Ain’t No Such Thing!

Sitting here in the relative calm between Heavy Duty Aftermarket Week 5 (or HDAW-V) and Super Bowl LXIV offers a bit of a window to reflect on some of the discussions last month in the unusually aquatic Las Vegas environment. Prior to proceeding down this path of dialogue, however, it is mandatory (from my perspective) to recognize that the Massachusetts voter revolt of 2010 coincided with HDAW-V. On that note, let us observe that the election, thank God, is finally over!

If my memory is serving me correctly – and it often does not – I’ve had the opportunity to participate in HDAW-I-II-III-IV and V. It’s been fun – and it’s been a lot of work as well.

My team has tried a number of approaches to make the HDAW program content as valuable to attendees as possible. Sometimes it’s worked well, sometimes not quite so well. But we keep on trying; maybe some day we’ll really get it right.

For several years we’ve been asked to address this issue: “How does the independent distributor take business from the truck dealer?” For several years we’ve resisted this frontal approach. We’re not nuts; truck OEMs are some of our largest clients. And, quite frankly, we really didn’t think most independent distributors were going to be able to do this anyway.

How do independent distributors take business from truck dealers?

This year, we took a different track. We convinced Terry Dotson, president and CEO of Worldwide Equipment (13 truck dealerships, 32 total locations) to square off against Bill Ryan, chairman and CEO of Point Spring & Driveshaft (10 service-focused distribution locations). The discussion was animated and friendly; the questions from the audience were on target and carefully answered by both parties. More time would have been helpful; food for thought for the next planning session for HDAW-VI.

Two comments during the discussion, one from each participant, really put the entire issue in perspective for me. When Bill was asked from whom he took customers to grow his business, his response was “other independent distributors.” Not truck dealers, mind you, other non-dealer businesses unable to effectively compete with Bill’s team. When Terry was asked how much of the market he felt was his, he responded “all of it!” Not just engines – or proprietary parts – all of it.

So what did we learn from this exchange? Independent distributors who are growing are taking business from other independent distributors – not truck dealers. And truck dealers who are growing their aftermarket business are going after the entire aftermarket, regardless of who may currently own it.

So, where does this leave the entity that we’ve called “independent” for decades? Is he really independent? Does his decision to not carry an OEM banner out front make him independent – and independent from what? What’s an independent distributor? In a word or two, it ain’t! The word “independent” may be a great label to hang on a parts distribution business – but independent it ain’t.

The heavy-duty parts distributor is dependent! He is dependent on his suppliers, dependent on his customers – and even dependent on his competitors. The degree of his success certainly may be a direct function of his capabilities and those of his team – no argument. Beyond this, however, he is totally dependent on others to let his success continue – or not. If his suppliers drop him – he loses. If his customers drop him – he loses. And if his competitors don’t give him enough opportunity to scarf off some of their business – he loses.

2010 would be a great year for aftermarket distribution to put a stake in the ground.

The truck dealer has many of these same dependencies as well. But, in many states, dealer franchise laws give him an advantage. If his OEM supplier starts talking cancellation, the dealer usually has several avenues of either defense or recourse. The dealer can certainly lose his customer base to competition – and his growth opportunities to other dealers. So, objectively, he, too is dependent – but just not quite as much as the dependent heavy-duty distributor.

Over the past 20 years, dependent heavy-duty distributors have given up exactly as much heavy-duty aftermarket share as truck dealers have gained – seven points. Annual shifts are too small to show up on year-to-year comparisons. And certainly a seven point shift over 20 years is not a landslide. But I would hope that the size and direction of this shift would serve as an alarm of some sorts to dependent heavy-duty distributors who want to continue to grow.

In 2010, the heavy-duty aftermarket will begin to reverse the slide that began late in 2008 and continued all through 2009. 2010, in my opinion, would be a great year for dependent heavy-duty aftermarket distribution to put a stake in the ground – and figure out how to stop the slide in market share. If Terry and Bill are right, it will not be by attempting to take business from truck dealers. Nor will it be by circling the wagons. It will take an aggressive and progressive overhaul in both strategy and execution to make this happen! n

Stu MacKay has headed MacKay & Company since its inception in 1968. MacKay & Company serves manufacturers and distribution organizations serving the vehicle, equipment and engine businesses. The company provides its clients with proprietary research and consulting, participation in multi-client studies and its DataMac aftermarket tracking services.

The views expressed in the Guest Editorial are those of the author and do not necessarily reflect the opinions, beliefs and viewpoints of Truck Parts & Service magazine.

In the event that a few of you have been napping for the past several months (in itself not a bad idea), allow me to bring you up to speed.

Over these months, HRH Obama and his Pennsylvania Avenue cronies have appointed a couple of dozen “czars” to help protect us from ourselves. The criteria for appointments appear to be a direct function of being tightly wired into the 1600 PA cadre. It helps if you’ve thrown in a bunch of money in the last year or two – or thrown in a bunch of union workers (themselves being political currency).

