IMPROVING EFFICIENCY AND REDUCING COSTS. Food Shippers Annual Conference March 7, Dick Giromini President & CEO
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1 IMPROVING EFFICIENCY AND REDUCING COSTS Food Shippers Annual Conference March 7, 2011 Dick Giromini President & CEO
2 ABOUT WABASH NATIONAL Industry leader: #1 in Total Trailer production for 17 of the past 23 years Design and production of: dry freight vans, refrigerated vans, platform trailers, dump trailers, and intermodal equipment Founded as a start-up in 1985 Headquartered in Lafayette, Ind. Currently employs 3,000 associates 2010 Trailer Shipments: 24,900 Wabash National s Most Recognizable Brands 2
3 CURRENT INDUSTRY FORECAST 300,000 U.S. Trailer Forecasts: Shipments (ACT) & Production (FTR) ACT FTR 250, , , ,000 50, Trailer Dynamics Trailer demand forecasted to grow significantly Tax Act of 2010: Bonus Depreciation Age of equipment: 8+ years, all time high 3 years of significant under buy Carrier Dynamics CSA 2010 Implementation Hours of Service Rules Electronic On-Board Recorders Proposed Increase in GVWR (Gross Vehicle Weight Restriction) Source: ACT, FTR, Various Press 3
4 OUR RESPONSIBILITIES Lower Operating Costs and Enhance Productivity Optimize Weight, Cube and Payload Capacity Improve Safety Extend the Life of the Equipment Support the Environment Safety Weight Savings Environmental Benefit Cost Savings Product Safety 4
5 FUEL EFFICIENCY Trailer Mounted Gap Reducers Saves 1-2% Trailer Boat Tail Saves 3-5% Trailer Side Skirt Saves 5-7% Low Rolling Resistance Tires (Duals) Saves 2% (Wide Base) Saves 2-4% Source: Cascade Sierra Solutions 5
6 FUEL EFFICIENCY 1% Fuel Efficiency Improvement = $400 Annual Fuel Savings / Power Unit Device or Spec Major Benefits Fuel Efficiency Improvement Considerations Trailer Side Skirts (Dry Van) Deflects air away from the underside of the trailer 5-7% Est. 4% (Reefer) Maintenance costs Exposure to damage Trailer Boat Tail Trailer Mounted Gap Reducers Reduces low pressure created at rear of trailer Reduces drag created between truck and trailer 3-5% Est. Driver interface Maintenance costs Durability 1-2% Est. Maintenance costs Exposure to damage Low Rolling Resistance Tires - Duals Low Rolling Resistance Tires- Wide Based Reduced rolling resistance 2% Performance of retreads Stocking multiple types of tires Reduced rolling resistance 2-4% Replacement tire availability Tire Inflation System Maintains proper tire pressure Extends the life of the tire Reduces fuel consumption 0.6% Maintenance cost Assumptions: 100,000 miles driven per year, 75% driven at highway speed, average fuel cost $3.25,6.00 miles per gallon (average) Source: EPA SmartWay, Cascade Sierra Solutions 6
7 Exterior Undercarriage Interior INCREASING PAYLOAD WEIGHT OPTIMIZATION Hundreds of Lightweight Options All provide additional opportunity for increased payload Cost/benefit consideration Lightweight Options Dry Van Reefer Weight Reduction Aluminum Floor 660 lbs. Combo Floor 420 lbs. 1-1/8 Composite Floor 375 lbs. DuraPlate Nose 100 lbs. Aluminum Crossmembers in Bay 245 lbs. 80K Ksi steel Coupler 50 lbs. Wide Base Tires w/aluminum rims Aluminum Rims w/duals (22.5) 430 lbs. 110 lbs. Lightweight Hub and Drum 135 lbs. Lightweight Landing Gear 30 lbs. 6 mm DuraPlate Sidewalls 200 lbs. 10 mm DuraPlate Swing Doors 50 lbs. TrustLock Plus 60 lbs. *Weight savings based on Wabash National base dry freight trailer 53 x 102, as of 2/11/2011 All Items in RED are Wabash National proprietary products 7
8 INCREASING PAYLOAD CUBE CAPACITY DuraPlate Composite Material Steel Skins DuraPlate Composite vs. Sheet and Post Trailers HDPE Core Pre-coated, galvanized steel skins Foamed HDPE Core Extremely strong Light weight Damage resistant Multiple industrial applications Made from recycled materials Composite Interior with DuraPlate Nose Sheet & Post Interior Composite trailers provide max interior width and cube capacity DuraPlate Nose adds 12 cubic feet 8
9 INCREASING PAYLOAD USABLE CAPACITY 110 Overhead Door Door is blocked by header cannot come down until pulled down Pallet load may contact door Typical Forklift Damage Major Benefits Provides swing door access in overhead door configuration Safer operator environment Reduced door and freight damage More efficient loading and unloading Increases usable cube and load efficiency New 110 Overhead Door Design 9
10 IMPROVING SAFETY ID/Stop Lamp Indicator PROBLEM: Any vehicle between you and a semi blocks visibility of the trailer brake lamps Current lights do not signal when a trailer is braking 10
11 IMPROVING SAFETY ID/Stop Lamp Indicator SOLUTION : Header lights now work as brake lights to increase visibility and safety on all headers REAR HEADER LIGHTS: NOT BRAKING REAR HEADER LIGHTS: BRAKES APPLIED 11
12 DRIVER SAFETY TrustLock Plus Lowers handles to more comfortable position Improves driver safety and ergonomics Improves freight security TRADITIONAL DESIGN TRUSTLOCK PLUS DESIGN 12
13 DRIVER SAFETY TrustLock Plus TRADITIONAL DESIGN 8 TRUSTLOCK PLUS DESIGN 3 Reduces risk of door damage at docks Driver has improved vision when backing up trailer to the loading dock 13
14 PRODUCT SAFETY Protect Product from Contamination Select Products or Options that Provide the Following: Have no wall or corner cavities No potential for contamination point Contaminated Interior Nose Corner vs. DuraPlate Nose Corner 14
15 PRODUCT SAFETY Protect Product from Contamination Select Products or Options that Provide the Following: Have smooth surfaces Splinter and snag free side walls, reduce freight claims Bright, clean interior White walls reflect light and are easily cleaned with commercial grade sterilizers DuraPlate HD Sidewall Refrigerated Van w/integral Sidewall Liner 15
16 SUPPORTING THE ENVIRONMENT ecofridge - Nitrogen-based Cryogenic Refrigeration Technology Eliminates the use of diesel fuel and harmful emissions Silent running Low maintenance no moving parts Improved unit lifetime and operating costs No product top freeze or reduced shrink Low pressure nitrogen tank Low Pressure Nitrogen Tank Control System Interior of Trailer 16
17 OTHER BENEFITS Bison Pallet Bison Pallet is an innovative no nail design, offering economic and environmental benefits compared to other existing pallet products on the market 25% lighter than comparable heavy grade pallets Eliminates nail pops, which are a major cause of product waste, equipment damage and worker injury Several times more durable than nailed pallets All wood design is superior to traditional nailed pallets (nails and wood) Source: 17
18 SUMMARY Many opportunities exist to create an optimum value proposition for your specific needs Work with your carriers to optimize your equipment specs to meet your company s needs Understand the cost benefit analysis We, the trailer equipment manufacturer, can help in this effort. That is what we do! 18
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