While the response to COVID-19 has halted much of the global economy, the service truck sector is hanging on thanks to government support programs, uneven application of health safeguards, and individual efforts to weather the storm.
Jeff Orthaus, CEO of Dakota Bodies in Watertown, South Dakota, says 2019 was a growth year and his company is fortunate the state has not been at the epicenter of the crisis.
“We don’t have the stay-at-home order yet so it’s pretty much business as usual,” Orthaus says. “It’s not nearly as efficient as it typically would be, but we’re keeping everybody employed.”
Lunch rooms are closed, employees are asked to respect physical distancing, and Orthaus describes the atmosphere as cautious. People sometimes end up too close to one-another, but management is extending breaks and promoting regular hand washing.
Product availability lead times, at about 20 weeks earlier this year, are down to roughly 16. But Orthaus doesn’t report any cancelled orders attributed to COVID. “It will probably happen but nothing yet,” he says, adding he’s eying the US federal Paycheck Protection Program, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to help the company through the coming months.
He says, however, Dakota Bodies might “have to regroup” if the economy continues to falter.
At Liftmoore — a Houston, Texas truck-mounted crane manufacturer — national sales manager
Liftmoore national sales manager, Steve Coffee, says all travel is curtailed, leaving salespeople working from home and reliant on phone and electronic communications.
Steve Coffee says all travel is curtailed, leaving salespeople working from home and reliant on phone and electronic communications.
Liftmoore’s manufacturing remains ongoing. “It’s classified as an essential service for the utility and municipal markets, as well as for oilfields,” Coffee says.
However, Liftmoore needs a steady supply of truck bodies for its cranes, and some factories are closed, so long term chassis availability is uncertain. “It’s too soon to tell exactly what the impact is liable to be,” Coffee says.
For manufacturing and other employees who remain on-site, physical distancing and hand washing key. “If anyone has an illness they’re not allowed to come to work unless they’re checked,” Coffee says. “We’re taking the suggested guidelines.”
In Warminster, Pennsylvania, OSSCO Group services everything from trucks to heavy equipment, and owner Kyle Miller says activity has slowed dramatically and he’s had to temporarily lay off four of seven employees.
“I’ve been in contact with them to let them know where we are as company in terms of bringing them back and whatnot,” Miller says, adding he’s counting on government payroll assistance programs to help make this happen.
“Other than that, we’re trying to think of how we can continue to grow and push forward as a company while we’re going through this,” Miller says. “Every day, we’re trying to push the ball forward down the field.”
Knowing business as usual won’t work right with COVID restrictions in place, Miller says his team is taking time now to improve its processes and tidy things up while there’s some downtime.
While reviewing ways OSSCO can serve customers in the event restrictions continue or reoccur later on, the company is offering pick-up and delivery and implementing new measures for personal hygiene such as steering wheel covers and disinfecting vehicles and equipment before and after repairs.
“I’m just trying to adapt,” Miller says. “Honestly, business as usual isn’t going to work.”
Summer Marrs, communications director with the Association for the Work Truck Industry (NTEA), says economy prospects remain uncertain the organization can’t comment yet about potential impacts.
The NTEA has launched a web page — ntea.com/covid-19 — with a multitude of related resources, and Marrs says it’s fully open to the public.
— Saul Chernos