And, it really helps if you’re wired into Chicago and Illinois politics, whose standards, as we know, are above reproach. Reproach is apparently some small town adjacent to the Joliet prison, by the way.

We have czars for all sorts of areas of this fragile economy. One for cars, one for health care, one for Wall Street, one for banking, one for executive compensation and so on. Little by little, we are seeing slices of our domestic world being handed off to a “FOB” (friend of Barack) to be examined, chastised and overseen.

It is apparently obvious to the FOB crowd that we, in our respective businesses, really know very little about what makes those businesses run – and we really need stern, serious oversight. GM, Chrysler and Bear Stearns may have been the poster children for this newly established “nannyism.” I fear that this is just the first chapter in what will evolve into a very long book.

Being in the research business (when do we get a czar?), I have extensively researched the forthcoming plans for the expansion of czardom. I care little about the czars for carbonated beverages, salons and pizza shops that are to be appointed shortly; it’s certainly about time we regulated these wild businesses!

I am very concerned about the czar selection for wine, however. I understand that we wine drinkers will be limited to one bottle per week – and only from the state in which you live. Have you ever tasted wine from Illinois or Arizona? Time to move to Oregon and live out the next few years on a Pinot Noir ration.

What we should all be concerned about is the forthcoming appointment (in January, as I understand it) of a czar for the truck parts business. Rumors have it that this czar will be selected from a group of candidates representing the Postal Service, Amtrak and the National Health Service (the last because we are perceived to be in a very unhealthy industry). A preliminary transcript of the press release announcing this appointment has been leaked and reads in part as follows:

“The White House announced today the appointment of a czar to oversee the truck parts business. The president’s announcement focused on the strong need to ‘clean up a very dirty business’ and to stabilize and rationalize both supply and demand in an overcrowded, cyclical industry. An investigation by the truck parts oversight commission has uncovered rampant waste in this business. ‘There are truck parts lying around in the hands of both distribution businesses and truck operators for which there is no immediate need,’ read the announcement. The commission has recommended the czar eliminate this wasteful practice and require suppliers to only produce parts when a vehicle is deemed (by federal inspectors) to be unable to operate.”

The announcement went on to say that the unsafe industry practice of removing dirty, greasy parts and rebuilding them must cease. These parts should be thoroughly cleaned before removal (eliminating any health hazard) and, once removed, immediately destroyed. This will eliminate the unsanitary procedures of disassembly – and stimulate the demand for new parts (again, only available direct from manufacturers once the vehicle condition is certified).

It was also noted that the new truck parts czar will be appointing several deputies, 50 state directors and regional inspectors wherever parts are sold and trucks repaired. The budget for this infrastructure is estimated to be approximately $50 billion and will be offset by a “small service fee” added to the $15 billion truck parts business.
Let’s hope the Feds don’t read this and really decide to proceed!

Over these months, HRH Obama and his Pennsylvania Avenue cronies have appointed a couple of dozen “czars” to help protect us from ourselves. The criteria for appointments appear to be a direct function of being tightly wired into the 1600 PA cadre. It helps if you’ve thrown in a bunch of money in the last year or two – or thrown in a bunch of union workers (themselves being political currency).

And, it really helps if you’re wired into Chicago and Illinois politics, whose standards, as we know, are above reproach. Reproach is apparently some small town adjacent to the Joliet prison, by the way.

We have czars for all sorts of areas of this fragile economy. One for cars, one for health care, one for Wall Street, one for banking, one for executive compensation and so on. Little by little, we are seeing slices of our domestic world being handed off to a “FOB” (friend of Barack) to be examined, chastised and overseen.

It is apparently obvious to the FOB crowd that we, in our respective businesses, really know very little about what makes those businesses run – and we really need stern, serious oversight. GM, Chrysler and Bear Stearns may have been the poster children for this newly established “nannyism.” I fear that this is just the first chapter in what will evolve into a very long book.

Being in the research business (when do we get a czar?), I have extensively researched the forthcoming plans for the expansion of czardom. I care little about the czars for carbonated beverages, salons and pizza shops that are to be appointed shortly; it’s certainly about time we regulated these wild businesses!

I am very concerned about the czar selection for wine, however. I understand that we wine drinkers will be limited to one bottle per week – and only from the state in which you live. Have you ever tasted wine from Illinois or Arizona? Time to move to Oregon and live out the next few years on a Pinot Noir ration.

