HDAW 2006 UPDATE             INDUSTRY NEWS

ECONOMIC TRENDS            

ASSOCIATION NEWS            FACTOID

HDAW 2006 UPDATE

Online Registration Opens for First-Ever Heavy Duty Aftermarket Week

Online registration for the first-ever Heavy Duty Aftermarket Week (HDAW), Jan. 23-27, 2006, in Las Vegas, Nev., is now open at www.hdaw.org.

The inaugural HDAW executive conference has a trade show � with 165 supplier exhibitors already on board, education sessions and panel discussions to provide the latest in industry developments to distributor executives, and one-on-one business meetings between distributor and supplier senior executives. HDAW will also provide new networking opportunities for the distributor and supplier executives in attendance.

Event organizers are the HDDA segment of AAIA and the Heavy Duty Manufacturers Association (HDMA) segment of MEMA. The �early-bird� registration fee is $400 for members of HDDA/AAIA and HDMA/MEMA as well as for the following organizations: Council of Fleet Specialists, Heavy Duty America, Heavy Duty Remanufacturers Group, Heavy Duty Representatives Association, National Wheel & Rim Association, Overseas Automotive Council, Power Heavy Duty, Service Specialists Association and TruckPride. After Nov. 1, the registration fees increase.

The HDAW registration fee includes continental breakfast on Jan. 24; the opening general session and educational sessions; lunch on Jan. 24 and Jan. 25; happy hour on the exhibit floor on Jan. 24 and Jan. 25; admission to the trade show; and distributor executive participation in the one-on-one business meetings.

�HDAW �06 is off to a great start. It has tremendous support from sponsoring groups and exhibitors, and truly is designed to provide the best possible commercial, educational and networking value for distributor and supplier participants in a single event,� said Bill Glasgow Sr., HDAW show manager.

HDAW 2006 will be held Monday, Jan. 23, through Friday, Jan. 27, at The Mirage in Las Vegas. For more information, visit www.hdaw.org. Companies interested in exhibiting or sponsorship opportunities, should contact W.T. Glasgow Inc., HDAW Show Management, at 708-226-1300 or e-mail info@hdaw.org.

HDAW to Feature Seminar on Adding Drive in Service to Your Business and Shop Management

Inland Truck Parts Company president and HDDA immediate past chairman, Dave Scheer, will team with renowned service shop management expert Bob O�Connor to present an HDAW seminar entitled �Shop Management and Adding Service to your Operation.� The session is part of a comprehensive HDAW educational program (detailed below), in which speakers and panels will discuss the future of the heavy duty aftermarket, the challenges facing industry and the opportunities to be seized.

Inland added their first drive in location in 1996 and now has 13 locations with service capabilities and 75 drive-in service technicians. Scheer will discuss what it takes for independent distributors to add a profitable drive-in service capability to their business. Overall, Inland has 25 locations covering 10 states with 450 employees, including 140 rebuild mechanics doing component remanufacturing.

O�Connor is president of R. L. O�Connor & Associates Inc., an aftermarket operations and management training and consulting firm founded in 1985. Clients throughout the U.S. and Canada include independent truck repair shops and truck dealerships. O�Connor will discuss best practices for effective service shop management. A 43-year veteran of the vehicle aftermarket, O�Connor is known for bringing to attendees broad-based, hands-on knowledge, offering proven, workable, day-to-day operating techniques and business solutions.

Future editions of HDDAFacts will profile each HDAW educational offering.

All-Star Educational Opportunities Planned for HDAW

A broad range of educational opportunities developed to meet the needs of all levels of distributor personnel will be a major attraction at HDAW, with sessions offered from Tuesday, Jan. 24 through Thursday, Jan. 26. The current schedule at this time includes:

Tuesday, Jan. 24
10 a.m. to 12 p.m.
Multi-track educational sessions held after the conference opening session will enable attendees to participate in two of three one-hour tracks. 

