HDAW 2006 UPDATE             REGULATORY REPORT

ECONOMIC TRENDS             SUPPLIER NEWS

ASSOCIATION NEWS            FACTOID

HDAW 2006 UPDATE

Heavy Duty Aftermarket Week Exhibitor List At 155 And Growing

More than 155 supplier companies have signed on to exhibit at the Heavy Duty Aftermarket Week (HDAW) conference/show in late January, and the numbers continue to grow.

In the meantime, the TruckPride marketing group has joined HDAW�s sponsor group of Council of Fleet Specialists, Heavy Duty America, HDDA, HDMA, Heavy Duty Remanufacturers Group, National Wheel & Rim Association, Overseas Automotive Council, Power Heavy Duty and Service Specialists Association.

The week-long HDAW events kick off at the Mirage in Las Vegas on Monday, Jan. 23 with registrations and HDMA�s prestigious Heavy Duty Dialogue. Business and technical sessions are scheduled for the next four days. Show exhibits will be open specific hours on Tuesday, Wednesday and Thursday.

For more details on HDAW, visit www.hdaw.org.

Source: Truckinginfo.com, Sept. 2, 2005

REGULATORY REPORT

ATA Reacts to FMCSA's New Hours of Service Rule

In a statement issued shortly after the Federal Motor Carrier Safety Administration released its new Hours of Service (HOS) ruling, ATA president and CEO Bill Graves was generally supportive of the rule.

�The action by the Federal Motor Carrier Safety Administration (FMCSA) confirms our research that the current HOS rules have been measurably effective in improving safety on our nation�s highways, providing for the health of truck drivers and assuring the efficient transport of our nation�s goods," Graves said. "However, we need to closely examine the impact of the new 'sleeper berth' rule on trucking companies and their drivers, particularly team drivers that are so critical to our just-in-time economy. In the meantime we feel confident that the trucking industry will continue its positive progress in safety and productivity under these rules.�

The FMCSA last week issued the new HOS rule, spelling out the length of time commercial drivers can operate trucks before they are required to take a break. The new rule is the product of years of research meant to keep drivers healthy and make highways safer, officials said.

The new rule replaces Hours of Service regulations that were last updated in 2003. Parts of the rule, including the maximum driving time and minimum rest limits, remain the same. However, the rule includes changes affecting short-haul operators and longer distance drivers who use in-cab sleeper-berths for their rest.

As in 2003, the new rule applies only to commercial truck drivers, and not to passenger motor coach operators. Motor coach drivers are still covered by the Hours of Service rules in effect prior to 2003.

The new rule will go into effect Oct. 1, 2005. During the transitional period, FMCSA and state law enforcement officials will monitor carriers for egregious violations of the new rule and pursue enforcement action where necessary.

For more information, or to review the new Hours of Service rule, visit www.fmcsa.dot.gov.

Source: Truckinginfo.com, Aug. 22, 2005

ECONOMIC TRENDS

July Tonnage Index Falls, ATA Lowers 2005 Growth Outlook

Overall for-hire trucking freight volumes fell 0.6 percent in July from June on a seasonally adjusted basis and American Trucking Associations (ATA) lowered its projected 2005 truck tonnage index (TTI) growth outlook for the industry, ATA said last week.

The 114.3 level was 0.5 percent higher than a year earlier. On a non-seasonally adjusted basis, ATA�s truck tonnage index fell 8.2 percent from June.

For the first half of the year, the TTI was 2.7 percent higher than the same period last year, but was below ATA�s 3 percent to 3.5 percent forecast, which ATA chief economist Bob Costello has now lowered for the year.

Source: Transport Topics, Aug. 26, 2005

Heavy Truck Sales Increase 21.4 Percent in July

Class 8 truck sales continue to outshine last year. July saw an increase of 21.4 percent to 21,043 units compared with 17,338 a year earlier. Sales of mid-range, medium- and heavy-duty trucks, Classes 4 through 8, totaled 41,812 units in the month, up 13.7 percent from July 2004.

Total truck sales, including Classes 1 through 3, increased 24.7 percent from a year earlier to 1,110,001 units. Sales of Class 1 through 3 trucks totaled 1,068,189 units for the month, up 25.2 percent from July 2004.

Freightliner led in Class 8 sales for July. The company's sales totaled 6,274 units, up 29.5 percent from a year earlier.

Source: Truckinginfo.com, Aug. 24, 2005

Trucking Profits Rise, 2006 Forecasts Unsure

Publicly-traded trucking companies generally enjoyed a profitable second quarter, but Wall Street analysts have not been able to come to a consensus on where the industry was headed for 2006.

There does not seem to be a threat to the industry�s second-half profitability, as those two quarters are typically the industry�s strongest, said industry officials. But the debate over 2006 now also must dissect the latest truck tonnage report from American Trucking Associations (ATA), which reported a 0.2 percent contraction in seasonally adjusted freight volumes from May to June � a development the trade association�s economists called �unexpected.�

The ATA report said June is usually a good month in the trucking business, and there have been some positive reports recently about the U.S. economy�s health. However, June also coincides with a slowdown in the production of steel and other �heavy products.� Some flatbed carriers have been reporting slower freight volumes due to lower steel production in recent months.

