Distribution | Instrument Sales

Lockout Technology Secures Replacement Parts, and Profits, for Vehicle Manufacturers and Tier-One Parts Suppliers

3.19.2012 :: by Lawrance

Over the past decade, we have seen a major trend in vehicle manufacturers to include Lock-Out Technology in high-value components. These computer chip-based systems require parts to have factory-issued security codes to correspond to vehicle parts, or they will not function. Increasingly, high-value replacement parts must be Vehicle Manufacturer (VM) approved, or they are useless.

The relative cost to implement this technology into existing chips is fairly small relative to the gain in market share it may realize. Thus, business is booming in this area. In one high-end manufacturer that we are aware of, the security technology appears in all the following parts:

Key/Lock Alarm System
Steering Lock
Shifter Lock
Pushbutton Start System
Engine PCM
Instrument Cluster
Transmission Shift Actuator
Transmission TCU

Typical Vehicle Network

How this Impacts the Auto Industry

In many cases this prevents that part from being remanufactured or even re-used in the aftermarket. This drives parts business away from independent aftermarket suppliers and toward the vehicle OEM-authorized distribution network, where both the OEM and the Tier-One suppliers can capture more market.

Obviously, many in the aftermarket see this as a major threat. Salvage shops and parts repair shops, that make their livelihoods off high-value parts like transmissions seem the most threatened at the moment. But even major parts distributors must wonder how long before starter motors, alternators and other parts need a specially coded computer chip to function properly. However worrying it may be to them, though, the practice is perfectly legal. And for profit-motivated OEM’s looking to both horizontally and vertically integrate, it’s inevitable.

This of course does not mean that the OEM can simply charge whatever it wants for replacement parts. The aftermarket is adaptable so some levels of reverse engineering are going to be inevitable. More importantly, though, in today’s competitive auto industry Total Cost of Ownership is more than a buzzword. Consumers want vehicles that are affordable to maintain, and no Vehicle Manufacturer can afford to be known for outrageous repair prices. These codes are a path to replacement parts market share, not a license to print money without regard to the vehicle brand. Driving down costs for the OEM and the consumer is a major focus at ISS. As is the drive to improve quality.

Scott Haugen, President at ISS, puts it best: “ISS sees the rise of this technology as an opportunity. We operate as both a Tier-One/service parts supplier, and as a Factory Authorized Remanufacturing Center. On the Tier-One side, it opens us up to a larger customer base, as we are the ones working with the Manufacturer to supply specially coded replacement parts. On the remanufacturing side, we work with the OEM to ensure parts are properly coded during the remanufacturing and exchange process.

“For both, we offer the highest quality of parts manufacturing and remanufacturing processes available anywhere, ensuring TS-level quality for both the Vehicle Manufacturer and the end consumer.”

For more than 60 years, our clients have often found us to be the shortest, easiest, most high-quality path for the VM and our Tier-One colleagues to capture aftermarket parts market share. We view this lockout technology to be an excellent means to that end.

For more information on how we can help you in the future contact us today!
Source: APRA

Fuel Efficiency Hot Topic for Manufacturers & Fleets at Work Truck Show

3.14.2012 :: by mkoehmstedt

The NTEA Work Truck Show kicked off last week in Indianapolis with the Green Truck Summit. Discussions were based around factors affecting the commercial truck industry such as rising fuel prices, alternative fuel sources, and the role government is playing in the changing landscape. It was evident that the industry is focused on increased fuel efficiency and innovation.

While attending the Work Truck Show, I spoke with Carla Anglin, Director of Business Development for BrandFX Body Company. BrandFX has been producing lightweight composite truck bodies for decades. The BrandFX truck body line has provided fleets a highly effective means of fuel and maintenance savings since their beginning in 1984; before U.S. dependency on foreign oil was a political talking point and before government subsidies provided thousands of dollars for alternative fuel systems. BrandFX Body owner, Lee Finley said, “We were green before green was cool”.

