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  • DPA Auctions – Effects of Covid19 on Trucking Industry

    DPA Auctions strives to build strong relationships of trust with our clients. We are a family business and our goal is to treat our customers like family—with honesty, respect, and open communication. The way we see it, when our customers succeed, we succeed.

    2020 presented some serious obstacles for us all. As much as we wish we could wave a magic wand and make everything all right, we know that in life, it is often the greatest challenges that bring us the greatest opportunities.

    We strive to assist truckers as best as we can to achieve success.  It is our hope that the information we’ve gathered here will shed some light on our national pandemic’s impact on the trucking industry.

    COVID-19

    As of February 1, 2021, the CDC reported over 26,000,000 cases of COVID and nearly 440,000 COVID-related deaths in the US.

    COVID’s impact is reinventing the way we live and conduct business. Some changes that we thought would be temporary are likely here to stay.

    Employment

    According to the Bureau of Labor Statistics, over 22 million jobs were lost at the beginning of the pandemic. Only around 12 million have been recovered thus far.

    • 88,300 truck drivers lost their jobs in April 2020 alone. It was the largest loss since the bureau began tracking in 1990.
    • The transportation sector gained nearly 47,000 jobs in December, marking the seventh consecutive monthly increase after four consecutive decreases.
    • With 2020 numbers still preliminary, trucking employment was down 42,100 jobs for the year.

    (It’s worth noting that these figures don’t reflect private fleet employment numbers, which fall in the private fleet’s main business category.  For example, Walmart and Amazon drivers are counted as retail employees.)

    Truckers’ Contribution as Essential Workers

    Overcoming early challenges, truckload carriers adapted quickly and kept America stocked with necessary goods. Truckers continue this vital service as the pandemic wears on.

    Truckers are also playing an important role in the distribution process for the COVID vaccine.

    In May 2020, the government announced “Operation Warp Speed,” a public-private partnership initiated to facilitate and accelerate the development, manufacturing, and distribution of COVID vaccines.

    On December 13, 2020, a convoy of trucks loaded with the first doses of the COVID-19 vaccine departed from a Pfizer manufacturing plant in Michigan and headed to airports and distribution centers.

    Yet, despite these significant contributions, truckers often remain the unsung heroes among essential workers. Our team at DPA Auctions recognizes your valiant efforts and commends each and every one of you for your dedication and service.

    When will truckers be eligible to receive the vaccine?

    The Centers for Disease Control assigned transportation workers to the third group (Category 1C) of COVID-19 vaccine deployment. The category includes:

    • People aged 65—74 years 
    • People aged 16—64 years with underlying medical conditions, which increase the risk of serious, life-threatening complications from COVID-19.
    • Other essential workers, such as people who work in transportation and logistics, food service, housing construction and finance, information technology, communications, energy, law, media, public safety, and public health.

    However, each individual state determines “who’s up” next. The states are also responsible for the distribution of the vaccine.

    COVID’s Current Impact on Trucking

    According to economists at MacKay & Co., COVID’s lasting effects on the economy — from more companies embracing remote work to more consumers embracing last-mile delivery — are not going away. The firm predicts that the first quarter of 2021 will not be as good as the rest of the year. But, the predicted strength at the end of 2021 could balance out the weakness from the start of the year, which will bring trucking and other economic indicators back up to 2019 levels. 

    Slow-and-steady truck transportation employment is on the rebound for both local and long-distance sectors; and prices are continuing to firm because of the increased level of freight.

    Convoy’s Annual Freight Insights Report

    According to Convoy’s Annual Freight Insights Report, 2020’s freight data shows how the transportation industry is tied to the economy, society, and consumer behavior.

    The data traced the domino effect of COVID-19. As people stayed home, they ordered more things online, so retail warehouses and distribution facilities had more shipments to fulfill, which then led to more trucks picking up and delivering these goods.

    Convoy’s report also showed the difference of COVID’s impact between the goods economy and the services economy. Consider food spending trends—spending at restaurants and bars declined, reversing a decades-long upward trend, as grocery spending steeply rose after years of sluggishness. Restaurants and bars never fully recovered, even as parts of the country reopened throughout the year.

