex Vitale, CEO of TP Commercial Solutions.

SIRCO Industries has updated its company logo and brand image.

“We have enhanced our image and have put a plan in place to be more aggressive and relevant to the heavy-duty industry. We have recently added many products to our offering,” says Bill Mize, SIRCO national sales manager.

In changing its logo, SIRCO also has updated its packaging from a white box to a green SIRCO box.

New Parts Ordering Application ShowMeTheParts says its updated parts app now provides full access to the largest public parts database on the market on the go.

By using the app, the company says customers can find parts and check photos, specifications, and other information while working on their equipment.

The database covers more than 1.7 million parts numbers from 300 aftermarket suppliers.

“Users will see faster lookup speeds and smoother navigation to the freshest data in the aftermarket,” says Jay Wright, president of Vertical Development, Inc.

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

Sept. 9-13 Sept. 16-21 Oct. 15-20 Oct. 19-21

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CVSN Aftermarket Distribution Summit, Amelia Island, Fla. Technology & Maintenance Council (TMC) Fall Meeting, Orlando VIPAR Heavy Duty Annual Business Conference, Orlando ITPA Fall Meeting, San Diego

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Industry Focus

Heavy Duty Leadership Course Concludes Three dozen industry professionals completed this year’s Heavy Duty Leadership class at Northwood University earlier this summer.

The program, annually offered by the University of the Aftermarket, is designed to develop the business, management and leadership skills of mid-career professionals working in the North American commercial vehicle aftermarket, the University says.

This year’s class was the largest in the six years of the program, the University says. The next Heavy Duty Leadership program is scheduled for July 8-13, 2018.

Heavy Duty Leadership graduates earned 3.5 continuing education units that can be applied toward their Automotive Aftermarket Professional (AAP) or Master Automotive Aftermarket Professional (MAAP) designations.

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Tech Updates

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

The Next Generation of Bead Seating

Daimler Trucks North America (DTNA) is recalling certain 2017-2018 Freightliner 122SD trucks, Western Star 4900 and 6900 trucks, and Freightliner Custom Chassis XCM and XCP chassis equipped with Cummins ISX15 engines. The affected engines have a fuel pump whose drive gear may slip on its drive shaft, resulting in a loss of fuel pump function. Failure of the fuel pump will result in a sudden engine stall with no warning, and with no ability to restart, increasing the risk of a crash.

DTNA is recalling certain 2014-2017 Freightliner Custom Chassis XCR chassis. A battery cable mounting bracket may not have been installed correctly, as a result, the improperly routed and clipped battery cable can contact the frame rail, possibly chafing and short circuiting. A battery cable short circuit can increase the risk of a fire.

DTNA is recalling certain 2018 Freightliner Cascadia, M2 Business Class, 114SD, and 122SD trucks, and Western Star 4700 and 5700 trucks.

These vehicles have tow hooks used for recovery purposes that may fail during use. If the tow hook fails without warning during a recovery operation, the sudden release of the vehicle may increase the risk of injury.

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DTNA is recalling certain 2005-2018 Thomas Built Buses Saf-T-Liner C2 school buses. In the event of a crash, the wheelchair pocket track anchorage may not adequately secure a the wheelchair. In the event of a crash, an unsecured wheelchair may increase the risk of injury.

DTNA is recalling certain 2005-2018 Thomas Built Buses Saf-T-Liner C2 transit buses. In the event of a crash, the wheelchair pocket track anchorage may not adequately secure a the wheelchair. In the event of a crash, an unsecured wheelchair may increase the risk of injury.

Daimler Vans USA is recalling certain 2007-2009 Freightliner and Dodge Sprinter 2500 and 3500 vehicles. These vehicles are equipped with certain air bag inflators assembled into the passenger frontal air bag modules used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the passenger frontal air bag, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling. An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

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Daimler Vans USA is recalling certain 20102011 Freightliner and Mercedes Benz Sprinter 2500 and 3500 vehicles. These vehicles are equipped with certain air bag inflators assembled into the passenger frontal air bag modules used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the passenger frontal air bag, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling.

