The power of a plan

Most business owners know they should have a business plan. Yet writing one still is a practice that often gets put off and pushed by the wayside. Managers think, “I’m too busy,” or “I don’t really need a plan,” or even, “The market changes too quickly. How can I possibly plan?”

But business plans are essential. Not only do they help a company obtain financing, they are a successful businesses’ very keystone. When a business plan is carefully considered, crafted and communicated throughout the organization, it becomes a living document that helps managers and employees stay focused and profitable every day.

Business plans are not uniform across industries, nor are they always called by the same name. They can be used to convince banks to expand credit or secure financing, woo potential investors, attract new employees or weigh important business decisions against.

“[A business plan] is a written document that describes how the chief executive officer and management team plan to successfully exploit an opportunity,” says Dr. Joe Rousseau, J.D., chair of entrepreneurship and associate professor at Northwood University. “Already existing businesses usually call their total business plan for the next fiscal year ‘The Budget.’ If they plan to launch a new product or business expansion they might call the business plan supporting this opportunity a ‘Business Case.’ Entrepreneurs creating new ventures typically call their plans, the ‘Business Plan.’”

Regardless of name, a dependable plan should have some form or variation of the following components, according to the Small Business Administration (for more details, see sidebar: “All the Key Parts”):

  • Executive Summary

  • Business Description and Vision
  • Market Definition
  • Description of Products and Services
  • Organization and Management Structure
  • Marketing and Sales Strategy
  • Financial Performance Data
  • Appendices

If your company has been operating for years without a business plan, it’s not too late to make one. The business planning process is one of careful examination and assessment. It should be a rigorous, introspective process for the business’ management team. Yet a mistake business owners make routinely is not actively involving their staff when making or revisiting the plan.

“I like to get a lot of input from the management team when making a business plan,” says Dr. Albert Bates, chairman and president of the Profit Planning Group, a firm that works exclusively in corporate financial planning. “They’re the ones who are going to have to implement the plan once it’s made. If they don’t feel like they played a role in it, it is something we’re arbitrarily dropping on top of them. It becomes really dysfunctional.”

Bates also suggests seeking input from the sales team.

“They usually have a good feel for where the market’s going and what’s happening out there in the world,” he says.

Another pitfall to avoid is confusing a business plan with a promotional piece. A business plan should be a realistic assessment of where your business currently stands and where you think it can and should be. This is not the forum for touting grand and potentially unattainable theories and ideas.

“[Owners] tend to be overly optimistic. You often need to have more reality in the plan,” says Bates. “It’s really a problem if you overestimate revenue, which makes you not as tight on expense control as you ought to be.”

Especially in a soft market, a business plan gives a company a strong backbone and even becomes a tool critical for survival. It enables a business owner to act from a point of preparation and rationality rather than leaving him or her to make rash decisions in the middle of a crisis.

“For internal management and the small business owner, create a budget with a clear growth strategy, marketing plan, key financial and operational objectives and financial projections,” says Rousseau.

He also recommends making a projected budget for the coming year. “This means [creating] objectives for next year and measuring past performance against objectives. Without such a process, they are not managing their business. They are constantly reacting and managing by crisis.”

“This is a good time to re-examine every expense line. To me, that revolves around the business plan,” says Bates.

“When the market is soft, you have people saying, ‘I’m too busy trying to bail water here. I don’t have time to plan.’ That’s an excuse that they really can’t justify.”


All the Key Parts
Not every business plan looks alike, but they all should be carefully drafted, considered, edited and fine tuned. In order to create the strongest plan, the writer should avoid a canned approach and keep the potential reader’s concerns in mind.

For instance, if your company needs to appeal to a private investor or to a bank, cater the plan to address the potential financier’s concerns. If the plan is mostly for internal use as a tool to help managers make decisions in line with core values, be especially sure to seek managerial input and use a tone that reflects your business values.

The Small Business Administration recommends that most business plans contain the following sections, according to its web site, www.sba.gov, which also provides helpful templates and tutorials for those wishing to craft or refine their business plans:

  • Executive Summary: This one to two page opening statement, written by the business owner, provides an engaging and enthusiastic summary of the business and its goals. A successful Executive Summary makes the reader want to learn more. It can be thought of as the cover letter for your business plan.

  • Business Description and Vision: This section should contain your mission statement, a short history of the business and its future goals. It explains what your business stands for and represents, as well as its values.
  • Market Definition: This is where an accurate picture is painted of your target market and customers. It’s also appropriate to contrast your current marketshare with your desired marketshare in this section.
  • Description of Products and Services: Explain what you sell and how competitive your product is. What makes your repair garage or distribution center unique in the market?
  • Organization and Management Structure: Provide organizational information about key management partners on your team, as well as a brief bio about each. A chart of responsibility and accountability also can be included here. This is where it’s appropriate to outline the legal structure of your business.
  • Marketing and Sales Strategy: Give a clear picture of who your customers are and what the demand is for your products and services. Explain your pricing and sales strategies, as well as channels of distribution.
  • Financial Performance Data: Provide all applicable balance sheets, income statements and cash flow statements. The reader should come away with a thorough understanding of your business’ financial state.
  • Appendices: This section can include an equipment/assets list, brochures, press clippings, pictures of your business and all information relevant to the business’ potential growth and development.

Riding out the storm

Last year was a perfect storm no one saw coming. Sure, forecasts weren’t all for sunshine and blue skies, but the barrage of economic woes throughout most every business sector kept trucking in a sustained slump and is negatively impacting the aftermarket. Truck Parts & Service’s annual economic outlook talks to industry experts to evaluate how the aftermarket fared in 2008, and what may lie ahead in 2009.

It could be worse.

It may be hard to imagine how, but there were positives in 2008 and there is reason – however tempered – for optimism in 2009.

Overall, the aftermarket did not fare too badly compared to the continued slump in new truck sales and the utter collapse of other sectors and institutions throughout the general economy. Most agree the litany of bad news is not yet over, but perhaps the worst of it is.

