HDAW 2006 UPDATE        ECONOMIC TRENDS     

PEOPLE IN THE NEWS     ASSOCIATION NEWS            

FACTOID

HDAW 2006 UPDATE

Heavy Duty Aftermarket Week Update

Members Urged to Note Important HDAW Information and Registration Deadline Reminders

HDDA members are urged to act soon to register for the first-ever Heavy Duty Aftermarket Week (HDAW) set for Jan. 23-27, 2006 at the Mirage Hotel in Las Vegas. This senior-level, trade-only conference is designed to provide commercial, educational and networking value for distributor and supplier participants in one week, at one place. HDAW 2006 distributor attendees will be able to participate in:

• A broad range of educational opportunities developed to meet the needs of all levels of distributor personnel; 
• Outstanding networking opportunities with the industry�s top executives from both distributor and supplier organizations; 
• One-on-one business meetings between distributor and supplier senior executives; 
• Speakers and panels discussing the future of our industry, the challenges we face and the opportunities we have; and
• A world-class aftermarket trade show focused on the distributor, with suppliers showcasing their existing and new products.

Plus, the schedule provides ample time for individual supplier, association and marketing group functions. Those meetings will be announced and scheduled by the respective groups.

HDAW Conference Registration Update

• ALL HDDA DISTRIBUTOR MEMBERS who register for HDAW are eligible to participate in the one-on-one business meetings AT NO ADDITIONAL CHARGE.
• An impressive 91 manufacturers already have registered for these important meetings, and distributor registration forms may be downloaded by visiting www.hdaw.org, or by contacting Rosemary Hall at 816-361-6588 or e-mailing rhall@mema.org. The registration deadline for the one-on-one business meetings is Nov. 15, 2005.  
• ALL HDDA MEMBERS receive the conference member discount fee of $400 until Dec. 1, 2005. A $100 discount will be given to companies registering more than five delegates, and member delegates six and above will each pay $300. 
• SPECIAL SPOUSE FEE. Spouses of HDDA distributor members will pay $200 and may participate in all conference events and meal functions. 
• To register online and for event updates, visit www.hdaw.org. We are pleased to be working with Bill Glasgow, one of the industry�s foremost conference organizers. For any questions, contact Glasgow at 708-226-1300, e-mail billglasgow@wtglasgow.com. You may also contact HDDA liaison Lee Kadrich at 301-654-6664 or e-mail lee.kadrich@aftermarket.org.

ECONOMIC TRENDS

U.S. Class 8 Truck Sales Rise 16.3 Percent in September

U.S. monthly retail sales of Class 8 trucks rose by 16.3 percent over last September�s level to 21,677 units, the 23rd straight monthly increase on a year-over-year basis.

For the first nine months of 2005, Class 8 truck sales now total 186,439 units, a 29.4 percent increase from 2004�s level, according to data provided by Ward�s Communications. However, several industry analysts said the latest figure, which was not as strong as recent months, shows there may be some softening in the demand for heavy-duty trucks.

Ken Vieth, an analyst with ACT Research, said demand may have softened because trucking companies are not looking to expand their capacity as they were earlier in the year when the economy was growing at a faster pace.

Source: Transport Topics, Oct. 27, 2005

Eaton Forecasts Strong Heavy Truck Market

On the heels of healthy sales and profits, Eaton Corp. is projecting that robust sales of heavy trucks should continue through the rest of 2005.

Their truck segment posted sales of $601 million in the third quarter, up 24 percent compared to the same period in 2004, and it recorded operating profits of $119 million � an increase of 29 percent. NAFTA heavy-duty truck-related production jumped 14 percent compared to the same period in 2004, while medium-duty production slipped 11 percent, European truck production climbed just 4 percent and Brazilian vehicle production rose 6 percent.

Overall, Eaton posted healthy results for the third quarter despite restructuring charges. Net income increased 17 percent for the company as a whole to $199 million on 10 percent higher sales of $2.79 billion compared to the same period last year.

Source: Fleet Owner, Oct. 25, 2005

DOT's Transportation Services Index Declines

The Department of Transportation (DOT) said that its transportation services index (TSI) for July fell 0.3 percent from June, the second consecutive decline. The July index fell to 111.6, DOT�s Bureau of Transportation Statistics said in its monthly report. The TSI for freight fell 0.6 percent to 111.9 in July from June, also the second straight monthly decline.

Compared with the same month a year ago, the overall TSI rose 2.3 percent while the freight index increased 0.9 percent.

Source: Transport Topics, Oct. 7, 2005

PEOPLE IN THE NEWS

Tennessee Trucking Executive to Lead ATA

Tennessee trucking executive Patrick Quinn was recently named chairman of the American Trucking Associations (ATA). The action came as ATA completed its annual Management Conference and Exhibition, held this year in Boston. Quinn will lead the association for the next year.

Quinn is one of the two co-chairmen and founders of truckload carrier U.S. Xpress, the sixth-largest truckload carrier in the United States.

Quinn has a long record of advocacy for the trucking industry, including service as the chairman of the Truckload Carriers Association and as an attorney who worked on Interstate Commerce Commission filings related to trucking. Within ATA, he serves on ATA�s Executive, Management, Highway Policy and Communications and Image Policy committees. Quinn also serves on the ATA Litigation Center�s Board of Directors.

During his tenure, one of Quinn�s main priorities will include improving the image of trucking, which he said would enhance the industry�s ability to recruit drivers and other employees. Quinn also will advocate on trucking�s behalf to regulators and politicians.

At his selection, Quinn told ATA members that, with their industry facing serious issue like rising fuel and insurance costs, tort reform and a nationwide shortage of drivers in the long-haul sector, it is more important than ever for America�s motor carriers to speak with one voice and share the trucking industry�s story.