When asked about the NTEA Work Truck Show Carla mentioned, “The NTEA is a valuable resource for BrandFX, we look to them for everything from representing the interests of our industry to congress, market information, even for training resources”. BrandFX is a MVP verified member of the NTEA, and is involved in the Green Truck Summit. The Work Truck Show is a convenient way for them to meet with distributors, announce new products and raise awareness of their product offerings.

As the focus to reduce oil consumption continues, BrandFX believes their product is “An idea whose time has come”, as today’s market is motivated to seek out lightweight solutions. This wasn’t always the case. In the early days, BrandFX composite truck bodies were valued for being rust free and allowing fleets to reduce their total GVW to avoid Frost Law restrictions. While alternative fuels and support infrastructure are being developed, lightweight composite offers immediate sustainable solutions in fuel efficiency and maintenance that business and government fleets can incorporate for profitable, sustainable fleet operations. Lighter truck bodies allow for smaller chassis, and a compounding effect in light-weighting that yields tremendous budget efficiencies over heavier trucks. This is a proven cost benefit, no matter what changes come in the form of alternative fuels.

The Department of Energy’s current efforts to help boost fuel economy and reduce greenhouse gas emissions is taking shape in a number of markets and applications. Most efforts are focused on passenger vehicles, but efficiency demands are coming for heavy-duty commercial trucks and trailers. Some of these initiatives include light-weighting, aerodynamics, alternative fuels, and new power train technologies.

The landscape will be changing in the next decade. Fleet managers are concerned about large investments into new technology, when perhaps other technologies will prove to become the mainstream. In other words, you would hate to have a fleet of Betamax, only to be up-staged by VHS, then DVDs and now streaming video…

Matt Koehmstedt is the Aftermarket Business Unit Manager for ISS. For more information about manufacturing fuel gauges and sensors, visit Instrumentsales.com. Truck fuel sensors and truck gauges can be found at PartDeal.com.

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Dub box USA announces itself as an American manufacturer of retro, lightweight, customizable campers

2.28.2012 :: by bhouse

Portland, Oregon – Owners Shane Medbery and Heather Bauccio are excited to
introduce Dub box USA campers and retail/food carts. The concept was born from American vintage
trailers, merged with retro styling and infused with modern conveniences for style and comfort.
Dub boxes will appeal to a wide range of buyers. They are simple, fun, stylish campers that can be
enjoyed traditionally at a destination camp ground or customized for a small business and corporate use.
Dub box USA will appeal to the outdoor and sports enthusiast, the vintage and custom car crowd, the
food and retail cart entrepreneur, and companies looking for a portable event hosting cart or a brand
awareness and marketing tool. The appeal is endless.

Dub boxes are lightweight enough to be towed by many vehicles, compact enough to be stored in a
garage, the exterior and interior decor is entirely customizable and the layout can be altered to suit the
needs of its intended use. Dub box USA will offer a do-it-yourself model, a completed camper with a
selection of finishes, and total customization to build a camper that is uniquely you. The beauty is that
it is limited only to the customer’s imagination.

Heather Bauccio commented, “We believe our Dub boxes offer an attractive price point so everyone
can experience the fun. We are especially optimistic that manufacturing the Dub box in the USA and
supporting our local economy really means something to the buyer.”
Shane Medbery added: “At Dub box we believe there is a niche for campers and trailers in this size.
They are larger than teardrop trailers, but not nearly the size of a typical tow behind camper. We think
their compact size coupled with the opportunity for customization makes them desirable in so many
situations.”

To learn more visit www.dub-box-usa.com.

AEM: U.S. Construction Equipment Exports Up

2.26.2012 :: by bhouse

U.S. construction equipment exports increased 43 percent in 2011 compared to the previous year for a total $23.5 billion of machinery shipped to other nations, according to the Association of Equipment Manufacturers (AEM). This follows growth of 28 percent in 2010 after a 2009 decline of 38 percent in the depths of the recession.

U.S. construction equipment exports increased 43 percent in 2011 compared to the previous year for a total $23.5 billion of machinery shipped to other nations, according to the Association of Equipment Manufacturers (AEM). This follows growth of 28 percent in 2010 after a 2009 decline of 38 percent in the depths of the recession.

