The acquisition of Star Truck Rentals, Inc. increases Penske’s existing fleet by approximately 1,900 vehicles and adds 18 locations throughout Michigan and Indiana. The acquisition of Kris-Way Truck Leasing, Inc. increases Penske’s existing fleet by approximately 900 vehicles and adds seven locations throughout Maine and New Hampshire. Penske is now integrating the facilities, staff, vehicles and processes of both companies into its existing network
At this location, Penske offers consumer and commercial truck rental, full-service truck leasing and contract truck fleet maintenance. It is also outfitted with the company's proprietary fully digital and voice-directed preventive maintenance process and Penske digital experience solutions, which help customers leverage Penske technology as well as options related to onboard technology systems (ELDs, telematics, onboard cameras, etc.).
“We’ve outgrown the South Brunswick facility by 10-fold in the past 30-years,” said Mike Duquette, New York Metro area vice president for Penske Truck Leasing. “When we first opened, the location serviced nearly 200 vehicles out of two truck bays – now, three decades later, we service over 2,000 vehicles out of three truck bays; this new state-of-the-art facility was eminent. The expansion of business occurred due to significant market growth in the region and the unparalleled service provided by Penske technicians and the district team to retain and grow the business.”
(From left to right) Tyler Hard, PTL Northeast region senior vice president - operations; Ryan Polhamus, PTL South Plainfield district manager; Mike Duquette, PTL Metro New York area vice president
The location is 22,995 square feet and sits on 9.62 acres. It features five drive-thru bays with 10 service areas and is complemented by an additional 10 covered service areas hugging the facility. It also has an automated wash bay and a full-service three lane fuel island.
Penske currently employs over 40 associates at the new facility, and is hiring truck technicians, fueler and wash bay attendants, customer service representatives, and drivers locally and nationwide. For a list of open positions in the Cranbury area and at other Penske locations across North America visit penske.jobs for more information."Information is power," explained Jim Lager, senior vice president for Penske Truck Leasing. "Fleet operators need real-time data to make informed decisions about their business. They want to know if what they are doing is best-in-class or underperforming, and how they can improve. Being able to see that information helps them identify areas of opportunity within their operations."
Lager added that every aspect of the supply chain is stressed right now. "I think it is even more critical to have good information and good partners to talk to about it," he said.
The 2021 NPTC Benchmarking Survey Report, which is sponsored by Penske, captures critical metrics from the 2020 calendar year, which was a time like no other.
"The purpose of this report is not to critique any fleet's performance, but rather to give them the tools so when they need the answers and the metrics in their continuous improvement efforts that they can grab onto those metrics in the report and move on," said Tom Moore, executive vice president of NPTC.
Even with the challenges, private fleets performed well and used their advantages to navigate supply chain challenges, hauling more shipments and volume than they did in the previous year.
Moore continued: "The thing that really impresses me, despite everything that is going on in the pandemic, is the stability that occurred in our private fleet management. We didn't see extreme swings in terms of equipment buying or a lot of change in the driver hours, even though the DOT extended those hours. Those folks stuck right in that core business. I thought that was a telling statement for how private fleets position themselves for success."
Supply chain challenges have helped private fleets raise the awareness and importance of transportation generally within their companies.
"In the last three to four years, companies have decided to start their own private fleet from scratch because of the vulnerability in finding transportation," said Gary Petty, CEO of NPTC. "I think a lot of companies are saying, 'We can manufacture the greatest product around, but if we can't get it in a way that has no damage and no loss that is timely, it doesn't matter.'"
Many private fleets shined during COVID disruptions and were able to navigate capacity constraints and surging costs others faced within the transportation market, strengthening the case for having a private fleet.
"Private fleets are resilient and flexible," Lager said, adding that more and more companies are considering and transitioning to private fleets. "That is a result of the spot market and the carrier situation driving them toward that so they could control their destiny. They don't want to trust that to a carrier. They want to do it with a partner like Penske."
Petty stated 75% of the private fleets in the study are operating as cost centers or, as he calls them, contribution centers. "They're in it to provide outstanding customer cost in the most effective and efficient manner possible. Whatever financial model, the goal is to deliver exceptional levels of customer service in the most efficient manner possible," he said.
