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Future-proofing in the US Heavy Duty Transportation Industry.

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It’s started. 2018 has witnessed a tsunami of orders for hybrid, electric and fuel cell commercial vehicles. FTR reported that a massive 15,325 new vehicles will be on the roads by 2021 and a whopping 58% of those will be in the US.

Are you ready for the electric revolution? Or are you too busy with current orders for existing diesel fleet parts? With a shift in attitude towards buying white label parts, the threat to your existing aftersales business is increasingly important. So, how are you future-proofing your business?

 

Business shift

In light of the increasing consolidation in both automotive and heavy-duty parts distribution in the US, companies are having their margins eroded by price competition. With a shift in attitude towards buying white label parts, the threat to your existing aftersales business is increasingly important. So how are you future-proofing your business? Are you being forced to price match or offer reduced pricing options to keep customer accounts?

 

 

For an industry where strong relationships and superior customer service have reigned supreme for decades, this is a dramatic shift from the relationship based selling tactics sales reps and business’ have relied on. More importantly – is this the best tactic?

Download our free whitepaper today to learn why Discounting Is Killing Your Business to find ways to avoid the pitfalls of a highly competitive market.

 

Boom times

The current upturn in the Electric vehicle market has meant North American Class 8 truck orders are enjoying a massive increase after a worrying, stagnant period in 2016/17. With 41,800 units ordered in June alone, which is a 140% year-over-year increase (Source: FTR Transportation Intelligence), it would seem like a perfect time to take your foot off the gas. Right?

Wrong. What goes up always comes down. Why not use the time you have whilst the pressure is off to strengthen your business for the inevitable harder times to come?

 

Source

 

Pressure of Costs Vs. Growth

Even though sales have been healthy in 2018, the operating costs in 2017 showed an alarming rise of 7.8%. This can be held partly accountable for the average industry figure of a growth decline of -0.9%. So, you may be selling units now but at a significantly less profitable margin. (source)

 

So, what next?

The good news is that the Electric vehicle boom isn’t predicted to last. But neither is the strength of the traditional fuel vehicle markets. If you are hoping for a return to business as usual then you are going to be disappointed. The next big thing is one of the oldest fuels in the universe – hydrogen.

All of which shows an acceleration toward a zero-emission industry by 2050 as detailed in the recent report from the Energy Transitions Commision (source). With the industry in such fast development, how can you keep on track of consumer demands? How can you best serve your customers and keep your business growing?

That’s where we come in. sales-i is a business intelligence tool that works with your existing systems (CRM, ERP, financial packages) to cut through the numbers to deliver actionable sales opportunities and alerts to you.

 

Would you like to get the jump on accounts with margin erosion? Auto-Wares did.

“Ultimately, our sales team has more time. All in all, this means we are making more sales and business is going from strength to strength.” – Shelly Miller, Director of Sales Development. Read in full here.

 

Why not take five and watch our short video here to get the full picture? It sure beats reading!

 

Read how companies like yours are using sales-i:

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