Steve Hansen- Minimizer Sales Manager

Headquartered in Blooming Prairie, Minnesota, USA, Minimizer manufactures poly truck fenders, poly toolboxes, customized mud flaps, and bracket kits. Family owned and operated for nearly three generations, Minimizer’s parent company Spray Control Systems, Inc., was founded in 1983 by Dick Kruckeberg. Dick was a truck driver and was consistently disappointed with his metal fenders bending, cracking and breaking. He invented his own solution: The Minimizer poly fender.

Now, 27 years later, Minimizer has over 50 employees, and goes to market via an international distribution network making Minimizer products available locally on a national level throughout North America.

The product and the Minimizer lifetime guarantee are the foundation of our success. Minimizer fenders never need paint, never fade, never rust, never crack and never need polishing. They are “Tested and Tortured” before they go on your truck to make sure they can withstand any challenge.

Minimizer continues to grow our core fender product line and is expanding into new materials such as chrome poly and new markets such as military applications. The Company has experienced significant growth over the past decade as a result of investments in marketing and sales, new equipment, research and development enhancements and a new corporate campus.

Much of our sales are via independent distributors. They are the lifeblood of Minimizer and we view the relationship as a partnership. We recognize independent distributors enjoy a unique flexibility allowing them to sell to all heavy-duty customers with a much broader product mix. And because of the high level of service provided by independent distributors, customers and fleets have a much better buying experience.

Critical strategies for success with our independent distributors are communication, training and sales support. Minimizer’s goal is closer integration with distributors for improved training, product support and the resulting sales increases. We want to do more fleet calls and onsite training with distributors.

Training has always been a central focus of the Minimizer sales process. The company consistently leverages the most up-to-date technology for increased and improved training. Sales meetings occur in a room with the words “Training, Training, Training” stenciled on the wall. Minimizer is unique in that we don’t use manufacturer representatives. With the exception of our Canadian territory manager, all of our sales representatives are based at our Minnesota headquarters. This provides us with unique control and consistency with our sales channel execution. Our 9 territories each have a manger that visits distributors monthly for training purposes. When not traveling with distributors our sales managers leverage webinars for remote training.

Minimizer is also focused on lead generation for our distributor network. We aggressively market to the end user, spending over $1 million annually attending tradeshows, advertising in trade publications, sponsoring industry functions and utilizing a state-of-the-art website. The leads generated are sent directly to distributors to close the loop on the sale.

The distributor relationship is so critical to Minimizer that we sign a partnership promise with all distributors. It’s a written agreement ensuring what each party will provide – leads, marketing support, custom sales sheets, training, and a long-term partnership. To this end… we also attend the CVSN Summit each year. This Summit provides a productive meeting venue and allows for face-time with our important customers in both a business and a casual setting. We always garner new partnerships and new business at CVSN.

CVSN also provides valuable private strategic planning sessions and round table discussions where we receive valuable feedback from industry leaders. We believe this past show was the most important meeting this year in the heavy-duty aftermarket industry. CVSN is a terrific investment for the future of our business.

As we move forward we are committed to providing innovative products manufactured to the highest standards so you, our valued distributor, can confidently go to market and win business.

For more information or to contact Steve Hansen directly please call (800) 248-3855, email him at steve@minimizer.com or visit www.minimizer.com.

Dave Olsen - CEO of Transaxle

TransAxle LLC is proud to be the largest East Coast provider of remanufactured drivetrain components to the commercial fleet and industrial markets.  The company was started in 1978 by Warren and Howard Klein and was sold in 2006 to Graham Partners, a private equity group out of Philadelphia PA.  TransAxle is a drivetrain specialist.  We have 275 dedicated employees, 22 branches from Bangor ME to Greenville, SC., and 4 remanufacturing facilities, including one dedicated Allison transmission facility that sells exclusively to the wholesale markets under the brand “TRC”.

In addition to our retail and remanufacturing operations, TransAxle has vehicle repair facilities in fourteen of our locations.  Growing this business segment is a key strategy for the company.  TransAxle plans to grow this segment of our business by utilizing the talents and experience of our strong management team, many of whom have decades of experience in the industry. Utilizing this pool of talent and experience, we plan to continue our growth in this segment by adding locations and product lines to our current offerings.  Growth is made possible by empowering people in leadership positions; we find this to be especially true for our branch managers that have full P&L responsibility for their operations.

We see three major challenges facing our company.  First, evolution in product design and integration of electronics into drivetrains will continue to make training and education a major objective for our people.  To address this challenge, we host weekly webinars for our 22 branch location management teams and 35 sales people which focus on product, market and training activities. We also believe that training our customers is a value that separates us from our competitors.  We have a goal for 2011 to train 3000 customers and we will surpass that goal.  We utilize our own team of employees for all training classes. This allows Transaxle to utilize the vast experience of our employees while reinforcing the depth of knowledge we possess to our customers. Examples of training topics would include Allison transmission diagnostics, drivetrain troubleshooting and installation, and CSA initiatives.