As in years past, the primary reason companies report operating a private fleet is to provide exceptional levels of customer service that are unavailable on the open market, especially at a time when transportation and logistics capacity has been relatively constrained.
In the latest study, more than 92% of the respondents, in response to the open-ended question, 'What is the primary reason your company operates a private fleet?,' answered customer service.
Measuring on-time performance remains the primary means of tracking customer service, although other metrics are growing in acceptance.
This year 68% of the fleets report measuring on-time performance as opposed to 82% last year.
This erosion in on-time deliveries makes room for a bevy of other metrics, according to the NPTC report, most notably safety scores, tracked by 56% of respondents (53% last year); cost-per-mile, tracked by 55% of the respondents (35% last year); and customer comment, tracked by 32% of the population.
Shipments for private fleets were up from last year by 9.7%, and volume was up by 5.6%. This growth is supported by an overall mileage increase of 5.7%, which means that fleet respondents accomplished these gains rather efficiently, according to the report.
Even still, private fleets do face challenges, with driver-related issues being the No. 1 challenge listed. Driver-related issues are cited by nearly every respondent, often more than once. Rounding out the list of issues cited by fleets are: Cost-related issues; equipment and maintenance; customer service; regulatory and safety.
While driver issues remain top-of-mind, private fleets perform better than the for-hire population. "While everybody is feeling the driver shortage, it is less at private fleets," Penske's Lager said.
This year's survey found that driver turnover fell to 15.8%, nearly three full percentage points down from last year's 18.5% turnover rate and much lower when compared to the for-hire segment. Private fleet's average driver turnover is 14.25% over the 15-year history of the survey, and the average driver in the NPTC survey stays with a carrier for more than ten years. "That is extraordinary," Petty said.
NPTC started tracking metrics surrounding the time to hire and the hiring process for the first time. NPTC found that the average fleet has to review, screen and/or interview 19.7 candidates to fill one driver's seat, and the average time to hire a driver candidate is 34 days.
"Private fleets understand you get what you pay for," Moore stated. "They changed the mentality from speed-to-hire because they want to hire the right person.
The three top reasons for turnover are discipline issues, drivers leaving for another job, or retirement.
Moore noted: "For those leaving for another job or discipline issues, that tells me a private fleet can do a better job in the hiring process. If you're asking the right questions in the interview, you can identify what drivers are more likely to leave or will have discipline issues."
For the first time, NPTC asked fleets how much it cost to bring a driver on board. It is about $7,500 for the typical heavy-duty operation, and $3,400 for medium-duty fleets.
The survey also examined which freight movements private fleets haul and which they contract out. Private fleets typically handle about 2/3 of the outbound flow of goods and work with third-party carriers to handle the rest.
For-hire motor carriers handle 17% of all outbound freight movements, while dedicated contract carriers perform 12%. When deciding how to position the private fleet, survey respondents mention numerous inter-related and overlapping factors. The most frequently highlighted are cost, service, geography, and proximity to customers, and backhaul loads.
Empty mileage rates decreased, with an empty mileage of 26% down from last year's 33.3% and the previous year's 28.4%. NPTC found that 28% of respondents reported improved empty mileage, and Lager said reducing empty miles is top-of-mind for carriers. "There is not the luxury of being inefficient right now."
Penske Truck Leasing helps customers analyze their network to determine the best lanes to handle internally and the best to outsource.
"We have the engineering capability and capacity to analyze a customer's entire operation and make a recommendation," Lager said. "We can process the data and optimize it in several ways. It isn't always about cost; it is about delivery windows and meeting schedules. We can display all of that and help them make those decisions."
Use of on-board safety technology continues to increase, and not one respondent indicated not using on-board safety technology.
"If you're not safe, you're not going to be efficient, and the rest of the metrics don't matter," Moore said. "The safety record continued to get better and stronger and was one of the best years we ever had."
Survey participants can request customized data pulls that compares data of peer or like-kind fleets in the same market.
Petty: "It is apples-to-apples numbers they can use. This is powerful information internally. We have found once companies get on the track of scoring themselves against peers, it gives the whole benchmarking exercise a powerful boost of credibility."
