the used truck association industrywatchi am referring to dean jeske. dean has done a great job of...

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INDUSTRY The Used Truck Association Volume 22 Issue 8 August 2020 1.877.GETS.UTA WWW.UTA.ORG WATCH Chartered May 16, 1988 2 Board and Committees 2 Quips & Quotes 3 Board News & Views 4 Face to Face with Robert Yost 5 Industry Events Calendar 5 UTA Events Calendar 6 Dealer Group Update 7 Doug’s Morning Coffee: Tend Your Garden! 8 Welcome New Members 9 Women In Trucking: HERoes of the Highway 10 How the Freight Industry Is Rebounding in the Wake of the Recession 11 Used Truck Appraisal Process 12 Ricardo Rodriguez-Long Opinion Column: The Importance of Seat Design 13 Book Excerpt: Ten Ways to Reveal Deep Devotion Tomorrow 14 J.D. Power Valuation Services Update 16 Industry News Briefs 19 Brooks Tip of the Month 20 Photos from the 2019 Convention 22 From Where We Sit Contents UTA ELECTION COMMITTEE UPDATE T hanks to the efforts of Doug Shields and his team members, photos and bios are online for the 2020 LTA and UTA BOD nominees. You can access the Marvin F. Gordon Lifetime Achievement nominees at the following link: https://uta.org/marvin-f-gordon-lifetime-achievement-award/ You can access all of the Board of Directors nominees at this link: https://uta.org/board-of-director-nominees/ The UTA is fortunate to have so many worthy nominees this year. “We have tremendous bench strength in the Used Truck Association and no shortage of ready and willing industry professionals wishing to expand their level of service to our members,” said Doug Shields, Elec- tion Committee Chair. Here is the timeline: » By the time you read this the Board of Directors ballots will have been sent to all corporate members. » The Marvin F. Gordon Lifetime Achievement ballots will go out to the voting members of the Board of Directors on August 31st. Doug expressed a hearty THANK YOU to the following people who were instrumental in collecting, compiling, and posting the bios and photos for this years’ nominees. Joe Feco and Misty Reis for their tireless work in contacting the nominees to get their bios and photos turned in on time. This was no small feat! Brad and Debra Schepp for their help with writing and proofing the bios. Thanks go out also to Steve White for posting the bios and pics to the UTA website. “And of course, Craig Kendall, for holding me accountable to ensure we had everything done on time,” Doug added. “This was truly a team effort and I’m very proud to be a part of this group of professionals.” And a huge Thank You to Doug Shields for overseeing this process in such an organized and professional manner. n

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Page 1: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

INDUSTRYThe Used Truck Association

Volume 22 • Issue 8 • August 2020

1.877.GETS.UTA • WWW.UTA.ORG

WATCHChartered May 16, 1988

2 Board and Committees

2 Quips & Quotes

3 Board News & Views

4 Face to Face with Robert Yost

5 Industry Events Calendar

5 UTA Events Calendar

6 Dealer Group Update

7 Doug’s Morning Coffee: Tend Your Garden!

8 Welcome New Members

9 Women In Trucking: HERoes of the Highway

10 How the Freight Industry Is Rebounding in the Wake of the Recession

11 Used Truck Appraisal Process

12 Ricardo Rodriguez-Long Opinion Column: The Importance of Seat Design

13 Book Excerpt: Ten Ways to Reveal Deep Devotion Tomorrow

14 J.D. Power Valuation Services Update

16 Industry News Briefs

19 Brooks Tip of the Month

20 Photos from the 2019 Convention

22 From Where We Sit

Contents

UTA ELECTIONCOMMITTEE UPDATEThanks to the efforts of Doug Shields and his team members, photos and bios are online

for the 2020 LTA and UTA BOD nominees.

You can access the Marvin F. Gordon Lifetime Achievement nominees at the following link: https://uta.org/marvin-f-gordon-lifetime-achievement-award/

You can access all of the Board of Directors nominees at this link: https://uta.org/board-of-director-nominees/

The UTA is fortunate to have so many worthy nominees this year. “We have tremendous bench strength in the Used Truck Association and no shortage of ready and willing industry professionals wishing to expand their level of service to our members,” said Doug Shields, Elec-tion Committee Chair.

Here is the timeline:

» By the time you read this the Board of Directors ballots will have been sent to all corporate members.

» The Marvin F. Gordon Lifetime Achievement ballots will go out to the voting members of the Board of Directors on August 31st.

Doug expressed a hearty THANK YOU to the following people who were instrumental in collecting, compiling, and posting the bios and photos for this years’ nominees.

Joe Feco and Misty Reis for their tireless work in contacting the nominees to get their bios and photos turned in on time. This was no small feat!

Brad and Debra Schepp for their help with writing and proofing the bios.

Thanks go out also to Steve White for posting the bios and pics to the UTA website.

“And of course, Craig Kendall, for holding me accountable to ensure we had everything done on time,” Doug added. “This was truly a team effort and I’m very proud to be a part of this group of professionals.”

And a huge Thank You to Doug Shields for overseeing this process in such an organized and professional manner. n

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SHARE YOUR NEWS with the UTA Industry Watch.Send submissions, ideas and comments to:UTA Industry Watch Editors Brad and Deb Scheppc/o Sentry Management 303 Corporate Center Drive, Suite 300 AStockbridge, GA 30281 Phone: 877-GETS-UTA (877-438-7882)Fax: [email protected]

Twitter: @usedtruckassocFacebook: Used Truck Association

Management: Misty Reis, [email protected]

Art Direction/Graphic Design: Laura Carter, [email protected]

Craig Kendall PresidentAmy Shahan Vice PresidentTerry Williams SecretaryHal Dickson TreasurerWillie BoyleRocky CardenJoe Feco Jody JohnsonMichelle OberTim RonanMike RoneyDoug ShieldsRodney StephensIan Sifuentes Alternate

Executive Advisors Charles CatheyMarty CrawfordDean JeskeRonnie JordanRobert Yost

OEM Advisors Brock FrederickJeremi GuditisBo Johnson

2020 USED TRUCK ASSOCIATIONBOARD OF DIRECTORS & COMMITTEESwww.uta.org/directory

Convention Committee Chair – Terry Williams Co-Chair – Hal Dickson Brock Frederick

Dealer Group & Preferred Partners Chair – Rocky Carden Amy Shahan Bobby Williams

Elections Committee Chair – Doug Shields Co-Chair – Charles Cathey

Finance Committee Marty Crawford Ronnie Jordan Craig Kendall

Marketing & Website Committee Chair – Craig Kendall Co-Chair – Terry Williams Hal Dickson Doug Shields

Membership Committee Chair – Mike Roney Co-Chair – Michelle Ober Joe Feco

Scholarship Committee Chair – Dean Jeske Co-Chair – Tim Ronan Rocky Carden

Training Committee Chair – Amy Shahan Co-Chair – Jody Johnson

Young Members Committee Chair – Victoria Lombardo

“Become the person who would attract the results you seek.”

- Jim Cathcart

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Tim Ronan,Scholarship Committee

[email protected]

SOS – Save our Scholars!

This is my second stint on the UTA Board of Directors. When I was asked with whichCommittee I wanted to be involved the decision was an easy one. I once again chose

the Scholarship Committee. Afterall, it is something that I am still passionate about, and to work alongside someone who shares that passion is a blessing.

I am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so that in January 2020, at our face-to-face Board meeting, we voted unanimously to increase the amount of scholarship funds awarded from $25,000 (10 - $2,500 grants) to $42,000 (seven - $6,000 grants). We thoroughly discussed this decision as we wanted to keep the overall focus on the Fund’s long-term sustainability, just as Jerry Nerman had intended. “Saving for a rainy day” was discussed, then calculated, and the new quantity and new amounts were passed!

Enter COVID 19! Wait, what?

The “rainy day” has turned into a ‘rainy’ five months. The good news is that because of the efforts and unparalleled generosity of many

people there will be no backtracking on the scholarships we will award later this year. The UTA-Jerome Nerman

Family Foundation Education Fund stands strong and tall. The money that so many of you have graciously given to build this fund has been wisely managed, protected, and invested for just this type of unforeseen situation.

Our biggest Scholarship-building event, the 15th Annual UTA Kansas City Golf Open was scheduled for

June 24th and 25th in Kansas City. The UTA Board of Directors made the right decision to cancel this year’s outing due to the pandemic.

The question that stared us in the face was where will we replenish the Fund account? The answer was easy! We knew our membership would rise to the occasion to make sure Jerry Nerman’s dream wouldn’t miss a beat. I spoke to several of our sponsors and members who made it crystal clear. “Let us know what, and let us know when, and we’ll be there to help replenish the fund.