An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

Daimler Vans USA is recalling certain 2012 Freightliner and Mercedes Benz Sprinter 2500 and 3500 vehicles. These vehicles are equipped with certain air bag inflators assembled into the passenger frontal air bag modules used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the passenger frontal air bag, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling. An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

Paccar is recalling certain 2013-2017 Peterbilt 567 and 579 Kenworth T680 and T880 trucks equipped with optional spotlights. The spotlight circuit may not be adequately protected in the event of a short. A short in the spotlight circuitry may increase the risk of a fire at the cab fuse block.

Spartan Motors USA is recalling certain 20152017 Spartan Fleet Vehicle and Service Utilimaster Aeromaster vehicles. The affected vehicles are missing a ground wire for the windshield wiper motor, possibly resulting in an intermittent loss of windshield wiper function. A loss of windshield wiper function can reduce the driver’s visibility, increasing the risk of a crash.

Spartan Motors USA is recalling certain 20142017 Utilimaster Walk-In Vans. In the event of a crash, the seat belt D-ring mounting may detach, preventing the seat belt from restraining the occupant. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 210, “Seat Belt Assembly Anchorages.” A seat belt that does not keep the seat occupant restrained increases the risk of injury.

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Drive Train Industries

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n impressive past is shaping the future at Drive Train Industries. For more than 70 years, the Colorado-based distributor has made its name by putting the service in service provider.

“If you look at the success of our company, a lot of it comes from the expertise we bring to the market and to our customers,” says Jim Burke, president and CEO. “That’s how we set ourselves apart. We have the internal expertise within our operations to serve all our customers’ needs.”

Looking back, Burke says that’s been the company’s priority since its inception.

Founded in the wake of World War II by John Burke and Elder Rosegrin as a brake and clutch service facility (aptly named Brake & Clutch) in Denver, the business has grown steadily but assuredly. Not long after its founding, John Burke’s sons would join the business, each bringing their own area of specialization under the company’s umbrella and allowing it to grow while maintaining its reputation as the area’s preeminent product experts.

“My father brought in transmission and differentials, my uncles added gearing and PTO,” Burke says. “They each had something else to add.”

By the 1970s the company was operating repair, maintenance

Drive Train Industries at a glance

Source: Google Maps, Drive Train Industries

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Drive Train Industries offers vehicle and component repairs, remanufacturing and is a custom manufacturer of brakes, driveline components, cables and hoses.

and rebuilding work for nearly every heavy vehicle component.

It had long eclipsed its brake and clutch origins and, in 1979 was renamed Drive Train Industries.

It was also during this period the company first expanded its coverage area. Thanks to its burgeoning reputation as Denver’s finest parts and service operation, the company grew throughout the Rocky Mountain region. Today, Drive Train Industries operates nine locations across three states and employs 121 people.

A two-time Truck Parts & Service Distributor of the Year finalist, Drive Train Industries continues to thrive because it continues to evolve.

“One of the things we kind of hang our hat on is being at the leading edge,” says Burke.

“I think a smart fellow in this industry realizes that things aren’t the same as they were 20 years ago,” adds Bruce Sommerville, vice president and COO. “We try to be very forward thinking in terms of our product offering and what we can do [for our customers].”

And Drive Train’s inventory is built to be second to none, he says.

“There are tons of places to buy those commodity items, but not as many places to buy the C, D and E items. We’re the people in the marketplace who stock those.”

The company also leans heavily on technology. Drive Train uses wireless handheld devices to optimize order fulfillment, implemented ERP software into its operation in 1999 and features the newest service technology across its component and vehicle repair facilities.

The technology not only makes Drive Train more efficient, but also more enticing for the next generation aftermarket employee — the employees who will be expected to maintain the company’s expert reputation for another 70 years.

“We really have to push to develop that next generation,” says Burke. “Our people are what make us successful.”

Cover Story

By Lucas Deal, Editor lucasdeal@randallreilly.com

Climbing the ladder

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Cover Story

How promoting from within can work in the aftermarket

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mployee turnover is a hassle in all areas of the aftermarket. Career employees are retiring out of the industry at an incredible rate, and the pipeline behind them is thin.

Filling open positions has become one of the industry’s biggest challenges.

Though there’s no simple solution to the aftermarket’s hiring shortage, one long-accepted appointment method gaining steam with distributors is promoting from within.

Promoting from within doesn’t remove the need to hire new people, but it does allow a distributor to move their best employees into their most important roles, shuffling job openings to lower- and entry-level jobs that are, by nature, easier to fill.