“Export sales continue to help U.S. construction equipment manufacturers stay open for business and sustain American jobs, especially withthe domestic construction sector still recovering,” stated Al Cervero, AEM vice president construction sector.

Exports to Australia/Oceania led the way in 2011 with a 73-percent gain as the region took delivery of $2.8 billion of U.S.-made construction equipment. Construction machinery exports to South America increased 39 percent in 2011 with purchases worth $4.3 billion, and exports of construction equipment to Central America gained 23 percent and totaled $2.0 billion.

Export sales to Asia grew 44 percent to total $3.1 billion for 2011, and Africa’s purchases of U.S. construction machinery increased 41 percent to total $1.3 billion last year. Exports of construction equipment to Europe gained 49 percent for a total $2.8 billion in 2011, and export business to Canada grew 40.5 percent and totaled $7.2 billion.

The 10 countries buying the most U.S.-made construction machinery in 2011: (1) Canada – $7.2 billion, up 40.5 percent; (2) Australia – $2.7 billion, up 79 percent; (3) Mexico – $1.6 billion, up 28 percent; (4) Chile – $1.3 billion, up 45 percent; (5) Brazil – $951 million, up 25 percent; (6) China – $903 million, up 81 percent; (7) Colombia – $811 million, up 38 percent; (8) South Africa – $683 million, up 72 percent; (9) Russia – $652 million, up 96 percent; (10) Peru – $572 million, up 31 percent.

Source: AEM

In Victory for the West, WTO Orders China to Stop Export Taxes on Minerals

2.24.2012 :: by bhouse

MEMA Industry News Editor’s Note – This WTO decision is good news for motor vehicle parts manufacturers who rely on access to rare earth minerals to manufacture a number of parts. Access to these minerals has diminished in recent years, but this decision should allow access to a more stable supply of rare earth minerals. For more information, contact Dan Houton.

HONG KONG — The appeals panel of the World Trade Organization ruled on Monday that China must dismantle its system of export taxes and quotas for nine widely used industrial materials.

The legal setback for Beijing could set a precedent for the West to challenge China’s export restrictions on other natural resources, including rare earth metals that are crucial to many modern technologies, trade experts said.

In the closely watched case, the trade organization’s Appellate Body, its highest tribunal, ruled that China distorted international trade through dozens of export policies it maintains for bauxite, zinc, yellow phosphorus and six other industrial minerals.

The Appellate Body, reviewing an earlier decision by a WTO dispute settlement panel, said the panel had gone too far in defining why more than three dozen Chinese policies violated free trade rules. But the appeals group said on Monday that the overall effect of China’s export restrictions was harming international trade and the policies would have to be scrapped.

The case was filed in 2009 against China by the United States, the European Union and Mexico.

“This is a major win for the United States,” said James Bacchus, a former chairman and longtime member of the Appellate Body, who now helps lead the global trade practice in the Washington office of the law firm Greenberg Traurig.

Bacchus predicted that China would comply with the World Trade Organization ruling. Beijing has a strong record of adhering to adverse WTO decisions, recognizing that it needs the access to foreign markets that the trade organization provides.

China’s commerce ministry said in a statement on its Web site that it regretted the ruling but appeared to indicate it would accept it, saying that it would act in accordance with WTO rules to “achieve sustainable development.”

Ron Kirk, the United States trade representative, said in a statement that the ruling was “a tremendous victory” for the United States. “Today’s decision,” he said, “ensures that core manufacturing industries in this country can get the materials they need to produce and compete on a level playing field.”

The case has been one of the most widely watched trade disputes in many years because of the precedents it could set for other, even more crucial natural resources. Those will almost certainly include China’s export quotas on rare earth metals, for which Chinese policies appear to have raised similar legal concerns.

Rare earths, however, were not part of the trade case on which the trade organization ruled Monday. Besides bauxite, zinc and yellow phosphorus, the other six industrial minerals are coke, fluorspar, magnesium, manganese, silicon carbide and silicon metal.