The second challenge will be recruitment of experienced and motivated people in our industry.  We have a robust recruiting effort in place at all times and are working with colleges and technical schools to support the effort to recruit candidates into our industry.  Additionally, we strive to find people within our company that express the interest in growing – we embrace these people and push them to stretch and progress.

Lastly, we see the access to information that is being strategically withheld by the original equipment (OE) manufacturers as a continuing challenge in both the remanufacturing business and the vehicle repair segment.  Active participation in support of the Right to Repair Act is an integral part of our strategy to ensure vehicle owners retain the repair options they demand.

Information sharing is a critical part of any successful organization.  At TransAxle, we have a fully integrated ERP system – Navision – which connects our suppliers, our customers and TransAxle.  In addition, we have used sales force automation for several years with our sales force creating an enormous database of customers, activity, etc.

Our membership in HDA Truck Pride is a key component of our growth strategy.  It allows us to grow our product line offering.   Besides the rebates, the group assists in managing the supplier relationships which frees up time for us to focus on our customers.  These groups will evolve and offer additional value added services related to reaching our customers and service providers.

We also believe that the work of CVSN is very important.  We believe that it is important to become involved in the industry that has treated us so well.  CVSN is emerging as the major non-competitive voice of the independent channel.  However, the competing distribution channels have a more robust lobbying effort through NADA etc. CVSN must grow and stay focused on its mission to support all independents and get more distributors to recognize the importance of their support.  The recent CVSN meeting with law makers in Washington D.C. is a step in the right direction.

Editors note:      Dave Olsen, CEO of Transaxle asked that I include the following in his company profile:

Having grown up in the heavy truck parts business, I’ve had the pleasure of working for two of the biggest and best supporters of the independent aftermarket – Bendix and Meritor.  While working for both, I can honestly say that I had a strong attraction to the independent channel.  Principally, this was due to the ability to forge friendships and partnerships that could stand the test of time.  The industry has changed greatly with roll up’s, national players, consolidation of the OE’s and our supply base.  However, this strength – the ability to forge partnerships – has not changed in much of the independent channel.  Now that I’m on the distributor side of the fence, I see and feel this even more.  Frankly, I’m kicking myself for not taking this leap 20 years ago.  With the help of the best team in the industry, at TransAxle, I look forward to moving our business and the independent channel in total into the next decade.

Dave Willis – President, CRW Parts & CVSN Treasurer

In two short months CRW Parts Inc will be celebrating its 50^th anniversary, but if you consider it a continuation of R W Norris and Sons (as many of our suppliers do) we have been around since 1850. While many would consider this pretty impressive it is not unusual in our industry. Pioneer Rim and Wheel and Midwest Wheel both recently celebrated their 100^th birthdays while Six Robblees will be 100 years old in 2013.

What do these companies all have in common besides good people, a little luck, and a strong commitment to our industry?  CVSN!

In the frenetic fast paced world we live in today, many business owners (big and small) think belonging to a buying/marketing group is all they need to steer them on the road to success. They believe belonging to an association is an expense they cannot afford, either monetarily, or from a time commitment standpoint.

I would argue belonging to an association, more specifically, CVSN, is an investment a heavy duty parts distributor cannot afford to miss.

CVSN is an association formed in 2006 through a merger of Council of Fleet Specialists (CFS) and National Wheel and Rim Association (NWRA). This merger formed the largest association of independent truck parts and service distributors in the transportation industry. Countries represented within the membership are the United States, Canada, Dominican Republic, and Puerto Rico.

But what, you ask, can CVSN offer that cannot be covered in a buying group?

First and foremost is the chance to meet, talk with, and share ideas with the best and brightest in our industry. If all I did was attend VIPAR I would not get to see, and pick the brains of, Dave Scheer (Inland Truck Parts), Andy Robblee ( Six Robblees), Mike Callison and John Minor (Midwest Wheel), and Marc Karon (Total Truck Parts) just to name a few. I would also miss out on seeing and talking with the vendors who are not a part of my marketing group. All of these people and companies are committed to making our industry better by sharing their knowledge and expertise with those willing to listen. No matter how much our industry changes it’s still about the relationships we build with our customers, suppliers, and fellow distributors.

Because CVSN is an association formed for the betterment of our industry, EDUCATION plays a vital role in our meetings. Topics covered over the last few years are; Technology, Legislative Issues, Sales & Marketing, Purchasing, Labor Issues, Finance, Economy, Leadership/Management, and Health Care  just to name a few. I have heard Richard Spitzke, CEO of Fort Garry Industries, say on numerous occasions that the information gleaned from these association meetings have been vital to the success of his business. Coming from Richard that is a pretty strong affirmation of the value these meetings provide its members.

CVSN, through its relationship with AAIA, is becoming a more active advocate, regarding the legislative issues facing our companies today. Issues such as Card Check, Obama Care, CSA, Right to Repair, and the rescinding of LIFO all need our attention and voice on Capitol Hill. If we do not fight our own battles no one else will.