Distributors using the tactic in the market today are universally supportive of it, but even with such accolades, promoting from within isn’t foolproof.

Properly promoting from within requires an understanding of what the tactic does and doesn’t provide, and evaluating each open position objectively to determine the best way to fill a post.

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Cover Story

Advantages Weldon Parts President Dave Settles says there are several reasons he promotes from within “every chance I can,” but in his eyes, the biggest is culture.

Bringing in someone new doesn’t always rock the boat, but it’s rare that new hires immediately and innately understand how a business operates.

Moving an employee within an operation is considerably easier than onboarding someone new who must be trained on every aspect of their new job.

Settles says Weldon Parts has a unique A company-wide focus on training and education strengthens the workforce and talent pool at Midwest culture built over decades to maximize Wheel. operational effectiveness and customer experiences. New employees, even those pick up and maintain our culture,” he employees. Show up every day and do with prior aftermarket experience, can says. your job and career advancement can be take some time picking up on all of it.

In both cases, the culture refers a reality, says Allan Parrott, president at “We’re a little difnot only to how Tidewater Fleet Supply. ferent than everyone employees interact “I think there’s a trust factor there,” else and when you with each other and he says. “If an employee has done really bring in someone customers, but also well for us over the years we want to give new, you have to how they approach them the opportunity to advance. We teach them that,” and complete tasks. want to reward our employees who work he says. “Some pick Training employees hard and want to do more.” it up faster than on a new position Bill Nolan also stresses advancement others.” is much easier if as part of the culture at PBS Truck Parts.

The experience is they’re already He says not every employee is destined to the same at Blaine aware of a comrise through the PBS ranks, but the comBrothers, where pany’s performance pany’s management team still does its – Dean Dally, president at Blaine Brothers President Dean Dally standards. best to showcase opportunities and motialso relies heavily on internal promotions “You don’t want to have to keep revate employees to consider advancement. to fill as many openings as possible. teaching your culture,” Settles says.

“Sometimes employees may not “We’ve found it’s very difficult to find Another huge advantage of promotunderstand what they have,” says people from the outside who can quickly ing from within is the message it sends Nolan, PBS president. “They might not

We’ve found it’s very difficult to find people from the outside who can quickly pick up and maintain our culture.

Building a culture of advancement Promoting from within may greatly reduce onboarding time and expenses, but it doesn’t eliminate them. Employees slotted into a new position still require and deserve training to do the job well.

Midwest Wheel has a substantial training program for this very reason.

One of its most popular and most valuable

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training classes is its counter training course.

Built by a team of counter veterans, the course “covers everything that a new counter person needs to know,” says Michael Callison Jr., vice president of purchasing, safety and training.

“The goal has been if we find someone with the skill set we are looking for we are able to bring that person up to speed relatively quickly

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 7

even if all the product knowledge required isn’t there yet.”

The company also produces training manuals and instruction cards for other positions that employees can follow to learn a new job.

“We try to mentor all employees in our company whatever that position may be,” Callison says.

Cover Story

understand they could [one day] be a store manager.”

Upward mobility is particularly valuable with younger employees who crave recognition and growth opportunities.

Says Michael Callison Jr., vice president of purchasing, safety and training at Midwest Wheel, “By promoting from within we are better able to keep people motivated — especially with millennials — it is always important to let people know there are chances for promotion.”

The distributors also ask employees to speak up when they become interested in new opportunities.

“We want to know if folks are interested in moving up,” says Parrott. “Once we know that we can keep an eye on them and start looking for ways to move them up the ladder.”

Finally, there’s the unspoken yet enormous financial benefit. Onboarding new employees is costly.

“We’ve never figured that actual number, but I know it’s expensive,” says Settles of bringing on new employees.

The reasons for this are voluminous, but the largest expenditure can be traced

PBS Truck Parts has long relied on internal advancement to fill open positions to maintain the company’s culture and ensure management positions are filled by those most familiar with the business.

to productivity. As mentioned above, it takes a lot of time and training for a new person to be integrated into a business.

When compared to swapping one employee for another, it’s a no brainer.

Disadvantages Promoting from within works better with some positions than others.

Settles mentions sales roles,

How to do it?

If you’re going to promote from within, it’s best to do it right.

These distributors regularly promote from within, and share their experiences on tactics that work best in their businesses.