In the aftermarket, the entire chain was forced to primarily operate in reactionary mode throughout 2008. Influences beyond its control – commodity prices, the housing market implosion and failures of financial powerhouses, to name a few – all took a heavy toll on trucking and its aftermarket support network. While no one anticipated a robust economic year, no one really predicted what happened either.

“I don’t think our industry is the only one that got blindsided. What had happened happened so quickly, and I think it happened accumulatively, that a number of things came together at the same point in time and it was kind of the perfect storm,” says Stu MacKay, president of MacKay & Company.

“What was unexpected in 2008 was the depth and velocity of the downturn that started after the global financial crisis in the fall,” says John Beering, director of global marketing for Eaton Corporation. “That said, we are now hopeful for recovery to begin in the latter half of 2009.”

The cause for optimism this year may begin with understanding what happened last year. Though experts still are sorting through the rubble for explanations – and well could be for months or years to come – a few dynamics had a direct and significant impact on trucking.

FRONTS COLLIDE
The first part of 2008 began with relative calm. There were some warning signs of things to come, but the warning sirens were not yet sounding.

Commodity prices were the biggest concern. Record-setting diesel fuel prices continued to erode carriers’ profitability, leading to fuel surcharges to help recoup some of the higher operating expenses.

Raw material costs were wreaking havoc with manufacturers and the distribution chain.

“There were some unexpected things that happened in the early part of 2008 that really affected the aftermarket,” says John Flad, vice president for Aftermarket Sales, North America, Bendix Commercial Vehicle Systems. “The huge run-up in commodities – everything from fuel, to steel, to aluminum – was totally unanticipated, at least to the extent that it occurred. That kept a lot of suppliers behind the curve right out of the gate. Our costs were going up very rapidly and, of course, you can not recover costs quite as rapidly.”

Steve Crowley, president and CEO, VIPAR Heavy Duty, says the escalating material costs resulted in more frequent then usual price increases for components. Parts affected by the higher cost of raw materials had three or four price increases during the year, while some components, such as brake drums and suspension parts, saw nearly monthly price adjustments.

As the year progressed, fuel and raw material prices decreased about as suddenly as they increased. The lower diesel prices were a boon for carriers and the reduction in steel, aluminum and copper costs helped manufacturers.

However, the rapidity of the cost fluctuations has had negative consequences. Pricing on parts are returning to pre- or early 2007 levels which, for distributors, can mean their inventory values are upside down.

“That fast ramp-up and fast decline is difficult on everyone; it’s really tough,” Crowley says. “Take a look at the value in the chain. Whether you’re a fleet or distributor, all of a sudden your inventory is inflated, let’s say, 20 percent. It’s now being deflated on the same basis and it’s all happening in a very short time span. So the inventory that you have on your shelf might not be worth what the market is willing to pay for it today when it falls that quickly.”

Molly MacKay Zacker, operational manager for MacKay & Company, compares the issue to a problem familiar in the current economic climate.

“The problem now is that distributors are left with inventory that is valued at less than what they paid for it,” she says. “It’s like the current mortgage problem, but in a different industry.”

Additionally, the devaluation of inventory assets can negatively impact a distributor’s ability to secure financing in an already tight credit market.

The dilemma and ongoing uncertainty has most distributors walking an inventory management tightrope. They have to meet customers’ parts needs but without tying up too much capital in doing so. It keeps tightly managed inventories and making market demand predictions even more critical. It is affecting manufacturers, as well.

“Inventories have been reduced at the dealer and distributor levels requiring suppliers and their parts distribution centers to be more responsive,” says Todd Kindem, ArvinMeritor’s director of sales and marketing, Commercial Vehicle Aftermarket.

Perhaps the most notable negative on the industry was, and remains, the collapse of the housing market. New home construction is at a standstill and many major markets have a backlog of unsold homes that could keep breaking ground on new homes at bay for many months to come.

The importance of residential construction to the trucking industry cannot be overstated. According to Kindem, “It is estimated for every house built that six to eight truckloads of freight service it. Overall, when the housing market starts to improve, so will the aftermarket. But it’s not expected to improve until late in 2009.”

Residential housing creates truckloads for earth and aggregate, building materials, construction machinery, appliances, household goods and more. MacKay & Company estimates that in November of 2007, the construction downturn resulted in 78,000 idle trucks. Twelve months later, the impact nearly doubled, leaving 129,000 trucks idle.

Charles Weston, president and CEO of Westpac Heavy Duty, headquartered in Phoenix, says, “In our markets, the crash of real estate and construction in general led the downturn. Next came skyrocketing fuel and metal prices, so the recovery that some predicted for midyear never came.

“The third and fourth quarters of 2008 were further compromised with the erratic downturn of the stock market, bank failures, bailouts, etc. This in turn dried up credit for many of our customers,” he continues. “Municipal revenues are way off and capital projects have been postponed or stopped. Unstable pricing has added to bidding problems for not only us, but also our customers.”

Mike Betts, president of Betts Truck Parts and Service based in California, says his company’s expectations last year were low, and they weren’t disappointed.

“We forecasted zero growth for 2008 and planned our business accordingly,” says Betts. “With the contraction in the economy, in the final quarter especially, we are seeing declines across all industry sectors, some as much as 10 to 20 percent. New housing and city government contracts are the two hardest hit in the west.”

The residential construction collapse is at the root of depressed freight volumes. The slowdown in tonnage has led to the failure of carriers and has driven truck utilization significantly down.

Large fleets that have the capability are parking older units and running newer equipment to avoid service and repairs. In select circumstances, some fleets even are cannibalizing units, acquiring their replacement parts from their idle trucks.

“Utilization, across all three [Class 6-8] weight classes and all vocations, peaked at about 89.7 percent in 2003 and 2004,” says Stu MacKay. “Now we’re down to 84 percent.”

The number of carriers that exited the market last year because of bankruptcies and failures, according to Tim Kraus, president and COO of the Heavy Duty Manufacturers Association, was about 2,500. “Freight tonnage is down and that’s the primary reason,” he says. “Fuel price retreats in the fourth quarter have helped existing truck companies, but the credit crunch is hitting all of them.”