The stature that CVSN is gaining in the industry is also very evident in the fact that CVSN is a one-third owner of the best all-industry event held each January, the Heavy Duty Aftermarket Week.   If you have not attended this event yet, you are missing one of the best events in our industry for the independent distributor.  I encourage you to attend this January 23-26 at the Mirage in Vegas.

Over the years I have met many wonderful people in the heavy duty market place and they all seem to have one thing in common. They are willing to give of themselves, without pay, to improve the industry we operate in. CVSN may be a luxury to some, but it is a luxury CRW can’t afford to live without!

Mike Betts – CEO Betts Spring Company

HDAW ’12 is going to be something special. With a great theme: “Corporate Culture: The Foundation for Success” this year’s independent distributor conference will provide the attendees with an information and education program that promises to be both profound and reflective. The opening general session and four individual education sessions are designed to hit home. This is based on the fact that the “Culture” in your business is your key to success!

Let’s not kid ourselves, our industry is “graying” and the need for succession planning and a new generation of leaders has never been more important. We are hopeful that every CEO will bring their next generation of learners and leaders to this year’s event.

Most people attend events, such as concerts, plays or business conferences with a single goal in mind, to feel enriched and energized. HDAW 2012 has been planned and constructed to be more than just an enrichment experience. The educational sessions will focus on the importance of excellence in the culture of your business and the enormity of it as an integral part of your company’s DNA.

Several of the HDAW 12 speakers and sessions will drill-down on the conference theme and deliver real life stories and examples on what makes some businesses the best and why the best thrive and succeed.

Robert Richman of Zappos Insights is our conference-opening speaker and will set the stage for discussion of the overall theme for HDAW ’12. The audience will find out that there is good reason Zappos was voted #1 in the American Choice Awards for the best customer service in the world. Robert will describe and you will learn what makes the culture at Zappos unique and what is important to the “Y” generation and how the real world work environment has changed from years past.

We are also very pleased that Gov. Bill Graves, President and CEO of the American Trucking Association (ATA) will be a featured speaker. Bill has been involved in our industry his entire life. For almost 70 years, he and members of his family have operated trucking companies. Among the outstanding combination of attributes Bill Graves brings to his role are his ability to create public policy, his administrative experience, political skills, and a life-long knowledge of the motor-carrier industry. Gov. Graves will bring the audience up to date with the most pressing issues impacting our industry and the nation’s fleets today.

Business consultant Edgar Papke states “Effectively leading and leveraging an organization’s culture is one of the key challenges for all business leaders”. Papke will provide a proven framework for better understanding and leading organizational cultures. You will come away better able to assess the culture in your business. Is your culture and business strategy in alignment? Does your business create an environment where higher levels of performance are the norm? Do all those on your team know the vision of your business?

Todd Cohen will package all the education sessions and bring everything full circle. What makes a sale and why do people buy from you! You will learn how to obtain outstanding sales results and how to build a high performance sales team. Do you have a sales team or a sales culture? Come and learn the difference!

Annette Sandberg, CEO of Transafe Consulting held the top position as Administrator for the Federal Motor Carrier Safety Administration (FMCSA) during the previous administration. Annette will share with the audience step by step examples on what the distributor can and needs to do to help their fleet customers be successful in managing CSA requirements, or BASICs. The audience will learn how your business and your people can assist fleets with the compliance issues in the CSA rules; and how to capitalize on it.

Don Reimondo CEO of HDA Truck Pride will be the moderator of an industry executive panel discussion, consisting of an excellent cross section of the major elements of the North American aftermarket. Each panelist will address how the distributor is performing in today’s marketplace and what they can do to compete and grow their business and offer possible strategies for distributors to “Win in the Future”.

The panelists are: Don Nugent, of US Transport with the fleet’s perspective. Robyn Spitzke, of Fort Garry Industries will be the voice of the independent distributor. Kyle Treadway, of Kenworth Sales and current chairman of the American Truck Dealers (ATD) will speak from an OEM dealer’s perspective. John Wensel, of Wensel’s Truck Centers will present a truck repair and service center point of view.

The panelists will describe what makes each of their cultures a valuable asset to their business and how their culture ultimately reflects upon and defines their success. Prior to HDAW, we will survey the attendees for questions to ask the panel. Please feel free to email any questions in advance of HDAW 2012 to Sue Kalish at sue.kalish@aftermarket.org so we can be sure you are heard and get answers!

With several networking events, such as meals, breaks and receptions, HDAW offers industry leaders multiple opportunities to connect. Couple that with a world class product expo, one on one meetings and all that goes with Las Vegas and HDAW ’12 promises to be the event of the year for the independent heavy duty aftermarket.

Join us at HDAW 2012 go to our website at www.hdaw.org and register today!