• The Aftermarket Economy: What Distributors Should Know � McKay and Co. will present an overview of current economic trends and their impact on the heavy-duty industry. 
• Recruiting, Retention and Employee Development � Northwood University and the University of the Aftermarket will present strategies to address staff development as the large portions of the current work force nears retirement age. 
• Getting Results: Five Absolutes for High Performance � Dr. Clint Longenecker, from the University of Toledo and Ernst and Young Entrepreneur of the Year, will discuss the best practices of more than 2,000 high performance managers.

The Business and Technical Theater, located on the show floor, will feature five one-hour sessions:

Tuesday, Jan. 24
1 p.m. to 2 p.m.

The Impact of Counterfeit Parts on Our Industry � A discussion on counterfeit parts, intellectual property rights and brand protection. What to look for, avoid and how to protect your customers from this problem.

Tuesday, Jan. 24
3 p.m. to 4 p.m.

New Developments in the HD Brake Business � A presentation on heavy duty braking. New technology, aftermarket-lining recommendations, regulatory issues, etc., and their impact on the aftermarket in the next 10 years.

Wednesday, Jan. 25
1 p.m. to 2 p.m.

The Truth About eBusiness and Electronic Ordering � A best practices discussion on how to make e-commerce and Internet technology work in your business, for maximum efficiency. Presented by a panel of e-business experts.

Wednesday, Jan. 25
3 p.m. to 4 p.m.

Shop Management and Adding Service to Your Operation � A presentation on developing a profitable, strong service capability in your operation and on using best practices.

Thursday, Jan. 26
1 p.m. to 2 p.m.
 
What Do the Fleets Want From a Distributor? � A panel of maintenance directors of major fleets discuss their views about the value they want from their replacement parts distributors; moderated by an industry consultant.

INDUSTRY NEWS

Teamsters, Public Citizen File New Challenge to HOS Rules

The Teamsters union has joined with Public Citizen in filing a new challenge to the new federal hours-of-service regulations issued by the Federal Motor Carrier Safety Administration (FMCSA). The coalition filed a petition for reconsideration asking FMCSA to reevaluate several aspects of the new rule, which is scheduled to take effect Saturday.

A federal court last year told FMCSA to reconsider the rules after Public Citizen and other groups said the rules could result in driver fatigue.

The Teamsters said they were filing a separate petition to address the sleeper-berth modification because of the effect it has on team drivers using sleeper cabs.

The new provision requires an eight-hour rest period, forcing a team driver to rest for eight hours in a moving truck, while the current rules require two rest periods with one being at least two hours long.

Source: Transport Topics, Sept. 26, 2005

Mack Displays Heavy-Duty Hybrid Electric Vehicle on Capitol Hill

Mack Trucks Inc., in conjunction with the U.S. Air Force Advanced Power Technology Office, recently displayed on Capitol Hill a prototype hybrid electric powertrain for Class 8 heavy-duty trucks. The powertrain is mounted in an Air Force R-11 6,000-gallon capacity refueler truck built on a Mack RD 6x4 chassis. The vehicle is what is referred to as a mild hybrid. Mild hybrids assist in launching the vehicle and recover braking energy.

Congressional support has since resulted in additional funding to build upon the knowledge gained via the refueler project. The goal is to develop a full hybrid system that can launch a heavy-duty truck with only electric power. Full hybrids do not require the engine to idle while stopped. This further reduces the amount of fuel consumed and noise levels associated with vehicles that stop frequently, such as refuse trucks. The majority of this additional development work is being performed in Hagerstown, Md. at Volvo Powertrain North America, supplier of engines to Mack Trucks Inc.

A likely commercial use for full hybrid technology is a refuse hauler based on a Mack platform. Mack is the leading manufacturer of refuse trucks in North America with more than 70 percent of the market.