Allan Parrott, president at Tidewater Fleet Supply When moving people to the counter or any sales position, Parrott says it’s important to select employees with strong interpersonal skills and an engaging personality.

“You need someone who has a desire to help customers,” he says. “They should be comfortable talking to customers, solving [their] problems.”

18

Bill Nolan, president at PBS Truck Parts It’s also important to not promote employees too fast. Employees that gradually work their way up the ladder enter authority roles with a comprehensive understanding of a business.

“It is very difficult to manage people, stores and operations if you don’t know a business from the floor up,” Nolan says. “You need to have a real understanding of how your decisions impact everyone.”

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 7

Dean Dally, president at Blaine Brothers Regularly updating staff on open positions and future advancement opportunities show employees a path to long-term employment, says Dally.

“We talk with all of our employees about [career development],” he says. “We want them to know they can stay on with our business and as we continue to grow, they also will have every opportunity to grow their own career within our companies.”

specifically, as an area where it can be tougher to move current employees.

“You can sort of see the progression for someone from warehouse manager to branch manager, but sales people have a different mindset,” he says. “The skills are different.”

Adds Parrott, “It’s easier to find people for warehouse or driver positions but it can be hard to find a good counter guy — particularly on the heavy-duty side. Those guys don’t grow on trees.”

The same roadblocks can be found when pushing employees into leadership roles. The higher the position, the smaller the pool of realistic candidates for the role.

Nolan says his first step when filling a leadership position is to evaluate in-house candidates. In cases where the perfect person isn’t found, he will consider outside applicants, but he says that approach is not always ideal.

“You certainly don’t want to over-promote people,” he says, “but most of the time the people who are out there come with some downside risk as well. If they didn’t, they wouldn’t be out there.”

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Cover Story

If an employee has done really well for us over the years we want to give them the opportunity to advance.

– Allan Parrott, president at Tidewater Fleet Supply

Promoting from within can improve employee loyalty and commitment to a distributor’s business.

Over promoting is another risk.

Some employees are best where they are, and can struggle when presented a different role and/or more responsibility, even if it’s something they wanted and applied for.

“Every single person is potentially the weakest link” in a business, Nolan says.

Addressing these failed promotions is tricky as well. In some cases, employees will be aware of their struggles and may approach management about moving back to their prior role or a different position. Others may push through, hoping to improve and master the job.

In cases of the latter, the employee’s pride and receptiveness to a distributor’s suggestion for a new position ultimately determines whether they remain in the business.

There’s also the question of culture, and an injection of new personalities and ideas. Even businesses with strong internal culture require new infusions of talent from time to time.

Promoting a steady worker into a position of authority may ensure the status quo, but doing so forfeits the potential that comes from someone new. There are candidates out there that can fill your positions and strengthen your team.

“When we have to hire outside, it’s always a balance of finding the right skill set versus the right fit,” says Callison. “I think it’s first most important that we find people that will work and flourish with Midwest Wheel.”

20

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

Sales & Marketing

Getting it all lined up

Corporate strategic planning leads to success 22

W

hile there may be no one size-fits-all answer to creating a successful business, many aftermarket leaders say one business practice that’s almost universally valuable is a strategic alignment plan.

Ensuring a company’s market strategies, work initiatives and overall end goals are totally aligned for everyone plays a significant role in determining the success of a company.

Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. It is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing

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Sales & Marketing

You have to have everyone on the same page, working towards the same thing. Everyone needs to know their responsibilities and what the ultimate result is that we want.

shortcomings are.”

Think of a company in its entirety, or select a strategically important element of it, and consider how well does the business strategy support the fulfill– Tommy Hill, general manager of Truck Supply Co. of South Carolina ment of the company’s purpose and approaches when moving forward. business plan you then need to comhow well does the company support In order to make the most of it, a municate it effectively throughout your the achievement of that strategy, says company should give careful thought to organization so everyone knows what the business analyst Laura Ritter, who serves the strategic objectives it outlines, and plan is and then develop effective ways to as an adjunct faculty member at Union then back up those goals with realistic measure your performance against your University. benchmarks for evaluating results. strategic objectives,” Klein says.

She describes purpose as being what Many aftermarket distributors have “If only the senior corporate leaders the business is trying to achieve, while found such a plan to be useful. or even the store managers understand strategy is how the business will achieve it.