Mark Karol - President CVSN / Total Truck Parts

Imagine a time when the DOT official will hook into a connector on the truck and read all the fault codes to determine potential infractions, and your current customers can no longer buy from you because both you and they lack the necessary tools to complete the repair on the truck.  Customers will be forced back to the dealer.  Imagine a time when your company employees decide to belong to a union because the regulations dealing with the formation of unions prevent you from even offering a counter argument.  If that is not scary enough, think of the financial impact on your business if the government reevaluates inventory in a way that results in a write-up of the value.  Imagine coming to work one day and seeing an IRS notice that states you owe an additional amount of taxes in the hundreds of thousands.

This is not an unknown John Lennon song or some speaker preaching gloom and doom.  Each of these scenarios is actually a bill or a regulation that is being proposed in Congress today.  It was precisely the reason that CVSN held their annual Aftermarket Distribution Summit this past week in Washington D.C.  CVSN is our main industry association that is primarily focused on the future of our industry and the success of its participants.  The marketing groups are also very important, but they primarily are focused on the financial rewards that keep our companies running.  To be successful in the future, we need both the Marketing Group and the CVSN Association to be strong and viable.

This year’s Summit was a big success.  Our education programs were some of the best we have ever had.  The meeting was opened with Richard Schien receiving the President’s award for his contributions in the area of technology.  Karmak was the first computer system designed specifically for our industry.  Former Governor Robert Ehrlich, Jr. gave us a detailed look at the current political environment and his expectations for the future.

Our first education session was sponsored by HDX/Datalliance.  It was titled “helping Your Customers with Tools and Technology”.  The premise for this session was that technology and information was not only an issue for the repair shops.  Small fleets and parts only distributors will face increasing challenges to become knowledgeable and capable in diagnosing and repairing trucks.  There is also a marketing opportunity to sell the equipment to our fleet customers.  The three speakers, Tom Kotenko from NEXIQ, Dave Constantino from Michell 1, and Christopher Edd from Motor and Fleetcross gave both enlightening talks and demonstrations of their hardware and software.

There were several discussions about CSA2010.  Bert Mayo from the Lockton Company serves as a consultant for many of the top fleets and gave us a better understanding on how fleet owners are changing their maintenance procedures to accommodate this new law.  He also recommended some practices we can do at the distributor level to increase awareness at our customers and become more valuable to them.  Anne Ferro, the Administrator for FMCSA explained the motivation and direction of the new law and agreed to consider aftermarket distributors in the discussion about future rulemaking.

Jim Camp, trains people how to become better negotiators and wrote “Start with No”.  He gave out copies of his book which should be used to train our sales people to become better at negotiating sales with customers.  Gene Marks gave a very good analysis explaining what is coming in the economy and what will likely affect our profits in months and years ahead.  Our final education session was with Dr. Bob Nelson.  Dr. Nelson has written several books on using recognition as a reward.  This was for me, one of the best sessions because it is easy to implement and leads to a better and more productive working environment.

Besides education programs, we had private strategic planning sessions (PSP’s) with nine suppliers.  These are like mini-DAC meetings and allow distributors to discuss issues as a group with a given supplier.  We also had several networking opportunities giving attendees a chance to meet with suppliers and fellow distributors in a comfortable setting where ideas can be exchanged and strategic alliances can be reinforced.

All of the above was wonderful and well worth the time and expense.  But the best part for me, was the legislative summit that was put on with the help of AAIA.  This was a unique opportunity to visit with congressmen, senators and legislative staffers in their offices to present specific issues that affect our industry.  Walking the halls of Congress and pitching our issues was both exciting and humbling.  It was a long day and we were tired in the end, but we actually moved a few legislators to our causes.  Some of what I wrote in this first paragraph may not happen, mainly because we were able to clarify the issues and their impact to our officials.

But work still needs to be done.  Although we had a record attendance, we still only had a small percentage of the overall industry.  Do you really think it is wise to sit back and allow your businesses to be hurt by bad legislation?  Do you want to tell any of your employees that they are laid off because you could not spend a thousand dollars and give up three days of your time?  How are you going to be able to compete if you do not have the latest information and ideas?

The problem we face as an industry is that we underestimate the efforts that are being expended to put us out of business.  When OEM’s go to Washington to talk to Congress, nobody sits on the sideline.  When the OEM’s want to educate their dealers, it is mandatory.  Being independent, as we are, is a wonderful freedom we enjoy, but independence does not eliminate the need for responsibility.  We need to present a strong united front to beat back the challenges in our industry.

If you are unsure of the value of becoming a member of CVSN, I suggest you come to our next Summit, which will be in Niagra Falls on September 16^th through the 19^th.  We have a limited number of guest invitations which will give you the opportunity to attend the function before joining the association.  If you want to come, please contact Angelo Volpe at www.cvsn.org.

Mark Karol - Total Truck Parts

I have had the honor of being your President for just a few weeks and I have had two revelations.  First, never forget how many years you have been married.  For those who attended our meeting in Washington D.C., there needs to be no further explanation.  My second revelation is that there is never enough time to do all the things that I want to do.