What we should all be concerned about is the forthcoming appointment (in January, as I understand it) of a czar for the truck parts business. Rumors have it that this czar will be selected from a group of candidates representing the Postal Service, Amtrak and the National Health Service (the last because we are perceived to be in a very unhealthy industry). A preliminary transcript of the press release announcing this appointment has been leaked and reads in part as follows:

“The White House announced today the appointment of a czar to oversee the truck parts business. The president’s announcement focused on the strong need to ‘clean up a very dirty business’ and to stabilize and rationalize both supply and demand in an overcrowded, cyclical industry. An investigation by the truck parts oversight commission has uncovered rampant waste in this business. ‘There are truck parts lying around in the hands of both distribution businesses and truck operators for which there is no immediate need,’ read the announcement. The commission has recommended the czar eliminate this wasteful practice and require suppliers to only produce parts when a vehicle is deemed (by federal inspectors) to be unable to operate.”

The announcement went on to say that the unsafe industry practice of removing dirty, greasy parts and rebuilding them must cease. These parts should be thoroughly cleaned before removal (eliminating any health hazard) and, once removed, immediately destroyed. This will eliminate the unsanitary procedures of disassembly – and stimulate the demand for new parts (again, only available direct from manufacturers once the vehicle condition is certified).

It was also noted that the new truck parts czar will be appointing several deputies, 50 state directors and regional inspectors wherever parts are sold and trucks repaired. The budget for this infrastructure is estimated to be approximately $50 billion and will be offset by a “small service fee” added to the $15 billion truck parts business.
Let’s hope the Feds don’t read this and really decide to proceed!

In February this columnist cautioned that “now the scary part begins” and asked readers if they were bothered that “the pilot and co-pilot flying the government beast have never before been in the cockpit – much less gone through any flight training.” Keep in mind that this is a pilot who talks all the time and a co-pilot that only talks when he’s not supposed to! No radio space for directions from a flight controller but, then again, being “above or superior to all others” means no directions accepted, anyway.

So, after six or so months of “change,” as the charge was given, what do we have? Let’s leave all the offshore kowtowing to regimes in other parts of the world and just focus on what impacts us, the poor, overly taxed subjects of this sovereign.

Well, first off, their majesties have managed to take Daimler’s castoff, previously known as Chrysler, and give it away to the UAW (Usually Awful Workmanship) and FIAT (Fix It Again, Tony) – with a chunk owned by the Feds.

Desperate to increase sales and realizing that all sales come from dealerships, new management promptly cuts off a big slice of the dealer body. The logic? We need dealers that sell more cars. Explain that to me; when you’re in the cellar, doesn’t every sale count? Get the sales – then put some muscle into distribution agreements. Never waste a crisis, says the White House – and apparently UAW/FIAT Motors has the same philosophy.

UAW/FIAT Motors is going to build the teeny cars the Feds want (and may start ordering) us to buy. These teenies are great if your roads are about six feet wide and speeds are at sub-freezing levels. Good luck, Henry Waxman, but I think you’re going to find there’s hardly room for your specs and your mustache – much less the rest of your consumer crusade!
With UAW/FIAT as an encore, GM becomes the grand second act. Euthanasia would have been the appropriate solution to this terminal case – but how could the Feds win from this? So, our royalty jumps in, cans the chairman (same folks that thought waterboarding was inappropriate) and walks the remaining staff to the gallows. Pontiac dies (take that, John DeLorean), the Chinese get Hummer (no second prize?) and maybe Saab, Roger gets Saturn (Saturn dealers will be lining up to kiss his ring) and the ex-head of AT&T will take over as chairman. Sounds like a wrong number to me; do you really like your phone service? And more than a thousand dealers bite the dust – same rationale as UAW/FIAT and same poor logic!
Oh, and by the way, GMC finally announced that it’s killing the medium-truck business. Talk about a mercy killing – this patient has been terminal for years. When it was determined that it couldn’t even be given away, the death certificate was issued. No CSI investigation needed here; the baby had been DOA for years!

Is there any good news from the last six months? Those of us on Social Security got enough to purchase a half-decent case of wine (which this recipient did). And the simple threat of some sort of a stimulus package (whenever this might arrive) seems to have warmed a few hearts and a few points on the Dow. But most of what we’ve seen is just an economy finding a landing area (other than the Hudson River) and starting to see a little light on the horizon.

A brief note on the truck parts business – it stinks! The cannibals are hard at work, first time in a couple of decades. Bottom line – when this baby turns, hold on!
Are you ready for what comes next – Part III? See you again in about three months!

If my calendar is correct, about six months have passed since the January coronation in Washington. If you’re wondering about the choice of words, inaugurate is defined as “induct formally into office” and coronation as “the act of crowning a sovereign.” Make no mistake; we watched a sovereign being crowned – and sovereign means “above or superior to all others,” just in case that wasn’t real clear from the outset.