    The goods economy, on the other hand, sharply rose from March onward. With people taking fewer vacations and eating out less, household savings rates soared and people shifted their spending to things instead of experiences.

    Spending less on services and more on goods is a boon for the transportation and logistics industry.

    Driver Impacts

    • Due to the pandemic, fewer commercial driver’s licenses were issued to new drivers as social distancing limited training and testing in 2020.
    • The pandemic pushed some drivers out of the industry.
    • Trucking has found more labor competition in construction, manufacturing and last-mile delivery, which all have fewer regulations on workers. 

    Be on the Lookout

    Experts are watching five forward-looking indicators for the trucking economy:

    1. Single-family building permits
    2. Single-family housing starts
    3. Gasoline prices
    4. Diesel prices
    5. Class 8 retail sales

    Construction is a truck-intensive activity that has a large multiplier for the rest of the economy. For example, when you build a house, you furnish the house, and you move into the house – all of which cause Truckable Economic Activity (TEA).

    According to the Census Bureau, housing permits issued continued on an upward trend in September (the latest data available), which marked the third straight month of 2020 where more housing permits were issued than the same month of 2019. Housing starts in June through September 2020 also outpaced the starts over the same period in 2019.

    We are Here for You

    As we mentioned, the greatest challenges often bring us the greatest opportunities. DPA Auctions makes owning your own truck an affordable option as you seek to advance your trucking career. We have a highly educated team of advisors available to assist you all along the way as you consider purchasing a truck at auction. Just give us a call, 800-492-9090. 

    Check out our blog post: Benefits of Buying/Selling Used Trucks here. [insert hyperlink: www.DPAauctions.com]

    For more information, call us today at 800-492-9090 or Contact us.

     

  • DPA Auctions Benefits of Buying/Selling Used Trucks

    The process of purchasing a semi-truck can seem overwhelming. After all, you’re making a significant investment in your business/career.  There are many factors and choices to consider.

    The first step is deciding whether to buy a new or used rig. Sure, buying a brand new model may come with sparkle and shine; but the benefits of a used truck can significantly outweigh the bells and whistles of a new one.

    Here are some of the advantages of buying a used truck.

    Lower Costs

    Used semi-trucks are significantly cheaper than new ones. For comparison purposes, let’s take a quick look at the average price ranges of new trucks offered by major manufacturers. (Data is based on 2020 models.)

    Freightliner Cascadia –  $100,000 to $160,000

    Kenworth T680 – $127,000 – $159,000

    Peterbilt 579 – $149,000 to $164,000

    Tesla – $150,000 to $300,000

    Volvo – $147,000 – $149,000

    Comparatively, here’s a list of actual auction sales prices from DPA auctions held from December 15, 2020 through January 26, 2021:

    2006 Freightliner Columbia Truck – $13,200

    2010 IHC ProStar Truck – $8,600

    2013 Peterbilt 337 – $25,000

    2007 International 8600 Day Cab Truck – $22,400

    2009 Kenworth T800 Day Cab – $23,100

    2006 Peterbilt 379 Extended Hood Conventional Truck – $35,500

    2012 Peterbilt 386 Truck – $23,200

    2009 Peterbilt 387 – $18,800

    2016 Mack Rawhide Truck – $28,500

    2013 Kenworth T370 Daycab Truck – $25,000

    2006 Peterbilt 379 Sleeper Truck – $26,000

    2014 Peterbilt 386 Truck – $15,500

    Granted, the age, mileage, and condition of trucks sold at auction vary from truck to truck, but the affordable prices merit much consideration.

    For further comparison, all of our previous auction results, complete with full descriptions, can be found here.

    Greater Selection

    Buyers have a much better selection when buying used because there are usually more used semi-trucks for sale than new ones. Our online auction process puts you (the buyer) in the driver’s seat. You have everything you need right at your fingertips to choose the best truck for you. Plus, DPA Auctions offers an educated team of advisors to assist you all along the way.

    When buying with us, you never deal with any high-pressure sales pitches for “extras” that you don’t need. We run our auctions with integrity and full-disclosure. Every item up for bid is carefully inspected, photographed and described in a manner that allows our customers to bid with confidence.