Idle trucks and trucks running fewer miles means less need for maintenance, repairs and replacement parts. Conversely, stagnant new truck sales indicate carriers are running their vehicles longer and extending their trade cycles.

“The aftermarket is slightly insulated in the fact that there is a substantial amount of hauling still taking place and no one is buying new vehicles, but most are making repairs, up to what they can afford,” says Kraus. “Heavy-duty aftermarket sales are reported by the suppliers as down 3 to 5 percent over last year. Contrasted against OEM sales, that is not bad.”

And, when truck utilization begins to recover, replacing the poached parts and making repairs that were put off should bode well for distributors and service providers.

“If the economy starts to move forward somewhat – and it doesn’t even have to move in great big steps – if you look at the pent-up demand for parts, there are a lot of vehicles out there and they are older than they were a year and a half ago,” says Crowley. “If utilization picks back up, those vehicles will need parts, they’re going to need a lot of them, and they’re going to need attention pretty immediately.”

NOT A BAD YEAR
Despite all of the negatives, the aftermarket did not fare too badly in 2008 – at least through most of it.

“Business was relatively strong right through the end of October and into the first week of November, and then we experienced what I would call – and I don’t want to exaggerate it – but it was close to a cliff event and orders just dried up to a great degree,” says Flad. “That’s when the whole economic thing took hold and people really started to second guess themselves on orders.”

Most agree that until the fourth quarter, as the magnitude of the country’s financial crisis was manifesting, the aftermarket was on pace for a decent year.

“Aftermarket business was okay, even or slightly up, until October when credit dried up,” Kraus says. “Distributors relying on revolvers with their lenders were experiencing cash shortages and therefore reduced inventories and large purchases.”

While 2008 fourth quarter, year-over-year estimates have parts sales down about 10 to 12 percent, overall year-end performance should be close to 2007 levels.

“We are right at the 2007 level,” says Pat Biermann, president of Heavy Duty America. “Not all over the country, but overall we are.”

Crowley says the overall average may even be up slightly.

According to MacKay & Company data, sales will be off about 4.3 percent when the final tallies are done in 2008.

So, whether slightly up, slightly down or breaking even, considering financial conditions, the aftermarket did not have a disappointing year.

“The aftermarket showed its resilience during falling truck sales. But this isn’t a new phenomenon – it even can be considered typical for the aftermarket,” says Kindem. “It also showed that parts sales aren’t necessarily counter-cyclical. When trucks don’t move, parts are still required to keep units operating and safe.”

Performance also varies significantly by region. Some areas of the country were relatively unaffected by market conditions, while others were left reeling.

“If you talk to the guys in Texas, there’s no recession in Texas. The oil patch is strong, natural gas is strong, all of the resource businesses are strong,” says Stu MacKay. “But talk to dealers and distributors in Florida

Focus forward

The January issue of Truck Parts & Service is traditionally our annual market and economics issue – a look back on the events that shaped the year we leave behind, and a preview of the dynamics expected to drive the year ahead.

During the course of researching the article and interviewing numerous industry leaders, we compile more interesting insights and valuable information than there is space to print. So, following are worthwhile comments and observations that may help with business planning and forecasting as we prepare for a year sure to bring more market uncertainty and economic surprises.

On the service and repair market

Creative destruction is not negative

The universally negative specter of questionably talented politicians mocking business leaders during endless Congressional hearings -while attempting to deflect growing guilt over the current economic situation-has me concerned.

Never before has the entire populace been treated to 24/7 coverage of every bounced check, every layoff, every case of management incompetence or insensitivity. Under the age-old rule that “if it bleeds, it leads,” media are serving up the latest “globalization victim” of the day, even from industries most of us never knew nor cared about.

Back in the time before universal bailouts, this country practiced a more or less free form of capitalism. Free market approaches to economic churn were at least the first option. Success or failure revolved around individual drive and smarts, with appropriate luck.

Our own trucking industry has thrived under this model. While major disruptions have been primarily due to regulatory (EPA, DOT, CARB) influences, one watershed case is worth an autopsy – deregulation from the Motor Carrier Act of 1980.

Talk about giving Darwinism a kick in the rear. Wrenching extinctions, no bailouts, spectacular growth

Industry Focus – January 2009

Following are personnel changes that recently occurred in the trucking industry:

  • Phillips Industries named Filiberto Coello general manager of the company’s Electrical Harness Division.

  • Freightliner Trucks appointed Rich Ferguson vice president, sales.
  • Dana Holding Corporation named Frank Sheehan president of international business for its Heavy Vehicle Systems Group; James Wojciehowski vice president and general manager of marketing, sales and service for its Commercial Vehicle Products Group; and Brian Couch general manager of service and support for Spicer Service Parts.
  • Dennis Michels, president and CEO of Link Manufacturing, was elected 2009 chairman of the Heavy Duty Manufacturers Association. Additionally, two vice chairmen were elected: Terry Keating, chairman of Accuride Corporation, and Jack Shaffer, president and COO of Bergstrom. Several new board members also were appointed: Pat Cavanaugh, president and COO of Williams Controls; Pedro Ferro, president of Webb Wheel; and Tim Meyer, vice president and general manager of Alcoa CV Wheel.
  • The International Heat Transfer Association (NARSA) announced its new board of directors for the 2008-2010 term:
    • Chuck Braswell, co-owner and general operations manager of Rocky Mount Radiator and Air Conditioning, is chairman of the board;

    • Jim Holowka, vice president of sales and marketing for Erie Radiator & Core Sales, is national president;
    • Rick Fuller, national co-manufacturer sales manager of Delphi Automotive Systems, is national first vice president;
    • Maarten Taal, Jr., manager of Taalman Engineered Products, is national second vice president;
    • Angelo Miozza, owner of West Side Radiator Works,
      is national treasurer;