In February this columnist cautioned that “now the scary part begins” and asked readers if they were bothered that “the pilot and co-pilot flying the government beast have never before been in the cockpit – much less gone through any flight training.” Keep in mind that this is a pilot who talks all the time and a co-pilot that only talks when he’s not supposed to! No radio space for directions from a flight controller but, then again, being “above or superior to all others” means no directions accepted, anyway.

So, after six or so months of “change,” as the charge was given, what do we have? Let’s leave all the offshore kowtowing to regimes in other parts of the world and just focus on what impacts us, the poor, overly taxed subjects of this sovereign.

Well, first off, their majesties have managed to take Daimler’s castoff, previously known as Chrysler, and give it away to the UAW (Usually Awful Workmanship) and FIAT (Fix It Again, Tony) – with a chunk owned by the Feds.

Desperate to increase sales and realizing that all sales come from dealerships, new management promptly cuts off a big slice of the dealer body. The logic? We need dealers that sell more cars. Explain that to me; when you’re in the cellar, doesn’t every sale count? Get the sales – then put some muscle into distribution agreements. Never waste a crisis, says the White House – and apparently UAW/FIAT Motors has the same philosophy.

UAW/FIAT Motors is going to build the teeny cars the Feds want (and may start ordering) us to buy. These teenies are great if your roads are about six feet wide and speeds are at sub-freezing levels. Good luck, Henry Waxman, but I think you’re going to find there’s hardly room for your specs and your mustache – much less the rest of your consumer crusade!
With UAW/FIAT as an encore, GM becomes the grand second act. Euthanasia would have been the appropriate solution to this terminal case – but how could the Feds win from this? So, our royalty jumps in, cans the chairman (same folks that thought waterboarding was inappropriate) and walks the remaining staff to the gallows. Pontiac dies (take that, John DeLorean), the Chinese get Hummer (no second prize?) and maybe Saab, Roger gets Saturn (Saturn dealers will be lining up to kiss his ring) and the ex-head of AT&T will take over as chairman. Sounds like a wrong number to me; do you really like your phone service? And more than a thousand dealers bite the dust – same rationale as UAW/FIAT and same poor logic!
Oh, and by the way, GMC finally announced that it’s killing the medium-truck business. Talk about a mercy killing – this patient has been terminal for years. When it was determined that it couldn’t even be given away, the death certificate was issued. No CSI investigation needed here; the baby had been DOA for years!

Is there any good news from the last six months? Those of us on Social Security got enough to purchase a half-decent case of wine (which this recipient did). And the simple threat of some sort of a stimulus package (whenever this might arrive) seems to have warmed a few hearts and a few points on the Dow. But most of what we’ve seen is just an economy finding a landing area (other than the Hudson River) and starting to see a little light on the horizon.

A brief note on the truck parts business – it stinks! The cannibals are hard at work, first time in a couple of decades. Bottom line – when this baby turns, hold on!
Are you ready for what comes next – Part III? See you again in about three months!

TPS: What are the pitfalls of selling only on price?

Kading: While there are price buyers out there, selling on price only doesn’t mean the lowest overall cost for the business. Trucking companies have significant amounts of invested capital that they need to produce a return on. The best overall value for them is to keep their equipment on the road earning revenue. Product availability and reliability have significant implications, not the product price.

TPS: What is the single most important thing a distributor can do to define its value proposition to its customers?

Kading: The most important thing a distributor can do to define its value proposition to a customer is to prove that the customer will achieve the lowest total cost of doing business by working with that distributor. This might be done through a combination of price, service, product availability and quality components.

TPS: How are a distributor’s product lines important to its
value proposition?

Kading: Distributors who work with product lines that provide quality products, an uninterrupted supply of parts and all at a reasonable price will be able to show customers that they value the same overall low cost that the customer is trying to achieve. The distributor must not just tie itself to a single product line but understand what the customer is trying to achieve and help the customer select the product line that meets that need.

TPS: How receptive are customers to learning about a company’s value proposition over simply the cost of a product? What is the most effective way for a distributor to communicate its value proposition?

Kading: Customers are only interested in learning about a company’s value proposition if that value proposition meets a specific need. When a need is met, a sale is made. For example, in today’s economic environment, a customer who may have valued product longevity in the past may become a price purchaser because of falling revenue in their business. The distributor needs to understand the need of the customer and respond to that instead of being tied to one solution and trying to convince every customer how the distributor’s preferred solution provides a value.

The most effective way for a distributor to communicate its value proposition is to put it in terms that are important to the customer. As a general rule of thumb, price gets you in the door, then you better understand what the customer is looking to achieve or what they place value on. A good salesperson will ask questions to determine what the customer values so they can tailor their value proposition to the specific customer. If the customer values price only, the distributor needs a price-point product. If the customer values longevity to replacement or warranty coverage, the distributor needs to relate how a more premium product can add value.

Clearly stated, it is not a good strategy to try to convince every customer that brand X has a premium product that all customers should use because all customers have different needs.

