FTR: February outlook for Class 8 demand remains unchanged
FTR announced Tuesday, Feb. 23, that its February North American Commercial Truck and Trailer Outlook Report continues to forecast only marginal gains for Class 8 truck demand for 2010 even as signs multiply that the demand for truck freight is beginning to improve.
While freight is turning positive and expected GDP growth for 2010 is edging higher, the combination of excess capacity and the impact of the U.S. Environmental Protection Agency emissions mandate will hold Class 8 equipment demand this year essentially flat compared to 2009, says FTR, who also reports that the outlook for trailers is improving for 2010 with production levels stabilizing.
“While many would like to see a good upsurge in Class 8 demand this year because of the improving economy, our analysis continues to see a disconnect between the 2010 freight and equipment production outlooks,” says Eric Starks, FTR president. “We continue to caution against optimism – especially in the first half of the year – because of the huge overhang in excess idle equipment. The current lack of Class 8 orders supports our view.”
Monthly freight index unchanged, year-over year down 4.1%
The Freight Transportation Services Index was unchanged in December from its November level after one monthly increase, the U.S. Department of Transportation’s Bureau of Transportation Statistics reported last week. BTS, a part of the Research and Innovative Technology Administration, reported that though the Freight TSI declined 4.1 percent during 2009, the index increased 2.9 percent over the last seven months of the year, beginning in June.
The December Freight TSI of 96.2 is a 2.9 percent increase from the recent low of 93.5 reached in May, when the index was at its lowest level since June 1997. However, the Freight TSI is down 14.8 percent from its historic peak of 112.9 reached in May 2006. With the 4.1 percent decline in 2009 following an 8.7 percent decline in 2008, the Freight TSI has declined 12.4 percent in two years. The freight index is also down 13.2 percent in the five years from December 2004, and down 8.4 percent in the 10 years from December 1999.
The December Freight TSI of 96.2 is the lowest for December since December 1996 when it was 89.1. The 4.1 percent decline in the Freight TSI from December 2008 to December 2009 was the fourth-largest annual decline in the 20 years for which the TSI is calculated. It was the third largest decline in the past decade, exceeded by declines in 2000 and 2008.
The Freight TSI is a seasonally adjusted index that measures the month-to-month output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight. It includes historic data from 1990 to the present. The baseline year is 2000.
TMC names Silver Spark Plug award winners
The Technology & Maintenance Council of the American Trucking Associations awarded its highest honor – the Silver Spark Plug Award – to four trucking industry professionals during the council’s 2010 Annual Meeting.
The 2010 TMC Silver Spark Plug recipients are: Doug White, vice president of maintenance for Dunbar Armored; Vincent Lindley, national fleet service account manager for Volvo Trucks North America; Roger Maye, national service manager for Consolidated Metco; and Carl Tapp, vice president of maintenance for PAM Transport. These recipients were awarded the Silver Spark Plug for their outstanding contributions to the improvement of equipment, maintenance, industry-related technology and management practices.
White has been a TMC member since 1997. He provided the leadership when TMC started its S.15 Specialty Vehicles Study Group and continues to lead the study group as chairman. He has led numerous task forces, has served as moderator or panelist for numerous technical presentations and is a past recipient of TMC’s Maintenance Supervision Excellence Award.
Lindley is a TMC Recognized Associate has been a member since 1994. He has been active in several study groups where he has helped facilitate the development of numerous Recommended Practices. He has been a presenter for TMC technical sessions and currently serves as secretary for TMC’s Associate members.
Maye is a TMC Recognized Associate and has been a member since 2003. He has worked within the S.6 Chassis and Brake Systems Study and played a leading role in developing RP 648, “Troubleshooting Ride Complaints.” He has been active in TMC’s Professional Technician Development Committee since its inception, served as a station chairman or co-chairman for PTDC’s national technician competition and helped produce training sessions for the PTDC Technician Training Fair. He has supported TMC International meeting in Canada and regularly appears on the council’s SiriusXM Satellite Radio Show, “Tech Talk with TMC.”
Tapp has been a TMC member since 1996. He has been active in the S.1 Electrical and Instruments Study Group and has distinguished himself as a memorable technical session presenter, sharing his wealth of industry knowledge from a fleet perspective. He is a regular participant in several task forces and currently chairs the Road Service Diagnostic Evaluation Process Task Force. He also serves on ATA’s Technical Advisory Group.
U.S. diesel price climbs 7.6 cents, $2.832
After five consecutive weeks of declining prices, the national average retail price of a gallon of diesel soared 7.6 cents to $2.832 for the week ending Monday, Feb. 22. The price, which had fallen 12.2 cents since Jan. 11, is 70.2 cents higher than the same week last year, according to the U.S. Department of Energy (DOE).