“You have to have everyone on the the strategic business plan it will fail.”

The purpose should not change. It is same page, working towards the same Defining strategic missions in a way something that should be the ultimate thing,” says Tommy Hill, general manager that is broad enough to guide both end result that everyone is striving to of Truck Supply Co. of South Carolina. management and employees, and narrow achieve. The strategy, however, involves “Everyone needs to know their enough to focus their efforts is key. choices about what products and services responsibilities and what the ultimate “It goes from top down,” Hill says. to offer, which markets to serve, and how result is that we want.”

“It’s not something that just works in the company should set itself apart from Inland Truck Parts President Greg one department or rivals for competitive Klein likens the planning to that of the another. We all have to advantage. military. be heading in the same “Sometimes you “Getting an organization to perform direction.” might figure out in harmony towards a desired strategic For example, “To there’s a different way objective is in many ways similar to how take care of our cusof doing something a military operates,” Klein says. “The tomers” is too broad that’s a little better organization chart of a business mirrors of a mission and leaves than the way you’ve the various layers of military hierarchy. too much wiggle room done it,” Siegel says.

Just as a military needs a battle plan, a in its meaning.

Klein says the best company needs a strategic business plan, But, “To take care plans sometimes need – Greg Klein, president of which should spell out the vision and of our customers by changes.

Inland Truck Parts mission of a company and the key straproviding the best “Adjustments may tegic objectives to pursue that will make parts available within 24-36 hours” or need to be made if the conditions in the company successful.” some other well-defined mission statethat market are changing. Plans should Strategic or corporate alignment ment clearly sets the objective of the not be static, but rather flexible,” he means that all elements of a business are company. says. “If you create an annual plan and arranged in such a way that all employMidwest Truck Parts President Howstick it in a file, never to be seen again, ees are working towards the company’s ard Siegel says by stating clear goals and that effort was a waste of time and a set goal. objectives, a company can lay out what mere check the box.

Strategic planning starts with definexpectations are for associates.

“To be meaningful, a plan must be ing a company mission. Having a set “When everyone knows exactly continually reviewed against actual permission is important because it clearly what is expected of them it’s easy to formance. For Inland, we call our andefines the ideas linking all aspects of determine who’s doing what they need nual store plans a Planning Tool, which the business. to do and who is not,” Siegel says. “It’s is prepared by our stores after complet“Once you have a good strategic pretty clear then where the successes and ing a SWOT (Strengths, Weaknesses,

If only the senior corporate leaders or even the store managers understand the strategic business plan it will fail.bib

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Sales & Marketing

Opportunities and Threats) analysis results. It can be a valuable process when and then the actual results are captured it includes employees in all departments in what we call a Scorecard, which is and at all levels of responsibility thinking reviewed monthly by the store managers about how their activities and responwith their regional operations managsibilities fit into the larger picture, and ers. I then review all the individual store about their potential contributions. scorecards with the regional managers “We drive it home,” Seidel says. “We every two months.” strive to provide the best customer Strategic objectives are based on the service in the Chicagoland area. My best information you have at the time managers are tasked with providing our and your most realistic assessments of customers with anything they might ask what your company can achieve. for. If we don’t have it, we will get it for Emphasizing those objectives and them. Like any supplier in any industry, making it part of achieving the mission is we do not want our customers to go anya responsibility of everyone. where else for their products. A constant “We have a reminder of that monthly department from management, meeting. This hapmakes sure all our pens once a month, people know what after hours, so that we we are trying to have the full attention accomplish.” of everyone,” says AcSeidel says that tion Truck Parts Vice meetings and conPresident Nick Seidel. stant reminders are “We go over things the norm, but prethat are coming up senting promotions the next month. that can be easily Whether it is a sale, tracked and followed promotion, event, with reports are also – Laura Ritter, adjunct faculty member at Union University or anything else that important. would need to have “Each month the focus and dedication of the group. we have sales promotions,” he says. “We We include everyone from drivers to track each individual’s sales on that cermanagement in this meeting. It puts tain product or vendor. It is also an ineveryone on the same page going into the centive and competition between counter next month.” sales, outside sales and each individual But, strategies can change. branch. It is monitored each Monday of For example, if an aftermarket the month with progress reports sent out distributor plans to grow its belt sales Monday afternoon.” business by 20 percent during a specific Keeping track of those results is an year, only for a large competitor to open essential element of a strong strategic a superstore down the road, it’s likely plan. Measurable goals set specific, the distributor will need to redefine its concrete objectives expressed in terms objectives and evaluate progress in terms of quantities and timelines. Measurable of preserving market share. goals are important to any distribuThe process of strategic planning can tor because they enable managers and be as important to a company as the employees to evaluate progress and pace

If a business has little idea where it is headed, it will wander without priorities, changing constantly, and with employees confused about the purpose of their jobs.