    • Patrick O’Connor, vice president of marketing and sales at S.A. Day Manufacturing Company, is national secretary;
    • Vinay Mamidi, general manager of CSF, Inc., is associate liaison;
    • Jeff Gibson, vice president of Gibson Radiator Shop, Inc., is southeast chairman;
    • Riekie Roncinske, manager of the Laredo Division of Taalman Incorporated, is southwest chairman;
    • Bobby Duran, president of S&F Radiator Service, Inc., is northeast chairman; and
    • Mark Hicks, president of Maas Radiator Shop, Inc., is central chairman.
  • The National Institute for Automotive Service Excellence (ASE) announced its board of directors for 2009:
    • Joe Torchiana, One Stop Tire & Auto Service, Inc, continues as chair;

    • John Pfennig, Navistar, continues as vice chair;
    • Barry Bronson, Valvoline, was named treasurer;
    • Jim Uffer, Truck Tech, Inc., is secretary; and
    • Stan Elmore, Stan’s Automotive, continues as past chair.
  • The National Automotive Technicians Education Foundation (NATEF) announced its 2009 board officers:
    • Lori Blaker, president of Technical Training, Inc., is chair;

    • Bill Bergen, Toyota, is vice chair; and
    • Katharine Oliver, assistant state superintendent for Career Technology and Adult Learning for the Maryland Department of Education, is treasurer.
  • Bee Line Company hired Doug Edwardsen as sales manager.
  • Lori Newton joined Global Parts Network (an independent company that supports the VIPAR Heavy Duty network) as director of operations for the organization’s new brake
    remanufacturing facilities.

  • Thermo King Corporation named Matt Nuijens director of Dealer Development.
  • Heil Environmental hired Randy Brown as vice president of sales and marketing.
  • Kinedyne appointed Deborah Forbes global director of Human Resources.
  • Kinedyne Canada made the following personnel changes: Dorothy Creighton was promoted to product manager of Steadymate; Alan Giraud was appointed Western Region sales representative for Steadymate; Romolo Di Vito was promoted to operations manager for Kinedyne Canada; and the company split its central sales region for Kinedyne’s Cargo Control Product Line into a Northern Ontario market headed by Stephen DeRusett and a Southern Ontario market headed by Paul Hirst.
  • Ed Miller joined Anjer Trailer and Truck Body Sales as a district sales manager for Southern N.J., Delaware and Delaware County in Penn. Additionally, Jordan Blady is now the company’s marketing director.

Penske Earns ASE Certification for Technician Training Program
Penske Truck Leasing announced it received certification from the National Institute of Automotive Service Excellence for the company’s Continuing Automotive Service Education program. Penske says it is the first and only truck leasing, rental and logistics provider to earn ASE certification for a program of this kind.

Penske says its program is designed to enhance the skills of its 5,000 U.S. vehicle maintenance technicians and customer service representatives who service more than 200,000 vehicles. The three-tiered program uses web-based, hands-on and classroom training methods. Penske expects to fully implement its ASE-certified CASE training program companywide over the next 18 months.


Betts Adds to Network
Betts Spring Company announced that Dallas-based DFW Heavy Duty Parts joined its Master Warehouse Distribution (MWD) network.

Mike Betts, president of Betts Spring Company, says, “Providing local availability of the premium spray suppression solutions included in the Betts and Life-Time Fender brands through partnering with best in class distributors like DFW is the highest value approach to serving the needs of local, regional and national fleets. We are particularly delighted that DFW has chosen to partner with Betts because of their superior reputation in serving customers in their key markets.”


New Partnership for Technician Testing
The National Institute for Automotive Service Excellence (ASE), Automotive Youth Educational Systems (AYES) and Skills USA announced an agreement to provide co-branded end-of-program exams for students in secondary and post-secondary automotive technology programs.

The new exams will merge the well-known National Automotive Technicians Education Foundation (NATEF) end-of-program tests into a joint offering from the three groups. Through the NATEF, ASE will oversee the question development and delivery of the exams for all three organizations. Candidates and instructors will be able to access the exam through a single co-branded test entry portal. Partner web sites will link to this common portal. A spring 2009 launch is anticipated.


Streamlined Warranty Process
Eaton Corp.’s pre-authorized warranty repair program allows technicians, service managers and warranty administrators at all North American truck dealerships to identify and administer 19 different repairs with no outside intervention by following clear guidelines that are accessible through the Roadranger web site. The program covers Eaton transmissions, clutches and VORAD collision warning systems.

“By eliminating the need for telephone authorization, dealer’s now have the autonomy to troubleshoot, diagnose and repair problems; submit their claims; and receive compensation in the fastest possible manner,” explains John Needham, warranty manager. “Of course, they still can call us if they want to do so.”

The program can be accessed 24/7 by clicking the warranty tab on the top of the roadranger.com home page. Among the more than 50 repair guidelines available on the web site, pre-authorized guidelines are provided for five automated transmission repairs, 10 manual transmission repairs, three clutch repairs and one collision warning system repair.

In each case, site visitors are provided with a description of the repair, parts required, labor required, a claim code and parts disposition. Another link provides submission guidelines and all necessary forms to file the claim.

“By giving our dealer customers more autonomy with the manner in which they perform their jobs, we can help to reduce expenses associated with warranty claims,” says Rick Muth, manager of special programs.


MAHLE Clevite Introduces Updated eLearning Courses
MAHLE Clevite recently unveiled brand new courses pertaining to Clevite engine bearings and Perfect Circle piston ring lines for the eLearning curriculum it launched in 2005. According to the company, this is the first major revision to the hallmark courses for the major MAHLE Clevite categories like engine bearings and piston rings.

The curriculum is composed of courses pertaining to each product line and is designed to help increase the knowledge base among technicians, enthusiasts and buyers. Each course is divided into chapters, and depending on length, the chapters are divided into lessons. Each chapter is designed to take only 15 to 20 minutes to complete. Once a course is completed, a certificate is generated that technicians can print to let customers and others know of their achievements.


VIPAR Heavy Duty Holds Annual Meeting
Despite a down economy and economic uncertainty, attendees of the VIPAR Heavy Duty Annual Business Conference in Las Vegas generally remained positive and optimistic.

