Ownership Exit Strategies

What will I do with my business? That answer will have a great and permanent impact in regard to quality of retirement, family values, various tax implications and employee morale! The highest priority in answering this question is planning. The plan for a business transfer needs to be well thought out. There is not a simple nor a single answer.

A report last year by the U.S. Small Business Administration found that small business owners over age 50 were significantly less likely than their employees to have pension or retirement plans, including 401(k)s on their current jobs…

“An owner might be maxing out a 401k and IRA, but the rest of his cash goes into supporting his lifestyle and the company … So, the problem gets bigger—they just haven’t effectively diversified their wealth,”

Many of our clients are facing this dilemma right now. Their businesses are performing better in 2019 than they have in years (in some cases as far back as 2007), and the notion of selling now is being paired off against the idea that the business may be worth even more in five years.

Why doesn’t that make sense? First, you have most (if not all) of your life savings tied up in a highly illiquid asset. That places you at tremendous risk from both an economic standpoint (how many businesses failed during the last recession?) and from a personal standpoint (disease, death, and divorce are just some of the big D’s you are facing). In addition, we have found a large segment of the next generation wants nothing to do with ownership in the business having experienced their parents 24/7 commitment.

During a business transfer some of the issues you need to consider are:

How to acquire fair market value from my business. Remember you are selling a revenue stream in addition to your hard assets. This is often overlooked.
Capital gains taxes at federal/state rates can be as high as 30%. These taxes in some scenarios can be eliminated or deferred.
The recapture tax of IRS section 179 and accelerated depreciation deductions at ordinary tax rates can be devastating!
Key successor management needs to be identified and in place. If not, business failure typically follows.

Your first major step is to begin the planning process. This typically takes a minimum of two years.

Get Your House in Order

Is my financial house and back room in order. Do I have a history of financial documents? Will they accurately state the financial strength and position of my business? Three to four years of these documents will give the owner a thumbnail sketch of the company’s worth.

EBITDA

Determining the value of your business is generally based on cash flow.

That is earnings before interest, taxes, depreciation, and amortization.

We look at EBITDA or cash flow for those three to four years and then come up with a one-year average. A multiplier (a number indicating the business sector’s future cash flow) is then applied to the cash flow and this will give us a preliminary thumbnail view of the value of your business. For example, in the Transportation Industry that multiplier can be 6 to 8 times EBITDA.

Value of Your Assets

Next, the value of the company’s assets is considered. If hard assets such as fleets, equipment or real estate: how new are they? Have they been well maintained and how do they operate?

As a buyer or an investor, I need to know how much more capital may be needed to maintain the business and keep it growing.

Do I need to get outside professional appraisals on my assets? Will equipment need to get replaced soon? If I have a large truck or van fleet what is the mileage and aging of the fleet? Does mandated technology need to be upgraded? How much money as an investor will I need to spend to upgrade or replace equipment or fleet?

Contracts

How many contracts does my business hold?

Are they private or government contracts, state, local, and municipal? When will they expire?

The answers to these contract issues can significantly raise or lower the value of your business.

Client Mix

A mix of revenue sources affects value! How many clients or customers do you have?

If a single customer generates more than 10 to 15 percent of the company’s revenue, this will have a negative impact on a business value. If a business is bought and that single customer leaves and revenue drops 10 to 15 percent, all or most of the profit has left the business.

That’s one of the top things lenders look at very closely: What percentage do your customers represent as revenue?

Location

Location, location, location- a key location can add value.

Enjoy the fruits of your lifetime labor!

Don’t let your business go up in smoke from a lack of planning.

In summary, it’s never too early to start planning for your retirement and the legacy of your business. Seek professional counsel as to the current status of it, what processes and procedures need to be put in place, and what options exist for you to extract value for your hard work into retirement. Acting now, might save you value and frustration later.

Steve Ridgley
Pathfinder USA- EVP
2005 Lake Point Way, Suite 201
Louisville, KY 40223
877-332-0228
www.pathfinder-usa.com

OMADI OFFERS FREE TOWING SOFTWARE IN RESPONSE TO COVID-19

Darian Weaver

(Lehi, UT − 03/23/20) Omadi, a towing management software company, recently announced their decision to offer a new starter towing management package called Omadi Essential free to tow companies for 90 days. The offering is part of Omadi’s response to the COVID-19

pandemic and its effect on tow operations all over the United States. The new package will allow tow companies to weather the pandemic with remote dispatching capabilities and a new driver mobile app to aid in social distancing.

Towing companies all across the United States have been implementing policies to promote social distancing in the hopes to decrease the spread of the virus. Now, through Omadi software, these efforts can be multiplied through digital (remote) dispatching and a driver app that allows dispatchers and drivers to communicate all essential information digitally.

To help tow companies quickly transition their company to digital, Omadi is waiving the fee for their Omadi Essential product for 90 days. This starter package will allow companies to quickly adapt to a new technology without worrying about the additional costs of a new platform.