The Board is now weighing several ideas on how best to accomplish this, but we wanted to share this opportunity with the entire membership and open the floor to your ideas! Dean and I, as well as any Board Member, Advisor, and Mike and Misty Reis at Sentry Management would love to hear your creative ideas! The goal is to help seven special young people with their educational expenses this fall. But wouldn’t it be nice to help 10, or 12, or more?

I remember the first time I was a Board Member and talking with Jerry in Kansas City. He said to me, “It sure would be nice to get to where we could give away ten $10,000 Scholarships. Do you think we can get there?” Even with all that has gone ‘wrong’ this year, I can still say that as I look up to heaven, I smile at Jerry and say, “Yes sir! Our UTA family will get us there!”

If you would like to help right now, please go to our website, https://uta.org/jerome-nerman-kc-golf-tournament/ and click on the blue button in the middle of the page that says, “DONATE SECURELY ONLINE”!

I also want to implore you all to sponsor a deserving young person. The seven $6,000 Scholar-ships will be awarded this fall. The application is on our website, www.uta.org, and can be downloaded and printed from there. Please do not hesitate to reach out to me if you have any questions about the application process. If you are sponsoring an applicant and they are having difficulty getting all the required documentation, please contact me at [email protected] and we will help you address any issues that may be hindering the process. These are definitely challenging times and we will conquer these challenges TOGETHER! As I wrote in my Board News & Views article in April 2013, in the words of Frank Bartles and Ed Jaymes (Google them and/or wine coolers), “Thank you for your support!” n

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Robert is the Vice President, Truck Sales, for Gateway

Truck and Refrigeration of Collins-ville, IL. He is a veteran of 35 years in trucking. With such a long and successful career, he is sure to have some wisdom to share.

At Gateway, Robert is responsible for all new Volvo truck sales, all new Hino truck sales, and the Gateway truck rental/leasing program. He started his career as a new-truck salesman with Nalley Carolina in Charlotte, NC. Over the years he has sold trucks of all types. He’s worked with Premium Volvo, Jackson, MS; Peterbilt of St. Louis, MO; Arrow Truck Sales in four different locations; and Ameritruck of Atlanta, GA.

Over the years, Robert has attributed his career growth and success to two main advantages: his willing-ness to work hard and a few great mentors. “I actually had the good fortune to work with Ken Kosic, Sr. twice, once at Nally Carolina Peterbilt in Charlotte, NC and a second time at Arrow Truck Sales,” Robert said. “Kenny was the used truck manager at Nally. We were riding in my car one day, and he pointed at a bird in the distance. He asked me if it was a buzzard or a hawk. Did I know the difference? A buzzard waits on something to die and a hawk kills it. He then asked me if I was a buzzard

or a hawk.” Robert is a hawk all the way. “Hard work every day pays off,” he said.

But Robert also respects Ken’s optimism. “Kenny is one of the most naturally positive individuals that I have ever known. Thank you, Mr. Kosic for your support and direction!” he added. A second major mentor in Robert’s life is John Wagner, former St. Louis Cummins distributor and later owner of Gateway Truck and Refrigeration. “John is probably the most influen-tial person I have ever had the good fortune to work with. His strong ethical nature, brilliant mind, and humble style guided the most enjoyable environment I have ever worked in. He made it where you loved to come to work,” recalled Robert. “Proud to come to work…every day,” he added. “A colleague once asked me how it was working for John, and I answered that some people expect you to work hard or face redress, that doesn’t work well for me. I worked my tail off every day for Mr. Wagner because I would never want to disappoint him!”

After 35 years, Robert is quick to answer what he still loves most about his work. “I love selling trucks,” he replied. “The thrill of closing deals or to help close deals keeps me motivated and engaged. I enjoy personal interactions and building long-term relationships.” Looking back for his proudest moments, Robert turned to his association with Jerry Nerman. One of his proudest moments was the day Jerry met him in St. Louis and invited him to join Arrow Truck Sales in opening their new St. Louis location. “I spent 15 very rewarding years working on the Arrow team and had the opportunity to manage several different locations for them,” he recalled. His time with Arrow was also the part of his career when he first became involved with the UTA. “My opportunity at Arrow gave

WITH

Robert Yostme the chance to start building relationships with customers and truck dealer contacts in all time zones,” Robert explained.

With such a list of distinguished mentors and associates, Robert has gathered a lot of wisdom throughout his career. Sharing some of that with those coming along behind him, he offers wise advice. “Being in the truck industry is not a job,” Robert warns. “It is an exciting, rewarding career. Hard work and continuous commit-ment to job skills, pays big divi-dends.” Robert came to his career knowing the importance of making and keeping commitments. “Trea-sure your word and your reputa-tion above all else,” he advises. “Networking with peers is vital to long-term success, and involve-ment with industry associations and state trucking associations also helps open doors in your career.”

Over the years, Robert has made many friends through his job. “I have been fortunate to be in a career that allowed me to meet and work with so many wonderful people,” he says. “I never take any relationship for granted. I believe that ‘a friend is a gift you give to yourself!’ Give often!”

Robert and his wife, Joni, will soon be celebrating their 40th wedding anniversary. “Getting her to marry me was by far the best selling job of my life,” he teased. The couple has two grown sons, Ryan and Russell. Russell lives in Chicago, while Ryan decided to attend graduate school in London, where he still lives. Luckily, the family enjoys traveling. They not only visit Ryan, but they often gather family together at the South Carolina beach house. They’ve traveled to explore Europe nearly every year since their son moved 12 years ago now. Robert also enjoys golf, shooting, and bird hunting. n

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SEPTEMBERCANCELED 29-30 • UTA’s 2nd Annual Fishing TripLake TexomaAlberta Creek Resort, Kingston, OK Contacts: [email protected]

UTA Events Calendar

AUGUSTCANCELED 27-29 • Great American Trucking Show (GATS)Dallas, TX

SEPTEMBERCANCELED 24-30 • IAA Commercial Vehicles ShowHanover, Germany

24-26 • Truck WorldSponsored by NACVInternational Centre6900 Airport Road, Mississauga, ON

OCTOBER CANCELED 10-11 • California Trucking ShowCalifornia Trucking Association

Now Virtual! 24-27 • ATA Management Conference & ExhibitionSponsored by American Trucking Associations Denver, CO

NOVEMBERNow Virtual! 4 • NTDA Annual Convention

Now Virtual! 12-13 • Accelerate! Virtual Conference & ExpoWomen In Trucking

MARCH 202125-27 • Mid-America Trucking ShowKentucky Expo CenterLouisville, KY

MAY 20213-6 • ACT Expo Sponsored by Advanced Clean TransportationLong Beach Convention CenterLong Beach, CA

OCTOBER 202116-17 • California Trucking ShowCalifornia Trucking AssociationOntario Convention CenterOntario, California

Note: Be sure to check the websites listed below for the latest information on these events.Industry Events Calendar

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DEALERGROUP

UPDATE

The Only Disability in Life is a Bad Attitude

Attitude is a word that applies to everyone and everything. It could be a person’s attitude. Or our pet’s attitude. We see attitude everywhere.

But beyond that there are kinds of attitudes. A person has his personal attitude, his business attitude, and his social attitude; and they can all be different.

The personal attitude is something you develop from the way you’re brought up and what you believe in. This could result in a loner-type attitude or a group-loving and sharing attitude.

The loner does not like being associated with any particular group or participating with a team.

The “group” type of personal attitude re-sponds well to volunteer-ing and wanting to help with functions or events—no matter how they personally feel about the cause. They like just giving a helping hand or even just their opinion if it will help someone in some way.

We have all seen both types of personality attitudes from different people, and it seems more people move to and enjoy the group with attitude-positive type people.

Then there’s the business attitude. This pertains to the people you work with—how they are treated in the workplace, and how they come across to other employees. The more positive the people you work with are, the more positive your own attitude becomes. You then project that to everyone you associate with. This results in a more efficient, profitable, and enjoyable work environment for everyone.

In today’s world of political correctness and diversification, the social attitude has changed for many. Seeing things happen that a few years ago would have been thought of as crazy now happens daily with no end in sight. This can cause many people to change their attitudes one way or the other. We all need to try to be positive and understanding of the world today.

Bottom line: With a positive attitude anyone can achieve any goal they strive for and be happier with how their accomplishments work out. n

John MuellerWholesale Manager/Corporate Buyer

Doggett Freightliner of South Texas

“A bad attitude is like a flat tire; you are not going anywhere until you change it.”