Our meeting in Washington exceeded my expectations.  The suppliers who support us with their sponsorships and attendance to the Summit did a great job with the PSP training, and the networking sessions for those distributors that attended were productive.  It was a unique thrill to roam the halls of Congress educating Congressmen and legislative assistants on the issues that threaten our industry.  Some of you may not be aware that the Right to Repair is not the only issue facing us in the future.  New proposed union rules, issued by the NLRB, could result in each of us having to deal with union shops.  In addition, the continuing effort to find ways to pay for government programs may lead to the elimination of LIFO accounting rules.  This could place each of us who use this accounting rule, to pay a lot more in taxes.

Our association gets stronger each year and we have to be thankful for the good leaders that preceded me.  But we also have significant challenges.  I believe they fall into two areas.  First, CVSN has to better define its role in the industry.  Our goal should be to represent the independent heavy duty distributor, his/her interests, and our industry.  However, the majority of our industry participants do not seem to believe this objective has enough value to justify joining the effort.  That leads to our second goal which is to increase our value proposition and grow our membership.

In the past, bringing the industry together was much easier.  First, there was no HDAW, so one-on-one meetings were the exclusive purview of CFS and NWRA.  Marketing groups were in their early stages and usually consisted of a business meeting.  Suppliers were also more inclined to participate in many meetings in an industry that was disjointed.  Things are different today.   Many distributors do not feel that they need an industry association.  They get what they believe they need from their marketing groups.  Others falsely believe that HDAW acts as an association and will address their industry requirements.

While each of these does provide a valuable resource for the heavy duty distributor, neither represents a universal voice.  That is what only an association can do.  CVSN is the universal voice of our industry.  When issues challenge the existence of our industry, it is CVSN that will fight for the whole industry.  Several years ago, the original equipment manufacturers were able to get legislation introduced in Congress to restrict vehicle owners from using anything other than original equipment parts for a period of ten years after the vehicle was built.  CFS, the industry association at the time fought a huge fight with the help of its members.  CFS had a strong membership at the time because it was the only group that offered one-on-one meetings with suppliers.  We were able to convince Congress along with other allies in the battle to not pass this legislation that would have killed our companies.

Our battles are not over.  Competitors are aways looking at ways to create a beneficial environment for them at our expense.  In addition, the government is always looking to create regulations and many of them just cost us more money.  I understand as much as anyone that the business owners are under a lot of stress these days.  Time is a precious resource and none of us can afford to waste it with one more meeting and a small addition cost of joining the association.  But I believe it is a good business decision.  A strong association has a strong voice.  Suppliers who see us as disjointed and uncommitted will factor this into their marketing strategies.  Competitors will view us as weak and not be as encouraged to find more amicable solutions for our industry segment.  The effect on you will be more costly that joining, but by then, it will be too late.

I could try to argue that you owe something to the industry that supports you.  I could present a good case that if you sit on the sidelines, you will one day wish you had chosen to become more involved.  But I do not think either argument will get my fellow distributors to join CVSN.  So my job is to show you the benefits and economic justification of your membership.  Even though there is not enough time, I will focus on the main goal of increasing support and membership in CVSN throughout my Presidency.

Mark Karon - Total Truck Parts

One of the things that happens to old people like me is that they start looking over their lives and listing the things they still need to do. This is often called the bucket list. With the economy as bad as it has been, especially in Florida, I guess I should just have “SURVIVE” at the top of my list. Although surviving is important, coming to Washington for the CVSN Summit and getting “inside the ropes” is certainly on my list. I have relatives in Washington DC, so this will not be my first time there. However, the closest I have gotten to an actual Congressmen and Senators was on a tour. Having the opportunity to actually talk with one will certainly be unique experience and one more check of the bucket list.

I am not delusional with the belief that it is up to me to get one of our legislative representatives to change a policy with respect to our industry, but I do believe that the voice of many can have that effect. And even if it doesn’t happen, I want to be able to say that I tried and was part of this important effort. Never before have there been this many threats to our business from the Government. Number one is the Right to Repair issue, which if not passed, it could eliminate the possibility of most of your customers being able to fix their own trucks along with those of us who have repair shops. We also have proposed changes in union rules which could result in your business having to negotiate with union bosses. There are proposed accounting rule changes that will eliminate LIFO accounting and result is a large unexpected tax bill. Many in Congress are trying to eliminate the capital gains tax rate which will create new tax liabilities for those selling their businesses. Other issues are the death tax, depreciation schedules and regulations. We cannot afford to sit on the sidelines and allow this to happen to our businesses and industry. The cost to attend the Summit is minuscule compared to the potential threat to our livelihood.