“We feel lucky to be in a position to offer free software to tow companies during this troubling time,” said Nathan Mortensen, Omadi CEO. “We hope that this small contribution can help companies focus on their business without having to worry about their employees’ safety. Our hope is that Omadi’s remote management capabilities, driver app, and digital (remote) dispatch will provide some stability to tow businesses during the COVID-19 pandemic. “

Omadi’s starter towing software aims to help companies save time and money by increasing efficiency and decreasing administrative costs. This is accomplished by offering digital (remote) dispatching, a driver app that manages photos and job information, and easy reports to understand key business metrics. For more information or to get signed up please email sales@omadi.com or call 801-800-8352.

About Omadi

Omadi is on a mission to connect the industry with technology to request, manage, and deliver world-class tow service. This mission is backed by our vision to optimize towing, thereby elevating the quality of life for everyone in the industry. Omadi is accelerating towards its mission and vision by building products that allow clients to develop intelligent routes, dispatch events, receive real-time updates, and use a mobile app for in-field employees. These tools are backed by a powerful reporting analytics engine to help clients make business-driven decisions.

To learn more about Omadi, visit https://www.omadi.com/omadiessentialsfreecovid19

Safety Vision – The System That Protects You and Your Investment

Darian Weaver

Every day there is a growing number of risks associated with working in the tow and recovery industry. In fact, according to AAA, a tow driver is killed on the job every other week. Whether you are the driver or the business owner, the dangers are always present: lawsuits, accidents, and injuries await but with the proper surveillance system, you won’t be defenseless against these incidents.

Safety Vision is your dedicated mobile video surveillance company with over 27 years of experience. With products ranging from cameras to recorders, they are invested in offering simplified systems that increase awareness, improve vehicle visibility, and offer indisputable evidence to combat false claims. Though they are surveillance-centered in nature, the root of what they do is to offer mobile video products that protect your investment and safeguards personnel.

With the system outlined below, your tow vehicle and Safety Vision will work together to create a stable foundation for protecting your ROI and operator.

Cameras

Interior: 41AHD Camera

With the 41AHD interior cameras, you can enforce top-tier driving practices and strengthen personnel trainings. In-cab cameras offer a great way to understand the driving habits of personnel: know when they hard-break, turn without a signal, or how they interact with clients and utilize those moments captured to improve operational efficiency and enhance safety. These recordings can be used to critique adverse behaviors, reward favorable ones, and improve personnel trainings by turning the recordings into first-hand account videos on what to do and what not to do.

Exterior: 630HD Camera

Exterior cameras are the best tool for combating false claims when an accusation arises or a driver is injured on the job. The cameras offer HD resolution no matter the time of day and provide over three lanes of view equipping you with the dependable video evidence you need to capture the events that took place. These cameras are proven to reduce insurance costs as companies know you are protected against claims: there won’t be any discussion as to “what happened” when the irrefutable evidence lies in the recorded video.

Monitor

CP4 Monitor

Accompanying you in the cab is the CP4 Monitor which acts like a second pair of eyes – giving you 360-degree views around your vehicle. With multiple split-screen views, you can see the cameras you need to maximize vehicle visibility and eliminate blind spots. With the integrated panic button, you can automatically create critical events in the software whenever an accident or incident takes place. Comprehensive vehicle awareness is achieved with the in-cab monitor.

Software

Foresight Pro: Video Management Software (VMS)

Foresight Pro is Safety Vision’s simplistic video management system that empowers you to understand your business better and have the investigative tools needed. Using vehicle metadata that is synchronized to video, you can analyze your operations to improve productivity and receive vehicle health reports. With the live-view capability you can advance response times when an operator requests further assistance or in case of an incident.

Hardware

Observer 4000 HVR Recorder

At the root of the surveillance system is the cost-effective Observer 4000 HVR Recorder. The compact and durable hardware works for you by gathering vehicle metadata and recording up to 5 cameras at once. You can customize the system to cater to your needs with 8 dynamic sensor inputs that collect the information you want to see: automatically create video clips when the panic button is pressed, when the vehicle breaks, uses a turn signal, turns on hazards, and more. With this tailored-to-you hardware, you have the reliability you require.

A tow surveillance system is necessary in the same way house security cameras are–they aren’t there to track those inside, but to protect and have defenses against outside forces. Safety Vision’s solutions are created to safeguard you and your investment by maximizing vehicle visibility, empowering you to understand your business behaviors and improve productivity, and equip you with indisputable evidence to combat accusations – all at a budget-friendly price. There’s no need to worry about technology advances and product replacements as Safety Vision consistently updates firmware, which ensures your systems are up-to-date and compatible with the future.

The consistency in Safety Vision’s enhancements showcases their dedication to clients in the industry. From install to troubleshooting, the team is there for you every step of the way to make sure your products not only function properly but at their maximum capabilities. In the industry, a one-time accusation or incident can quickly cost you everything – so Safety Vision’s solutions are there to prevent that loss and protect your livelihood.