China is the largest or among the largest producers of each of these. The United States, European Union and Mexico accused China of using export taxes and quotas to force international chemical companies and other businesses to move their factories to China to tap these resources.

Those sorts of forced migrations are the reason international trade rules bar export quotas in many cases. Many non-Chinese companies have already been setting up factories in China, for example, to gain access to the crucial rare earth metals used in a wide range of modern technologies, since China began clamping down on rare earth exports in recent years.

China produces over 90 percent of the world’s rare earths, which are used in products including computers, cellphones, hybrid cars and wind turbines.

In defense of those rare earth quotas, China had cited a decades-old legal exception to the WTO’s predecessor, the General Agreement on Tariffs and Trade, known as GATT. That exception let countries levy export taxes and restrict exports if the limits were aimed at conserving a scarce natural resource or protecting the environment.

But when China joined the World Trade Organization in 2001, it agreed to dismantle virtually all export restrictions, including on industrial raw materials. That agreement superseded the GATT provisions, the appeals group ruled on Monday.

China’s agreement to join the WTO also bars it from imposing export restrictions on rare earths. Yet China has done so anyway for the last five years, invoking the same GATT exception.

While Appellate Body rulings do not form legally binding precedents under international trade law, Bacchus said it was very unlikely that the trade organization would let China use the environmental argument on rare earths after disallowing the same argument for industrial raw materials.

Indeed, a European Union trade official signaled that Europe might apply Monday’s ruling to pressure China to lift its export restrictions on rare earth metals.

“China now must comply by removing these export restrictions swiftly, and furthermore I expect China to bring its overall export regime — including for rare earths — in line with WTO rules,” said Karel De Gucht, the European Union’s trade commissioner.
International trade officials have said little on the record about why rare earth metals were not included when the United States and European Union filed the original trade case in June 2009. Mexico joined the case on the American and European side in August of that year.

Some of the explanations offered on background included the view that the United States was not worried because it had plans to reopen a rare earth mine in the Southern California desert, and that the European Union was not worried because its companies planned to depend on a mine under construction in Australia. There was also a Western perception in mid-2009 that rare earths were not controversial because they were relatively cheap.

But rare earth prices began climbing sharply less than two months after the filing of the WTO case, after word began to spread in August 2009 that China’s commerce ministry had considered a plan to halt exports entirely for some of the rarest of the rare earths — the so-called heavy rare earths — and to curtail exports for other rare earth metals.

Rare earth prices spiked in the autumn of 2010, after China suspended exports of the metals to Japan for two months as part of a territorial dispute over an uninhabited island. And China’s commerce ministry ended up sharply reducing its annual export quotas for 2010 and 2011.

Western governments have periodically considered filing an international trade case against nations in the Organization of the Petroleum Exporting Countries for limiting oil exports. But they have refrained from filing, having concluded that even an adverse ruling would be unlikely to prompt heavily oil-dependent countries to change their policies.

Source – New York Times / Motor & Equipment Manufacturers Association

Big New Product Launch for JCB

2.23.2012 :: by bhouse

In what JCB bills as its largest ever single equipment launch, the English manufacturer has made what it says are major changes to its 23-strong range of tracked and wheeled excavators some of which will be powered by the company’s own Dieselmax engines for the first time.

The product roll-out was carried out at a special presentation in Spain and also included a new wheeled loading shovel model, the JCB 457, equipped with a Cummins Stage 3b/Tier 4i compliant engine, the addition of two Perkins-powered skid steers and a compact tracked loader to add the new generation machines unveiled last year.

Also announced was a high capacity 550-80 Loadall with JCB Dieselmax engines, an expansion of JCB’s range of mini excavators with the launch of the 2.7 ton 8026 CTS featuring Perkins’ engines and a range of Kohler-powered double-drum ride-on rollers.

JCB has also upgraded its 1CX product – the smallest member of its backhoe loader family – with a new appearance, longer loader arms, an extending dipper option, servo controls and a power management system. Perkins supplied the engines.

To meet a growing demand for a telescopic handler-based access solution, JCB said it is introducing a work platform option for its 535-125 HiViz and 535-140 HiViz Loadall models.