If this was all that was happening at the Summit, it would be worth the expense for me. However, there is so much more. The education programs this year are the best we have had in a long time. It just amazes me when I see so many of my peers discount the importance of continuing education in our business. When I look around at the Florida market and those who are either struggling or going out of business, there is one common characteristic. None of these distributors belong to CVSN or come to HDAW. In almost every profession that requires certification, continuing education is mandatory. How can you possible keep up with new business ideas and changes in technology? Businesses have to continue to evolve in order to react to changes in the market. If you never learn new ideas, how are you going to effect change in your business?

Besides education, there is the opportunity to network with the business leaders in our industry, both on the distributor and supplier level. I would be the first to admit that I am far from the smartest guy in our industry, so I find this part the most valuable for me. Over the years, I have asked a lot of questions about marketing new product lines, pricing strategies, the best vendors to align with and many more. Since the atmosphere is usually more casual than HDAW, the CVSN Summit has given me the opportunities to meet with suppliers to outline new strategic alliances that have really helped our business, especially in this economy.

I had the opportunity to go to Woodstock, but decided not to go. Although I had invitations to watch a space shuttle launch, I could never find the time. There have been many invites to play golf at some of the best courses in the county, but I was too busy. I am done finding excuses. Lookout Congress, here we come!

Gener Marks - Founder / President The Marks Group

I was in a Rite Aid pharmacy the other day and about to pay for my stuff at their new bank of automated self-check out kiosks.  I heard one woman behind me say to her friend, “Oh, I would NEVER use those things.  They take jobs away from people.”

Um…duh?

What’s that?  You’d like to work for my small business?  I appreciate your interest.  And I, like so many others, feel terrible about how long you’ve been unemployed.  We would like to do something about the situation.  We’d like to help you.  But there’s something you (and the woman from the Rite Aid) need to know.   I’m not sure how to say this kindly so it’s best I just say it:  many of us don’t really need more employees.

Of course the fact that you’re out of a job has a lot to do with the state of the economy. Growth is anemic.  The uncertainty in the current business environment is holding a lot of us back from making the investments that we’d like to make.  And regulations and the prospect of more regulations, let alone higher taxes to pay for our country’s deficits, are giving many of us cause for concern.  For that we can certainly blame many:  our politicians, the government, the banking system, the media…even ourselves.

But it’s not just that.  In fact, one of the biggest reasons why you don’t have a job (and the prospects of finding a job are not encouraging) can also be blamed on someone else:  Microsoft.  And other technology companies like them.

Because there’s something else going on in this economy.  Just look at the below chart.  It shows that our country’s Gross Domestic Product, while growing at a painfully slow pace, is now higher than it was before the 2008 recession.  And yet it’s common knowledge among those who track these things that there are more than seven million people without jobs than there were at the start of the recession.  Which means that businesses are producing more products and services than ever before…but with 7 million fewer people.  And by the way…corporate profits are at an all-time high too.

Manufacturers are leading the charge.  Just look at how manufacturing productivity has risen over the past thirty years in this country while the number of people employed to make stuff has decreased.

I know you need a job and I know this is a very difficult situation.  And I don’t want to sound cruel because I’m trying to help you.  And to get help with a problem the first thing we have to do is diagnose the problem.  So here’s the cold, hard truth about why you’re unemployed:  most businesses don’t need you any more.  We can do just as much, if not more, without you.

Over the past twenty years, the technology industry, led by companies like Microsoft, have given us  powerful databases, operating systems, networks and software applications that have made it easier for us to accomplish more tasks than we did before with less people.   And it’s not just Microsoft who you can blame.

Blame Sage, who makes Enterprise Resource Planning and Customer Relationship Management software that has enabled businesses to automate their marketing campaigns, build workflows for alerting managers when inventory needs to be replenished and generate workorders and invoices that are immediately emailed without employing teams of people.

Blame Rackspace and Amazon and other cloud based infrastructure providers, who allow us to host all of our business applications on their servers, thereby eliminating many in our information technology departments and cutting back on wasted time from downed computers and security flaws.

It’s true that the costs of healthcare and other regulations have discouraged many of us from hiring full time employees.  But at the same time we’ve come to realize that maybe we don’t need as many full time employees as we used to.  And because technology has advanced so much, even over the past few years, we’ve seen an explosion of outsourcing among businesses, both small and large.

For little cost, companies like mine can easily setup systems for external access and collaboration.  We use remote desktop services (again from Microsoft) , but also from companies like Citrix Online and LogMeIn so that our contractors can access our networks to do their work.  We use cloud based applications like Box.net, Basecamp, Salesforce.com and NetSuite to manage projects, share data and schedule tasks with both employees and approved outsiders wherever they are.  Thanks to Microsoft, Google and companies like Zoho and Dropbox we can now easily put out entire office in the cloud – documents, spreadsheets, presentations, databases, projects.

And we can communicate with our outsourced help, wherever they are, more quicker and easier than before.  We make free phone calls using Skype and inexpensive mass calls (or texts) using products like VoiceShot.  We hold free conference call sessions using Freeconferencecall.com.  We share our desktops using Glance and Join.me. We hold training sessions using Webex.  We use video tools like Oovoo to virtually meet face to face.