For more information, visit www.safetyvision.com

7 Reason You Need a New Battery Charger

Darian Weaver

At Clore, we have been saying for several years that if you own an older battery charger, you should be seriously thinking about replacing it. There were many reasons for us to make this suggestion, but we believe that those reasons have now hit such critical mass that the time really is now. Below, we break down the top seven reasons why.

1. AGM Batteries and Start-Stop Systems

AGM (Absorbent Glass Mat) batteries are lead-acid batteries that use a special construction to deliver a higher performance than a typical flooded lead-acid battery. In this case, the special construction is that the lead plate in the battery is wrapped using a fiberglass mat material rather than simply being suspended in the liquid electrolyte of a standard flooded battery. The fiberglass mat allows battery manufacturers to make each individual plate thinner with more plates packed into a given battery case size. The AGM construction typically delivers greater starting power (more plate surface yields greater power), improved vibration resistance (the fiberglass mat results in a more stable construction) and increased cycling capability (ability to be drained more deeply without adverse consequence).

We have been talking about AGM batteries since 2006-2008, when they were found in a limited number of vehicles, such as the Gen 1 and Gen 2 Prius, Corvette and Grand Am models, and a smattering of imports. Since then, the AGM has gained considerable share as the OE battery of choice. This is particularly true when it comes to vehicles equipped with a Start-Stop system built for the North American market, where the AGM battery is the dominant type used.

But why does the growing popularity of the AGM battery influence the type of battery charger you should be using? AGM batteries require very specific charging routines and precise voltage control for proper charging and long battery life. Otherwise, the battery is not likely to last very long at all.

Traditional chargers (volts go up, amps go down) have very little control of voltage output and brings the battery’s

voltage as high as 16 Volts and higher. That’s bad news for an AGM, which typically doesn’t want its voltage raised above 14.6V or so (in normal temperatures). Also, AGM batteries require specific charging stages (constant current bulk charge stage, for example) for successful, beneficial charging. These required charging stages need a smart charger to deliver them – the indiscriminant power delivered by an old school charger does not fit the bill. So, whether you need a charger for a car, truck, boat, powersport vehicle, tractor or something else, do yourself a favor and make sure your charger can provide the proper power your battery requires.

2. Vehicle Electronics

Like AGM batteries, the electronic modules that control almost every function of vehicle performance are extremely sensitive to excess voltage. If a traditional charger with very little or no voltage control is connected to a heavily depleted battery, its voltage output could exceed 16 Volts and even eclipse 17 Volts. This could spell trouble for modules and other sensitive vehicle electronics, which are difficult to repair and expensive to replace. Modern smart chargers precisely manage output voltage to eliminate the risk posed by the unregulated output seen in older chargers.

3. Temperature Compensation

As we noted above, modern batteries are sensitive to many different variables, including temperature. All batteries prefer to be charged less as temperature rises and more when temperature drops. Older chargers charge in all conditions as if it were always 70˚ F. This one-size-fits-all approach results in overcharging batteries in hot climates and undercharging them in cold temperatures. Many smart chargers, such as our PRO-LOGIX chargers, feature temperature compensation to ensure that each battery charged gets exactly the charge it needs, no matter the temperature.

4. Longer Useful Battery Life

A key reason for choosing now to invest in a quality smart charger is that doing so can extend the useful life of your batteries. It is not uncommon for our customers to report extending battery life by two, even three, extra seasons as a result of deploying PRO-LOGIX chargers. This is a result of the more beneficial charge delivered by the smart charging curve of PRO-LOGIX combined with the enhanced maintenance mode offered by PRO-LOGIX chargers (more on this below). The great news is that the advanced multi-stage charging routine needed by newer battery types, such as AGM, Gel Cell and Spiral Wound batteries, is also extremely beneficial for traditional flooded batteries. Choosing a charger that helps ensure those batteries are ready when you need them and prolongs their useful life is an investment that has the potential for huge returns.

5. Managing Problem Batteries

Similar to the preceding reason, getting more out of your batteries or overcoming problem situations involving your batteries through the use of a smarter, more effective charger is another smart move. We’ve all encountered situations involving problem batteries. One good example of this is early battery failure due to sulfation, which occurs most often when a battery isn’t used regularly. In such situations, periodic charging with a smart charger like our PRO-LOGIX series will combat a battery’s natural creep towards sulfation or mitigate that sulfation if it is present in a battery under service. Another example comes when servicing a severely depleted battery. Our PRO-LOGIX chargers feature a built-in soft start routine to slowly bring a deeply discharged battery back to full charge. This is best for the battery’s health and longevity.