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Doug Shields Director Used Truck Operations

Rush Enterprises, Inc. [email protected]

Doug’s Morning Coffee:Tend Your Garden!

I grew up on a mini-farm in rural Mississippi back in the early

1970’s. One of the jobs my father gave me was tending our two-acre garden. I learned, early on, that if you want a good crop, you must weed your garden every day.

The second you see a weed springing up, you must pull it out by the roots while it’s small and throw it far away from your garden so that it has no chance of taking hold, choking out and eventually killing your productive plants.

Left unattended for even short periods of time, weeds will seize complete control of your soil and starve your productive plants of valuable resources and nutrients necessary for a profitable harvest.

Sales can be a lot like farming. So can sales management.

One of the key factors I have found in those who reach the highest levels of success in our business, is their ability to remove the “weeds” from their environment and then focus their resources on what is profitable.

Drama is a fact of modern life and it’s getting worse, not better.

Just turn on the news or visit your preferred social media site and you will be bombarded with hundreds of scenarios designed to upset, disturb, and distract you from your primary mission of selling trucks.

Obsession with current events can and will interfere with your ability to maintain your focus on what pays you. Your willingness to engage in high return activities, while eliminating low return distractions is essential to your success.

In my years as a salesperson and a manager, I’ve noticed that those salespeople who gravitate towards distraction and drama fail miserably compared with those who maintain a laser focus on specific actions that promise a high probability of making a sale.

Sadly, these low producers fritter away their valuable time surfing the web, discussing office gossip, stressing over things they can’t possibly change, and go home feeling like they’ve been through the proverbial mill.

Yet they accomplished nothing.

Given that we all spend roughly eight to ten hours a day at work, wouldn’t it make more sense to apply most of our time to high return activities and leave the drama to our competition?

What are these profitable activities that yield precious sales even in challenging times?

Here’s a short list:

1. Conversations with qualified buyers: These can be by phone, email, text, or in person. The more qualified people you “talk” with, the more likely you are to uncover a need and sell to it. Everything you do should be aimed at creating more conversations with qualified buyers.

2. Presentations to qualified buyers: The ability to effec-tively present viable solutions to your prospect’s problems is essential to your success as a salesperson.

One of the downfalls of tech-nology is the increasing ten-dency of our salespeople to simply send out a quote via email. Email is easy. Email is quick. Email is painless. Email lacks the risk of rejection.

And yet, nothing falls flatter than an email with a price on it.

Your job is to differentiate your solution to the prospect’s problem from everything else. When you send out a spec sheet and a price via email, you are violating one of the most sacred rules of sales.

You must deliver your presen-tation yourself. You simply cannot depend on an email to do it for you.

If my prospect isn’t willing to allow me to present my solution to his problem, either in person, via Microsoft Teams, FaceTime, or telephone, then I’m not sending it.

If I do, I’m just inviting him to base his decision to buy just on price; not on quality, perfor-mance, or any other factors that would be valid reasons to do business with me versus the lowest bidder.

Continued on page 19

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Artemio (Art) Benitez, President Portside Truck Sales 1002 North Pacific Ave., San Pedro, CA 90731www.portsidetrucksales.com(424) 477-5003 [email protected]

Art began his career in the trucking industry in May 2009. He brought his years of management experience to trucking from his days as a retail store manager and hospitality manager. His first trucking job was as a sales associate with SelecTrucks of Fontana.

Art has some specific goals for his UTA membership. They include connecting with “A broad network of like-minded colleagues…”. Art is also looking for a platform for sharing and gathering “ideas about how to better the industry for the benefit all involved.” He sees UTA as that platform.

For Art, each day in the business can present a different challenge, which he enjoys. Some of the challenges include “helping a customer decide which type of truck to purchase for his specific trucking needs to resolving issues with financing to allow a new owner operator to enter the industry,” Art said.

When his workday is done, Art enjoys spending time with his wife and their three children, doing things like going out to the movies and attending their sporting events.

Tim Dolan Hogan Truck Leasing, Inc. 2150 Schuetz Rd, Suite 210 Saint Louis, MO 63146(314) 802-5964 [email protected]

Ken Elledge Valiant Truck and Trailer 10040 White Rock Rd. Conroe, TX 77306 (832) 318-9652 [email protected]

When he’s not working Todd enjoys the outdoors. For example, he enjoys boating “on Pickwick Lake on the Tennessee River and hiking in the Smoky Mountains,” he said. All that sounds great to us about now!

In closing, Todd said he’s looking forward to meeting members and becoming part of the UTA. “I hope to become involved with the association and to learn as much as I can about the used truck industry,” he said.

Charles Smith, Regional Business Development and Marketing Manager (NE and Great Lakes)Mission Financial Services Group Corporation510 Plaza Drive Atlanta, GA 30349www.missionfinancialservices.netFacebook: Mission Financial Services, Corporation (404) 969-8715 [email protected]

Charles started out in the trucking business in 2014.

Katie May, Manager of RemarketingHogan Truck Leasing, Inc. 2150 Schuetz Rd, Suite 210Saint Louis, MO 63146www.hogan1.com(314) 802-5940 [email protected]

Katie started in trucking in 1998, working for Gateway City Interna-tional as a Service Center Clerk. Before coming to the trucking business, she worked for a tire retread company, as well as a nonprofit offering business services.

What brought Katie to the UTA? She’s hoping to gain knowledge in remarketing and network with her peers, she said.

The fact that “no two days are alike” in this business is something Katie really likes. Working with customers is another part of her job that she enjoys.

When she leaves the workday behind you might find Katie riding four wheelers or weightlifting.

Todd McLemore, Owner/Manager Classic Transport Memphis LLC Memphis LLC 27340 3507 Crestwyn Drive Germantown, TN 38138(901) 258-6459 [email protected]

Todd is a true veteran of our industry as he started out back in 1982.

We Todd asked about his first trucking job. “My first job in trucking was in my early teens driving a refrigerated delivery truck making store door deliveries to my Dad’s convenience stores,” he said. After high school he began driving tractor trailers and hauling watermel-ons to his family’s convenience stores (McLemore’s) and other grocery stores. Todd spent the first 20 years of his career working in his family’s business as a driver as well as a manager.

Now Todd is the owner/manager of Classic Transport Memphis LLC, a driveaway company transporting trucks and equipment in all 48 states.

We were curious what brought Todd to the UTA. Like so many members Todd’s hoping to make new connections and friends in the industry and explore how he can be of service to the UTA and its members.

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“essential.” We’ve always recog-nized the value of our transporta-tion workers, but now the recog-nition has broadened, and your neighbors are a little more aware (and thankful) for the job you do.

At Women In Trucking Association, we want to extend that acknowl-edgement and focus on the heroes of the highway for our annual “I HEART Trucking” photo contest. In fact, since we are focused on women in the industry, we’re calling it the HERoes of the Highway.

The theme this year is about the professional drivers who have been on the front lines these past few months. You’ve put your own health at risk to ensure the safety of others. You’ve made your deliv-eries, despite the obstacles placed in your way. You’ve had to com-promise when looking for places to eat, shower and when making a delivery. You’ve stayed away from your families to ensure their safety because you’ve been out there doing your job.

You are truly the HERoes of the highway!

Get your cameras out and send us your photos in your best super-hero stance in front of your truck. You have until August 14 to submit your best snapshot to the Women In Trucking Association. We’ll post them on our website and open the voting to your family and friends from August 17-28. There will also be “Judges’ Choice” winners in addition to the Peo-ple’s Choice leaders. The winners will be announced at Women In Trucking’s Accelerate! Conference and Expo September 23-25. Thanks to Hudson Insurance Group for sponsoring this photo contest.

Find out more at www.womenin-trucking.org.

You truly are the superheroes and we want to make sure you are recognized as the HERoes of the highway.

For more information visit www.womenintrucking.org. n

other side of the station putting fuel into the underground tanks while they fill their own car or pickup truck at the pumps.

As you go about your day and keep the economy moving, many consumers just don’t think about

how the tractor trailer on the highway relates to them (and their families) in a personal way.

The pandemic has changed that, for the better. When hysteria struck and people thought they wouldn’t be able to obtain needed provi-sions, they hoarded toilet paper, hand sanitizer and cleaning supplies. People flocked to their local stores and found empty shelves and started panicking. The cereal aisles were empty, the refrigerated section held coffee creamer and maybe some soon-to-expire dairy products. Forget the coffee and eggs for breakfast, as they were all sold out.