TPS: How do you train and equip employees to effectively communicate the company’s value proposition?

Kading: Since maintenance is a cost center in any business, a good strategy is always to show how the value proposition leads to increased equipment availability, increased revenue and lower overall cost to the business versus just lower maintenance acquisition cost. It is important to understand the needs of the customer. Training and equipping employees with tools that let them evaluate a customer’s needs, and then help them tailor the message about specific products and services to meet those needs, will help get the value proposition across effectively.

TPS: What are the pitfalls of selling only on price?

Minor: You’re never going to have the lowest price – someone else will always be lower. So even if you do get the business based solely on having a lower price, you will end up losing it at another time if that is all the customer values and the only value you bring to the customer. It is also not an enviable market position to be perceived only as the lowest-cost distributor as it also means you have the lowest value to your customers.

TPS: What is the single most important thing a distributor can do to define its value proposition to its customers?

Minor: I don’t think there’s any single value proposition. It’s a combination of all of your resources and how you apply those to your customers. But toward the top of the list must be well-trained, skilled employees.

This is a people-driven industry and the better trained and more knowledgeable your employees are, the more value you bring to customers and those relationships last longer and bring greater mutual success.

TPS: How are a distributor’s product lines important to its
value proposition?

Minor: The distributor’s value proposition should be aligned with its major suppliers’ value propositions. When we evaluate our supplier relationships, it is essential that they provide a value proposition that is complementary to our own.

Having a supplier aligned with our value proposition means many different things. It could be VMI, it could be training, it could be field work, it could be all of those things combined – and generally it is. Without those values, the relationship would not be a long-term success and we would not be able to provide the value-added services to our customers.

TPS: How receptive are customers to learning about a company’s value proposition over simply the cost of a product? What is the most effective way for a distributor to communicate its value proposition?

Minor: In today’s market, trying to cultivate new business with new customers is a challenge because many companies are looking primarily at price. It is extremely hard to convey to a new customer your depth and breadth of inventory, delivery services, product knowledge, training and the level of skill your employees have.

That said, if you can get your foot into the door with a new customer, you can start to build the relationship on a small scale and work toward growth. That way they can see the greater value you bring through your people and all of your services. If that happens, you have a good shot at gaining new business.

TPS: How do you train and equip employees to effectively communicate the company’s value proposition?

Minor: We train; our training calendar at all locations has something on it every week. Whether it be factory training or a skill training we are always training for that competitive edge. We use problem solving methods to track all processes and look for continuous improvement in all aspects of our business. We are a customer service driven company. At Midwest Wheel we know the customer is No. 1.

MANUFACTURER DuraBrake Co.
Shaun Shroff, executive vice president of Marketing

Shroff: Pitfalls of selling only on price means denying the customer critical information which users often seek about the manufacturer, product specifications, unique features, performance capability of the product, life and disposal issues. All this can only be obtained from experienced technicians who know the form, fit and function of the parts and system.

We live in a litigious society where warranty issues and liability insurance are also a crucial part of customer need to know information. Distributors selling only on price are cutting corners only to focus on their profit and generally lack of service. In our own industry for heavy-duty wheel components such as brake drums and brake discs, we have found price-driven distributors buying counterfeit parts which have a part number of a reputable manufacturer and no identity. Counterfeit parts are a serious problem in the industry as this demonstrates ignorance of the buyer about the potential danger that lies ahead.

TPS: What is the single most important thing a distributor can do to define its value proposition to its customers?

Shroff: The single most important thing a distributor can provide to the customer is a full disclosure of the products they sell along with the benefit of hands-on experience with the products. Most reputable distributors in the U.S. have experienced and knowledgeable technicians interacting with the end users. This defines the distributor’s ability to provide the right parts at competitive prices. Good technicians and distributors keep their counter and shop personnel well trained in the field of their expertise.

TPS: How are a distributor’s product lines important to its
value proposition?

Shroff: Distributor’s product lines generally relate well with their expertise in the type of systems they serve with the parts they sell. Distributor’s product lines reflect the type of products they carry and the type of companies they represent. This brings me to the dramatic change that has occurred in our supply chain in the last two decades. Manufacturing has shifted from developed countries to emerging countries. China has become the manufacturing hub of the world where the majority of the global manufacturing occurs today whether by Chinese companies or offshore manufacturing arms of companies from developed countries. This is good trade if we optimize technologies from developed countries and use a lower labor cost to produce quality products competitively. In the last two decades there has been an evolution from bad quality product to now a lot of good quality product. Chinese companies can now produce good quality products and bad quality products. It is up to the sourcing manufacturers and distributors to protect their reputation by assuring quality parts to the customer at competitive prices.

TPS: How receptive are customers to learning about a company’s value proposition over simply the cost of a product? What is the most effective way for a distributor to communicate its value proposition?

