Trucking: Drive Products, feverish pace, bob stephens

Question
QUESTION: Hi Bob,
I am doing a study on the Canadian truck upfitting industry. In particular am looking at products from companies like Drive Products, Danco Equipment, Parker Hannifin, The Gear center etc.
a)Out of these, which in your opinion has the best reach & product line for the truck upfitting industry?
b) Since there has been a slowdown recently in the Oil projects across Canada, do you see this industry slowing down as a result of that?

Kindly respond to my query. If you have any number I can reach you at, that would be helpful.

Thanks
Deepak

ANSWER: Hi Deepak.

Danco and Parker Hannifin have extensive product lines and Parker has a very good reputation in the industry.  All the companies you named have a good reputation, but like anything else, it comes down to the bottom line, cost.

Do I see the upfitting industry slowing down.  I highly doubt it.  I actually saw a report on CNN that said oil companies are buying Canadian land at a feverish pace because they have found a cost-effective  way to process the "sludge" oil in the Northern Territories.  Aside from that, freight of any kind never slows down.  Population rises and the need for specialized hauling goes up.

I only take emails at this time.  Hope I helped.

Thanks.

Bob Stephens

---------- FOLLOW-UP ----------

QUESTION: Hi Bob,

Thanks a lot for the reply.
I wanted to ask if you knew about Drive Products in particular as their business model looks interesting.It Seems like they have long standing contracts with many suppliers & companies like GDLS(which provides defense equipment).
a) Do you think they have any significant advantage as to why they are getting the contracts since a long time? I mean it would be easier to shift to any other competitor ( like Danco etc.), but they are still sticking to Drive since a long time. As you said, it boils down to cost, so am guessing lots of competitors can easily try to match on cost here, but it's not happening.

b) Do you think Drive products has any particular preference by customers?

c) Are you aware of any other exclusive contracts being held by anyone in this business?

Would be obliged for your help in this regard

Thanks & Regards
Deepak

Answer
Hi Deepak.

Does Drive Products have an advantage in getting contracts?  Sure! Once your foot is in the door, so to speak, it's easier to maintain an account.  It's easier for GDLS to go out and make a phone call, rather than open another bid and have to walk a new company through everything from scratch.  Cost, of course, is a big factor, but Drive puts out quality products.  Their reputation can allow them to not be the lowest bidder.

I'm sure Drive has a big following.  I'm don't pull any bulk, liquid, or anything with wetlines.  The other products they carry, such as hoses and cables is a matter of "in stock" for most people like me.  If I need it, and their product is on the shelf, great.  Otherwise, I get what's in stock.

I'm unsure of other contracts they might have.  I'm sure a call to them would yield all of that info.

Good luck!

Bob Stephens