And finding outsourced help is easier than it’s ever been.  That’s because we can search sites like Craigslist, Elance and Guru.  And when we find qualified people to accomplish specific tasks for us we can use these sites to set our relationships, manage our payments and communicate our needs.

Which is why so many of the tasks once done by companies are now being outsourced to individuals and other companies who can, using their own internal technology, perform these same tasks with so many less people.  Most of the clients I work with outsource their payroll to companies like ADP and Paychex.  Many outsource their bookkeeping needs to firms that do nothing else, but do it more efficiently.  Most companies now have internet based phone systems where an automated attendant re-directs calls to people’s cell phones and voice mail messages are sent to them via text with no humans in the middle.

No humans.

Are you starting to see the picture?  I know you want to be hired full time by me.  And I want to be doing my part.  But please understand:  I’m running a business.  I want to make profits.  And these tools are letting me make more profits by employing people only when I need them rather than carrying them on my payroll.

It’s not all Microsoft’s fault.  What they’re doing is nothing compared to what’s happening on the shop floor.  Because, quietly and without fanfare, companies like the Oystar Group are making machines that fill tubes faster than before, requiring less shifts of people to complete an order.  And equipment from Keller Technology enables cosmetics and pharmaceutical manufacturers to produce more product with less people.  And software and consulting firms like

Intuitive ERP and Epicor are helping manufacturers change their internal processes to create more products from less space and using less resources, particularly people.

We know this is true in our own lives.  Things are lasting longer and working better.  We’re keeping our cars well beyond 100,000 miles.  We’re letting our fridges and toasters and kettles do their jobs well beyond the lifespan that our parents did.  New developments in flooring, painting and construction are resulting in longer use of our homes.  Because technology is better.  Have you ever had a TV repairman to your house?  How many times has your washing machine broken down over the past twelve years and thousands upon thousands of cycles?  Because of technology, there are less people needed to manufacture and service the durable equipment that we use because this stuff is working better and for a much longer period of time.

And with all that, we still need you.  Don’t believe me?  Look at last month’s Monster Employment Index or read Gallup’s recent Job Creation data.  Both surveys find that job availabilities are at their highest level than before 2008.   But these are not same the jobs that existed before 2008.  That’s because we don’t need as many receptionists, clerks, cashiers, bookkeepers, inventory stockers and maintenance people as we used to.  Technology has helped us cut back on all of that.  Go to your local supermarket (or Rite Aid) and you’ll see what I mean.

But we do need programmers.  And experienced customer service people.  We need engineers,  scientists, high end equipment operators, nurses, lab technicians and (very soon) capable construction workers too.  In other words:  people with skills.  As a business owner it’s a no-brainer to me that if I can profit from your skills I may very well be persuaded to hire you.  What expertise can you bring to me that a machine can’t do for much less?  I have to meet that challenge with my own customers.  That’s the challenge that we all face.

Of course, all economies are cyclical.  And more jobs will be created once the economy again begins to grow.  No one knows when this will happen and right now, in our current political environment, many aren’t feeling too confident that this will happen anytime soon.  But even in a growing economy will we ever see 5-6% natural unemployment again?  This may never happen.  And if it doesn’t, please don’t just blame the politicians.  Blame Microsoft.  And other tech companies like them.  It’s because of them that I’m not hiring you.

Besides Forbes, Gene Marks writes weekly for The New York Times and frequently for The Huffington Post and American City Business Journals.  He runs a ten person consulting firm outside of Philadelphia and can be followed on Twitter.

Access to information has long been a challenge for service shops. Without the right diagnostic tools and software, shops see their fleets turning to the dealers for both service and parts. Aftermarket distributors can turn this threat into an opportunity. This panel will help you understand what tools are available and how you can use them to better service your customers and help diagnose their repairs both now and in the future. This session will feature the following speakers:

Thomas L. Kotenko

Thomas Koteko - Snap-on Business

General Manager – Snap-on Business Solutions

Tom has more than 20+ years of experience in the field of technical sales and marketing. This includes new business development, and conceptual/solution selling to clients within automotive, manufacturing, fleets (leasing, delivery, and LTL) business sectors and service organizations.

Dave Costantino

Dave Constantino - Commercial Vehicle Group Mitchell 1

Director – Commercial Vehicle Group Mitchell 1

Currently in his 28th year at Mitchell 1 in San Diego, Dave Costantino serves as the Director of the Commercial Vehicle Group, where he designed and developed three service information
systems for truck technicians: Tractor-Trailer.net, Medium-Truck.net and Repair-Connect.net. First certified as an ASE Master Technician in 1983, Dave now holds a Bachelor of Science degree in Information Technology and a Master of Arts degree in Management, both of which he graduated with honors.