Shroff: Most customers appreciate the value of knowledgeable and experienced technicians serving them, and often distributors serve a regional business which localizes relationships developed over years. Price is very crucial to remaining competitive. The best distributors are those that strategically balance service with pricing. The most effective way for a distributor to communicate the value proposition is through a relationship and trust that distributors develop by keeping customer’s best interests at heart.

TPS: How do you train and equip employees to effectively communicate the company’s value proposition?

Shroff: The distributor or its employees should never have to blow their horn about their capabilities. Actions speak louder than words. Ability to provide knowledge, service and professionalism to the customer will clearly communicate the company’s value proposition. Hands-on experience of the technicians to troubleshoot, install and uninstall parts, and operational knowledge of the system is priceless.

TPS: What do you think was the most significant breakthrough in technician tools?
Long: I think the thing that has most revolutionized the industry is the computers that we have on the shop floors. When I was growing up, we used to have volumes and volumes of books that we had to sort through and the information was dated. Now you can use the computer to do a word search or use it for diagnostics to find out what the problems are. A lot of the computer programs now even have diagnostic trees within the diagnostic program itself. It makes pretty quick work out of something that used to take quite a while to research.

TPS: What do you see the future holding for technician tools and technologies?
Long: I think with the dependability of the equipment that we are seeing out there now and the miles that we’re generating, the equipment is becoming more and more efficient as far as fuel economy and emissions controls. As you see that continue to be tweaked and put out there as a more reliable product – with new technologies you always have hiccups in the road – the use of the onboard diagnostic systems that are being proposed will actually assist the technician even more in diagnosing and repairing the vehicle.

TPS: How has the shop environment changed over the past 25 years?
Long: Technology has really opened up the shop to a whole new level. A few years ago a technician would walk up to a truck and he probably would be able to tell you what’s wrong with it just be listening to it and touching and feeling it. Now it’s gotten a lot more sophisticated. When you had those older manual engines, you had to break out some books and do some studying, and get your gauges out and do some testing. But now, all that is contained in a lot of the diagnostic programs. You hook up the connector J1939 data bus and it will tell you this sensor is showing a low voltage or high voltage or hasn’t opened at all.

So you’re able to click a button on a lot of the programs and it will say, ‘ok, this is where you start the troubleshooting tree.’ Before you had to go through the manual and get your test equipment hooked up. Now it’s all right there for you and it’s giving you instant reads.

TPS: As the industry tries to attract new technicians,
how would advanced tools and technologies appeal to the next generation?
Long: I was in New York City earlier this week and I was riding the bus and the subway, and I was noticing the kids, every one of them, had an iPod or an iPhone that they had in their hands. That is going to be instrumental to tap for kids of the future to come into this workplace. They know that there’s diagnostic equipment out there to not only work in their favor, but also to continue their education on that resource they already have in their hands.

The key thing is that as an industry we need to make it very well known to them in the elementary schools and the secondary schools that there is a career in this industry for them. What we find in our research is that most schools have a computer lab and let a kid sit down and do a computer skill test. It’s easier because you can put a lot more kids in a confined area rather than working on a car or a truck in a shop environment. We need to get away from that mindset and get our kids focused on not only computers, but also the things that are hauling products up and down the highways and into our living rooms and into our kitchens everyday.

ASSOCIATION
National Institute for Automotive Service Excellence Tony Molla, vicepresident,Communications

TPS: What do you think was the most significant breakthrough in technician tools?
Molla: I would have to say the hand-held diagnostic scanners have had the largest impact on individual technician’s diagnostic capability and productivity in the past 15 years. With the growth in vehicle electronics, and the spread of those electronics into virtually every area of the vehicle, the ability to diagnose, test and troubleshoot various computer control systems with a single device was a great leap forward.

TPS: What do you see the future holding for technician tools and technologies?
Molla: I think we’ll be seeing more telematics incorporated into the vehicle fleets at all levels. For medium and heavy trucks, this would allow the ability to detect problems on the fly, as well as improve the logistics of fleet service by allowing pre-ordering of necessary parts and supplies and a more efficient maintenance scheduling process. Beyond that, I see computerized diagnostic equipment becoming even more capable, particularly as it relates to emission control.

TPS: How has the shop environment changed over the past 25 years?
Molla: It’s gotten much better for the technician. Advances in safety equipment, environmental laws and developments in specific tools to help ease the technicians’ workloads, like specialized lifting equipment, have greatly reduced the number of OTJ [on-the-job] injuries and the exposure to dangerous materials. Upgrades in computer equipment have aided in improving productivity and accuracy in the areas of scheduling, work management, technical information access and distance learning to improve training access at the shop level. Many shops have even upgraded their physical plant by adding such things as air conditioning and modernizing operations to improve the overall work environment for their employees.