“In the midst of today’s challenging economic climate, we had a strong turnout of both distributors and suppliers for our event,” said Pete Pasdach, VIPAR board chairman and president of Midway Truck Parts. “The mood of participants was incredibly upbeat as we focused on profitability and how to provide maximum service to customers.”

Keynote presentations included Brent Grover, Evergreen Consulting, LLC, who addressed “Sacred Cows of Distribution.” Grover argued that 10 “sacred” beliefs held by many distributors must be confronted and overcome if management expects the company to become a top-quartile performer.

Other keynote presentations included perspectives on improved order and management technology systems, program management, the introduction of 2009 marketing strategies and programs, and an announcement about the launch of two distribution centers with brake remanufacturing facilities.

“The positive attitude of this year’s conference participants reflects upon the fact that many of our distributors and suppliers had already made adjustments to their business plans in light of marketplace conditions,” said Steve Crowley, VIPAR president and CEO. “The conference provided an avenue to not only discuss the conditions being faced right now, but also how we can work better together over the next year.”


Bendix Makes Moves in Refuse Trucks, School Buses
Bendix Commercial Vehicle Systems announced it will assemble Class 8 Xpeditor refuse truck cabs for Autocar.

Bendix will assemble the cabs – requiring 1,000 parts from 140 suppliers – in a 75,000 square-foot facility in Huntington, Ind., which will be dedicated to this purpose. According to Bendix CEO Joe McAleese, the plant will be fully operational by the end of the first quarter of 2009.

Bendix also announced it was selected by Blue Bird Corporation to assemble the integrated control module (ICM) for its All American school buses. The new agreement expands the partnership between Bendix and Blue Bird, which manufactures thousands of school buses annually.

Bendix has assembled the ICM at its Huntington module facility for Blue Bird’s Vision school bus since 2003.

“The addition of the second Blue Bird module to our Huntington operation is evidence of Bendix success and expertise in design, manufacturing and logistics,” McAleese said. “It also validates our competence and world-class quality when it comes to products that were traditionally outside of our core business. This is an important win for Bendix, and we’re enthusiastic about the opportunity to continue to grow our presence in the commercial vehicle industry.”


Updated MACS Section 609 Certification Program
The Mobile Air Conditioning Society announced it received approval from the Environmental Protection Agency to release an updated version of the Section 609 certification program for recovery and recycling of refrigerant.

“The new MACS certification program reflects major advances in refrigerant recovery and recharging technology, and emphasizes best practices and equipment maintenance to promote effective, efficient service and minimize refrigerant emissions,” says Elvis L. Hoffpauir, MACS president and chief operating officer.

The new MACS Section 609 study guide and test will first be phased in on the web version of the MACS Section 609 test available at www.macsw.org with a debut to proctor/trainers and home study customers later in 2008.

Literature Review

Shock Brochure
ArvinMeritor has released a Gabriel shocks product line brochure, SP-0848. It highlights the company’s message as the leader in commercial vehicle original equipment shocks. According to the company, you will find the same quality in Gabriel aftermarket shocks as those installed on most new commercial vehicles in North America.

The six-page brochure covers features and benefits of Fleetline, GasSLX, Fleetline cab shocks and Ultra light truck shocks. The brochure can be downloaded at arvinmeritor.com.
ArvinMeritor, Inc.


Guide to Full Range of Bower Bearings
This comprehensive catalog is a convenient guide to the entire Bower product range and is said to cover all possible bearing needs of the heavy-duty trucking industry. It’s divided in two main sections:

  • Tapered Roller Bearings – for wheel (truck and trailer), transmission, differential and engine applications; and

  • Cylindrical Roller Bearings – both ISO and US industry series for use in transmission and differential applications.

NTN


Transmission Components Catalog
The heavy-duty division of Midwest Truck & Auto Parts, Inc., World American, has introduced a new catalog, Heavy Duty Differential and Manual Transmission Components. It contains more than 300 pages of differential and manual transmission parts for the heavy-duty aftermarket.

Filled with illustrations and product identification, this catalog proves to be a must-have for distributors, the company said. Access and free download of this catalog can be found at the company’s web site, www.worldamerican.com.
World American Parts


Manufacturer Specific Catalogs
MAHLE Clevite has released two more of its manufacturer specific catalogs. The two new catalogs address all the aftermarket parts in the MAHLE Clevite line for Detroit-Mercedes (Catalog # EP-30DD-08) and Navistar (Catalog # EP-30NV-08).

This includes cylinder components, bearings, gaskets, rings, valve train, cams, crankshafts and more. The catalogs also include information on all available engine kits.
The catalogs can be viewed or downloaded at www.mahleclevite.com.
MAHLE Clevite


Green Drain Pan
Made from recycled plastic, the new “green” Dually Drain pan works on most heavy-duty truck and trailer tubeless rims.

A sales sheet describes the features of the new drain pan, which include its spill-proof design, built-in handles and two-gallon capacity. It catches oil, grease, wheel nuts, seals, bearings, etc.
Dually Drain Pan


Chrome Accessories Catalog
ArvinMeritor, Inc. offers the Euclid Chrome And Stainless Steel Accessories catalog. This full-color catalog features bumper hardware, exhaust products, exterior accessories, front-wheel products, lighting products, simulators and more.

Included is an index by part number for easy reference. Detailed descriptions and pictures accompany each product, and charts illustrate product selection information.
ArvinMeritor, Inc.


Leak Detection Brochure
A heavy-duty leak detection brochure is available from Tracer Products. The brochure features information on the company’s specialized diagnostic tools, fluorescent leak detection kits, Fluoro-Lite and Dye-Lite dyes and inspection lamps and accessories.

These products will help technicians find all refrigerant, air brake, coolant and hydraulic fluid leaks.