24

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 7

Aftermarket distributors often find strategic business plans are essential to outlining the responsibilities and goals for each employee within the company.

developments.

To grow substantially during the next few years is not a measurable goal, but To increase sales by 30 percent during the upcoming year provides a concrete objective to be achieved in a specific time frame.

“When you have that outline of what needs to be done, when it needs to be done and what the end result is, everyone is on the same page,” Hill says.

Ritter says the best strategic plans are measured and monitored routinely and the results are clearly defined.

“When there’s no questions left — it’s black or white — we met all goals or we didn’t, it’s easy to see why the results ended up as they did,” says Ritter. “A leading cause of business failure is not having any type of strategic plan.

“If a business has little idea where it is headed, it will wander without priorities, changing constantly, and with employees confused about the purpose of their jobs.

This is why corporate strategic planning is critical to business success, even if the planning process takes time and resources.”

That is true in the aftermarket segment where changes happen often and the competition is always ready to pounce.

“If you have a good, solid plan and everyone works within that plan,” Siegel says, “you can see the results at the end. If everyone is doing what they are supposed to do, you can achieve your goals.”

Marketplace

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

New crop of aftermarket products NEWSTAR has added an assortment of parts to its aftermarket product offering.

The company describes the products as a bracket for muffler guard support that fits International trucks; a chrome ABS plastic grille for Hino trucks; a trailer camshaft for Hendrickson trailer axles; and a strap kit for various Spicer u-joints.

Assorted aftermarket components PAI Industries has added a group of engine mount components, oil pans and kits and headlamps to its heavy-duty product offering.

PAI says the engine mounts fit assorted Freightliner, Kenworth and Peterbilt trucks. Some of the oil pan products come in kits, others are sold independently. The pans fit Detroit Diesel, Mack, Volvo, Cummins and Navistar engines.

The new lamps fit Freightliner, International and Volvo trucks.

Expanding RSD brake shoe kits AxleTech International is expanding its on-highway brake shoe kits product line with Reduced Stopping Distance (RSD)-certified brake linings.

AxleTech provides on-highway brake shoe kits in Economy, Standard, Premium, and Severe Duty formulations, in both 20,000 and 23,000 lb. Gross Axle Weight Rating (GAWR). The company says the kits include new brake shoes and OE-quality hardware for ease of installation.

Wheel nut checking tool Wheel-Check introduces a product designed to identify a loose wheel nut to help prevent brake and bearing problems.

When the wheel nuts are torqued properly, a WheelCheck can be placed on each wheel nut in a uniform pattern; once a wheel nut has loosened, the attached Wheel-Check will appear out of sequence for easy identification. If a brake binds or a bearing seizes, WheelCheck says the heat is transferred through the stud and nut; once the temperature exceeds 248ËšF, the WheelCheck will start to blister around the circumference and eventually begin to distort.

Spin-on air dryer cartridge Bendix Commercial Vehicle Systems introduces Bendix GC Spin-On Air Dryer Cartridge, the industry’s first spin-on style air dryer cartridge using recycled desiccant for the aftermarket, the company says.

26

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 7

The Bendix GC can be used on any North American air dryer that calls for a standard 39mm, right-hand thread spin-on dryer cartridge, although Bendix notes it is not suitable for applications requiring an oil-coalescing filter.

Marketplace

Gear sets, ratios and axle parts World American has a new crop of replacement Eaton, Dana and Meritor components in its heavy-duty product offering.

The company says the parts for Eaton and Dana include gear sets, gear ratios, inter-axle differential assemblies, input shafts, three-gear power divider kits and other parts. The Meritor part numbers include a gear set, locker coller and top-locker case.

Wave inverter line Xantrex has announced the Freedom X sine wave inverter line.

