Connect with us

Business

J.D. Power says new truck boom cycle almost certainly in rear-view mirror

Published

on

In January, a 3-year-old truck retailed for $93,883, $3,238 (3.6 percent) higher than January 2018. Pictured is a 3-year-old Mack Pinnacle. (Courtesy: MACK TRUCKS)

TYSONS, Va. — The year opened as expected in the commercial vehicle auction and retail channels with no real changes in pricing, but the new truck boom cycle is almost certainly in the rear-view mirror.

So says the February Commercial Truck Guidelines Industry Review released Thursday by J.D. Power Valuation Services (formerly the National Automobile Dealers Association).

The takeaway is that truckers are satisfied with the units they have in the production pipeline, the report said.

Trucks sold in January continue to bring strong money, with depreciation essentially nonexistent month-over-month, the report’s Class 8 retail update said.

“There appear to have been fewer buyers in January, but those who did write a check were paying similar money to last month,” the report said.

The average sleeper tractor retailed in January was 70 months old, had 467,599 miles, and brought $56,379. Compared to December 2018, the average sleeper was one month older, had 7,632 (1.7cent) more miles, and brought $856 (1.5 more) more money. Compared to January 2018, this average sleeper was one month older, had 8,410 (1.8 percent) more miles, and brought $5,181 (10.1 percent) more money.

Each January, J.D. Power considers each model year one year older.

For example, a truck of model year 2015 would be five years old as opposed to four years old in December.

With that in mind, January’s average pricing was as follows:

  • 3-Year-Old Truck: $93,883; $3,238 (3.6 percent) higher than January 2018
  • 4-Year-Old Truck: $77,560; $10,956 (16.4 percent) higher than January 2018
  • 5-Year-Old Truck: $61,540; $5,975 (10.8 percent) higher than January 2018

On a year-over-year basis, late-model trucks sold in calendar-year 2018 brought 10.7 percent more money than in the same period of 2017.

Class 8 sales per dealership came in substantially lower than expected in late 2018 and January of 2019, dropping in January to 3.9. This is the lowest volume recorded since the Great Recession.

January is more often than not a slow month for used truck sales, so we are not overly concerned about the result, the report said, noting that in looking forward over the long term, Class 8 orders dropped dramatically in late 2018 and January 2019.

“Orders have now been below deliveries for two months, which is an inflection point that should be noted,” the report said. “The new truck boom is behind us, as the ‘beat-the-tariffs’ business inventory buildup has ended and the ‘juice’ from the 2018 tax breaks has played out. Deliveries of new trucks will remain strong into the second half of 2019, but it looks like demand is on the downward slope as supply heads in the other direction.”

The Class 8 auction update said with the seasonal lull in auction activity in place, there were very few units of the benchmark model sold in January.

“Low volume can create anomalies in our averages, but this month’s figures looked stable,” the report said. “The exception was trucks of model-year 2015, which showed a dip that can be explained by a high-mileage and low-spec mix of trucks sold.

Here is date for model years 2011-2016:

  • Model year 2016: $51,895 average; $2,520 (4.9 percent) higher than December
  • Model year 2015: $39,125 average; $4,425 (10.2 percent) lower than December
  • Model year 2014: $31,500 average; $500 (1.6 percent) lower than December
  • Model year 2013: $29,700 average; $550 (1.8 percent) lower than December
  • Model year 2012: $24,175 average; $825 (3.3 percent) lower than December
  • Model year 2011: No sales in January

“There was essentially no depreciation in 2018 for 4-6 year-old examples of our benchmark model. On average, this group brought 21.5 percent more money year-over-year,” the report said. “We expect the supply and demand relationship to look more historically typical as 2019 progresses, resulting in more noticeable depreciation.”

 

 

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Women In Trucking names its 2019 top woman-owned businesses

Published

on

Angela Eliacostas is the founder and owner of AGT Global Logistics, one of the companies the Women In Trucking Association has named its 2019 Top Women-Owned Businesses in Transportation. (Courtesy: Women in Trucking)

PLOVER, Wisc. —  The Women In Trucking Association (WIT) has announced its annual list of the “Top Woman-Owned Businesses in Transportation.”

The names of the companies being recognized in 2019 were released in the latest edition of Redefining the Road, the official magazine of WIT.

WIT created the list was created to recognize women in leadership and encourage more women to become proactive leaders in their organizations and even start their own businesses, WIT president and CEO Ellen Voie said. The program supports WIT’s overall mission “To encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.”

Entrepreneurship is a viable means of economic self-sufficiency, and many women are choosing an enterprise connected to transportation to be part of their career aspirations, according to Brian Everett, publisher of Redefining the Road.

Companies considered for the recognition must meet criteria that includes majority ownership by a woman, financial stability and growth, innovation and entrepreneurial spirit. Each company was nominated and chosen based upon business success and accomplishments, including those related to gender diversity.

This year’s list includes companies from a diverse range of business sectors in the commercial freight transportation marketplace, including motor carriers, third-party logistics companies and original equipment manufacturers.