One driver said when he pulled into a store, he was greeted by clapping and cheering when the customers learned he was carry-ing toilet paper. Seriously, how many of you paper haulers thought you would be welcomed as a hero when you were just making a delivery?

It’s about time our supply chain workers are being recognized as

Women In Trucking:HERoes of the Highway

Ellen Voie CAE PDC President/CEO

Women In Trucking Association, Inc. (920) 312-1350

Do you remember when you were a child and someone

would ask you what you wanted to be when you grew up? The typical elementary school child’s response was firefighter, police officer, teach-er, doctor, pilot, or even astronaut.

For many of you reading this blog, perhaps you already knew you wanted to drive a truck or work in supply chain when you were older. I’m guessing you were in the minority. Most of the occupations children mentioned had high profiles and were considered more glamorous than working in the trucking industry.

Professional drivers have often been the “invisible” ones on the road. When you do your job well and are operating in a safe and efficient manner, no one seems to notice you. It’s only when a motorist thinks you are going too fast, too slow, or driving erratically when they seem to pay attention to the eighteen wheelers alongside them.

Folks outside of the trucking indus-try often tell me they don’t even think about how their products get to the store shelves. They just do their shopping and assume the items on the store shelves just appear there each day. When they fill their gas tanks they don’t make any connection with the tanker on the

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How the Freight Industry Is Rebounding in the Wake of the Recession

Employment in the Freight IndustryTrucking in America has gotten a lot of positive attention from the federal government from the very beginning of the pandemic. Truckers were declared essential workers by the White House with little delay. This kept owner/operators’ jobs secure, to some degree, but also created new challenges for workers in an industry becoming more isolated by the day—with truck stops and highway restaurants shutting down left and right due to the pandemic and necessary practice of social distancing.

The following months were a mixed bag for O/Os, with notable difficulties for freight owners and logistics companies. The Ameri-can supply chain became severely lopsided overnight, with demand for medical supplies and food products spiking in urban areas, causing full truckloads to enter metropolitan areas at an in-creased rate, only to find there wasn’t anything to fill their trucks with on the way back out to a factory or distribution center (and we all know how fast you bleed money driving an empty semi-truck). This caused per-mile rates to be wildly inconsistent across different areas of the country, with some O/Os making money hand over fist, and others finding out they’d make more money if they chose not to drive at all.

Good News for Truckers As of JulyIn July we started to see a steady rebound in trucking rates all across the country. According to data gathered by DAT Freight & Analytics, Los Angeles and Chi-cago continued to improve, with substantial rate increases on nearby high-volume freight lanes.

Note: The rates listed below are averages from the beginning of June, based on actual transactions among carriers, brokers, and shippers.

» Chicago to Columbus, OH, rose 19 cents to $2.34 per mile

» Chicago to Detroit gained 15 cents to $2.78

» Chicago to Allentown, PA, was up 13 cents to $2.32

» Los Angeles to Denver jumped up another 25 cents to $3.09

» L.A. to Seattle climbed up to $2.74

In addition to this good news, there was another increase on the lane from Charlotte, North Caro-lina, to Buffalo, New York, where the average rate increased by 20 cents to $2.31 per mile.

Prices from Atlanta down into Florida are on the way up as well. Produce season is starting to end in the southern states, so demand has begun to shift away from outbound and back toward in-bound traffic. The rate from Atlanta to Lakeland, Florida, was up to $2.41 per mile at the start of June as a result.

Overall, 72 out of the top 100 van lane rates have increased, while 16 others maintained their previ-ous levels. This makes it a great time to be on the road and gives O/Os good reason to watch rate changes with a sharp eye to maximize their route efficiency.

Trucking’s Long-Term TrajectoryIt’s no secret the freight industry has been seeing troubling signs for a couple years running. Class 8 sales have dipped, and even before COVID-19 there were prominent news outlets writing about the freight industry being in recession.

The American economy took a serious hit in March, April,

and May of this year, with unem-ployment spiking at nearly 15 percent. This percentage of people left without full employment in America was so large, you’d have to go back 80 years to find a comparable moment of economic strife. Much of the spike is attrib-uted to the coronavirus pandemic, a serious public health crisis that required many industries to slow down or cease operations com-pletely to prevent a widespread infection.

Luckily, there has been good news on the job front. As of early July, unemployment decreased to 11 percent, indicating roughly 4.8 million people returned to work since the coronavirus pandemic began. This brings the rate of unemployment back in line with some more relatable markers in American history, not too long ago. The recessions of 1983 and 2009 both yielded unemployment rates of roughly 10 percent, which gives Americans who have lived through past economic downturns a small indication of how things might progress in America moving forward.

Continued on page 19

Author Credit: Mission Financial Services and

Hannah Karlson/Jade West

Mission Financial Services has been in the finance industry since the

early 1950s. The company entered the commercial lending market in

2000, and Mission Financial is now a direct lender for dealership-gen-erated contracts and loans directly

to the owner/operator.

10

Page 11: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

I had a discussion with a Used Truck Manager who was training a new employee this week. Armed with their clip board, appraisal pad and iPhone the new trainee sure looked the part! The question I was asked was

“What is the most important thing to make sure you don’t mess up in a used truck appraisal?” That is a great question. It is always best for all the information on the appraisal form to be accurate. But having said that, certain pieces of information are more important. Make sure you get those right!

To illustrate the relative importance of specific components, consider the following chart. This chart outlines how important each component is in determining the overall sale price of a used sleeper tractor.

The adage “If you know the model year and vehicle miles – you are half-way home” still holds true today. So as a Manager you had better check the VIN to make sure the model year is correct. It is also a good idea to validate the odometer miles against the ECM miles to make sure they are in the same range. And since you are plugged into the ECM, verifying the engine model / HP rating is another good idea!

So what does this mean for your business?

» Make sure your salesperson has all 17 digits of the VIN right. That is not hard! Make sure the unit being turned in by your customer is the same one that you appraised. With the VIN you can also find out important details on the repair history of your potential trade-in.

» Make sure your salesperson knows the definition of “glider.” Glider kits are a horse of a different color. The relative value distribution chart above does not apply to gliders. Flush gliders out early in your used truck appraisal process!

» Put iPhones to good use. Take pictures! Videos to communicate how the engine sounds or specific repair concerns are also good ideas. Exploit technology in your used truck appraisal process.

» Even if you get the year / miles / engine right – there is still plenty of room for making expensive mistakes in the used truck appraisal process. Don’t get lulled to sleep by the fact that certain components only drive 2% or 3% of the total used truck value. All of these component features can be easily identified. But you need to know what you are looking for! The devil is in the details – so make sure you have properly trained your staff to correctly identify specific components. It will be an investment that pays you dividends in the future. n

June 12th, 2020

Reprinted by permission of Key Advisors

Used Truck Appraisal Process

1%

2%

2%

2%

3%

5%

5%

5%

6%

16%

17%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Wet Kit

Fifth Wheel - A/S

Aero Effects

Rear axle - 6x2

Super Single tires

Transmission

# Aluminum Wheels

Sleeper configuration

Glamour (Dual Exhst / bumper / visor)

Engine / HP / Jake

Miles

Model Years Old

Class 8 — Used Sleeper Tractors

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Page 12: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

The Importance of Seat Design

Ricardo Rodriguez-Long Re-marketing and Asset

Management Lookout Valley

Equipment Sales, TN

OPIN ION COLUMN

Seat design is not something most people think about, but it is one of the most important features on any vehicle. It is the primary connection with the driver and from where all spatial judgments are made. From

your seat you are in control of moving a mass between 4,000 lbs. for cars and 80,000 lbs. for trucks. For that reason, the seat must provide the right amount of comfort and perspective, so it becomes a part of you.

I had the opportunity to meet with Antonio Del Puerto, the Seat Engineer for the new 2021 Ford F150 (the bestselling vehicle in the U.S. for 43 years). Throughout the conversation I learned a lot about how complex making a proper seat can be. Through years of studies in physiology and ergonomics we know that the proper seat must have a backrest angle of between 22 and 30 degrees. “That is just the beginning,” said Antonio. “The seat must be able to accommodate a person between the 95th percentile man (265 lbs., 6’2’ height) and the 5th percentile woman (101 lbs., 5’ height).” The type of vehicle will determine the firmness of the cushions based on the estimated length of time at the wheel. Thus, a sports car will have really firm and thin surfaces to deliver car feedback through your body, and a Lincoln Continental seat would be designed for 5-6 hours of non-stop comfort.