Source: Diesel Progress Magazine / HDMA

Peugeot in Talks with GM on Possible Alliance

2.22.2012 :: by bhouse

PARIS — Shares in French car maker PSA Peugeot Citroën soared Wednesday after it emerged the company is in talks with U.S. auto giant General Motors Co. about a possible alliance, as it grapples with weak sales and a raging price war in Europe in the small-vehicles segment, on which it relies for most of its business.

French labor minister Xavier Bertrand confirmed the talks on French radio. “The chairman of the group (Peugeot Citroën) informed me last night of these discussions over a strategic partnership,” he said.Peugeot issued a statement Wednesday morning after the news was first reported in French newspaper La Tribune, confirming it was in discussions on a potential alliance or cooperation agreement with another company, but didn’t identify the other party. It said there was “no certainty at this stage that these discussions will result in any agreement.”

Peugeot shares skyrocketed 16 percent to €16.64 ($22.02) by midmorning. By contrast, the blue chip Paris CAC 40 index was down 0.4 percent.

“The talks are not aimed at a takeover,” said a person familiar with the matter. “Both companies would remain independent entities and responsible for their respective operations. They’re mainly looking at possibly sharing technology and developing certain components together.”

Another person familiar with the matter said “everything is on the table, up to and including some sort of cross-minority shareholding.”

A GM spokesman said his company won’t comment on “speculation.”

As they struggle to deal with chronic overcapacity in their core market, European car makers are increasingly tempted to link up with competitors to share the development, engineering and manufacturing costs of new vehicles and technology.

Peugeot Citroën, Europe’s second-largest automotive group by volume after Germany’s Volkswagen AG, is in the midst of a major austerity plan. Last week, France’s biggest auto maker said its automotive division had operating losses in 2011 and had burned through €1.65 billion of cash. To stop the hemorrhaging it stepped up its cost-savings plan for 2012, while freezing or downscaling some capital-expenditure programs, including a planned assembly plant in India.

By contrast, General Motors, which was moribund three years ago before it was bailed out by the Obama administration, last week reported a 62 percent jump in net income to $7.6 billion for 2011.

But GM’s Opel and Vauxhall brands in Europe are also struggling. GM’s European businesses is still in the red, though it has clawed back from the type of steep red ink seen in 2010. However, GM had originally targeted breaking even in 2011. GM has acknowledged that much more restructuring is necessary, but hasn’t been more explicit as talks continue with unions over reducing costs.

Last week, the head of GM Europe’s Opel and Vauxhall brands said the auto maker isn’t cutting back investments on new cars as talks continue with unions over reducing costs, but he shed little light on what concrete measures could be taken to make the business profitable again. Talks with labor unions might take “a couple of months,” said Karl-Friedrich Stracke, GM vice president and president of General Motors Europe, during a conference call. He declined to elaborate on a specific time frame or measures GM is looking into to make Opel and Vauxhall financially viable.

Peugeot already has industrial alliances with other car makers. They include Toyota Motor Co., Ford Motor Co., BMW AG, Mitsubishi Motors Co. and Fiat Automobile.

A linkup between GM’s European operations and those of Peugeot Citroën would help give both companies the scale they need so badly. Peugeot Citroën chief executive Philippe Varin reaffirmed last week that his company is open to alliances with other auto makers, provided they respect three criteria: they must fit in with Peugeot Citroën’s strategy; create significant synergies; and respect the French company’s independence.

Bernstein Research analysts said in a note that consolidation in the European industry is desirable and that a linkup between Peugeot and GM “might work in the end.” But it said “a loose alliance could only be a temporary solution, while a full deal may need more capital,” assuming that Peugeot would be the lead partner in a deal, and not GM.

Unlike in North America, car makers avoided large-scale cutbacks in Europe during the industry slump in 2008 and 2009 when massive job cuts at high-profile manufacturing sites like car factories proved too politically sensitive.