6. Power Supply Function

As today’s vehicles grow increasingly complex, more and more repair and maintenance tasks require that system voltage be maintained above a minimum threshold throughout the service event. The best way to accomplish this goal is to utilize a smart charger with a built-in power supply mode. This type of feature has been incorporated into select portable chargers in the last 5 years or so, as application demands have necessitated it. Whether an operator is diagnosing an intermittent electrical problem, performing a repair on an electronically controlled subsystem of the vehicle or running an ADAS recalibration, stable power is now a common requirement for a successful service event.

7. Battery Maintenance

We’ll end with a big one. If you perform any type of long-term storage charging, such as is often done for out-of-season motorcycles, watercraft, ATVs, muscle cars, and more, there is a great incentive to upgrading your charger / maintainer to a current, smart charging model. For decades, most chargers simply went into a basic float mode when the battery reached full charge. While this is not necessarily bad for the battery, we would argue it is not the best way to handle a long-term charging situation. From our perspective, float charging keeps a battery charged and ready to use but does not optimize the overall health of the battery.

Some of today’s smart chargers feature a more complex storage charging routine, though this can vary by brand and model. Our PRO-LOGIX chargers utilize an enhanced maintenance mode that, once a battery reaches full charge, puts the battery into a period of rest followed by an exercising phase, where we simulate a starting event. Then, we come back and run a full charging routine. We believe that this results in a deeper, more beneficial charging cycle, improving battery longevity and overall health as compared with a standard float mode.

“PROFECT” Your Charge with PRO-LOGIX

As we have noted several times above, PRO-LOGIX battery chargers deliver the features needed to properly charge all lead-acid battery types quick and beneficially. From their multi-phase charging process, ability to manage problem charging situations, incorporation of added functionality such as power supply mode and enhanced maintenance mode for optimal long-term storage charging, they cover the wide range of functions and capability needed by today’s vehicle owner.

With a wide range of models, from our 4A PL2140 Charger / Maintainer to our 100A PL6100 Power Supply that supports vehicle reflashing, there’s a PRO-LOGIX charger to address virtually any application need. Each model delivers the same beneficial charging routine with the robust components and quality construction that deliver continuous performance in even the harshest industrial charging environments.

For more information, visit cloreautomotive.com

What Happens When a Disaster Hits?

Darian Weaver

Coronavirus Disease 2019 Rotator Graphic for af.mil. (U.S. Air Force Graphic by Rosario "Charo" Gutierrez)

Just when you thought that spring is here and it’s time to take off with the business, we get hit with a major disaster. Who would have thought that during our lifetime we would go through something like this? I looked at my business and tried to determine how this would affect it for the next year. This should give you an opportunity to look at your business also and see how it too will be affected.

When I owned my tow company, my wife and I would take off for a week and plan our business for the next year. We would pick a nice destination (Vegas) and book a suite and stay there for a week and work on a business plan along with a little bit of play. It’s the perfect time for you to do the same. The only problem is you are locked in your house. Nonetheless it’s time for you to put your company under a microscope and make decisions.

Here are a few things you should look at:

1. What impact did this have on your business?

2. What business could you lose?

3. Is there anything to gain as a result of this disaster?

4. What will towing look like when this is over?

Call some friends up and get their input on the questions listed above. Since the government is giving out financial aid, take advantage of it and apply for as much help as possible.

Here are the next things to evaluate:

1.Where are you Making Money? Identify your best customers and make sure you continue to take good care of them. It might be body shops, or police calls, or even private property. Once you have identified your good customers, try to figure out how to expand that customer base.

2. Employee Evaluation – Evaluate everyone that works for you. If you have managers, have them help you with the evaluation. I did this when I owned my tow company. It was amazing. I had managers point out things that I was not aware of. For example, the person I thought that was my best dispatcher turned out to be my worst dispatcher, and he had the highest salary. I did not replace him, but I did put him on an improvement program. You will be surprised about the things you learn once you start to look at your company closely. One thing I recommend is that you get all your employees involved. Give them a survey that asks what could be implemented that would make the company better.

3. Office Stuff – As you sit at home discussing things that should be replaced or repaired with family members, look at your computers and the software you are using. There are several good software systems that support the industry, and remember, they are looking for ways to improve their customer base. You might be able to get a good deal on new software that can save you money. Look at your phone system and see if it is providing you what you need to run your business.

4. Trucks – The government is doing SBA loans at a low interest rate over 30 years with no personal guarantee. This might be an opportunity to replace some trucks if you qualify. Look at everything that is being offered by the government and see if you qualify to take advantage of these opportunities. The payroll plan is definitely worth trying to get. It’s free money to pay your employees for two and a half months while you wait for your business to come back. It’s not refundable if you are paying your employees.

5. Your Facility – While employees are sitting around waiting for things to happen, hand them a paint brush or a hammer and start fixing up the place. Let them add their personal touch, and it will give them pride in your company. Maybe you want to add a small storage shed or tear one down. Do anything you can to improve your company appearance. This can be a selling point for your customers, new or old.

6. Training and Education – Go online and see what computer courses are available for your employees that would improve their work skills. Maybe they can take a class on communications. This could improve efficiencies in the office and benefit your customers at the same time.

