Advantage Truck Group keeps America rolling
Photo | Brad Kane
Kevin Holmes, president & CEO of Advantage Truck Group, LLC in Shrewsbury
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In November, Kevin Holmes merged his sales and service provider Tri-State Truck Center with McDevitt Truck in New Hampshire to create Advantage Truck Group in Shrewsbury, growing from 150 employees to more than 250 and a big leap forward from the service station business he started 35 years ago.
Why did you merge?
We needed to give the customer better coverage for the areas they operated within, and our manufacturer – Daimler Trucks North America, out of Oregon – wanted a larger New England dealer network, managed by one CEO.
What made McDevitt the best partner?
Due to their locations and legacy in the business – they are on their second generation of family – they had a very good business reputation.
How many customers do you have?
We have a customer list in the vicinity of 250. Part of that list could be over-the-road carriers operating 12,000 to 15,000 trucks. The number of vehicles we service is in the 7,500-10,000 truck range. That is all vocations: Stop & Shop, National Grid, etc. They could be bringing electric power, food to our table, cleaning up hazardous waste.
How did you get your start?
The business started 1984 in a service station, with two employees: myself and a gas pumper. It was a $12,000 capital investment, which was my life savings.
In 1986, I started the independent repair services, with three employees. We literally were on a back road in Ashland. We used to go out and repair trucks on the side of the road. In 1990, we came a Freightliner parts and service dealer. In Southborough, we started with seven people. From 1990 to the present, we’ve built the business to what it is today.
Why have you been so successful?
The truck business for years was built around sales, what they call the front end of the business. We always worked from the back end forward. We start our relationships with customers from a service standpoint, because that is what kept their trucks running. Then, we would introduce ourselves as a truck seller.
So, we were showing the customer what we could do, before we even sold them a truck. They knew we weren’t making empty promises.
What brings in more, sales or service?
The trucks can be $100,000 or $500,000, so from the revenue standpoint, the sales side generates much more revenue. However, 85% of our employees are service and parts people.
The success of this company has been due to our focus on customer service. Our people are very proud to be able to get trucks back up and running; it is a challenge and provides a sense of accomplishment. Every one of these people here are experts in their field. Our success is built on our people.
You seem to take a lot of pride in keeping trucks on the road.
It is not just a job for us, it is an honor and a requirement. We need to keep those trucks on the road 24/7. It is our duty to the public to make sure these trucks are on the road, to make sure life is sustained.
If all trucks in the country suddenly stopped operating on the roads, within 24 hours or a few days, fuel stations will start running out of gasoline. If transportation shuts down, what do you do?
So, if we cannot find skilled labor, if we cannot fix these trucks, what happens?
Is it tough to find skilled workers?
We invest $100,000 in training for our employees over their first five years here. Yet, employees are very difficult to find.
It is not just about recruiting, it is about retention. We need to provide the best benefits, the best pay plans, the best company for these people to work in.
In order to best serve our customers, we need to keep abreast of all the latest technology. That training never stops. For an apprentice coming in from a high school or vocational school right on to our seasoned technicians, we need to constantly train.
How well do you retain employees?
Our retention success rate is 50%, with employees who have been here seven or more years. For a regular trucking company, the turnover is almost 100%. It is a very difficult job. Those drivers that run the road, they are out there for two to three weeks at a time.
For us, we have to be open while our customers are running. We are open from 6 a.m. Monday to 3 p.m. Saturday. Sunday is the only day we close, as I believe Sunday is a family day.
Our road breakdown trucks, though, run 24/7. They never stop.
This interview was conducted and edited for length and clarity by WBJ Editor Brad Kane.
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