TPS: As the industry tries to attract new technicians, how would advanced tools and technologies appeal tothe next generation?
Molla: The next generation was raised with computers and cell phones. They are a digital society and respond well to an increasingly electronic environment. They are very comfortable working with computers and computerized test equipment and are generally better educated, with technical training resources at the high school and post-secondary level that didn’t exist 20 years ago. In general, students coming out of today’s technical training programs are better prepared for coping with the high-tech nature of virtually every type of vehicle being produced today.

As I mentioned, labor-saving devices are easing the workload, while more modern shops and equipment are dispelling many of the negative stereotypes traditionally associated with a career in vehicle service. Working the vehicle service sector today is as much a high-tech career as any other. This, combined with an improvement in work flexibility and benefits, are key to helping us attract the best and the brightest to deal with increasingly complex vehicle technology as we move into the 21st Century.

DISTRIBUTOR/SERVICE PROVIDER
Inland Truck Parts Company Dave Scheer, president

TPS: What do you think was the most significant breakthrough in technician tools?
Scheer: The development and use of portable electronic tools has been a tremendous breakthrough for technicians. Technician tools have evolved and continue to evolve. They are getting smaller, easier to use and are multi-purpose. All of these have been significant advancements in the use and effectiveness of technician electronic tools.

At the same time we also have created tool effectiveness barriers by restricting access to product and technical information the tech needs to do a quality and efficient repair. The technology exists to read fault codes, set parameters or troubleshoot a problem with a single hand-held tool. However, using perceived competitive advantage as justification, we have limited access to the necessary information technicians need. We are creating frustration and job dissatisfaction for them as well as creating barriers for recruiting and developing future technicians.

TPS: What do you see the future holding for technician tools and technologies?
Scheer: They will continue to evolve and become more comprehensive and easier to use. They will be able to wirelessly access systems and networks so they can be used seamlessly and effectively. The marketplace will demand it.

TPS: How has the shop environment changed over the last 25 years?
Scheer: Truck shops and the workplace environment have changed dramatically over the last 25 years to meet the expectations of the technician and the customer. As always, the marketplace has been the impetus for change. The customer has little tolerance for, and in most cases, will not accept anything less than a high quality, professional experience. They expect to be greeted by clean, well groomed and courteous service writers or service managers. They expect our facilities to be clean, neat and well equipped. If you don’t “look the part,” more and more customers won’t consider you a viable choice as their service provider.

Technicians also have high expectations of their employer and their work environment. They want to work for a quality organization that is well managed and that will invest in the necessary tools and equipment they need to do their job correctly and efficiently. They are concerned about workplace safety and their longevity; consequently they want the latest lifts, stands, jacks, etc. to limit the physical demands of their job. They are proud to be an accomplished technician and want to be recognized for their talent and expertise.

TPS: As the industry tries to attract new technicians,how would advanced tools and technologies appeal to the next generation?
Scheer: The technician of today, and even more so in the future, will have to know as much about computer systems and networks as he or she knows about shafts, gears, injectors, etc. Today’s young people are not afraid of technology – they embrace it. They will demand the latest equipment, technology and software to choose this industry as their career. We (our industry) must also have in place excellent training resources if we expect the students of today to choose truck technician as a potential career. They won’t tolerate the limitations and frustrations I described above in the name of completive advantage.

From my perspective, the frequency and volume of this intrusion should be as illegal as is waterboarding at Guantanamo. If the message can’t be expressed in a sentence or two – and delivered only once or twice – then it should be prohibited. Any further pronouncements should be grounds for a capital offense!

I trust these views are stated clearly enough to establish my credentials as a conservative curmudgeon. I find the current process apparently now necessary for an individual first to be nominated and then elected an outrageous affront to the sensibilities of any individual willing to be subjected to this repetitive drivel. But, on the other hand, if we as a nation are willing to pay money to endure endless hours of “Lost,” “Survivor,” “Judge Judy” and “The Biggest Loser,” maybe we deserve the current political circus.

And, on the topic of circuses, if this excruciating campaign process is deemed so necessary, why in the world don’t we wind up with better elected officials. I am undoubtedly biased as an Illinois resident (motto: “Our governors make license plates”) – but New Yorkers and residents of other states cannot be any less ashamed.

Congress? Where in the world do we get these people! Did you and I really pull the lever that established these folks as permanent DC residents controlling our future? Shame on us!
At any rate, at least for a few months, all this political nonsense should be behind us. Unfortunately, now the scary part begins. Now we get to see what really happens when those individuals who talked the longest and loudest start playing with our money (what little we have left after bailing out the wizards of Wall Street).

Does it bother you that the pilot and co-pilot now in charge of flying the government beast have never before been in the cockpit – much less gone through any flight training? Give me U.S. Air’s Captain Sully, please, and let the amateurs sit in back.