7. Owner Education – Take a look at yourself and see what areas you can improve in to make the company better. Things like how to offer compensation programs for your employees, how to improve moral, or any additional benefits. There are insurance companies offering discounts on types of insurance they offer. Maybe you can save money by changing the coverage on things at your company like trucks or garage keepers insurance.

8. New Lines of Business – This could be an opportunity to look at new lines of revenue within your company not relating to towing and try and start something new.

For some businesses, this could help their business. I look at my potential customers, and they are calling TowTrax because they are short staffed at their call centers. We offer the perfect solution and can save them money. Once I get a customer up and running, I now have tows I can offer to tow companies that are hurting for business.

One thing is for sure, we will all learn from this experience. Things about yourself or family members you never knew. I’m constant amazed every day how the people of this country came together and helped each other out. Offering time services or money to make liv

es better for others.

Here in Texas, tow companies are sticking together and fighting the politics to keep their doors open and living with some of the policies our state or cities are trying to implement. Hopefully it will soon come to an end, and life can get back to normal.

What will the new normal hold for us? Anyone who feels like talking, give me a call I would be happy to chat.

Insurance Ignorance

Darian Weaver

As an industry and community, we take insurance claims and the insurance process for granted since we deal with it every day. What we may not realize, or even consider, is that a vehicle owner may have no experience at all when dealing with a wrecked or damaged vehicle and have no idea how the system works.

I will give you a case in point: My sister bought a nice 2003 Lexus ES300 from a local (small, rural) used car dealer that doubles as a repair shop. She had owned the car for a couple of years before the battery decided to freak out and catch fire. When it did, it burned the wiring harness around the battery, the associated wiring and components and burned a one-foot area into the paint on the hood. We live in different states and don’t talk every day, so she didn’t call me until she was nearly beside herself in frustration and annoyance: She had the shop guy tow her car to his shop and try to make repairs. She then got hit with a $2,800 estimate–and still had no car to drive! That didn’t even count repairing and repainting the hood.

My first thought was, “Don’t you have full coverage?” Yes, she did. I asked her why she didn’t just file a claim, have them tow the car to a dealer or major body shop, and get a rental car. SHE HAD NEVER, AT 55 YEARS OLD, HAD AN INSURANCE CLAIM! She had no idea how it worked, and since she didn’t have a wreck, she thought that something like this wasn’t covered. It was covered, of course, by the comprehensive side of her policy. She called me an hour later and was elated. Her insurance company arranged a rental car, the kind where they pick you up, and they had the car towed to a large local dealer with a body shop, so both the mechanical and cosmetic repairs could be made at the same location. She got her car back two weeks later, and only paid the $100 deductible.

Recently, our company towed a wrecked 2010 Dodge Charger. It was hit on both ends, had pretty good front end damage, and had the rear axle twisted. The next day, the owner’s brother showed up and wanted the car towed to a local shop. He also wanted to pay the bill. He lost his mind when we told him the tow bill was $350 (+/-) and the second tow would be $100. He wanted to negotiate, became angry, and I had to interject.

“Don’t you have full coverage insurance?” I asked. Well, yes, it was his sister’s car, and she didn’t know how to “deal with car stuff,” but evidently, “the brother did” — or so he thought.

We told him to file a claim with her insurance for several reasons. I’ll get to that in a minute. He refused, insisted we were ripping him off, and paid the initial tow bill. He had our competitor tow his car to the small shop to “show us something.” Whatever. He called two days later because his shop guy (with his one-bay, old garage) couldn’t get the car started, and he insisted that it was our fault. We must have done something to his sister’s car when we towed it, because, and get this–”it was running before she wrecked it.”

I asked the guy to come in, and I laid out some information for him. First, you need to be aware of your insurance coverages. Next, you call your insurance company as soon as possible after an accident. That allows them to start the claim process. Next, let them handle the claim. They’ll pay for the accident tow, any storage involved, and the secondary tow. All you pay is your deductible. That’s what insurance is there for. Next, and this is a big one – if you’ve never contacted your insurance company to get them involved, and you take your car to “Bubba’s Garage,” and Bubba throws his hands up, realizing this repair is too big for him – there’s a good chance that you’re on your own at that point. If you never gave your insurance company a chance to get involved, to have an adjuster look at the car, and to authorize repairs, there’s a 99% chance they’re not going to do anything when you contact them with your messed up, basket case of a situation after the fact.

You must realize that if someone has never dealt with this process or had a close friend or family member who has, they likely have no idea how this all works. I hate to assume that anything is totaled, but a 10-year-old car with major front-end damage and the rear axle half-torn out is likely a total loss. They’re paying Bubba to fix a car that needs to be replaced and will likely never be properly repaired.