John Lypen

John Lypen - MOTOR Publications

Editor/Publisher & Director of Industry Relations - MOTOR Publications

John Lypen joined MOTOR Publications in 1981 as a technical editor in the company’s automobile repair manual division. He is presently the Editor and Publisher of MOTOR Magazine and Director of Industry Relations, MOTOR Information Systems. John is a member of several Business Press Associations and an affiliate member of the Society of Automotive Engineers. He currently serves on the board of directors of the National Automotive Service Task Force. John attended St. Peter’s College and Teterboro School of Aeronautics, both in his native state of New Jersey, and now lives in Rochester Hills, Michigan with his wife and two daughters.

Jim Camp

Jim Camp - The Camp Group

President & Founder – The Camp Group

Jim Camp is an internationally sought negotiation coach and trainer, and developer of the Coach2100™ technology, a proprietary, patent pending negotiation project management and training system. Imagine getting your hands on the negotiation secrets that top global CEO’s and billion-dollar deal-makers (even the FBI) use to make outstanding sales contracts, business relationships, and job packages that bring them great wealth and competitive advantages. He is also author of NO: The Only Negotiating Strategy You Need for Work and Home, the revised and updated version of his previously critically acclaimed business book, Start With No. The presentation will feature a book signing.

Bert Mayo

Bert Mayo - The Lockton Companies, LLC

Vice President, Senior Loss Control Consultant – The Lockton Companies, LLC

Bert Mayo is a senior loss consultant and specialist in transportation and general safety. Working with Lockton’s large national account clients, he is responsible for providing safety consulting services for internal and external clients, assisting clients with the interpretation and compliance with mandated state and federal standards, and developing recommendations and service plans that assist clients with the reduction of losses. Prior to coming to Lockton, he was a loss prevention manager at T.T.C. of Illinois, and has experience as a training and compliance director and director of safety and personnel.

Time is running out to book a room in the CVSN room block at the Key Bridge Marriott in Arlington, VA. The hotel cutoff date is this Friday, August 26th.

The 2011 Summit will feature high-profile speakers presenting an economic and industry outlook and addressing best business practices, issue-driven panels and candid roundtable discussions presented by CVSN in conjunction with our meeting partners Truck Parts & Service magazine, HDDA/AAIA and Datalliance/HDX Services. Check out all of our influential speakers below to see what is in store. The deadline if for registration is fast approaching, make sure to RSVP for the 2011 Summit Today!

Gene Marks

Gene Marks - Owner of The Marks Group, PC

Topic: Politics, The Economy, and the Business Community: How Today’s Current Events Impact Tomorrow’s Profits

Join Gene Marks as he explains the meaning behind today’s numbers, the trends in Washington, the new technologies coming on the market, and where he expects tomorrow’s opportunities for small businesses to be. Gene Marks is a columnist, author, and small business owner. Gene’s weekly columns and blogs for The New York Times, Forbes, Business Week and The American City Business Journal are read by thousands of small and medium sized business owners around the country. Gene has written five books on business management, specifically geared towards small and medium sized companies.

The Honorable Robert L. Ehrlich

The Honorable Robert L. Ehrlich – Former Governor & U.S. Congressman from Maryland

Political Insight from the Inside

Governor Ehrlich will give us his assessment of the current political scene in the country and his insight into the 2012 Presidential Election along with the economy and health care. Governor Ehrlich was the first Republican Governor of the state of Maryland. Having served as Governor, U.S. Congressman, state legislator, and civil litigator, he counsels clients on an array of government matters, with particular expertise in health care, finance, and economic development.

J. Richard Schien

J. Richard Schien - Founder and Chairman of Karmak

CVSN 2011 – President’s Award Winner

We will honor the life and accomplishments of J. Richard Schien, Founder and Chairman of Karmak. CVSN President Tom Stewart of Carolina Rim & Wheel will make a special presentation to Richard following the Keynote Address on Monday morning. This award, created by past CVSN President Ken Duval, is our way of thanking those who have contributed greatly to the HD Aftermarket and the industry.

Dr. Bob Nelson, PhD

Dr. Bob Nelson, Ph D - Nelson Motivation, Inc.

The Rewards of Recognition: Motivating Today’s Employees

This session overviews what really motivates today’s workers and how any manager can get their employees coming to work, giving their best effort and saying things like: “Thank God it’s Monday!” With the belief that every employee has the potential to be great, Dr. Nelson reveals the secrets for taking the breaks off your organization and unleashing the potential within every employee. In all of Bob’s talks he draws from his original research and doctoral work, as well as his experience in working with two-thirds of the Fortune 500 companies on the topic of employee motivation, rewards and recognition. Because of his vast experience, Dr. Nelson is able to best show you ways how you can make a difference in managing your employees and draw from how the best companies and managers do so, integrating recognition into their daily work practices, identifying and acting on opportunities to enhance performance, and overcoming obstacles along the way.

Time is running out to book a room in the CVSN room block at the Key Bridge Marriott in Arlington, VA. The hotel cutoff date is this Friday, August 26th.