1. Understanding the Heavy Duty repair market Making sense of the Memorandum of Understanding

2. Objectives: Improve the understanding of Diesel/Truck repair challenges Significant differences in the HD repair market Market Trends

3. Challenges in the HD Repair Market Severe Technician Shortage Retirements between now and 2030 indicate the need for up to 200,000 new technicians.  ASE indicates 3500 new Technicians enter the market  Average age Auto Tech – 37-42 years old  Average age Diesel Tech – 45-64 years of age  Diesel service technicians and mechanics have one of the highest rates of injuries and illnesses of all occupations The Perfect Storm

4. Increasing age of the Truck park  Average Truck has increased to 14.3 years of age Truck manufacturers are assembled with a variety of specified systems  Diesel (or truck) Technicians work on non-integrated vehicles and powertrains OEM Tools/Aftermarket Tools for up to 34 different systems or components  Special service tools and software create increased complexity Challenges in the HD Repair Market Increasing complexity will have an impact

5. Differences in the HD Repair Market Repair Market Size Automotive - $80B Heavy Truck - $30B Number of Technicians Automotive – 740,000¹ (2014) Heavy Truck - 265,000¹ (2014) Number of Dealerships Automotive – 14,000 Heavy Truck – 2,400 Number of Independent Aftermarket repair shops Automotive – 160,000 (estimate) Heavy Truck – 16,000 Market Size difference ¹ Bureau of Labor Statistics data

6. Warranty Not just in the Dealership FleetsNot as significant in the automotive market Preventive Maintenance Very significant Integrated SystemsGaining in popularity, but still a long way off Differences in the HD Repair Market

7. HD Repair Market Trends Increased vehicle complexity will impact downtime Maintenance data management Expansion of Preventive Maintenance (PM) reminders Use of big data to support predictive analysis

8. EMA members CumminsHas released software CaterpillarHas released software DaimlerHas released software Freightliner and Western Star Detroit Diesel Fiat/Chrysler (FCA)Has released software Ford TruckHas released software GM TruckHas released software HinoHas released software IsuzuHas released software Volvo Truck/Has released software Mack NavistarHas released software, but must be purchased thru dealers PACCARHas only released engine software Peterbuilt Kenworth UD Trucks (Nissan)Has released software Suppliers AllisonHas released software BendixHas released software EatonHas released software Meritor-WabcoHas released software MOU COMPLIANCE STATUS