Companies named to the 2019 “Top Woman-Owned Businesses” list and their primary female business owners are:

  • Bennett International Group; Marcia G. Taylor, CEO
  • Kenco Logistics; Jane Kennedy Greene, chairwoman
  • London Auto Truck Center; Donna Childers, vice president
  • Rihm Family Companies; Kari Rihm, president and CEO
  • Veriha Trucking, Inc.; Karen Smerchek, president
  • Rush Trucking Corp.; Andra Rush, CEO
  • Aria Logistics; Arelis Gutierrez, CEO
  • Lodgewood Enterprises; Arlene Gagne, president
  • S-2international, LLC; Jennifer Mead, CEO
  • International Express Trucking; Karen Duff, president and CEO
  • Brenny Transportation, Inc.; Joyce Brenny, CEO and founder
  • Knichel Logistics; Kristy Knichel, CEO
  • Garner Trucking; Sherri Garner Brumbaugh, CEO
  • LYNC Logistics; Cindy Lee, president
  • Ontario Truck Training Academy; Yvette Lagrois, president
  • AGT Global Logistics; Angela Eliacostas, owner and founder
  • Powersource Transportation; (Barb Bakos, president
  • LaunchIt Public Relations; Susan Fall, president
  • United Federal Logistics, Inc.; Jennifer Behnke, president
  • BCP Transportation; Nancy Spelsberg, Ardis Jourdan, Kristie Rozinski
  • Ladybird Logistics Ltd.; Felicia Payin Marfo, managing director
  • DGT Trucking; Donna G. Sleasman, owner
  • RFX Inc.; Kimberly Welby, president and CEO)

These companies will be recognized during a special program at the Women In Trucking Accelerate! Conference & Expo, Sept. 30 – Oct. 2 in Dallas. For more information, visit WomenInTrucking.org.

Continue Reading

Business

ATA Truck Tonnage Index falls 1.1% in June, but 1.5% higher than June 2018

Published

on

Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 1.1% in June after falling 4% in May. In June, the index equaled 115.2 (2015=100) compared with 116.5 in May.

“Tonnage continues to show resilience as it posted the 26th year-over-year increase despite falling for the second straight month sequentially,” said ATA Chief Economist Bob Costello. “The year-over-year gain was the smallest over the past two years, but the level of freight remains quite high. Tonnage is outperforming other trucking metrics as heavy freight sectors, like tank truck, are witnessing better freight levels than sectors like dry van, which has a lower average weight per load.”

May’s reading was revised up compared with our June press release.

Compared with June 2018, the SA index increased 1.5%, the smallest year-over-year gain since April 2017.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 117.6 in June, 3.3% below May level (121.7). In calculating the index, 100 represents 2015.

Trucking serves as a barometer of the U.S. economy, representing 70.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3% of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

 

 

 

 

Continue Reading

Business

JK Moving modernizes moving with mobile app and virtual AI estimating options

Published

on

The JK mobile app enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. (Courtesy: JK MOVING)

STERLING, Va. — JK Moving Services, a global moving, storage, relocation and logistics enterprise, says it has added new technologies to further modernize the move experience for customers, including a mobile app to help the customer manage the move process and software to do virtual estimates with either a real person or by an artificial intelligence interface.

“Great technology makes for better moves and that’s why we invest in cutting-edge solutions. Mobile apps and AI are now part of our customer tool kit,” said CEO Chuck Kuhn. “Giving clients choices in how they work with us helps us meet a variety of customer needs and styles.”

Kuhn said JK’s tech team had created a downloadable mobile app that enables clients to go onto the app to receive and review estimates; accept and edit estimates; make payments; communicate with their sales consultant and move coordinator; and prepare for the move day. The app is monitored 24/7 by the JK team.

Since this custom app was developed in-house, JK is able to incorporate feedback and improvements quickly, Kuhn said, adding that the mobile app complements new estimating software that clients can use to get a virtual estimate.

The client gives a tour of their house with their phone to their choice of a real or AI representative. The AI estimating software recognizes shapes of objects and makes an inventory list. From that tour, JK can provide an estimate and send it to the mobile app. Estimators still are available to come to someone’s house if that is what the client prefers.

“Going mobile improves our customer offerings since many clients want products that are seamless, easy and quick. We’re receiving terrific feedback for our new mobile app and virtual estimating. These tech advancements put us at the forefront of the residential moving business,” said David Cox, executive vice president, residential, JK Moving.

Cox said the mobile app also reduces the use of paper, which is good for the environment. Environmental stewardship is part of the JK culture and a consideration in many of the company’s innovations.

“In fact, JK was one of the first on many environmentally friendly practices, including: ordering Tesla semi moving trucks, embracing new technologies that will further its aggressive carbon emissions-reduction goals, leading with box-less moves and major recycling efforts, and starting a chemical free community farm,” he said.

Another recent modernization includes the addition of dashcam technology in its whole fleet. These cameras are installed in the truck cabs. When a trigger event happens, such as a sudden stop or jostling movement, a 12-second video clip gets sent to DriveCam, a third-party vendor that monitors and evaluates the incidents. DriveCam sends JK feedback when opportunities arise to improve driving behaviors, enabling JK to provide customized training to drivers. The dashcams have resulted in employees improving their driving skills and experiencing fewer triggering events, resulting in fewer accidents and a reduction in claims.

 

 

Continue Reading

Trending