Source: Truckinginfo.com, Sept. 29, 2005

ECONOMIC TRENDS

Heavy Truck Sales Increase 31.4 Percent in August

Class 8 August truck sales continue to outshine last year. The August increase jumped 31.4 percent to 22,666 units compared with 18,233 a year earlier.

Sales of mid-range, medium- and heavy-duty trucks, Classes 4 through 8, totaled 45,547 units in the month, up 20.9 percent from August 2004. However, total truck sales, including Classes 1 through 3, dropped 0.5 percent from a year earlier to 805,356 units. Sales of Class 1 through 3 trucks totaled 759,809 units for the month, down 1.6 percent from August 2004.

Freightliner led in Class 8 sales for August. The company's sales totaled 7,432 units, up a whopping 57.4 percent from a year earlier.

Source: Truckinginfo.com, Sept. 29, 2005

August Tonnage Index Drops 0.8 Percent

Overall for-hire trucking freight volumes fell 0.8 percent in August from a month earlier, American Trucking Associations (ATA) said this week. The 113.5 index level was followed a revised 0.5 percent drop in July and was 0.7 percent higher than last August.

On a non-seasonally adjusted basis, the truck tonnage index (TTI) rose 10.8 percent from July, to a record 123.1.

Bob Costello, ATA�s chief economist, said the TTI slipped for three consecutive months on a month-to-month basis, totaling 1.5 percent. But on a year-over-year basis, the index rose each month in 2005, excluding April.

Industry growth has been modest in recent months, slowing from an 8.6 percent growth rate to below 1 percent. Costello said the manufacturing industry played a significant role in the deceleration in truck tonnage.

Source: Transport Topics, Sept. 27, 2005

ASSOCIATION NEWS

AAPEX Discounted Registration Closes Oct. 7

Attendees have until Oct. 7 to register for AAPEX at the $15 rate online and $25 via fax. Registration goes up to $50 after Oct. 7 and attendees will have to pick up their badge on-site. The AAIW badge gives attendees access to AAPEX, SEMA and the NACE trade shows.

To register, visit www.aapexshow.com.

Popular Town Hall and Chairman�s Reception to Kick Off AAPEX 2005

Attendees at this year's popular and always sold out AAIA Town Hall and breakfast will be surprised to see completely redesigned staging and new talk show format. Kathleen Schmatz, AAIA president and CEO, will once again moderate the lively panel discussion. Issues to be addressed will focus on challenges, threats, needs and opportunities of the independent service provider segment of the aftermarket industry. Panelists will represent interests and perspectives of the independent repair shop and new car dealer. The Town Hall will be held on Wednesday, Nov. 2, from 7 a.m. to 8:50 a.m. in the Venetian Ballroom.

To reserve tickets or tables online, visit www.aftermarket.org. Individual tickets cost $75 and tables of 10 cost $600. For more information, call 301-654-6664.

The AAIA Chairman's Reception traditionally kicks off AAPEX on Monday evening in from 6:30 p.m. to 8 p.m. in the Venetian Ballroom D. Hosted by AAIA chairman David Caracci, the reception is a standing-room-only networking event for association members and guests with free cocktails and hors d'oeruvres.

WELCOME NEW AAIA MEMBERS

Sept. 23-29, 2005

Bailcast Ltd., Chorley, Lancs, United Kingdom (Aftermarket Distribution, AIA)
Britpart UK Ltd., Caven Arms Shropshire, United Kingdom (AIA)
Disklok UK Ltd., Chorley, Lancashire, United Kingdom (AIA)
Primalec, West Kingsdown, Kent, United Kingdom (AIA)
Traction Charger Company, Bridgwater Somerset, United Kingdom (AIA, Tool and Equipment)

FACTOID

Nearly three in four U.S. motorists won�t move to a more fuel-efficient vehicle until gasoline prices reach at least $3.50 per gallon, according to an online poll by AutoPacific, the Tustin, Calif.-based market consulting firm.

Source: AutoBeat Daily, Sept. 29, 2005