Now – here’s where you come in as a towing industry professional: You must recognize when someone isn’t up to speed on how insurance works, and that recognition needs to happen at the wreck scene or shortly thereafter. You can calm the situation by saying, “Let your insurance company handle it.” These people may be ignorant to how insurance works, and then you add stress, frustration, anger, and a little shock, and that the person isn’t thinking straight. Be the voice of reason and save yourself a whole lot of heartache in the meantime.

9 Quick Cleanliness Tips from Agero

Darian Weaver

Clean and disinfect frequently touched objects or surfaces.
Have hand sanitizer available for your employees and in your trucks.
Avoid standing within 6 feet of customers or co-workers.
Politely decline handshakes from thankful customers.
Avoid touching your eyes, nose and mouth.
Cough or sneeze into your elbow, not your hand; if you use a tissue, through it away immediately and wash or sanitize your hands.
Temporarily stop requiring signatures to reduce the use of high-touch objects. (Agero is currently waiving this requirement.)
Communicate with your teams and partners if you are feeling unwell.
Temporarily restrict all ride-alongs for tow events. (Agero has currently implemented this restriction.)

For more information, visit www.agero.com

TRAA Helping the Industry Navigate the COVID-19 Crisis

Darian Weaver

It’s safe to say the COVID-19 pandemic has impacted the entire country. The Towing and Recovery Association of America, Inc.® (TRAA) has been the towing industry’s advocate throughout this crisis. TRAA has been here for you and supporting towers across the country in multiple ways:

CISA Advisory

When the crisis first erupted in March, the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) released a federal advisory to the states outlining essential employees that could work during stay-at-home orders. While indirectly covered under transportation, towers weren’t expressly cited in the advisory so TRAA paid for a legal determination and official letter for every member so they could continue operating. Not one to stop there, TRAA and their federal lobbying firm were instrumental in getting towing and recovery and roadside services expressly included in the revised CISA advisory a few weeks later. Since the original list of Essential Critical Infrastructure Workers was from 2007, this change was a major win for the entire towing industry!

CARES Act (H.R. 748)

As the crisis has worn on, TRAA has continued to be the industry’s best resource. When the CARES Act was passed, TRAA immediately informed its members on the four provisions designed to assist small business owners such as towing companies. From information on how to apply for beneficial loan opportunities, to tax credits, and payroll tax delays, TRAA has been helping its members navigate the available resources during this evolving and unprecedented situation.

Understanding the difficult choices that many towing companies are facing, TRAA even put out information for its members on the dos and don’ts of downsizing fleets for those in need.

The COVID-19 pandemic is a healthcare crisis that has turned into a global economic crisis. During these unparalleled times TRAA continues to work on the industry’s behalf with towers across the country finding comfort and support in their TRAA membership.

If you are not a member of TRAA, head over to their website and join now: http://traaonline.com/join-now/

In Need of a Remote Solution? Beacon Software Offers Free 90-Day DA Subscription

Darian Weaver

In the wake of COVID-19, Beacon is offering a free 90-day subscription of their flagship product, Dispatch Anywhere, to assist first responders in need of an immediate solution. This offer is available to new DA customers or preexisting TowMagic and TowLien customers. There are options for Towing and Roadside professionals who are suddenly faced with the daunting prospect of working remotely. Beacon Software is offering a solution to those who are scrambling to communicate effectively with their employees and customers from home or on the road.

About Dispatch Anywhere

Beacon Software’s Dispatch Anywhere is the software that pioneered the current technology used by progressive towing and roadside assistance companies and has always been an asset to towing and roadside professionals on-the-go, who seek options to work remotely. This software offers state-of-the-art features, such as Digital Dispatch, Motor Club Billing, Drag and Drop Dispatch, Auto Dispatch, TowSpec, and Custom Accounts Receivables with Quickbooks. DA creates a productive workflow for the dispatcher, driver and account receivable functions.

“Our only goal is to make it easier for first responders to do their jobs safely and efficiently,” says Todd Althouse, president of Beacon Software. “We know drivers are working longer hours to keep essential businesses and medical facilities stocked and we think this is the best way for us to provide the necessary resources to them that will support remote work.”

Beacon Software’s Coronavirus (COVID-19) Response

Just like their software, Beacon employees have always had the ability to work remotely. Beacon Software remains open and fully functional while protecting the safety and health of their staff and customers. As part of their SOC2 Certification, Beacon Software has a detailed Business Continuity Plan (BCP) designed to guide their business during unexpected events, such as COVID-19.

About Beacon Software

Beacon Software creates technology that enables towing & roadside providers to manage, update, dispatch, track and invoice jobs, in real time, from anywhere in the world. Their mission is to provide a suite of features that allows towing & roadside professionals to run their businesses without technology getting in the way. To begin your 90-Day free subscription of Dispatch Anywhere, create your account at DispatchAnywhere.com or call 866-437-6653.

Staley Cash Appointed CEO of TowTrax

Darian Weaver

TowTrax founder, Dan Messina, announced today the addition of Staley Cash as CEO to the TowTrax team. “Staley brings a wealth of roadside assistance industry knowledge to our team, and we are very fortunate to have someone of his stature and experience as our CEO.”