The brochure gives details of the company’s complete line of products that are designed specifically for the heavy-duty industry.
Tracer Products


Replacement Filter Guide
Donaldson’s new replacement filter guide covers a wide range of filter types and applications. With more than 8,000 individual items, the Donaldson selection of replacement lube, fuel, coolant, hydraulic and exhaust products offers a broad range of engine protection choices.

The guide lists filter type, primary application, part number and Donaldson replacement part number.

Air filters include the company’s Endurance air filters with their “twice the life” guarantee.
Donaldson


Technician Training Brochure
Hunter Engineering has developed a brochure that illustrates the benefits of Hunter training. The company has more than 30 regional training facilities with full-time ASE-certified instructors and multiple service bays equipped with the latest technology in under-vehicle service equipment.

Hunter offers alignment courses for entry-level, mid-level and experienced technicians. Course topics include heavy-duty truck and trailer, light truck, SUV and car alignment services. Other courses educate technicians in advanced wheel balancing, vibration diagnosis, tire changing and brake machining procedures.
Hunter Engineering Co.


Reman Brochure
Haldex has released a brochure on its line of remanufactured products. Remanufactured products include starters, alternators, solenoids and parallel switches for all applications. Every part is factory remanufactured to meet or exceed new performance levels.

Drawings of a reman starter and alternator are used to illustrate what is done to each part of the component.

The brochure also explains the measures the company takes to ensure the quality of the reman products including being ISO 19001-2000 and 14001-2004 registered.
Haldex


Charge Air Cooler Catalog
Aviation Technology for the Trucking Industry, a brochure from Av-Tekk, is available. It features charge air cooler problems and solutions. Highlighted problems include cracked header plates, cracks in the air tubes and a weakened core structure. Solutions include strengthened header plates, leak-proof air tube seams and an I-beam reinforced structure.

Magnified pictures show an up-close view of what these problems do to the charge air cooler as well as what the solutions provide.
Av-Tekk


Tire Monitoring Brochure
A new brochure describes PressurePro’s tire pressure monitoring system. The wireless electronic tire pressure monitoring system is designed to monitor and display tire pressures.

The brochure explains the systems two basic components: Sensors that transmit a coded RF signal and alert the driver to pressure drops and the monitor that displays the pressure and sends audible and visual alerts. System specifications and user testimonials also are included.
PressurePro

No time like the present for planning

The beginning of a new year is a natural time for business planning. It’s a good vantage point for reflecting on past strategies and outcomes, identifying emerging trends and factors that will influence your company during the next 12 months and developing plans and goals based on that information.

As many have noted, the current economic situation presents opportunities for similar action. When the economy heats up again, you will want to be prepared to react to the new needs of your customers, as well as continue to improve internal efficiencies and productivity.

As you ready for the coming year, here are some useful planning points to consider:

  • In what direction is the aftermarket industry headed and what should my company do to prepare for it? Think about the economic, political, environmental and technological forces affecting the industry on local, national and global levels.

  • What products and services will be especially important to my customers this year? Consider how you can adapt your business model to add or emphasize these services and products.
  • What new skills do I and my employees need, and what knowledge needs updating?
  • What new markets can my business tap into with its product and service offerings?
  • Are there any neglected markets or niches that need what we can offer?
  • What is a natural evolution for my company based on its experience and what the industry needs?

We at Randall-Reilly Publishing have been asking ourselves some of these questions as well. We celebrate our 75th anniversary this year and think it’s the perfect time to look toward the future and re-evaluate how we serve our readers and customers. We’ve consolidated our four trucking-related groups – fleet/dealer/aftermarket, owner-operator, truck stop and used trucks – into a single Trucking Division consisting of two groups: The Owner/Driver Group and the Fleet/Aftermarket Group.

As part of this reorganization, I have taken on the role of brand manager for the Fleet/Aftermarket Group, and we will no longer be running a publisher’s column in the magazine. Rather, in future issues we will devote this space to bringing you more industry news and targeted editorial.

Businesses that evolve with the markets they serve succeed. We’ve been evolving for three-quarters of a century and look forward to continuing our service to you for many years to come.

Pushing bushings

George Sturmon suggests that urethane bushings have become more of a “mainstream” option for the trucking industry, and it is hard to argue with the owner of ATRO Engineered Systems. His company began producing the bushings for Hendrickson beam-style suspensions in 1987 and gradually has expanded the product line to include everything from torque rod bushings to transmission mounts.

The story is echoed by a number of suppliers. Urethane now is being used to produce everything from hood and cab mounts to the bushings for torque rods and suspension systems. And it can be found in suspensions with labels as diverse as Reyco Granning and Hendrickson.
The choice often is part of a bid to extend component life.

Unlike rubber, for example, urethane can withstand the chemical attacks of oil, hydraulic fluid, brake fluid, antifreeze and de-icing compounds.

“The only chemicals that will affect polyurethane are chemicals that have no business being anywhere near a vehicle,” says Energy Suspension Sales Manager Kevin Taeger, referring to solvents. In fact, he suggests that a urethane bushing can last 10 times longer than its rubber counterparts because of the decisions that are made in a laboratory to affect shape memory, rebound, hardness, tensile strength and elongation.

“Normally you have five different ingredients that make up the urethane. The beauty of urethane is you can adjust those five different chemicals,” says Sturmon. “You can change the tensile strength. You can change the tear strength. You can change the elongation

Showcase – January 2009

Synthetic 5W-40 Oil
Shell Lubricants introduced Rotella T Synthetic 5W-40 heavy-duty motor oil, which meets or exceeds API CJ-4 specifications. The oil is said to offer significant improvements in wear protection, soot control, deposit control, heat resistance and protection in extreme climates.

According to the company, the new oil resists breakdown by heat for better protection under high temperature or severe operation.

Through increased levels of ashless chemistry that keeps soot particles separated, the oil protects against oil thickening caused by soot and other contaminants. This helps keep the motor oil flowing for good start-up under all operating conditions.