All regions tracked by the DOE saw prices increases. The biggest increase, 8.9 cents, was found in the Midwest, where prices climbed to $2.794. The smallest increase, 2.0 cents, was found in New England, where prices climbed to $3.011, the nation’s most expensive diesel by region. The nation’s least expensive diesel by region, $2.793, was found in the Gulf Coast, where prices climbed 7.5 cents.
California, which the DOE tracks separately for its weekly update, saw a price increase of 7.8 cents to $2.980; that price is 76.1 cents higher than the same week last year.
Cummins agrees to pay $2.1M penalty for Clean Air Act violations
Cummins Inc. will pay a $2.1 million penalty and recall 405 engines under a settlement agreement resolving violations of the Clean Air Act, the U.S. Environmental Protection Agency and the Justice Department announced Monday, Feb. 22. According to a complaint filed simultaneously with the settlement in federal court in the District of Columbia, between 1998 and 2006, Cummins shipped more than 570,000 heavy-duty diesel engines to vehicle equipment manufacturers nationwide without exhaust aftertreatment devices (ATDs) included, in violation of the act.
According to the complaint, Cummins tested the engines with ATDs to meet EPA’s emissions standards, but failed to include ATDs with the engines when Cummins shipped the engines to the vehicle manufacturers; instead, Cummins relied upon the vehicle manufacturers to purchase and install the correct ATDs. The United States alleges that the shipment of engines to vehicle manufacturers without ATDs violates the Clean Air Act’s prohibition on the sale of engines not covered by certificates of conformity.
The settlement requires Cummins to recall about 405 engines that were found to have reached the ultimate consumers without the correct ATDs in order to install the correct ATDs. The California Air Resources Board will receive $420,000 of the civil penalty under a separate settlement agreement with Cummins, continuing a federal government practice of sharing civil penalties with states that participate in clean air enforcement actions.
Janet Williams, director of communications for Cummins, says it’s permissible under EPA regulations to ship the engine and ATDs separately. “We’re responsible for collecting information from the OEMs to make sure the right pieces are put together and for making sure the paperwork is complete,” says Williams, who stressed that the documentation issue existed for only 405 out of 570,000 engines shipped during the timeframe in question – only 0.07 percent. “We take our environmental responsibilities very seriously,” she says. “There was never any attempt to circumvent EPA regulations.”
FleetPride acquires Mandal Truck and Trailer Inc.
FleetPride Inc., an independent aftermarket distributor of heavy-duty truck and trailer parts, announced that it is furthering the company’s long-term growth strategy by acquiring the assets of Mandal Truck and Trailer Inc. in Lathrop, Calif.
This acquisition, terms of which were not announced, includes a lease of the 11,520-square-foot facility dedicated to truck and trailer parts and service, and brings the total number of FleetPride locations in California to 20. Mandal Truck and Trailer’s previous owner, Ed Castles, will stay on in the role of branch manager, and employment offers were extended to all employees.
Mandal Truck and Trailer is located along the Interstate 5 corridor and serves the agriculture industry in the San Joaquin valley, as well as high-tech companies, quarries, lumber mills and timber product producers in the foothills and mountains to the east. “Lathrop, California is a strategic geographic complement to our existing branch locations in the region,” says Steve Turnlund, regional manager for FleetPride, based in The Woodlands, Texas. “It strengthens our mid-California footprint by shortening the distance between our existing branch locations in the state and will be well-served from the Visalia distribution center.”
Acquiring Lathrop will allow for significant growth and product line expansion going forward, says Mike Paxton, vice president of business development and strategic planning. “Easy access to a broad array of heavy-duty truck and trailer products enables both our local and national customers to establish a local source for just-in-time inventory.”
Association of Diesel Specialists 2009-2010 directory available
The Association of Diesel Specialists’ International Directory of members, products and services now is available. Published annually, the ADS directory includes a full listing of all members with their available services, if they employ an ADS TechCert Certified Technician/Certified Master Technician and if they participate in the ADS Nation Wide Warranty program. The directory also includes information about ADS events, committees and awards.
Copies of the directory may be purchased from ADS for $10 each (member rate) and $75 each (nonmember rate). To order, individuals may contact ADS at 816-285-0810 or download an order form at www.diesel.org.
MEMA acquires shareholder stake in OptiCat
The Motor & Equipment Manufacturers Association announced that it has become a major shareholder in OptiCat LLC, the automotive aftermarket’s first supplier-owned electronic parts catalog data aggregator. Automotive Aftermarket Suppliers Association, MEMA’s affiliate association that exclusively represents North American aftermarket parts manufacturers, will oversee MEMA’s ownership in OptiCat. MEMA joins U.S.-based MindQuest and Europe’s TecDoc Information Systems as OptiCat shareholders.