Staley recently served as President of Driven Solutions, Inc. and has over 20 years’ executive experience in the roadside assistance industry. Staley will work closely with founder and Chairman of the Board, Dan Messina, to implement the TowTrax platform nationwide, bringing on-demand response to consumers needing roadside assistance.

Wes Foster also recently joined TowTrax as Chief Operations Officer and will have responsibility for day-to-day operations. “Wes also brings a huge depth of industry knowledge to our team, and we are very excited to have both Wes and Staley on board. The TowTrax platform is true digital dispatch to the closest service provider, and we can’t wait to expand the rollout of our solution.

TowTrax is a nationwide roadside assistance platform targeting motor clubs, law enforcement, and other service providers.

The TowTrax network of thousands of tow companies across the United States allows us to locate and respond to roadside assistance requests wherever they may be, dispatching the nearest tow truck to a customer’s location in an efficient, seamless manner. Our relationships with tow companies and service providers ensure nationwide coverage to all stranded motorists.

For more information, contact Dan Messina at 844-TOW-TRAX (844) 869-8729.

Jerr-Dan Sliding Winch System

Darian Weaver

The Jerr-Dan Sliding winch is a system that allows the entire recovery winch at the front of a carrier bed to move side to side over most of the bed width in order to load vehicles, as straight as possible, onto the bed. While this innovation is fairly unique to Jerr-Dan in the US market, there is a growing need for operators to use this specialty system as the automotive industry increases production of vehicles with only offset tow-eyes in the front and rear bumpers.

These tow eyes are very popular in European-manufactured cars, as well as most luxury and sports cars. And, this design style is becoming more prevalent on everyday vehicles coming into the market both domestically and internationally. Tow eyes are designed to sustain a very limited amount of angled pull: both “side to side” and “up and down.” The Jerr-Dan sliding winch system is designed to work within those angles, with a system that contains a winch that moves in its entirety, which helps with self-centering before loading and allows for the winch to float freely during winching.

This innovative design permits an operator to tow without incurring damage to the vehicle. The sliding winch system from Jerr-Dan provides the operator with better control of a damaged vehicle as it is winched onto a carrier bed without the need of additional side pullers or snatch blocks. Without the need for additional equipment, the operator can be more efficient, ideally spending less time on the scene, with less equipment to carry and potentially less fatigue on the job.

Originally created to meet the needs of exotic cars with side pull points, the sliding winch system provides flexibility for operators to tow cars of any design. The Sliding Winch System is currently offered on all new Jerr-Dan Standard-Duty and Medium-Duty Car Carrier models and can be added to your existing Standard- or Medium-Duty Carrier.

For more information, visit www.jerrdan.com

TRAA’s 2020 Legislative Action Workshop

Darian Weaver

It was a beautiful day in Washington, D.C. when I landed March 10, 2020. I was excited about the week to come and curious about what I would experience. TRAA had some of the top towing elite arrive in town to attend on Wednesday. The week began with a “Legislative Action” workshop featuring Congressman Jim McGovern and the Tremont Strategies group, Chet Atkins and staff.

Tremont Strategies, overseen by Chet Atkins, came on just over a year ago to work as the lobbyist for TRAA. Chet Atkins was the youngest ever to be elected to the House of Representatives in 1970. In 1972, Chet was elected to the Massachusetts State Senate and has chaired the Ways and Means Committee. He brings a wealth of knowledge to the table to ensure that all towers nationwide are having their voice heard!

Chet Atkins’ staff briefed us all on the importance of having a unified mission when meeting with legislators. He said a good strategy would be to know our talking points, educate when needed, remember to thank them for their work, and most importantly ask them for their support, so our voices may be heard! The staff worked diligently to ensure that all the Thursday meetings with legislators set for TRAA and owners were kept.

We were then greeted by Congressman Jim McGovern. Jim was elected to the House of Representatives in 1996 and in 2001 took a seat on the House Rules Committee. Jim had attended last year’s meeting and had a great understanding for our industry. He is a man that not only listened, but acted, and I can say he has a heart for our industry and towers. Over the next few days, Jim McGovern, while working on passing and funding the coronavirus bill, made many trips back and forth from the Capitol for us. He would just come and sit down and have dinner to make sure our needs were being met and our appointments were being kept assuring our visit would be successful.

Thursday morning, the day of our meeting with legislators, became an interesting day to say the least. All of Washington began to implode with threats of the coronavirus, and people started filing out of the Capitol and leaving D.C. first thing that morning. Tremont Strategies staff burned up the phone and ensured that as people left Washington in droves, that our meetings, all but a few, were kept.

“On a day filled with chaos fueled by fears from the coronavirus, towers along with the key members of the TRAA board met with 24 plus legislators from 12 states to voice their needs and concerns for the towing industry.”