As we consumers started spending more time in our vehicles due partly to the efficiency inherent in keeping them running, seats started to evolve. Beyond seat and backrest foams, the upholstery, the lumbar adjustments, and the texture of the materials have continued improving to provide the rest our bodies need.

Seats today have four or five electric motors built-in, controlling up to nine different adjustments capable of over 30 different positions.

Heating and Air Conditioning are also part of these new seats. One manufac-turer even includes radio speakers. In addition to making these seats and their materials last over long time periods, the seats also must pass the government’s crash-safety regulations and standards.

“A lot of studies are conducted with the customers during special events so we can understand how they are using the F150,” Antonio explained. “Many of the contractors use the truck as a rest space, so we went ahead and made the seat able to recline to 177 degrees,” Antonio said. And the next generation will have an active motion system, which is a massage package built into the seat. That will not only help you rest but also reduce stress.

In the trucking sector, seats are lagging in technology when compared to the auto industry. I recall the seats fitted to the “fleet” accounts as being basic and uncomfortable during the 1990s. I recently drove a 2018 Cascadia demonstrating how the DT12 trans works. Having learned all about seats by then, that knowledge was fresh in my mind. I hate to admit we have not moved forward much on this vital part of the truck.

We have drivers going over eight hours a day behind the steering wheel, day-after-day, and we have the lousiest seats in the automotive industry. With truck makers being profitable year after year why is it that we are not providing the best for the those who are really “moving” the economy? Partner up with some American pickup truck supplier, they would love a 50,000-unit order. We need truckers, but we also need them to be safe and rested. Let’s not forget the driver seats. n

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Page 13: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

Reprinted by permission of Harvard Business Review Press. Excerpted from Unleashed: The Unapologetic Leader’s Guide to

Empowering Everyone Around You by Frances Frei and Anne Morriss.

Copyright 2020 Frances Frei and Anne Morriss. All rights reserved.

Ten Ways to Reveal Deep Devotion Tomorrow

When you’re talking with a co-worker do you sometimes think more about what you’re going to say when they pause than about what they’re telling you? Or do you run

through to-do lists in your mind instead of giving your co-worker your full attention? We can all learn to better communicate and the following excerpt from Unleashed: The Unapologetic Leader’s Guide to Empowering Everyone Around You by Frances Frei and Anne Morriss is a great place to pick up some strategies for doing that.

The following are ten things that you can do to communicate commitment to the people in your life, all achievable within the next twenty-four hours:

1. Again, put down your phone. In a world of relentless, device-driven distraction, giving someone your undiluted attention is among your clearest devotion signals. Use your devices as they were meant to be used, to get closer to people at a distance instead of further away from the people right next to you.

2. Channel your inner Terry Gross. Get curious about the lives being lived around you. Why have your colleagues made the choices they made? What has surprised or delighted or disappointed them along the way? If you’re stuck for how to begin the conversation, kick things off with a line favored by iconic public radio host Terry Gross: “Tell me about yourself.”15

3. Experience their reality. Assuming you know what your colleagues do all day is a fairly common severity stance, along with concluding that it’s probably not the right things. Find out the truth with active inquiry or even some good, old-fashioned job shadowing. If they’re spending their time in ways that are indeed less than optimal, help them to priori-tize better.

4. Ask how you can help. Find out how to be of service to someone. Don’t muddy the agenda with other things on your to-do list; keep the conversation focused on how you can help someone achieve something meaningful. And don’t end the conversation until you’ve committed to take action in ways that improve their chance of success.

5. Proactively help (without the asking part). Pick someone on your team whose proverbial “plate” you know well (ideally, because you’ve piled things onto it) and surprise them by removing something. Show them you get it by choosing something that’s causing particular frustration and/or is misaligned with their long-term goals.

6. Offer snacks. Feed people, preferably something they actually want to eat, but even a surprise box of doughnut holes will do the trick. To feed someone is to acknowledge their presence and humanity at the most foundational level. An edible offering can be wrapped in all kinds of packaging—celebration, gratitude, sustenance for a hard night ahead—that transforms easily into the currency of devotion.

7. Give them a break. The research is clear that sprints only work when they’re combined with time for recovery. Protect the space for real recovery for people, especially those who think they’re the bionic exception, who think they can keep going indefinitely without stopping to rest. It’s even simpler for those who report to you: make it non-negotiable and send them home for the day (or longer).

8. Acknowledge their lives outside work. Recognition of someone’s multidimensional existence can show up in many forms, so, no, you don’t have to feign interest in their toddler’s Spiderman-themed party. Instead, you can simply operate under the assumption that they have a life outside work by minimizing evening and weekend work. This is particularly meaningful to women, who are more likely to be primary caretakers of children and aging parents.

9. Offer sincere, specific gratitude. Thank someone for doing something that truly made your life better. Be specific about the act and its effects, how their decision made a difference. For a bigger devotion bang, send a thank-you note or another tangible expression of your gratitude. There’s no shame in being unoriginal here. “Stop with the flowers,” said no one ever.

10. Less me, more we. Language matters, in ways that can shape—and reshape—our realities. As a starting place, check the number of “I” and “me” statements you’re making over the course of the day. Replace a healthy percentage of them with “we” and “us.” For bonus points, throw in more “you” and “yours,” as in, “How can we help you achieve your hopes and dreams?” n

15. Jolie Kerr, “How to Talk to People, According to Terry Gross,” New York Times, November 17, 2018, https:/www.nytimes.com/2018/11/17/style/self-care/terry-gross-conversation-advice.html.

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Page 14: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

(7.2 percent) more money. Compared to July 2019, this average sleeper was 3 months newer, had 13,970 (3.0 percent) more miles, and brought $15,023 (27.5 percent) less money.

Looking at trucks two to five years of age, July’s average pricing was as follows:

» Model year 2019: $87,799; $6,328 (6.7 percent) lower than June

» Model year 2018: $74,637; $4,829 (6.9 percent) higher than June

» Model year 2017: $49,596; $4,417 (8.2 percent) lower than June

» Model year 2016: $38,169; $568 (1.5 percent) higher than June

Our average for model year 2019 was impacted by a large number of high-mileage trucks sold, while our average for model year 2017 was impacted by a large package of low-spec trucks. On an apples-to-apples basis, conditions were better than those figures suggest. Month-over-month, late-model trucks brought 0.6 percent less money. In the first seven months of 2020, pricing averaged 15.8 percent lower than the same period of 2019. Depreciation in 2020 is averaging 2.8 percent per month, back down below 3.0 percent and not far from what we consider historically typical.

See the “Average Retail Selling Price: 3-5-Year-Old Sleeper Tractors” graph for detail.

Dealers retailed an average of 5.2 trucks per rooftop in July, 0.6 truck higher than June, and 0.3 truck higher than last July. This month’s result is another healthy uptick, and the first result over 5.0 since August of 2018. There were definitely more retail buyers in July.

See the “Average Retail Selling Price: 3-5-Year-Old Sleeper Tractors” graph for detail.

Dealers retailed an average of 5.2 trucks per rooftop in July, 0.6 truck higher than June, and 0.3 truck higher than last July. This month’s result is another healthy uptick, and the first result over 5.0 since August of 2018. There were definitely more retail buyers in July.

See the “Number of Trucks Retailed per Dealership Rooftop” graph for detail.

J.D. Power Valuation Services UpdateThe Recovery is On Track

Conditions across the board generally stabilized in July, suggesting June’s recovery was not based solely on pent-up demand.

Sleeper Tractors – AuctionVolume was back down to a typical level in July after June’s massive increase. There were fewer auctions on the calendar in July, and June benefited from a degree of pent-up demand. Encouragingly, pricing for almost all model years of the benchmark model we track was stronger than June. See below for average pricing detail for this truck.

» Model year 2017: $36,831 average; $4,640 (14.4 percent) higher than June

» Model year 2016: $29,540 average; $2,227 (8.2 percent) higher than June

» Model year 2015: $26,062 average; $4,154 (19.0 percent) higher than June

» Model year 2014: $19,367 average; $3,459 (21.7 percent) higher than June

» Model year 2013: $10,475 average; $3,568 (25.4 percent) lower than June

Month-over-month, our benchmark group of 4-6-year-old trucks brought 13.5 percent more money. In the first 7 months of 2020, pricing averaged 21.5 percent lower than the same period of 2019. More positively, July’s average is the highest in 12 months. Our year-to-date average monthly price delta is now into appreciation territory.

Freight data continues to move in the right direction, with some sectors fully recovered and looking strong, and others still slowly recovering. There is still no shortage of supply, but demand continues to improve.