It is compatible with the exhaust aftertreatment devices found on heavy-duty trucks built beginning in January 2007. The low ash level is said to help control the rate of diesel particulate filter blockage.
Shell Lubricants


Enhanced Internet Parts Sales Software
Karmak recently released an updated version of ProfitMaster Internet Parts Sales, a web-based software solution that lets dealers receive parts orders over the Internet. Fully integrated with the company’s business systems, the new release allows parts suppliers to control which customer may purchase via the Internet, and set pricing and other options for each customer.

The business system processes and fulfills the order, e-mailing an acknowledgement back to the customer. The ability to track customer activity allows dealers to analyze and respond to customer buying trends.

On the retail web site, customers can search for parts, check prices and availability, create and maintain multiple shopping carts and checkout. They also can view account history, service history, order status, parts substitutions and right-to-return cores.
Karmak


Temperature Control Application Guide
Four Seasons Inc. announces the availability of its new Heavy-Duty Temperature Control Application and Illustrated Parts Guide – AC-68, which supersedes version AC-65.

The application section offers information on heavy-, medium- and light-duty trucks, as well as off-road and agricultural vehicles.

The illustration section features a wide variety of products, including compressors, expansion devices, filter driers/accumulators, cooling fans and assemblies, hose assemblies, evaporators, idler pulleys and tensioners and other components.
Four Seasons Inc.


75 Ton Capacity Shop Press
Gray Manufacturing Co. has introduced its new 75 ton capacity heavy-duty shop press. The press uses an air/hydraulic power system with 75 tons of force to assemble and remove components.

The unit has been designed to provide precise control by eliminating ram over-travel and provide speed by accelerating the ram to the load, according to the manufacturer. It also uses a winch/cable system to raise and lower the adjustable 6-position bolster. It offers a 13-1⁄8 inch stroke, 50 inch wide throat and side-to-side adjustable ram.

Each press includes an accessory kit that consists of 15-3/4 inch V-blocks and 2-inch diameter push adapters.
Gray Manufacturing Co., Inc.


Six Sizes Added to Tire Line
Bridgestone Bandag Tire Solutions is introducing six new sizes to its line of Firestone FS560 Plus steer tires. These tires are designed for pick-up and delivery and local hauling applications.

Tires are available in the following sizes: 9R22.5 and 10R22.5 in “F” load ranges; 10R22.5 in “G” load range; and 255/70R22.5, 275/70R22.5 and 215/75R17.5 low-profile sizes in “H” load ranges.

The new tires have a deep tread for long original mileage with a solid shoulder design to help fight the turning and maneuvering scrub forces that short hauls and urban usage inflict on tires, according to the manufacturer.

Multiple cross-rib sipes and wide, deep “flow-through” grooves are said to evacuate water efficiently from the footprint for precision traction. The FS560 has four full-steel belts, an all-steel casing ply and a special two-layer tread.
Bridgestone Bandag Tire Solutions


Modular Power Delivery and Lighting System
Grote said its Ultra-Nose-Box was developed to help solve the current problem of cracked, corroded and crowded electrical junction boxes with a design featuring double the standard number of pin connections, a push-on plug function, a durable glass-filled nylon housing, insert-molded pins that seal out moisture and corrosive materials and easily replaceable parts.
Grote Industries


Portable Nitrogen Inflation System
For shops wanting to offer customers nitrogen tire inflation, Parker Hannifin introduced a new portable TireSaver system that can be transported throughout a service facility. The company said using dry nitrogen has many benefits, including “tires will last longer, provide increased safety, offer better fuel efficiency and reduced operating costs.”

The TireSaver system will produce 95 percent pure nitrogen from standard compressed air. The TS051-0ABCBR model is available with a 30-gallon storage tank; built-in auto inflator that purges and fills up to six tires simultaneously; built-in counter to track use; gauges to monitor inlet and outlet pressure; and a handheld nitrogen analyzer.

Parker Hannifin said it offers customers a wide variety of point-of-purchase materials to advertise nitrogen tire inflation services.
Parker Hannifin


Synthetic CJ-4 Formula Added
Delo 400 LE Synthetic SAE 5W-40 engine oil, which is 100 percent synthetic and CJ-4 compliant, has been added to the Chevron Delo lineup of lubricants. The new oil, which the company said “exceeds industry and engine manufacturers’ performance requirements,” is formulated using a blend of the latest dispersant, detergent, oxidation inhibition, anti-wear, corrosion inhibition, viscosity improver and de-foaming additive technologies.

Delo 400 LE Synthetic can be used with both pre- and post-2007 engines and the company said it offers excellent cold startup capabilities, can provide improved fuel economy and is fully backwards compatible with previous API categories.

The new oil is available in gallon jugs, five-gallon pails and 55-gallon drums.
Chevron Products Co.


Haldex Brake, Hendrickson Axle Combo
Haldex Commercial Vehicle Systems announced its ModulX DB22LT air disc brakes now are available on Hendrickson axles and can provide weight savings of 37 pounds per axle versus the previous model. According to Haldex, ModulX air disc brakes slide on four stainless steel slide pins, providing a more compact, stable design that standard two-pin configurations. Additionally, two tappets equally distribute brake pad clamping force for more even wear.

Haldex said its DB22LT outperforms standard S-cam drum brakes in practically every category and is less sensitive to speed and temperature variation.
Haldex Commercial Vehicle Systems


Aftermarket Crew Cab Conversion
Kenworth Truck Company introduced an aftermarket crew cab conversion option for its T170, T270 and T370 medium-duty, conventional truck models. The company said the converted vehicles are ideal for fuel oil, fire and rescue, towing and recovery, leasing and rental and utility applications.

The 157-inch BBC crew cab uses a one-piece fiberglass roof with 4-inch raised rear section, which provides up to 61 inches of interior height. The remaining crew cab structure is aluminum and provides an additional 52 inches of length and is 84 inches wide at the rear. Also standard are Kenworth DayLite door assemblies and door panels, Granite Gray vinyl interior trim, Kenworth interior upper B-pillar and exterior grab handles and DuPont Imron Elite single stage paint.