Available in 1,000- and 2,000-watt units, with an optional built-in three-stage battery charger (Freedom XC), the new inverters bring more surge power and precise electrical power in a rugged package, designed for the trucking industry.

The Xantrex Freedom X and XC come with a display panel that can be mounted in the sleeper. It shows the AC and battery current, plus has a status bar displaying the percent of inverter output, Xantrex says.

New EGR cooler line BorgWarner has developed an economical new series of multiplatform exhaust gas recirculation (EGR) coolers featuring a compact floating core.

Unlike conventional solutions which must be specifically designed for each application, BorgWarner says its modular cooler family includes four highly adaptable standard designs for maximum flexibility covering a wide range of engine sizes from 2.0- to 16.0-liter displacement. The new EGR solution offers high robustness against thermal fatigue and enhanced coolant distribution for durable performance even with minimum coolant flow, while reducing NOX emissions, the company says.

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Marketplace

Two-step fuel treatment Lubrication Specialties has introduces a two-step fuel additive treatment plan developed to work with all diesel engines.

Hot Shot’s Secret Diesel Extreme is used first in the two-step treatment plan as prescribed with a treatment ratio of four ounces to every 10 gallons every six months, or 6,000 miles.

The second step is to add Hot Shot’s Secret Everyday Diesel Treatment (EDT) fuel additive with each fill-up. EDT is a highly concentrated cetane improver, boosting cetane up to seven points. As a daily treatment, it maintains clean injectors, prevents rust, corrosion, gum and sludge formation.

Automatic lubrication system Graco has launched its Electric Grease Jockey automatic lubrication system.

According to Graco, this roadtested pump features an integrated low-level sensor that automatically alerts the operator when lubricant is low. The compact design and single mainline lubricant distribution system allow for consistent and efficient installations and service inspections, the company says.

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

Heavy-duty truck floor mats Minimizer has introduced new floor mats for Western Star and International tractors.

Minimizer has added five Western Star floor mats for 2016 to 2018 tractors, and a dozen floor mats for eight International cab configurations. Some products come as single units while others are two pieces that link together to provide the perfect fit, the company says.

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Marketplace

Clamps for heavy-duty use Oetiker, Inc., announces its heavy-duty truck line of highly engineered clamping and connection solutions is now available for the first time in North America.

According to the company, the new products include heavy-duty v-profile clamps, heavy-duty fuel tank straps, diesel exhaust fluid (DEF) tank/air straps, coolant hose connections.

Off The Line Spotlighting a new OEM innovation

New downsped SmartAdvantage powertrain Eaton Cummins Automated Transmission Technologies joint venture has added a new downsped overdrive model to its broad range of Eaton and Cummins SmartAdvantage Powertrains.

The 1,550/1,850 lb.-ft. torque rating is compatible with rear axle ratings down to 2.47:1, enabling engine cruise speeds as low as 1,075 RPMs— even lower than some direct drive transmissions. The new model is an

30

ideal specification for fleets interested in optimizing performance and fuel economy in linehaul applications, the companies say.

“This new SmartAdvantage model is capable of the lowest cruise RPMs in the trucking industry for best in class downspeeding,” says Alex Stucky, product strategy manager, HeavyDuty Linehaul Transmissions, Eaton Cummins Automated Transmission Technologies.

T R U C K PA R T S & S E R V I C E | S e p t e m b e r 2 0 1 7

Shop tools and suspension kits OTC introduces new stands, jacks and jack packs, all of which meet updated ASME PALD safety standards for lifting equipment and are available now in North America.

Additionally, OTC also has added more bushing adapter kits for Hendrickson front and rear suspensions in heavy-duty applications. The OTC 4250 Front Suspension Bushing Adapter Kit and 4254 Rear Suspension Bushing Adapter Kit are now available for select Hendrickson suspensions.

Assorted cargo securement products Ancra International introduces its Poly Deckboards to replace plywood boards found in most loading docks, and its Beam Rack for quick and easy beam storage in a trailer.

Ancra says its new boards are 50 percent lighter than typical plywood and made with convenient hand slots providing better ergonomics for dock workers and allowing for better load optimization.

Additionally, its Beam Rack is said to fit easily into existing logistics posts to provide a secure, easy and efficient method of raising beams up and out of the way when not in use.

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