Source – Wall Street Journal / MEMA

Severe Weather hits the NW and ISS

1.20.2012 :: by bhouse

Despite the crazy weather and the anticipation that comes with it employees at ISS have remained calm. Pat Mayo said “We’ve made sure our employees are safe by changing schedules around and made use of carpooling.” ISS Kent branch is one of the certified remanufacturing centers of instrument & radio clusters in the United States. One tree in the parking lot of Instrument Sales & Service broke and hit an employees car. Colleen Wright said “this is minor compared to what Pierce and King County looks like.”

Heavy snow and ice have caused thousands in the area to lose power and made road crews work around the clock. Trees falling like domino’s and semi’s tipping over from the icy conditions. Some busy streets in Seattle and outlying areas looked more like ski slopes as kids break out their sleds.

This weekend should see some reprieve but with that brings flooding in other areas. ISS in Portland is seeing that first hand. Rivers and new levy built this summer have proven to work. Johnson Creek is normally the first area that TV crews setup to cover rising water but the new system seems to be holding up. High-wind warnings were in effect along the coast, where winds could gust to hurricane force, knocking down more trees and causing power outages, said CNN meteorologist Taylor Ward.

Instrument Sales has seen an increase of heavy equipment operators ordering replacement parts. “Cables break in this cold weather” said Matt Koehmstedt General Manager. “We are one of the largest Cablecraft builders in the Northwest and word of mouth gets around.” ISS just launched partdeal.com which makes thousands of parts available to many industries. “We support tractors, construction, off-road equipment…if it’s got a diesel engine, we can probably help you.”

ISS Expands Availability to Millions by Opening PartDeal.com

1.17.2012 :: by bhouse

Over the past 60 years, ISS has had the broadest selection of specialty instrument, switch, air conditioning and cable products in the industry. With premium brands ranging from Red Dot to Stewart Warner to Cole Hersee, their jobber, fleet, OEM and installer customers have greatly benefited from a massive selection of high-quality parts.

With the introduction of the overhauled PartDeal.com, thousands of parts will be available to a far broader market. “We’re still supporting our fantastic commercial customer network,” notes ISS General Manager Matt Koehmstedt. “We just see this as a great opportunity to make it easier for the guy with the toolbox and a tractor to find what he needs online.” Partdeal.com primarily focuses on heavy-duty applications. “We support tractors, construction, off-road equipment…if it’s got a diesel engine, we can probably help you,” notes Matt. “And we’ve invested in taking literally thousands of photographs of our parts, so a lot of the time people will be able to see exactly what they are getting before they order. But we’ve also got stuff for guys that are into performance and other things.”

Grand Opening starts today and will feature special items and free T-shirt with a $75 order on partdeal.com

Happy New Year 2012

12.31.2011 :: by bhouse

Tips for 2012

- Awareness of what behavior or trait you want to eliminate and/or create.

- Let Go of past mistakes – don’t beat yourself up, rather focus on positive results.

- Inspire yourself with an exciting and creative goal that will guide you.

- Visualize what it will take to achieve your goal.

- Energize for the journey to your goal with: physical, mental, emotional.

- How will I engage with Instrument Sales this coming year.

Dealerships around the county are unaware that ISS is one of the largest west coast remanufacturing facilities that can help with with their instrument clusters & radios. Our process is simple. Our shipping is fast. Our customer service is superior. Change is good.

We have built a reputation that exceeds our competitors by carrying electro-mechanical parts that others just don’t stock. ISS has had the broadest selection of specialty instrument, switch, air conditioning and cable products in the industry. With premium brands ranging from Red Dot to Stewart Warner to Cole Hersee, their jobber, fleet, OEM and installer customers have greatly benefited from a massive selection of high-quality parts.

Don’t forget about our most recent overhaul we just did on Partdeal.com which primarily focuses on heavy-duty applications. “We support tractors, construction, off-road equipment…if it’s got a diesel engine, we can probably help you!” Widely regarded as the national expert in this areas, their site will host the largest selection of pyrometers, lead wires thermocouples on the internet. We are improving the site daily by offering features that our customers have been asking for.

Social media…. We Tweet, We Post, We Poke, We want you to “LIKE US”. Make 2012 a year to remember.
“Go ahead, make our day”