    Avoids Depreciation

    It’s no secret that when you buy a brand-new semi (or any vehicle, for that matter), it depreciates in value as soon as you drive it off the lot. The largest percentage of depreciated value occurs within the first year.

    Your investment in a used truck is more solid because used models hold their value much greater than new ones. When the time comes to sell a used truck, if well maintained, it is often possible to sell it for around the price you paid for it. 

    Lower Operating Costs

    The operating costs of used semi-trucks are generally much lower than the costs associated with new trucks.

    Insurance rates for used trucks are cheaper. The high price tag on new trucks means higher insurance premiums because the more the truck is worth, the more you’ll have to pay for coverage.

    Buying used also saves you money on sales tax and registration fees. The fees vary state by state, but generally registration costs are lower for used trucks. Also, some states do not charge sales tax on used vehicles.

    Our prerogative at DPA Auctions is to provide a seamless buying experience. Our intricate data processing and telecommunication system finds and unites buyers with compatible sellers. We handle it all—accurate listings, money transfer, title transfer and lien searches. We offer convenient and efficient delivery and a very secure payment process. We do this through a customer-first methodology. Our customers are our number one priority.

    For more information, call us today at 800-492-9090 or Contact us.

  • The Impact of the National Pandemic on Heavy Equipment Auctions and the Outlook for 2021

    We’ve all witnessed the significant impact the coronavirus pandemic has had on our nation’s economy. Unlike anything many of us have seen in our lifetime, it has changed the way we work, travel, and make purchases—each of which directly impacts the heavy equipment auction industry.

    Throughout 2020, as pandemic precautions were implemented across the nation, numerous onsite auctions, some of which were multi-million dollar events, were shut down. It quickly became clear that a shift toward technology was necessary for them. This left many of these competitors scrambling for quick solutions.

    DPA Auctions was completely prepared.

    Our auctions have operated online for over ten years. We’ve built a solid reputation for a clean and professional online buying/selling experience. We are a family company and we know that equipment bought and sold at auction is very important to the livelihoods of everyone involved.

    Our advanced technology and years of experience in the digital marketplace enables us to seamlessly carry on our operations even when faced with a national pandemic. Our well-established multi-faceted marketing platform targets customers all across the United States and internationally and our expert sales staff is dedicated to serving our customers in a professional and personal way.

    We are committed to providing our services without interruption.

    The industries we serve—farming, construction, transportation, and beyond—never stop delivering their important goods and services to our nation. We applaud their dedication and we stand beside them in solidarity by doing whatever it takes to provide the tools they need to carry on their businesses.

    For customers newly transitioning to online auctions, our Live Auction Board offers a familiar experience to traditional on-site auctions. We are always available to do what it takes to give newcomers the confidence and assurances they need to adapt to a digital platform.

    Don’t Be Fooled by the Competition.

    We offer the lowest commissions in online auctions without compromising superior quality and exceptional service. With our family-focused values, we believe it is not our duty to charge more and give less, but rather charge less and give more.

    Some competitors claim to have lower commissions, but always pay attention to the fine details. Do their commissions and fees include everything you’ll need? Or will you be charged separately for each and every service?

    Our fees are transparent and include everything you need—we provide all the images needed for the listing, money transfer, title transfer, lien searches, and we also help facilitate transportation and financing.

    Outlook for 2021

    DPA Auctions continually monitors developments and changes in the marketplace. While markets in other industries have fluctuated, the resale of heavy equipment has remained consistent. Some areas even improved their sales compared to prior to the pandemic.

    As manufacturers cut production, the demand for used equipment increases. We see a strong market that will continue to grow well after the pandemic subsides. Using technology to facilitate equipment sales will continue to rise. We are committed to staying ahead of the curve and we will be there for you through every twist and turn that may come your way.

    Family Focused Service

    Since 1972, DPA Auctions has worked hard to build strong relationships of trust with our clients. One of our core values is to treat everyone like family—with honesty, respect, and open communication. It is this relationship that sets us apart from the rest.

    Despite the challenges, we are excited about the year to come. By partnering together, we will overcome the obstacles, rise above the uncertainty and succeed.

    For more information, call us today at 800-492-9090 or Contact us.