Initial study was completed in 1997. At that time, there were 1.6 million Class 6 & 7 trucks, 1.75 million Class 8 trucks and tractors and 2.6 million trailers and container chassis with the average age of the Class 8 universe slightly less than 8 years. This market generated a market of 410 million service labor hours; Preventive maintenance accounted for 40% of the total service labor market and paint and body work represents 20%. Service labor supplied by vehicle owner/maintainers on their own equipment represented 55% of the total service labor market; independent garages account for another 14%. Two conclusions were determined at that time: 1) the number of service labor hours required to support a heavy duty power unit would decline by nearly 20% in five years and 2) if aspirations of the survey participants were realized, the owner/maintainer's share of the service market would decline from 55% to 47%. Our study in 2003 found that conclusion #1 was correct, while conclusion #2 never occurred.
By 2007, the operating universe of serviceable medium and heavy duty trucks and trailers grew to 8 million. Even with the growth, the service labor market between 1997 and 2007 grew less than 20% due mainly to the improvement seen in component reliability and durability. In addition, outsourced service activity declined from 45% of the total market in 1997 to 31% in 2003 and to 25% in 2007.
The 2011 Service Study will be conducted similar to the manner in which the 2007 Study was conducted. The primary research elements will be:
Selective preliminary field interviews with a representative sample of both internal (fleets, etc.) and external (dealers, etc.) service providers to determine the primary service and service-related issues upon which our broader-based survey work needs to focus – in addition to the critical shortage of technicians
A series of mail and phone surveys with both internal and external service providers focusing on these issues – survey input is targeted from thousands of fleets and operators of medium and heavy duty trucks and trailers and a proportionally large number of dealers, independent garages, service specialists and other external service providers
Extraction of current service practices for all key components from all DataMac Truck surveys from 2007 through 2010 and a detailed comparative analysis of this data and data from the 1997, 2003 and 2007 studies
Extraction and validation of repair and replacement frequency data for all key truck parts and components, again, with comparative analytical data from previous service studies
A new update of all Standard Repair Manual service labor data
Development of a comprehensive service labor database segregating each significant individual product group by weight class (if appropriate) and vocation. A copy of this database, with a user friendly interface, will be provided to each participating company.
Perhaps even more importantly, for the first time, as options to the base service study, the research results will be available for analysis by:
First vs. subsequent owner
Truck make
Engine make
Geographic region
ONE IMPORTANT CARRYOVER FROM PREVIOUS SERVICE STUDIES:
INPUT FROM PARTICIPANTS WILL SHAPE THE SCOPE OF THE RESEARCH PROGRAM.
Once the study as outlined has been completed, MacKay & Company will also offer each study participant the opportunity to develop the study information into a detailed local market area potential database. This database will detail, by vocation and weight class, the opportunities for service labor at the individual county level that can be aggregated into market potentials for individual dealer, distributor and/or specialist territories.
