Truck Dealers Remain Resilient, but Must Plan for Future, ATD Leaders Say
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LAS VEGAS — Commercial truck dealers have shown resilience as equipment sales have cooled this year, but at the same time, these businesses must prepare for the rise of new technologies and other challenges, industry leaders said at the American Truck Dealers’ annual ATD Show.
“We will be seeing disruption with things like electric vehicles, autonomous technology and blockchain. There are projections of a market slowdown and a drop in build rates for trucks. Used truck values are dropping. And we need diesel technicians more than ever before,” said incoming ATD Chairman Steve Bassett, dealer principal of General Truck Sales in Muncie, Ind.
Moving into the new decade, ATD also will continue its push for the repeal of the 12% federal excise tax on heavy-duty trucks.
“FET repeal is at the center of our advocacy work, and it will stay there,” Bassett said in his first remarks as ATD chairman.
Bassett speaks to the crowd via Seth Clevenger/Transport Topics.
The trade group’s annual event was held Feb. 14-17 in conjunction with the National Automobile Dealers Association’s 2020 NADA Show. ATD is a division of NADA.
Workforce development will remain another top priority for dealers, Bassett said.
“It’s still harder than ever to hire diesel technicians. We need thousands of them in the next few years,” he said. “When it comes to the future of our industry, we are only as strong as our workforce.”
While manufacturers have begun fitting commercial trucks with new power sources such as electric propulsion systems, dealers will continue to sell internal combustion engines well into the future, he added.
But dealers must be ready to adapt to new technologies.
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“Make sure your staff is ready to support your customers through the changing times ahead,” Bassett told the audience of dealers from throughout the country. “And never be afraid to reinvent yourselves.”
Jodie Teuton, who wrapped up two years of service as ATD chairwoman, lauded truck dealers’ tenacity as they contend with a range of challenges, not least of which is shifting market demand.
“Tenacity is how we make it through the cycles, sometimes beat up and bruised, but we come out on the other side,” said Teuton, who is co-founder of Kenworth of Louisiana, which represents the Kenworth and Hino truck brands.
Tenacity also can be applied to Teuton, who last year won a battle with breast cancer.
Reflecting on her time leading ATD, she highlighted the formation of Modernize the Fleet, an industry coalition advocating for the repeal of the century-old federal excise tax.
“We know that it grossly inflates the cost of a new truck, that it delays fleet turnover and that it keeps cleaner and greener trucks off of America’s highways,” Teuton said.
Attendees at the 2020 show. (Seth Clevenger/Transport Topics)
She also emphasized ATD’s efforts to address the industry’s workforce challenges.
“I don’t know a single dealer who doesn’t need technicians, and the demand grows every day,” she said.
“But we’re getting great traction. We’ve had thousands of views to our workforce site with hundreds searching for their local technical schools.”
Part of that effort has been a focus on drawing from a larger talent pool, including women, veterans and millennials.
“If you’re a woman in this industry, I want you to know that our numbers are growing, and that we bring fire,” said Teuton, who was the first woman to serve as chairman of ATD. “But no matter what your gender or background, if you want a great career — good paying with stability — there’s no better place to work than in the commercial truck industry.”
People across all industries are feeling overwhelmed by the pace of change, and commercial truck dealers are no exception, said futurist Jim Carroll, another featured speaker.
He commended truck dealers for the changes they’ve made over the past decade.
In that time, dealers have incorporated more technology, invested in high-tech training and moved from selling equipment to selling an “uptime guarantee.”
The modern truck dealers are morphing into proactive, forward-oriented data partners for their fleet customers, Carroll said.
Carroll via Seth Clevenger/Transport Topics
Looking forward, more technology-driven change is on the horizon, he said, highlighting the potential for autonomous and electric-powered trucks, innovations in last-mile delivery and future adoption of blockchain technology.
“Change your future before the future changes you,” Carroll said.
Dealers, manufacturers and suppliers alike benefited from a record Class 8 backlog last year, but now the market has returned to a more “normal” level, said Dave Karnes, vice president of sales for Eaton’s commercial vehicle business.
“What a difference a year makes,” he said. “For those of you who have been in this industry for a while, you know that this is just part of the game — the ups and downs. And those companies that manage the volatility best usually come out the strongest.”
Apart from the normal market volatility, the industry is going through a time of significant technological change. In response, Eaton has expanded its planning cycle from five to 10 years, he said.
The company sees a continued move toward automated transmissions and is focused on helping its OEM customers meet “some very challenging” greenhouse gas-emission standards in 2024, Karnes said, adding that Eaton is developing hybrid technology to support the industry’s move toward electrification.
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