By "Move Ahead" Staff
"Our collaboration with Bridgestone is an important one," said Paul Rosa, senior vice president of procurement and fleet planning, Penske Truck Leasing. "Together, we are able to provide our fleet customers with continued reliability, performance, over-the-road support, and enhanced sustainability."
With this contract renewal, the two companies will pursue ongoing collaboration on technologies and products that offer more efficient and sustainable outcomes for fleet mobility and fleet management.
Bandag retread tires, which are utilized by Penske as a core component of the partnership, offer significant environmental benefits including reduced CO2 emissions, natural resource extraction, water consumption, air pollution and land use, when compared to ultra-low cost, single-use commercial tires.
Bandag retread tires, which are utilized by Penske as a core component of the partnership, offer significant environmental benefits including reduced CO2 emissions, natural resource extraction, water consumption, air pollution and land use, when compared to ultra-low cost, single-use commercial tires.
In 2020, as a result of the relationship and through the use of Bandag retread tires, Penske was able to decrease tire waste by 11.5 million pounds.
In 2020, as a result of the relationship and through the use of Bandag retread tires, Penske was able to decrease tire waste by 11.5 million pounds.
"Penske is an invaluable partner and collaborator in the drive to produce better business outcomes and a cleaner, more sustainable, low-emissions future for fleets," said Chris Ripani, president, Truck, Bus and Retread Tires, Bridgestone Americas.
By "Move Ahead" Staff
Over the last 10 years, Penske has hired more than 220 graduates from Lincoln Tech's Columbia, Maryland, campus to work as truck maintenance technicians in its regional operations.
"We are very pleased to support Lincoln Tech's work in training the next generation of maintenance technicians," stated Brian Borgoyn, Penske Truck Leasing area vice president. "The school represents a vital talent pipeline for our company's operations across the Mid-Atlantic region. Properly trained technicians are key to providing uptime to support the transportation operations of our customers."
Truck technicians are an integral part of keeping essential supply chains moving as nearly every good consumed in the U.S. is transported by truck. The trucking industry hauls more than 70% of all freight transported in the United States. Penske Truck Leasing is working with leading technical schools and related organizations such as SkillsUSA and the TechForce Foundation to help meet the current and future demand for technicians.
"Our country is facing a severe shortage of skilled technicians which has only worsened as a result of the COVID-19 pandemic," said Lincoln Tech President and Chief Executive Officer Scott Shaw. "As a leader in career training for 75 years, Lincoln Tech is thrilled to have the support of Penske Truck Leasing in our effort to bridge the skills gap by providing the comprehensive, hands-on automotive training programs that produce job-ready graduates."
Penske Truck Leasing operates and maintains one of the industry's largest fleets with its truck maintenance technician workforce comprising about 8,800 of the company's 37,000-plus associates. Visit Penske's career site: https://technician.penske.jobs/ to learn more about technician careers and to apply for technician openings across North America.
By "Move Ahead" Staff
"Penske is proud to be at the forefront of industry innovation by offering this cutting-edge training to our associates," stated Holly Gerke, Penske vice president of technical training and development. "The virtual nature of the program allows our technical trainers to reach a larger number of technicians in the field quicker and boost the consistency and scalability of technician training."
While the planning and implementation of this program were in play prior to the COVID-19 pandemic, the pandemic's arrival certainly accelerated the timetable.
Design Interactive is primarily a software services provider that specializes in augmented and virtual reality training, allowing companies to instantaneously provide livestreamed instruction to remote technicians. According to Matt Johnston, Design Interactive's commercial solutions director, Penske took a unique route to create this program.
"What is innovative is that Penske flipped the script," he explained. "They put the augmented reality hardware on a single expert and used it to livestream training to remote technicians. It is a concept of one to many."
Currently, select Penske entry level technicians have received training on the basics of truck brake maintenance in the AR pilot program. While many of these new techs are recent tech school graduates in the beginning stages of their careers, some new Penske techs may be 20 years removed from their high school graduations.
"Techs of all experience levels who have attended the training expressed positive feedback," Gerke noted.