“MEMA, through its affiliate association AASA, is the only association dedicated to North American aftermarket suppliers, therefore an equity position in OptiCat is strategic,” says Bob McKenna, president and chief executive officer of MEMA. “We believe, with our members’ support, OptiCat can implement a much more efficient data flow model for the aftermarket that will result in increased profitability for everyone. As a shareholder and board member, we will represent our members’ interests in this important technology initiative, and improve the quality and timeliness of catalog and product information data.”
Aftermarket manufacturers are working together through OptiCat to deliver a consolidated data feed for reseller electronic parts catalog requirements. OptiCat’s data bank enables resellers to use a single source for timely and critical product and application information necessary for selling aftermarket parts.
“AASA’s equity stake is fundamental to the success of OptiCat’s electronic parts catalog data repository,” says Steve Handschuh, president and chief operating officer of AASA. “The model is without doubt the most efficient one to maximize sales and profits. We look forward to the opportunity to share this vision with our members and their customers, and we encourage all suppliers and their data receivers to join the OptiCat program.”
“There are too many redundant processes in today’s data distribution model resulting in lost sales and unnecessary costs for every channel member,” says Brad Duncan, general manager of OptiCat. “The North American data model is ‘many-to-many.’ Our shareholder, TecDoc, a supplier-owned data cooperative in Europe, has proven that a ‘one-to-many’ model is much more efficient. OptiCat will emulate TecDoc’s success.”
Uli Zehnpfenning, CEO of TecDoc, says their success in Europe is a direct result of aftermarket suppliers taking direct control of the creation, validation and distribution of their intellectual data property. “We welcome MEMA’s investment and look forward to working hand-in-hand through OptiCat to bring a similar model to North America,” Zehnpfenning says.
ArvinMeritor’s Mexico parts distribution center expands capacity 20%
ArvinMeritor Inc. last week officially opened its new aftermarket parts distribution center in Cienega de Flores, a suburb of Monterrey, Mexico, part of the manufacturing facility that houses the company’s commercial vehicle business operations in Mexico.
The company’s presence in Monterrey dates back more than 35 years to its Sisamex (formerly Dirona) brake, axle and driveline joint venture with Grupo Quimmco. ArvinMeritor previously maintained its aftermarket distribution facility in nearby Escobedo. ArvinMeritor established in 2008 the 400,000-square-foot commercial axle manufacturing plant in Monterrey.
“We are proud of our role in Monterrey’s economic development and appreciate the support we’ve received from the community,” says Mario Velasco, general market manager –Aftermarket, Mexico.
The expanded Monterrey warehouse and distribution center services more than 300 dealer and independent parts distributor locations throughout Mexico and Latin America. It has 28 full-time employees and 35,200 square feet of warehousing space, a 19 percent increase over the previous facility. The center stocks nearly 7,500 items across 22 product lines, including replacement parts for brakes, front axles, drive axles and trailer axles. Products are sold under several brands, including Meritor, Dirona and Sudisa.
“The expanded operation here in Cienega de Flores supports ArvinMeritor’s goals to expand our aftermarket business in Mexico while improving service to existing distributors and customers here,” says Terry Livingston, general manager-Americas, Aftermarket, ArvinMeritor.
“At the same time, this operation is the next step in our strategy to standardize parts-handling systems and processes across our global aftermarket organization,” says Craig Cartmill, global operations director, Aftermarket. “The Monterrey distribution center immediately services the specific needs of Mexican distributors and the advancement of our aftermarket distribution network around the world.”
Truck-Lite touts Flex-Lite LED line
Truck-Lite’s Flex-Lite line of LED lighting products is designed to allow for flexible mounting without the need for additional accessories and with versatile wire options. The line features two robust thermoplastic housing designs, both allowing for a flexible mounting surface to be molded directly around the lens.
The design of the “winged” version allows for a wide array of mounting options and is suited for the corner radius on trailer and body applications. The “non-winged” version is suited for the aftermarket because of its versatility to immediately replace failed lamps without tools or additional parts and its ability to cover holes left behind from initial installation.
The lamps are affixed to the surface with a heavy-duty peel-and-stick adhesive that’s designed to hold up to weather, impact and heat entrapment while maintaining a strong hold; the backing has been tested against pressure washing and other elements. Available with both a rear-exit and side-exit wiring housing style, the lamps allow for both installation without a wiring feed hole – for installation against any flat surface – and a clean installation with power and ground wires feeding into the vehicle or trailer body.
The small low-profile design has less than a ½-inch protrusion from the vehicle, making it a suitable option along narrow mounting rails, above loading doors or wherever space is at a premium.
