NTEA Conference Recaps
October 2-5 in Sandusky, OH, Joe Verdini and Tom Vrydaghs attended concurrent conferences of the NTEA (National Truck Equipment Association). They included:
AMD (Ambulance Manufacturers Division) Conference
MSBMA (Mid-Size Bus Manufacturers Association) Conference
NTEA Commercial Vehicle Upfitting Summit
The event and meetings were attended by an upbeat group of professionals and served as an excellent opportunity to meet with key contacts to discuss business and learn trends.
The goal of attending AMD and MSBMA was to learn key industry concerns and current trends from the leaders of those respective industries. The NTEA Upfitting Summit is an annual opportunity to learn what new products chassis manufacturers have coming in the new year, make new contacts, and meet with existing customers.
AMD notes:
Economists from the NTEA see a slowing economy but not a recession, although concerns are growing. They project 1.1% growth in 2024, 1.8% in 2025, and 1.8% again in 2026.
Weakened consumers are carrying more debt, and inflation is hurting their spending power, indicating sales over the next 5-6 quarters will be difficult.
Inflation is believed to stay near 3.5% until the end of 2024 before hitting the 2% target. There will be pressure on oil prices due to a worldwide shortage of storage space.
There should not be any chassis availability issues. The AMD operates in class 4-6 vehicles and believes availability in these classes will improve in 2024. Existing chassis issues, however, will remain and stay through the end of 2024.
Ambulance sales will stay strong, favoring public over private due to the availability of much public funding. This is expected to continue through 2026. Labor markets are expected to remain tight and not correct until the next decade. There are no concerns over current private debt levels. Public debt is expected to keep growing but is sustainable until selling T-bills becomes problematic.
Additionally, from the AMD:
The testing committee is reviewing expiring standards that require re-testing and working to remove re-testing requirements in the industry. A new child restraint for ambulances has also been introduced.
Raw aluminum is on a downward trend (1/2 of total consumption in China). Cold Rolled Steel is trending toward 2022 levels.
Four new microchip plants are coming online in the US that will be devoted to producing chips for the US only.
Attended presentations by both Ford and General Motors.
Joe and Tom met with key contacts from all the key ambulance manufacturers, including REV, Demers, Medix, Braun, PL Custom, Osage Ambulance, Braun NW, and more.
In a follow-up meeting at the show with builders from the REV Group, they discussed concerns with the Austin-engineered O2 bottle lift, specifically with Engineering and Sales reps from Horton and the corporate director of REV. An agreement was reached to allow Austin to troubleshoot and present a fail-safe fix. Once their issues are addressed, they will remain interested in the O2 bottle lift.
Tom and Joe also met with REV’s corporate engineering director, Robb Dennart, to review ideas and projects and agreed to set up a follow-up meeting. He is working to unite everybody and work on common projects. There was also discussion of setting up a supplier day presentation by Austin to include chemicals.
MSBMA notes:
There were 33 total members: 18 from manufacturing and 15 associates. A PowerPoint presentation from the session is expected to be forwarded soon.
The membership noted most of the same trends as the AMD listed above. Additionally, they see the labor market as a concern into 2025 and 2026. Fewer people are entering the workforce, and more are retiring (3.5 to 4 million retirees per year).
Tom and Joe got a list of high-level contacts for the industry. They also met with Kent Biscan, an Applications Engineer with Stahl, who advised that The Scott Fetzer Company, the holding company Stahl belongs to, is dissolving, and Stahl will be upgrading. They expect an increase in service body production from 10 to 15 per day, with a 3-year plan to increase to 25 per day. Chip Bodies (Arbortech) is also increasing production from 3 to 5 per day.
Presentations attended included those by Bollinger, Ram, Hino, Kenworth, Daimler, Isuzu, and Peterbilt, as well as a chassis design standards meeting.
Additional meetings were held with the CEO of Bollinger, engineering, and sourcing contacts from Mullen, the production manager from Summit (Portland, OR), and chassis manufacturing staff from Bonnell, Ox Bodies, and others. All continued the theme of strong product demand and no issues with chassis production.
Presenters continued with the growing focus on electric vehicles in all three conferences.
Having two members of the Austin staff attend the event worked well. Tom and Joe were able to split up during overlapping presentations and maximize the number of people they met, with each knowing different contacts at the event.
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