ATD Chairman Turnauer says technician shortage among key challenges
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ATD Chairman
Gerald C. Turnauer |
Orlando, Fla, April 9, 2005 — Sales of new trucks will continue to gain momentum in 2005 on the strength of increased capital spending and overall economic growth, said Gerald C. Turnauer, chairman of the American Truck Dealers (ATD).
Turnauer noted that ATD anticipates 20 percent growth in overall new unit sales, with as much as 25 percent growth in Class 8 vehicle sales. That would follow a 31 percent increase in truck sales last year.
“Many industries are building up their inventories to pre-recession levels, and capital spending continues to increase steadily,” he said. “Correspondingly, there’s more demand for new trucks of all weight groups, as well as low-mileage Class 8 trucks.”
However, Turnauer cautioned that market challenges still lie ahead. “Sales will be constrained by the limited availability of components and engines, as well as bottlenecks in production,” he said. “Rising interest rates won’t help us over the long-term, but other than pushing up costs slightly, they should not hurt sales,” he added.
Turnauer, president of Bayshore Ford Truck Sales in New Castle, Delaware, delivered his remarks at ATD’s 2005 Convention & Exposition in Orlando today, where he began serving the second year of a two-year term as the organization’s chairman.
He said that the industry must address the shortage of skilled technicians to stay on a successful track. “Dealerships offer a number of opportunities for young people to find a rewarding career both professionally and financially,” he said. “But this is a well-kept secret, and it’s up to us – dealers and managers – to make our dealerships one of the best-known career choices open to young people,” he added.
Turnauer said that a newly released ATD video on truck dealer careers will help to build awareness about opportunities at dealerships. In addition, he urged truck retailers to “get the word out” about truck dealership positions by hosting career days or job fairs and speaking to parents at clubs and community organizations.
Other key issues confronting the industry include the federal excise tax and alternative distribution, Turnauer said.
On the federal excise tax, he noted that the industry is taking the lead to clear up confusion created by the Internal Revenue Service regarding the definition of a highway tractor and the assessment for federal excise tax on these vehicles.
“The industry proposal – H.R. 1049 – eliminates the subjective application of the tax to many types of vehicles that Congress never intended to tax, and we all need to get behind this bill,” he said.
On alternative distribution, Turnauer pointed out that ATD is researching its impact. He said ATD expects to share its findings with manufacturers soon
Founded in 1970, the ATD division of the National Automobile Dealers Association (NADA) is the only national organization representing dealers selling new medium- and heavy-duty trucks. The more than 2,400 members of ATD receive full association services from NADA.
NADA, founded in 1917 and based in McLean, Va., represents more than 20,000 franchised new car and truck dealers holding nearly 43,000 separate franchises, domestic and international.
Contact:
Jeff Beddow
(703) 821-7121
jbeddow@nada.org
David Hyatt
(703) 821-7120
dhyatt@nada.org