Like many in the U.S. trucking industry, the nation's new heavy- and medium-duty truck dealers were hit hard by the recession. But the dealers' "incredible entrepreneurial spirit" led them through the worst, said Kyle Treadway, president of Kenworth Sales Co. in Salt Lake City, Utah, and chairman of the American Truck Dealers association during ATD's recent annual conference in Orlando, Fla.


"We're here today because each of us learned over the past three years to assess the situation, inventory our resources, prioritize the needs and plan accordingly," he said.

He illustrated that entrepreneurial spirit and the ability to pull together in hard times with the real-life tale of a dealership. This dealer, he said, had stepped into the dealer principal role only eight years before, upon the death of his father. Things were going great -- "The future was so bright he had to wear shades," Treadway said. "Only maybe those shades kept him from seeing what was going to happen. It seemed in a fortnight," things turned around. He had to lay off 30 percent of h is employees, repossess more than 100 trucks from a customer who was also a friend, scramble to replace a flooring source that had decided to exit the market -- it seemed inevitable they would have to declare bankruptcy.

But instead, this dealer called together his seasoned veterans and told them that yes, there was hope, because they knew the industry, they understood the needs of their customers, and knew how to help them succeed. Two of the four branches had to be closed, the dealer principal went without pay. "Every step was an exercise in humility," Treadway said. "But like survivors emerging from a bomb shelter, the dealer faced the new world head on. The economy slowly began to stabilize, old customers resurfaced, new ones appeared on the scene, stunned and looking for answers." Eventually the dealer's determination paid off, and the owner said to his team, "we're still here, and we're wiser for it."

"Many of you recognize pieces of yourself in this story," Treadway said. "It actually took place 30 years ago and the dealer was my father. The past few years have had a sense of deja vu."

Treadway represents the third generation of his family to run three dealership groups in seven Western states. He spends his time between 19 locations in Utah, Nevada, Wyoming, Washington, Oregon, Montana and Idaho. The dealerships employ 650 people.

TODAY'S CHALLENGES

"That entrepreneurial spirit is challenged by a host of serious issues: none more important than the devalued used truck market," Treadway said. "Commercial lenders have been reluctant to put marginal customers out of business for fear of being saddled with more repossessed used trucks."

Treadway said the lack of available credit also looms large, and dealers have access to fewer lenders who are also fighting for survival. "We face critical needs for not only operational and flooring lines, but retail credit for our customers," he said.

Another significant issue facing dealers is how to better manage customer expectations when it comes to delivering real-time information, Treadway said.

"Our customers are on the vanguard, and expect us to keep up the pace: the commercial aspects of social media continue to unfold," Treadway said. "Twitter and Facebook pages are being used by major fleets to network and recruit drivers."

THE IMPORTANCE OF DEALERS

Though sales of heavy- and medium-duty trucks declined more than 50 percent since 2006, only 123 dealerships or about 4 percent of the national network were forced to close last year, said Treadway.

While "I may be looking for the pony in the pile of manure," Treadway said, compare that 4 percent to car dealers, whose ranks were trimmed by 10 percent. The outcry that happened in local communities as auto dealers were closed helped emphasize how important dealers in general are in their communities, Treadway said.

And despite the many hardships still facing the industry - with more than 4,000 fleets in bankruptcy and 160,000 trucks sidelined - truck dealers have emerged stronger and better positioned to succeed, he said. "The crisis also afforded dealers a rare opportunity to shed light on the important role they play in their communities, states and the nation as a whole," he said.

"Dealers spoke up and made themselves heard on a national scale," said Treadway. "Not only did our elected leaders in Washington experience some backlash, but the media and the public learned how significant we dealers are to the national and local economies."



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