Industry Report
Industry r e p o r t
Denise L. Rondini | Editor | drondini@rrpub.com
Dealer News
Here is news from dealerships around the country: W&B Service Company, L.P., of Dallas, was named 2009 Dealer of the Year for Carrier Transicold. Refrigeración Especializada para el Transporte de Occidente S.A. de C.V. (RETO), Guadalajara, Mexico, was named Latin America Dealer of the Year. Lake City Trucks, LLC Spellman announces new general manager, Andy Spellman. Doug Gerrard, dealer principal, announces that Chicago International Trucks has purchased selected assets of J. Merle Jones & Sons located in Joliet, Kankakee and Ottawa, Ill. Gerrard
carriers invest in newer, more costly equipment," Lana Batts, a managing partner for TCP, says. "About half of carriers are considering extending their trade cycles 12 months or more," Mikes says. "This reflects the view of many carriers that truck quality has been rising and shorter hauls have made this option more attractive as new truck prices continue to rise." The survey found that 56 percent of respondents expect to grow by adding new capacity from company-owned equipment rather than independent contractors. Both Batts and Mikes say it was surprising that 29 percent of carriers planning to add capacity indicate they would do so with independent contractors, given that their numbers have been dropping for some time because of higher fuel prices, tight credit markets and the increasing price of new 2010-compliant tractors. Mikes and Batts, both with extensive experience in transportation, directed the survey and analyzed the findings, coupling the results with conversations they hold with carriers in order to present an insightful dialogue on key issues.
Survey Shows Carries Slow To Buy
The results from Transport Capital Partners' (TCP) recent Business Expectations Survey of truckload carriers in the U.S. show continuing caution in buying new equipment as replacement cycles continue to stretch out. TCP, a firm specializing in transportation mergers and acquisitions, capital sourcing and advisory services, uses the quarterly survey to collect the insights and opinions of executives nationwide in order to report on the current state of the truckload industry and future expectations. "TCP's survey shows about half of carriers adding capacity, primarily when the current fleet is fully utilized and rates increase sufficiently," Richard Mikes, a managing partner for TCP, says. "But one in eight (primarily smaller carriers) are already starting to add capacity now with the impending supply demand equilibrium being positive," he says. "The survey shows that larger carriers will wait until their current fleet is fully utilized and rates increase sufficiently. Increased rates will definitely be needed before most
Great Dane Trailers Acquires Johnson Refrigerated Truck Bodies
Great Dane Trailers announced that it has acquired Johnson Refrigerated Truck Bodies, a manufacturer of insulated fiberglass refrigerated truck bodies and allelectric refrigeration solutions, and the designer of truck refrigeration technology. For Great Dane, the purchase of Johnson Refrigerated Truck Bodies is a strategic addition to the semi-trailer manufacturer's sales platform. By expanding its product offerings in refrigerated transportation equipment, Great Dane says it reinforces its commitment as a market leader to fully serve the food service industry. For Johnson, the significant overlap with Great Dane's customer base will both support and expand the truck body manufacturer's business. In addition, Johnson will have access to Great Dane's network of distribution, parts and service centers.
4 | SUCCESSFUL DEALER | April 2010