See the “Average Selling Price: Benchmark Sleeper Tractor…” and “Volume of the Three Most Common Sleeper Tractors…” graphs for detail.

Sleeper Tractors – RetailRetail volume increased again in July, with packages of higher-mileage trucks contributing to the volume and causing some of our averages to come in lower than last month.

The average sleeper tractor retailed in July was 68 months old, had 478,624 miles, and brought $39,650. Compared to June, this average sleeper was identical in age, had 374 (0.1 percent) more miles, and brought $2,677

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

Jan-16 Ma

rMay Jul Sep No

vJan-17 Ma

rMay Jul Sep No

vJan-18 Ma

rMay Jul Sep No

vJan-19 Ma

rMay Jul Sep No

vJan-20 Ma

rMay Jul

Average Selling Price: Benchmark Sleeper Tractor Sold through the Two Largest Nationwide No-Reserve Auction Companies

MY2011

MY2012

MY2013

MY2014

MY2015

MY2016

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Jan-16Mar

May JulSep Nov

Jan-17Mar

May JulSep Nov

Jan-18Mar

May JulSep Nov

Jan-19Mar

May JulSep Nov

Jan-20Mar

May Jul

Average Retail Selling Price: 3-5 Year-Old Sleeper TractorsAdjusted for Mileage

4YO

5YO

3-5YO Avg.

Source: J.D. Power Valuation Services

0

200

400

600

800

1000

1200

Jan-16 Ma

rMay Jul Se

pNovJan-17 Ma

rMay Jul Se

pNovJan-18 Ma

rMay Jul Se

pNovJan-19 Ma

rMay Jul Se

pNovJan-20 Ma

rMay Jul

Volume of the Three Most Common Sleeper Tractors (3-7 Year-Old) Sold through the Two Largest Nationwide No-Reserve Auctions

Source: J.D. Power Valuation Services

Source: J.D. Power Valuation Services

0

1

2

3

4

5

6

7

Jan-16 Ma

rMay Jul Se

pNovJan-17 Ma

rMay Jul Se

pNov18-Jan

MarMay Jul Se

pNov19-Jan

MarMay Jul Se

pNov20-Jan

MarMay Jul

Number of Trucks Retailed per Dealership Rooftop

Source: J.D. Power Valuation Services

14

Page 15: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

Chris Visser, Senior Analyst and Product Manager Commercial Vehicles

Looking forward, we have to qualify any generalized forecasts with the disclaimer that pricing is more mileage-dependent than it has been in recent history. Trucks with under 300,000 miles could very well end the year showing no depreciation, while average-mileage trucks should end up closer to the 10 percent+ year-over-year decrease we currently forecast. So, keep in mind the “Retail Value Forecast” graph is just a rough indicator of the overall used truck climate.

See the “Retail Value Forecast” graph for a look at how we see used truck pricing unfolding over the next four years.

Medium Duty TrucksMedium duty sales volume was back down to typical levels except for Class 6 conventionals, which saw another uptick. Pricing for cabovers pulled back after 3 months of stability, while conventional pricing was generally stable.

Starting with Class 3–4 cabovers, pricing and volume were both notably lower than June. July’s average for our benchmark group was $11,418, $2,167 (16.0 percent) lower than June, and $5,016 (30.5 percent) lower than July 2019. The first 7 months of 2020 are averaging 15.6 percent lower than the same period of 2019. Despite July’s weak result, average monthly depreciation in 2020 is still negligible.

See the “Average Wholesale Selling Price: 4-7-Year-Old Class 3-4 Cabovers” graph for detail.

Looking at Class 4 conventionals, average pricing for our benchmark group was $19,690, $2,199 (10.0 percent) lower than June, and $3,686 (15.8 percent) lower than July 2019. The first 7 months of 2020 are averaging

6.2 percent lower than the same period of 2019. Average monthly deprecia-tion continues to relax, now averaging 1.9 percent for the year. We consider this month’s result a mild pullback from last month’s pent-up demand.

Class 6 conventional pricing averaged $21,854 in July, $834 (4.0 per-cent) higher than June, and $3,117 (12.5 percent) lower than July 2019. The first 7 months of 2020 are averaging 8.0 percent lower than the same period of 2019. Monthly depreciation in 2020 is averaging a very mild 1.2 percent.

See the “Average Wholesale Selling Price: 4-7-Year-Old Conventionals by GVW Class” graph for detail.

ForecastAnyone else feel like our industry is doing pretty well, all things consid-ered? Pricing is solidifying, customers are buying more used trucks, and new truck orders and deliveries are heading back in the right direction. When a massive black swan event blows up everyone’s forecasting models, the human gut becomes the main driver of decisions. Fleets waited to see what would happen to freight volumes once the stockpiling effect shook out, and they seem to be OK with what they’re seeing. Used truck customers saw dry van freight return to pre-pandemic levels and are more comfortable replacing that old truck.

It’s not unusual for the trucking industry to outperform the economy overall. Within the scope of typical cyclical ups and downs, goods and materials still need to be delivered. This time around, the economy took a more major hit, and the recovery will remain moderate and industry-specific until we can safely “crowd up” at pre-pandemic levels. When government stimulus tapers off, the true extent of the damage will become clear, and it will take time–maybe years–to work through it.

Fundamentally, used truck supply should continue to decline from a high level (tempered by ongoing fleet bankruptcies), and freight volumes should stabilize as the industry adjusts to changes in demand patterns. Randomness and uncertainty are off the charts, but at this point, nation-wide shutdowns are behind us, and there’s more positive than negative pressure on used truck values. n

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2015 2016 2017 2018 2019 2020(f) 2021(f) 2022(f)

Retail Value ForecastPercent Change Year-over-Year

3YO Truck

4YO Truck

5YO Truck

$0

$5,000

$10,000

$15,000

$20,000

$25,000

Jan-16

Mar

May Jul

Sep

Nov

Jan-17

Mar

May Jul

Sep

Nov

18-Jan

Mar

May Jul

Sep

Nov

19-Jan

Mar

May Jul

Sep

Nov

20-Jan

Mar

May Jul

Average Wholesale Selling Price: 4-7 Year-Old Class 3-4 CaboversAdjusted for Mileage

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Jan-16 Mar

May Jul

Sep

Nov

Jan-17 Mar

May Jul

Sep

Nov

Jan-18 Mar

May Jul

Sep

Nov

Jan-19 Mar

May Jul

Sep

Nov

Jan-20 Mar

May Jul

2 per. Mov. Avg. (Class 4 Price)

2 per. Mov. Avg. (Class 6 Price)

Average Wholesale Selling Price: 4-7 Year-Old Conventionals by GVW ClassAdjusted for Mileage

Source: J.D. Power Valuation Services

Source: J.D. Power Valuation Services

Source: J.D. Power Valuation Services

15

Page 16: The Used Truck Association INDUSTRYWATCHI am referring to Dean Jeske. Dean has done a great job of chairing and leading this committee to financial growth and stability. Enough so

June Sales Jump for Used Class 8 Vehicles: ACTY/Y Comparisons Now Flat

Thanks to a June jump of 54 percent month-over-month, used Class 8 sales for the year are now flat. Now that may not normally be cause for celebration, but for this particular year it’s remarkable.

ACT released other month-to-month comparisons to June showing that average prices were down 4 percent, and average miles and average age each increased, up 4 percent and 1 percent respectively over May. ACT also said that year-to-date average prices miles and age were all lower, down 1 percent, 3 percent, and 8 percent respectively, compared to the first six months of 2019.

“The fact that no one buys a truck that is not needed calls into question why so many used trucks are currently being sold, given all the negative news about the economy,” said Steve Tam ACT’s VP. “The simple truth is that, fingers crossed, the worst of the global pandemic is behind us, and even though new cases are at or near record highs in the U.S. and deaths are on the rise, we are no longer in uncharted territory,” Tam added. “The first wave of COVID-19 came out of the blue, but now businesses are much more prepared to deal with the virus, and citizens of this country are nothing if not resourceful and ready to move past this disaster.”

ACT Research has created a COVID-19 Market Watch webpage to track noteworthy “high frequency macroeconomic and transportation-specific market indicators,” at https://pages.actresearch.net/covid-19. n

FTR’s May TCI Bounces Back Sharply from April’s Low Still Remains in Negative Territory

FTR’s May Trucking Conditions Index (TCI) bounced back sharply from April’s record low to a -5.19 reading. Improved yes, but according to FTR, May’s reading is “quite negative from a historical perspective.” A sharp boost in freight was mostly responsible for the improved reading as rates and utilization were still weak, FTR said.