Source: Truckinginfo.com, Oct. 21, 2005

ASSOCIATION NEWS

Get a Jump on National Car Care Month at Free AAPEX Seminar

Get a jump on planning for April�s National Car Care Month by learning how to plan and execute consumer vehicle check-up events at a free seminar presented by the Car Care Council during AAPEX. The seminar will be held from 8 a.m. to 9 a.m., Thursday, Nov. 3, in room 302 of the Sands Expo Center.

All attendees will receive a complimentary DVD with step-by-step instructions on how to host both small and large vehicle check-up events. Rich White, executive director of the Car Care Council, which directs the �Be Car Care Aware� consumer education campaign, will lead the seminar.

�Vehicle check-up events are proven to build service and parts business for shops and stores,� White said. �This year, the number of these popular special events doubled to 400 in 33 states, primarily as a result of stepped-up participation by program groups getting their customers involved.�

In addition to a complimentary DVD, sample inspection forms, brochures, banners, posters, mirror hangers and complete �starter kits� will be on display. 

The seminar is presented at no charge. Seating is limited.

Right to Repair Legislation Reaches 63 Sponsors

Congressional support for the Motor Vehicle Owners� Right to Repair Act (H.R. 2048) reached 63 co-sponsors this week as Reps. Rush Holt, D-N.J.; Charles Rangel, D-N.Y.; David Price, D-N.C.; Zoe Lofgren, D-Calif.; Rick Renzi, R-Ariz.; Rep. Tom Petri, R-Wis.; and Allyson Schwartz, D-Pa., signed on as supporters.   

�We want to thank the most recent co-sponsors for supporting this vital piece of legislation that benefits every consumer who owns a vehicle as well as every small business owner in the automotive aftermarket,� said AAIA president and CEO Kathleen Schmatz. �The growing support of the Right to Repair Act shows that Congress is taking this piece of legislation very seriously and wants their constituents to have the right to choose where to have their vehicles serviced and repaired.�

Aftermarket companies can show their support for Right to Repair during AAPEX by displaying a sign in their booth stating �We Support Right to Repair.� The 8.5� x 11� signs are intended to grow recognition and grassroots action by the aftermarket for passage of H.R. 2048. 
The signs will be distributed at the show and are available by e-mailing Ryan Carroll at ryan.carroll@aftermarket.org, or by calling 301-654-6664.

For more information about the Right to Repair Act, visit www.righttorepair.org.

AAIA Releases New Industry Indicators Report

AAIA�s market research department recently completed the first edition of the new �Industry Indicators� project. The report, which will be regularly updated by AAIA, is designed to provide insight into some of the key economic and industry indicators affecting the aftermarket industry, as well as businesses. The �Industry Indicators� report is an Excel file that will be distributed to AAIA members via e-mail.

Included in the report is a series of indicators relevant to the heavy duty aftermarket. For each indicator, the file includes the values from the last three months, percent changes from the previous year and an assessment of the trend for that indicator. The report also contains raw data for each indicator going back to January 2004.

The �Industry Indicators� report is free for AAIA members. If you did not receive a copy of the report earlier this week, you may access the file by clicking here. If you would like to receive future updates of this report, e-mail Dan Kaplan at dan.kaplan@aftermarket.org. 

AAIA Publishes Product Imaging Best Practices Guide

AAIA recently announced the publication of an industry best practices guide for the production, management and distribution of product images in the aftermarket supply chain. With widespread support of major retailers, distributors and electronic content providers, the imaging standard will lower costs by simplifying the decisions suppliers have to make in meeting customer demands for product images.

Automotive Aftermarket: Imaging Best Practices addresses all of the major topics associated with image capture, including format, resolution, views, shadows and background color. In addition, the specification describes the best practices for naming convention, image data delivery and image file distribution. To support the data communication needs associated with product images, the aftermarket Product Information Exchange Standard (PIES) has been updated with a new �image� segment, and closely coordinated with the Imaging Best Practices.

�Each of these mandates can require capturing and managing thousands of product images, all at a great expense,� said Scott Luckett, AAIA vice president, technology standards and solutions. �We are pleased to have published a single industry best practice that all of the major resellers have agreed to follow.�

The AAIA Imaging Standards Workgroup recognized the increased role of visual data in cataloging and e-commerce today. Suppliers find themselves responding to an increasing volume of requests for product images.

�The Imaging Best Practices guidelines was created by a diverse group of imaging experts from all segments of the industry and we feel strongly that the recommendations contained in the guideline will address the major image management and distribution issues that face the automotive aftermarket,� said Pat Weilmeier, vice president of operations, Solenium Group, Inc., and chair of the Imaging Standards Workgroup.

The Automotive Aftermarket: Imaging Best Practices document is available by visiting the �Standards & Technology� link at www.aftermarket.org.

WELCOME NEW AAIA MEMBERS

Oct. 21-27, 2005

Auto-Kool, Pointe Claire (PQ), Canada (Aftermarket Distribution)
Fonderie Poitras Ltee, L�Islet, (QC), Canada (Aftermarket Distribution)
Goto Solutions Inc., Cleveland, Ohio (Aftermarket Distribution)
Alliance of Independent Manufacturers, Boynton Beach, Fla. (AIA)
Aftersoft Inc., Waltham, Mass. (AEA)
Winston Company, Tulsa, Okla. (Automotive Retail)
Group Pintendre, Pintendre (PQ), Canada (HDDA)

FACTOID

The number of automotive TV commercials touting vehicle fuel economy tripled in the U.S. after gasoline prices shot up in early September, reports Automotive News.

Source: AutoBeat Daily, Oct. 25, 2005