The Penske AR training program is a series of technical lessons retrofitted to meet Penske's needs and industry standards. By leveraging virtual environments and access to AR capabilities, Gerke's team can better keep pace with training needs.The Penske technical trainer is in one city, at a Penske facility, providing live instruction while wearing a Microsoft HoloLens 2 device and positioned at a truck.
A small group of technicians are then at several other Penske facilities, each on their own, following along via their company-issued work tablets (these devices are used daily for a wide variety of work duties, which includes wireless diagnostic work) while stationed next to a like vehicle for the practice repair.
The virtual offering incorporates three primary components:
Ernie Luzania (pictured in the top photo) is a Penske technical training manager based in Denver who has trained all the program participants to date.
"No one in the industry has used this technology the way we are using it in the service department today," he explained. "We are still learning the software and hardware. The technicians really get the feeling that the training is tailored to them. Using this program, we can achieve a more consistent repair coast-to-coast."
Sawyer Seville, 21, is a technician in Hagerstown, Maryland. He went through the program a few months ago.
"Seeing it and then going ahead and doing it helped me learn," he explained. "It is the first time I have ever done it and I could see it as the future." Seville benefited from watching the trainer demonstrate the training and Seville was able to easily access the manual while he went and tried it himself.
Chris Rodriguez is a third-year tech working in Fontana, California. The 30-year-old was one of the first participants to experience the AR training.
"This is a better way to learn," Rodriguez recounted. "I had it all in front of me and you can do the training on your own. It feels more like one-on-one training even though other people were in the class. It was a really good way to get experience with hands-on training."
Moving forward, Penske aims to train 70 new technicians each month through the end of the year and 1,000 new technicians by June 2022.
Please click here if you are interested in a maintenance career with Penske Truck Leasing.
By "Move Ahead" Staff
A little over a year and a half ago, hurricanes Harvey and Irma struck the southeastern parts of the country, leaving behind home and business wreckage, as well as displaced residents.
Having lost 13 restaurants in the Houston area alone, Denny’s had an idea to help those impacted by the disasters. They rented a large truck equipped with a kitchen as its trailer, and hauled it from Texas to Florida, serving up their signature breakfast foods to hungry disaster relief volunteers and citizens.
When it comes to staffing, the truck – commonly referred to as their mobile relief diner – will coordinate with the nearest Denny’s restaurant to borrow a few employees to cook and serve.
What was originally thought of as a short-term project quickly turned into something much more.
“The public response was incredible,” said Paul Spencer, Denny’s director of public relations and corporate communications. “It lined up so well with our brand purpose: we love to feed people.”
So at the end of 2017, they decided to build a mobile relief diner of their own.
“We bought and designed a trailer, but we also needed a tractor and a partner to help service both of them,” Spencer said.
That’s where Penske came in.
A team from Denny’s reached out to Penske to learn more about their contract maintenance options and rental and leasing services.
Kevin Reynolds, a lease sales representative at Penske, worked with Spencer and his team to develop a solution that worked for them. And the Denny’s team was more than pleased.
“Denny’s leases one of our tractors, and we perform our preventive maintenance on both the tractor and trailer,” said Reynolds. “When they need a reefer truck or box truck, we provide them with those too.”
Spencer adds that one of the big selling points that attracted Denny’s to Penske was the number of Penske locations nationwide.
“Penske delivered a great, organized, well-thought-out solution for our truck,” Spencer said. “We serve where are customers are, and we needed a partner who could support us wherever we were around the country. With the hundreds of locations that Penske has, if we need to stop and get maintenance done or refuel, there’s a Penske location nearby.”
“This is a unique experience and a great opportunity to be a part of,” said Reynolds.
Where’s the truck’s next stop? Spencer says that this year, the mobile relief diner is ready for any disasters that happen, and they are planning to visit impoverished areas in major cities, as well as go to Texas to support the Special Olympics – their first non-disaster relief effort.
“We’re not a trucking company,” said Spencer. “Penske understands the business and has made it so easy for us to do what we’re doing.”
Penske Truck Leasing Can Help Your Fleet
Does your truck fleet struggle with maintenance? Penske Truck Leasing offers a comprehensive preventive maintenance service along with other solutions. To find out more, contact Penske Truck Leasing today.
By Chris Abruzzo