May’s freight rebound was primarily due to consumers. A less negative industrial production forecast is a main contributor to a firmer freight outlook for the balance of 2020,” FTR added.

“The spot market is the strongest in two years, which certainly suggests upside to our current outlook,” said Avery Vise, FTR’s VP of trucking. “However, the recent increases in COVID-19 cases in some large U.S. states mean that we are not out of the woods yet as some states are moderating their reopening and many universities and school systems remain uncertain about their plans,” Vise added. “We are also concerned that the recovery to date is fueled substantially by unprecedented financial assistance from Washington and that further such assistance might be necessary to keep the economy on track.” n

ATA Annual Report Finds Trucking Still Tops The latest edition of ATA’s annual compilation of trucking trends found that the industry generated 791.7 billion in revenue in 2019, moving 11.84 billion tons of freight. The data appeared in ATA American Trucking Trends 2020.

“Despite a challenging year, the data contained in American Trucking Trends shows the industry was in good shape entering the global pandemic,” said ATA Chief Economist Bob Costello.

Among the other findings:

» In 2019, trucking’s revenues accounted for 80.4 percent of the nation’s freight bill.

» Trucks moved 67.7 percent of surface freight between the U.S. and Canada and 83.1 percent of cross-border trade with Mexico, amounting to $772 billion worth of goods.

» There are 7.95 million people employed in trucking-related jobs, up 140,000 from the previous year. This includes 3.6 million professional drivers.

» Women make up 6.7 percent of the industry’s drivers and minorities account for 41.5 percent of truckers.

» Most carriers are small companies—91.3 percent of fleets operate six or fewer trucks and 97.4 percent operate 20 or fewer.

“Sound policy relies on sound data; and American Trucking Trends contains the kind of up-to-date, reliable data that policymakers need to do their job.” ATA says the report is “essential for use by trucking companies, industry suppliers, logistics providers, analysts, public policy decision makers and many others.” ATA American Trucking Trends 2020 is available for sale now at ATA Business Solutions. For further details, click here. n

June’s North American Class 8 Net Orders Rebound to 15,500 Units: FTRFTR reported June’s NA Class 8 net orders surged to 15,500 units, up 130 percent from May’s tally and up year-to-year by 20 percent. FTR added that Class 8 net orders for the previous 12 months now total 158,000 units.

FTR said its confidence is gradually improving as the economy and freight markets recover from pandemic-related restrictions. But June’s order volume may not carry over to July FTR added, because some of the larger fleet orders may be tough to replicate short-term. But order volume should top the 10,000-unit mark throughout the summer as freight volumes continue to improve, FTR noted.

“June’s order activity is good news, after last month’s disappointing number,” said Don Ake, vice president commercial vehicles. “We expect-ed orders to average around 10,000 units for a few months, and now they have averaged 11,000 for the past two months,” he added. “The Class 8 market is on the slow, steady recovery that matches our forecast. It is also encouraging that fleets are showing enough confidence in the economy to begin placing some viable orders. The trend should continue, but a significant increase is not expected until October when the big fleets begin placing orders for 2021 delivery.” n

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Volvo’s Virtual Walk-Arounds Let Customers Review Models Live and in HD

News continued on page 17

One of the ways that many dealers are marketing trucks in light of COVID-19 is through virtual walk-arounds. Now Volvo Trucks North America (VTNA) announced it is offering customers the chance to participate in live video walk-arounds of pilot trucks, “providing a high-definition look at the design and engineering details of truck models.”

Customers can take the virtual walk-arounds at Volvo Trucks Customer Center in Dublin, VA. The company’s customers get exclusive first-hand looks at truck details and have the chance to give input, even requesting changes to their specifications.

Recently, Ozinga Bros, Inc., a concrete and materials company participated in a virtual walk-around to “get a bumper-to-bumper look at Volvo Trucks’ new vocational VHD model for ready-mix concrete.” As product experts showed features and advantages of the truck, “live images were shared from a high-definition webcam showcasing the truck’s exterior and interior, as well as providing close-up undercar-riage, powertrain, and suspension views that are very difficult to see in person.”

“This has been incredibly beneficial in allowing customers to have an in-depth and up-close discussion of how they can use our trucks and services to benefit their business, even when they aren’t able to physically be here,” said Rob Simpson, director, Volvo Trucks Customer Center. “We also found that the camera’s small size and high definition let the customer get a close look at components and installations that are not easily accessible. So even with live customer visits, we will still use this technology to help them see more of our trucks.”

“This was a great opportunity for us to pay a virtual visit to the Volvo Trucks facility and enjoy a presen-tation that we otherwise would not have been able to schedule under the current pandemic circumstances,” said Jeff Bonnema, vice president of fleet management with Ozinga Bros., Inc. “The video experience and remote discussion with the Volvo team allowed for an up-close and personal view of the truck.”

Another recent walk-around was attended by a dealer sales rep in Illinois, the dealer’s customer, Volvo Trucks executives from

Greensboro, N.C., a Volvo Trucks product expert working remotely, and Volvo Trucks Customer Center team members.

“As states are relaxing their re-strictions on group gatherings, we know there will be more customers and prospects wanting to visit the Volvo Trucks Customer Center,” said Simpson. “For now, the use of virtual digital technology allows us to stay connected safely and show new trucks as they come off the factory line.”

The Volvo Trucks Customer Center is now open at a limited capacity for in-person vehicle reviews. Volvo encourages customers to contact their dealer sales representative to request their own virtual walk-around or a hybrid presentation. “These include both online and on-site, socially distanced atten-dance, for a unique look at new trucks or models not available in their area. The Volvo Trucks Customer Center is able to utilize whatever video conferencing platform is preferred,” Volvo said. n

Due to COVID-19, the Volvo Trucks Customer Experience Center, located in Dublin, Va., is offering virtual pilot walk-arounds to give customers a high-definition and detailed look at their new truck models in lieu of the traditional in-person pilot review.

WIT Conference Goes Virtual In a sign of the times, Women In Trucking Association (WIT) an-nounced its sixth annual Accelerate! Conference & Expo will transition to a completely virtual format to take place November 12-13, 2020. WIT has been monitoring the recent escalation of COVID-19 cases nationwide, including Dallas where the in-person conference was originally scheduled to be held September 23-25. Based on that research WIT determined that “focusing on a comprehensive virtual event is the best path forward for the association and our attendees,” said Brian Everett, organizer of the event. “This decision was made in conjunction with soliciting feedback from more than 400 WIT members, sponsors, exhibitors and other key stake-holders,” he said, “which has

confirmed that our community fully supports a virtual conference.”

“Diversity in experience, skills, and perspective is critical to the success of any company in trans-portation, and gender diversity is a critical path to this goal,” said Ellen Voie, WIT president and

CEO. “This conference is one way for our industry to share new ideas and best practices that encourage the employment of women, recognize their accom-plishments and success stories, and ultimately minimize obstacles faced by women in this industry.”

More details and registration information is at https://info.womenintrucking.org/accelerate-conference. n

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News continued from page 17

Volvo and Mack Extent Uptime Support BundlesVolvo and Mack have both extended their uptime services support bundles through the end of the year, or a minimum of three months, whichever is longer. The extension applies to customers with packages expiring between May 1st, 2020 and December 31st, 2020.

“Mack Trucks knows how difficult times are during the global coronavi-rus pandemic, and we wanted to provide our customers additional support,” said David Pardue, Mack Trucks vice president of connected vehicle and uptime services. “We hope that extending our uptime service bundle for no charge to the customer will help them continue to more easily receive access to our best-in-class support.”

Mack said the bundle includes Mack GuardDog Connect, its integrated telematics solution. Customers also have access to Mack OneCall, the company’s 24/7 customer support and Mack ASIST, Mack’s web-based service management program. Mack Over The Air remote software updates are included, as well.

Additional support is available through the Mack Uptime Center. Agents there can help with “planned and unplanned service events, including scheduling service and repairs. Agents also respond to events that are proactively identified through GuardDog Connect, standard on all Mack models equipped with Mack engines.”

For its part, Volvo is also extending the coverage period for its Volvo Trucks Uptime Services support bundle at no cost through the end of the year, or for a minimum of three months (which-ever is longer). The free program extension is retroactive and available on all Volvo Trucks North America models with Uptime Services packages expiring between May 1 and Dec. 31, 2020. Volvo said coverage on about 20,000 VINs “will be auto-matically and seamlessly extended, so that no customer action or in-person contact is required.