Source: Transport Topics, Aug. 19, 2005

SUPPLIER NEWS

Truck Makers Late to Deliver 2007 Test Models to Fleets

Most truck manufacturers will not have trucks with 2007-model engines in them for fleets to test until late this year or early 2006. All of the manufacturers had expected to have trucks with the new engines and diesel particulate filters � which the U.S. government mandated in order to reduce emissions � by mid-2005, but production issues have slowed them down.

Truck makers said during the past 18 months they would have units for fleets to test by now, but Peterbilt, a subsidiary of Paccar Inc., was the only truck builder to say it had already placed trucks at fleets.

Source: Transport Topics, Aug. 22, 2005

ASSOCIATION NEWS

AAIA Offers Opportunity for Industry to Aid in Hurricane Relief Efforts

AAIA is offering an opportunity for members to aid in the relief efforts for victims of Hurricane Katrina, which hit the U.S. Gulf Coast over the weekend. AAIA's initiative will benefit both aftermarket professionals affected by the storm, as well as the general populations of the area. The association will match monetary donations to both the Aftermarket Foundation and the Salvation Army, up to $10,000 per entity.

• The Aftermarket Foundation is in its 46th year of assisting those individuals and families of the automotive aftermarket less fortunate and in desperate financial need because of unexpected death, catastrophic illness or financial hardship. Monies collected for the Aftermarket Foundation will be designated for the employees of aftermarket companies and their families affected by Hurricane Katrina.
• The Salvation Army has functioned successfully for more than a century, and its outreach has been expanded to include more than 100 countries, speaking more than 160 languages. Monies collected for the Salvation Army will be donated to their general Hurricane Katrina relief fund.

AAIA will be collecting donations for both causes during its upcoming Fall Leadership Days, Sept. 14-16 at the Hyatt Regency Hotel in Reston, Va. Donations can also be sent directly to AAIA headquarters, c/o Susan Medick, 7101 Wisconsin Ave., Suite 1300, Bethesda, MD 20814. Please make checks payable to either the Aftermarket Foundation or the Salvation Army.

With the industry's generosity and AAIA's match, the aftermarket can contribute up to $40,000 combined for Hurricane Katrina relief efforts. Please send all donations by Tuesday, Sept. 20.

Quality continues to be the most important factor for repair shop owners, service managers and technicians when it comes to purchasing shop tools today and in the future, according to the 2005/2006 Tool Purchasing Trends, a new market research report published by the Automotive Aftermarket Industry Association (AAIA).

Other high ranking factors that influence tool purchasing decisions are availability, warranty and service, which reinforces the position of the mobile tool distributor as the most frequently used supplier for tool purchases. Price and payment options were considered only somewhat important to decision makers.

�Automotive service professionals just don�t compromise when it comes to buying tools,� said Kathleen Schmatz, AAIA president and CEO. �In no uncertain terms, survey respondents said quality and brand were their most important considerations.�

Tool Purchasing Trends will help readers gain insight into current and future purchasing decisions of professionals who utilize shop tools for automotive repair. The report is part of an annual series of surveys devoted to collecting data on tool purchasing trends in odd years and equipment purchasing trends in even years.

The report covers the following:

• Factors that influence past and future tool purchases
• Brand name importance 
• �Made in USA� importance
• Current and future tool spending
• Tools provided by repair shops

The 54-page 2005/2006 Tool Purchasing Trends report is available in print format only. The price of the report is $99 for AAIA members and $199 for non-members. To purchase the report, contact AAIA at 301-654-6664 or visit www.aftermarket.org. 

AAIA Presents the Totally New Town Hall 2005

Get ready for a totally revamped AAIA Town Hall and breakfast during AAPEX in Las Vegas, Nev. The staging, format, topics, industry guests, interview style and flow will be a whole new experience. Town Hall is sponsored by NASCAR Performance, and will be held in the Venetian Hotel at 7 a.m., Wednesday, Nov. 2, 2005. Reserve your ticket or book your table online at www.aftermarket.org. Individual tickets are $75 and a table is $600. Program details will be published as they become available.

To register online for this event, visit https://www.aftermarket.org/Event_Registration/event_registrations.asp?ID=45.

WELCOME NEW AAIA MEMBERS

Aug. 26-Sept. 1, 2005

eCatSolution, Rossford, Ohio (Aftermarket Distribution)
Southern Performance Automotive, Peachtree City, Ga. (Retail)
Bear & Son Cutlery, Inc., Jacksonville, Ala. (Tool and Equipment)

FACTOID

To better address the issue of the impact of diesel price increases on the motor carrier industry and what it is doing to its member companies and work toward a solution, the American Trucking Associations has developed the �National Fuel Price Crisis Watch� Web page at www.truckline.com/fuelpricecrisis. The site contains regional and national fuel prices updated weekly, ATA communications on the subject, action items that you can take, as well as numerous resources that will help explain the issue and some things that you can do to improve fuel efficiency in your fleet.

Source: Truckline Express, Aug. 26, 2005