The crew cab conversion is done in partnership with Bentz Transport Products.
Kenworth Truck Company


Enhanced Vocational Suspension
Hendrickson introduced an enhanced version of its Primaax heavy-duty vocational air suspension, the Primaax EX. The company said the new system improves durability and performance, as well as substantially reducing weight.

Hendrickson said the Primaax EX improvements include enhanced joint integrity and durability, improved handling, increased air spring capacity, greater disc break compatibility and improved resistance to torque rod bushing walk-out.

The Primaax EX suspension – designed for use in mixer, dump, heavy-haul, refuse, crane and logging applications – has cast austempered and shot-peened ductile iron support beams that integrate attachment points for greater reliability. Its geometry includes a new frame hanger and torque rod configuration for increased roll stiffness and reduced roll steer for improved handling.

Hendrickson said the Primaax EX will be available at most major truck manufacturers in capacities ranging from 23,000 to 26,000 pounds for single-axle, 46,000 to 52,000 pounds for tandem-axle and 69,000 to 78,000 pounds for tridem-axle applications.
Hendrickson


Fluorescent Leak Detection
Tracer Products introduced its Tracerline TRITAN 365 – a multi-LED, broad-beam, true UV leak detection lamp – that the company said works with all fluorescent dyes, including difficult-to-fluoresce yellow dyes.

The new tool has three ultra-high intensity UV LEDs for fluorescent leak detection, plus a white light LED to illuminate dark work areas. Tracer said the lamp’s broad-beam profile provides extra-wide area coverage to assist in checking large radiators and condensers. And, despite a compact head for getting into tight areas, it has an inspection range of at least 20 feet.

The TRITAN 365 weighs 16 ounces, comes with an 8-foot power cord with an AC plug and is available in 120V, 230V, 240V and 100V models. It has a rechargeable NiMH battery pack with an adjustable shoulder strap and belt loop, AC cord set, AC charger, UV-absorbing glasses and a padded carrying case.
Tracer Products


C18 Gasket Sets
IPD introduced a new line of its IPD 1-2-3 Gasket Sets designed exclusively for Caterpillar C18 engines. IPD said the set makes engine rebuild jobs easier, faster and more accurate as opposed to ordering each piece individually.
IPD


Mobile Column Lifts, Weight Gauge
Mohawk Lift introduced mobile column lifts available in two through eight column sets with per-column capacities of 18,000, 24,000 and 30,000 pounds, and total lifting capacities up to 240,000 pounds. The mobile column lifts are available in either 220 or 440 AC or 24V DC current.

Mohawk also introduced a weight gauge compatible with the company’s two-post lifts from 7,000- to 30,000-pound capacities. Among the uses for the weight gauage, the company said, is to ensure the lift is not being overloaded and to provide technicians with accurate vehicle weights.
Mohawk Lifts


Expanded Lubricant Line
Petro-Canada introduced a new API CJ-4 compliant engine oil, DURON-E 10W-30, that is specially formulated for both on- and off-road fleets. According to Petro-Canada, the benefits of the new formula include excellent soot dispersancy, extended drain capabilities, low engine wear and good top-up and cold start-up performance.

DURON-E 10W-30 is suitable for 4-stroke diesel, gasoline and natural gas applications where SAE 10W-30 is recommended, including engines equipped with exhaust aftertreatment devices such as diesel particulate filters (DPFs) and catalytic reactors. It is also backward compatible with previous API classifications.

Other Petro-Canada CJ-4 product offerings include DURON-E Synthetic 10W-40, DURON-E XL Synthetic Blend 15W-40, DURON-E 15W-40 and DURON-E Synthetic 0W-40.
Petro-Canada


Welded Clevis Pushrod Assembly
Haldex Commercial Vehicle Systems introduced the Gold Seal and Life Seal spring brakes and service chambers with the OEM specified welded clevis pushrod assembly. These new models come with the clevis welded to the pushrod and in the exact pre-set position used in new vehicle production.

Haldex said this OEM grade replacement comes in both standard stroke and long stroke.
Haldex Commercial Vehicle Systems


Infrared Refrigerant Leak Detector
Robinair, an SPX brand, now offers a handheld, infrared Refrigerant Leak Detector (P/N 22791). According to the company, the new tool meets the new SAE J2791 standard and, unlike other leak detection methods such as corona discharge and heated diode leak detectors, the Robinair 22791 sensor doesn’t touch refrigerant as it passes through the instrument.

The detector is said to not need any warm-up and is ready to use in less than a minute, and it won’t trigger on oil or moisture. It has an 8-hour battery life, mute and peak functions and a rugged, compact design.
SPX

Tech Updates – January 2009

Bearing Mounting
According to NTN, proper mounting practices eliminate unnecessary bearing damage during installation. Never strike the bearings directly with a hammer or a drift as damage may result. Apply evenly distributed force over the entire bearing ring face. When fitting both rings simultaneously, apply pressure to both rings to avoid indentations in the raceway or rolling elements.

Cold Mounting: Interference fits require even more care during installation because the bearing has a smaller bore or a larger outside diameter than the mating part. Bearings with relatively small interference fits can be press fit at room temperature by using a sleeve against the ring face.

Bearings are frequently mounted by striking the sleeve with a hammer, however, if available, use a mechanical or hydraulic press because it applies a more uniform force.

When mounting a non-separable bearing on a shaft and in a housing at the same time, use a pad that distributes the fitting pressure evenly over the inner and outer rings.

Heated Mounting: Bearings with large inner ring interference require a considerable amount of force to mount at room temperature. Mounting is facilitated by heating and thus expanding the inner ring.

The amount of heating required depends on the amount of interference and the shaft diameter.
If you are immersing bearings in hot oil, to avoid overheating, suspend the bearings inside the heating tank on a wire grid. Never bring bearings in direct contact with the heating element or bottom of the tank.

When using a hot plate to heat bearings, gaps between the inner ring and the abutment can be avoided by holding the inner ring against the shaft abutment during cooling.

It is essential to apply heat uniformly throughout the entire bearing. Do not use a torch to heat the inner ring during installation because it produces high localized heat. NTN bearings should never be heated above 248

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