The Volvo Trucks Uptime Services bundle includes:

» Volvo Trucks Remote Diagnostics powertrain package, minimizing unexpected downtime by monitoring Volvo engine performance, Volvo I-Shift transmissions and aftertreatment systems.

» Web-based ASIST service communications platform, providing digital access to dealers for electronic estimates, repair orders and approvals.

» 24/7 roadside support from Volvo Action Service (VAS), providing access to Volvo Trucks’ Uptime Center experts at the company’s headquarters in Greensboro, NC, to manage emergency service, schedule repairs, and assist with any issues that happen on the road.

» Remote Programming updates, enabling direct connectivity with the Volvo Trucks Uptime Center for remote system upgrades using the Volvo Trucks telematics platform.

» Remote Programming software updates are available on model-year 2018 trucks and newer.

“Our customers are providing essential services that are keeping our economy moving under extraordinary conditions,” said Conal Deedy, director of customer productivity solutions, Volvo Trucks North America. “We are dedicated to supporting them with solutions that go beyond saying ‘thank you.’ By extending Volvo Trucks Uptime Services support bundle, we hope to ease some of the financial burden that many are currently experiencing.” n

Mack Trucks announced the extension of its Mack® GuardDog® Connect uptime service and support bundle at no cost through the end of the year or a minimum of three months, whichever is longer, for customers with packages expiring May 1, 2020 to Dec. 31, 2020.

Customers have 24/7 access to the Volvo Trucks Uptime Center as Volvo Trucks North America extends its Volvo Trucks Uptime Services support bundle at no extra cost through the end of the year or for a minimum of three months (whichever is longer) due to COVID-19.

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Doug’s Morning Coffee continued from page 7 Rebounding in the Wake of the Recession continued from page 10

Your customer will never believe in the value of your product or service any

more strongly than you do!

3. Demonstrations with qualified buyers: It amazes me that some salespeople believe they can better describe their truck them-selves than by simply allowing the truck to do the talking.

If you aren’t selling the walk-around and test drive of your truck, then you’re leaving a full 50 percent (or more) of your selling power on your lot.

If you don’t have a CDL, go get one.

Having the ability to get in a truck and drive it to a qualified buyer is magic.

When you can’t drive a truck to a prospect, you’re leaving money on the table. Your deals are going to be tougher, your mar-gins thinner, and your sales less frequent.

Why not invest in your own success by getting your CDL? You’ll soon be able to drive any Class 8 vehicle in your inventory to your prospect’s place of business. There’s nothing more effective in your sales arsenal than this.

4. Continuing Education: Most people stopped learning after they graduated, and they’re usually paid accordingly.

If you aren’t exposing yourself to new ideas, concepts, technological advances, and philosophies of successful salespeo-ple, entrepreneurs, and companies, you’re missing the boat.

I liken studying your craft to applying high quality fertilizer to your garden. What’s already there will produce a superior product at a higher rate of return, and what you plant going forward has a greater likelihood of coming to fruition.

This Million Dollar Habit has the dual benefit of providing you with methods that have been proven highly effective by other successful salespeople and companies, while crowding out the “weeds” that would otherwise take root in your life.

Here’s to tending your garden! n

Press surrounding trucking can be a tricky subject. It’s true transport stocks haven’t been doing well for a long time. The SPDR S&P Transportation ETF is down more than 24 percent year to date as of June 9, an abysmal return when compared to the S&P 500 and Dow Jones Industrial Average. This ETF is well-diversified, and a commonly used indicator for the health of the freight sector. The holding includes planes, trains, and auto companies. Uber Technologies (UBER) and Lyft (LYFT) are in the ETF now, along with the usual suspects, such as United Parcel Service (UPS), the Union Pacific railroad (UNP), trucking firm J.B. Hunt Transportation Service (JBHT), and JetBlue Airways (JBLU), among others.

While XTN is a good indicator of the transpor-tation industry on the whole, it also includes a healthy percentage of some of the worst performers in 2020 like airlines and rideshare companies, both of which suffered monumen-tal losses as a result of COVID-19.

The trucking industry on the whole hasn’t suffered the same level of constriction that airlines have, and the health of the industry isn’t well measured by the health of public companies. As a matter of fact, more than 95% of carriers have less than five trucks. The country is full of small, independent truck operators, and as long as rates increase, it’s expected they’ll come out just fine.

The bottom line is trucking companies are the lifeblood of America, and there’s no indication the demand for truckers is going to decrease any time soon. If you’re interested in getting started as an owner/operator, contact us at Mission Financial. n

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P hotos from the

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garden fence. No matter. Searching using terms like “low impact, all levels, beginner, and gentle” will bring you lists of positive videos that truly showcase people of different ability levels. The instructors are low pressure and encourage you to do what is comfortable and skip or switch up moves that don’t feel right for you. It is lovely. They speak positively, and if my kids join in, I don’t have to worry about what my 5 year old will overhear and or that he’ll begin to worry whether or not he will be “bikini ready” in time for swimsuit season.

The biggest lesson I’ve learned from these workouts is that exercise is one of the rare pursuits where just trying really is enough. It doesn’t matter how long you exercise, either. Any minutes a day is infinitely better than zero. Any attempt to follow along with movements is fantastic and poor form is not a reason to throw in the (sometimes sweaty) towel. Carving out that time for your health and yourself is a celebration. Stealing seconds away from completing priorities is a sacrifice we should recognize and allow ourselves to feel proud.

You know yourself better than anyone else so tell yourself in ways that motivate you to “Get Yourself Going!” Have realistic expectations. Start slowly by doing do any extra movement each day. Dance in the kitchen while you’re waiting for the food processor. Do a pushup while pulling a magazine out from under the bed. Today’s exercise videos with their gentle instructors of all shapes, sizes, and fitness levels come with approachable titles like “designed for all levels.” They’re nice. It’s nice to be welcomed to your exercise mat and reminded that just showing up for your exercise and yourself is an achievement. Doing ten minutes a day is infinitely better than zero even if you can’t make it through an hour-long class because of your fitness level or your lack of time that day.

So, I encourage you to try it out, see if there’s something that clicks for you and remember, breaking down fat doesn’t have to include breaking down your spirit. Firming up your muscles shouldn’t require thickening your skin. At least that’s the view from where we sit, on our yoga mats. n

Over the past few months I’ve baked too much banana bread and binged too many

seasons of 90’s sitcoms. You’ve probably developed a few coping mechanisms of your own. There has to be a reckoning for all that TV watching and extra eating. And yes, that means figuring out a way start an exercise routine at home. I began by adding some extra walks for the dogs. At first they were thrilled with the extra jaunts, but their excitement decreased as the humidity increased. Exercising outdoors in the mid-Atlantic region during the summer can feel like doing jumping jacks in a sponge.

Hiking is another option. I’m fortunate enough to live in a valley so finding a mountain to climb is easy. But the trails and paths my family used to have to ourselves have become crowded. Indoor exercise options are limited without bringing in some equipment. But I did my best to turn our living room into a gym. I skipped my old workout videos though, they either seemed cheesy or way above my fitness level.

I’m stuck at home, not in a chrysalis. I don’t expect to completely transform into a backup dancing, protein-drink chugging, buff butterfly. I just want to set a good example for my kids. I want to show them that hard work pays off. To see that the chance to move our bodies and exercise is a gift and something fun we can do together. I know they are watching and copy-ing what we do, especially as we forge new paths during this time when we are mostly home, and they have few other models to imitate.

So, we turned to searching for new exercise videos. Fortunately, there are literally thousands of video options; free, paid subscriptions, workouts on social media, on loan from the library, requiring fancy equipment or none at all—the options are endless. And, if you share my experiences with exercise videos, mostly from middle school gym classes on rainy days, you’ll be pleasantly surprised. The instructors on today’s videos and our ideas about exercise as a society have changed. Then, it was all about pushing through, shredding, and burning. Success was measured in soreness and pain. But we know better now that the fitness videos doesn’t have to come with pain. It doesn’t have to be brutal and miserable to be effective. It can even be fun!

There are many options for people like me who are not able to jump, dance, and twirl while smiling and chatting like two neighbors over a

Editor’s Note: This month’s column features a special guest author. She’s especially important to us, because she’s our daughter, Stephanie Gordon. Steph and her family live here in our little town in our little valley. She and husband, Andrew, live down the street from us with our two oldest grandsons. (We might have mentioned them a time or two.) We invited Steph to share her thoughts and inspirations with our dear readers this month. All prejudice aside, she’s a talented writer, and she has a younger view of the world, from where she sits.

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Deb and Brad [email protected]