We’ve been told repeatedly that the flight plan for this government bird is but a single word: Change. As a professed registered curmudgeon, my exclaiming that I don’t like change shouldn’t come as a surprise.

I not only like things the way they are – I like them the way they used to be! Sure, medical advances are great; I love my titanium hip and chrome alloy knee. But these devices were developed by people who were trained to do this – and installed by surgeons with in-depth education and even more training. I like that kind of change. But it scares the pants off me to consider what a group of amateurs supported by an applauding Congress is contemplating.

One thing I like about the heavy-duty aftermarket is the fact that it doesn’t change much year-to-year. Yeah, it went down four or five points this past year – and probably won’t grow much this year, either. But it’s run by professionals, both sellers and buyers, who know what they’re doing. And when it needs to change, it does. But it does so carefully and rationally.

The folks running these enterprises didn’t get elected; they learned the business from the ground up. They accumulated thousands of hours of experience before getting into their respective cockpits.

Maybe the folks that are running the heavy-duty business should consider running the country. This old curmudgeon would certainly give them my vote – as long as they didn’t run any ads!

This installment of “Industry Perspectives” concerns the importance of succession planning on the success and longevity of the independent aftermarket, with views provided by a component manufacturer, a distributor and an industry trade association.

MANUFACTURER
Bendix Commercial Vehicle Systems
John Flad, vice president, North American Aftermarket Sales
Diane Shields, vice president, Human Resources & Organizational Development

TPS: Trucking and the aftermarket are not young industries. With an aging population at independent distributorships and repair facilities, particularly at the owner level, how important is succession planning?

Flad: Succession planning is extremely important, and one of the few things that independent distributors, in general, do not do very well. As a supplier partner, we are always evaluating our distributors. When a distributor suddenly sells out – many times to a national chain type operation – it’s a game changer for us. This happens all too often because there is no appropriate succession plan for the business and the owner. It’s also a game changer for the marketing groups, who lose members through sell offs and owners attempting to exit the business.

With this in mind, we focus more on the long-term future of a business when we review distribution options. Have they planned for the future? Are there skilled people in place to take control of the business when the current owner isn’t there? Are these people clearly identified and ready? Is there a financial plan in place for a smooth transition?

TPS: Is the aftermarket doing a good job at making succession plans for their businesses?

Flad: Some yes, most no; the bigger issue, a topic that was discussed above, is the lack of an exit plan for owners. This is a huge problem for those of us depending on our distribution partner, and again, for the business marketing group. The make up (membership) of marketing groups in the last few years has changed significantly, due primarily to membership loss by owners selling to non-affiliated chain operations. This potentially changes the strength of that marketing group, which impacts all the remaining members.

TPS: How does having a succession plan help communicate stability and strategic planning to customers and vendors?

Shields: A solid succession plan is imperative to achieve customer and vendor confidence, whether the company is publicly or privately held. Presenting a clear succession plan for companies is key to sustaining the strategic and operational effectiveness. The leadership and people within a company is what builds a brand – not the other way around. A clear succession plan communicates one more reason why a brand is solid in the marketplace.

A clear example in today’s economic environment has been the lack of succession clarity of Steve Jobs’ role as the leader of Apple computers. A lack of succession plan for Apple caused customer and shareholder speculation, and it was reflected in the company stock price and internal workforce stability – and ultimately brand perception.

TPS: What is the biggest reason companies don’t create succession plans – don’t know how, don’t feel it is important, don’t have the talent to step into the necessary positions?

Shields: There could be many explanations when it comes to the time needed to accomplish the succession planning exercise. However, the real driver is the level of HR [human resources] strategic integration in the business. A solid HR strategic partnership with the most senior levels in the organization will result in solid HR strategic outcomes – like succession planning aligned with the business needs. A succession plan view is not always internally focused. In fact, it could be external acquisition of talent as well. The exercise and the plan in place is what matters in order to react quickly to the external or internal factors.

TPS: What makes someone a good candidate to succeed in a particular position?

Shields: There can be many different factors, or attributes, depending upon “the position at hand” for the candidate. In general, however, a good candidate will succeed when they have both the right leadership behaviors and the performance accomplishment (track record) that they can leverage to achieve the next job challenge.

TPS: Does one factor mean more than another, such as longevity, skill set, leadership, familiarity with the company?

Shields: It all depends on the role. However, a critical piece is the capability to build and foster relationships as well as to demonstrate emotional intelligence. Experience becomes an essential factor as well. Again, depending on the role, experience serves as the foundation for continuous learning and the ability to apply that in the next job challenge.

Familiarity with the company, while important, is perhaps the least critical factor since that can be acquired as part of the learning process for any type of job. All these factors can vary in their level of importance depending of the job challenge: not all jobs are created equal, nor is the talent.