It’s no secret that today’s business environment is extremely volatile.
Competition is fierce. Yet according to an extensive labor market study recently conducted by MacKay & Company, there is one key differentiator driving both parts and labor sales: service.
Here’s why
According to the study, the serviceable trucking universe consists of:
• 2.8 million Class 8 vehicles
• 1.6 million medium duty vehicles
• 3.7 million trailers
The total number of labor hours required to complete the necessary service activities on this ‘serviceable universe’ will exceed 490 million in 2011. Back in 2007, the service labor hours totaled 475 million—3% less than our current estimate.
What the numbers meanThe age of the vehicles on the road has impacted the total number of service labor hours, as has the type of service being conducted. Typical preventive maintenance activities have changed rather dramatically as the number of inspections once required have been condensed, combined or eliminated. The end user continues to conduct the majority of this service, with a strong desire to outsource more in the future.
New truck purchases also are projected to continue increasing on a year-over-year basis, but the forecasted amount continues to fluctuate with the market. The stable element – for those businesses that are able – could be service.
The key to success
Sell the part, install the part and build the relationship. With an aging fleet on the road, this tactic is more essential than ever before. And given that operators wish to outsource more service, it is time to head to the service bays.