Topics discussed with legislators were:

Support for federal “Move Over” Law efforts
Support passage for the Drivers Safe Act
Hours of Service
Amending Regulations that limit a tower’s ability to respond effectively on the interstate system. (The 2015 Fast Act attempted to do this; however, the language need to be clarified.)

TRAA submitted and supported the changes to 23 U.S.C. 127, so that the new language used to clarify this bill for towers would be included during the next highway bill reauthorization.

On a day filled with chaos fueled by fears from the coronavirus, towers along with the key members of the TRAA board met with 24 plus legislators from 12 states to voice their needs and concerns for the towing industry. The afternoon following meeting with legislators was topped off with a 2-hour legislative open house. Speakers that attended were: Representative Anthony Brindisi, Representative Chris Pappas, and Representative Cindy Axe. All three representatives listened to the concerns and fears offered from our towers, TRAA, and Auto Return’s Jon Borowski. They all explained that they have a better understanding of our wants and needs and pledged their support to help pass bills that will serve and protect our industry.

I also learned this week about the specifics of what it takes to turn a bill into law; it is a long extensive process that takes working back and forth with your legislators and their staff. This past week (whether you were a member of TRAA or not) the TRAA, along with key tow company owners, voiced your needs and concerns directly to your state legislators. I must say, if you are not involved with your state legislators and a member of your state association, you are backing up! It is hard to complain about what is going on in your industry when you have not registered your voice. If you are not a part of your state association, join and be active. I also recommend joining your national association and taking part in next year’s legislative workshop. The only way to make change is by stepping up and putting in the work to do so. The most rewarding part is seeing it happen; your name will be remembered as not just another worker in this industry, but a leader that strived to make changes that would positively affect this industry for years to come!

If we are going to change minds and change perspectives on our industry, we must get involved. You men and women are the professionals; who is better to have their voice heard than you? So, let’s get active on the local level and national level with our associations. Next year, I would love to see all 50 states represented by a constituent and meetings being held with all legislators. This is how you make change–by being active, so make your voice heard!

PRIME and COVID-19

Darian Weaver

The COVID-19 pandemic is impacting the way all of us live and do business. Prime is aware that policyholders are facing unprecedented hardships and understands the importance of maintaining insurance coverage. Prime is honoring all state-declared moratoriums on cancellations for non-payment. Prime is requesting that any policyholder that is unable to fulfill their normal premium payment obligations due to the impacts of COVID-19 to please contact us and we will work together to find solutions to this temporary upheaval. Potential solutions include:

• Suspending coverage or canceling and amending policies without penalty

• Modifying payment terms, including extensions of premium grace periods and waiving late payment fees

• Providing a continuation of coverage on expiring policies

• Deferring any non-renewal underwriting actions and/or

• Rescinding policies with future effective dates

We will evaluate the individual needs of each policyholder and customize a solution for them. We are available 24/7 and look forward to hearing from you by phone at 877.243.8181 or via email at quotes@primeis.com. During this time of challenge and uncertainty, Prime remains committed to serving the needs of its policyholders and producers.

For more information, visit www.primeis.com

Loans Available for Small Businesses – Act Now

Darian Weaver

The CARES Act (H.R. 748) authorized two Small Business Administration (SBA) programs providing federal money to allow you to keep your employees on payroll during the COVID-19 emergency and can provide low-interest loans with no personal guarantee.

These programs were funded with over $350 billion. There should not be an issue of the funding running out for these loans and grants, however, there is an overwhelming demand for them and individuals who submit their applications later will likely face delays in processing their applications.

Paycheck Protection Program (PPP)

This is a loan equal to 10 weeks’ worth of payroll costs (excluding employees who make over $100k) that converts into a grant if the borrower keeps all pre-crisis (before Feb 15th) employees on the payroll through an eight week period after the loan is granted. If employees are laid off, borrowers are responsible for a portion of the loan proportional to the salary of the laid-off employees. A full conversion from loan into a grant can occur if the borrower eliminates the reduction in employees and wages by June 30th, 2020. Any business with less than 500 employees may apply.

You will need to apply through your own bank if they are qualified SBA lender. See your bank’s website to determine whether they are a qualified SBA lender.

The PPP loan application and more information are available on the U.S. Department of Treasury site. Lenders may begin processing loan applications as soon as Friday, April 3, 2020. Contact your SBA lender ASAP for more information.

Economic Injury Disaster Loan (EIDL)

These are up to $2 million loans with a maximum fixed interest rate of 3.75% and loan terms of up to a maximum 30 year repayment period to be used to meet costs such as payroll, rent, mortgage etc, that cannot be met as a result of the COVID-19 crisis. Terms are determined on a case-by-case basis based on the borrower’s ability to repay. No personal guarantees required. Collateral is required for loans of over $25,000 but the SBA will not decline a loan because of lack of collateral and will only require applicants to pledge collateral that is available.

There is currently a nationwide disaster declaration and small businesses in all U.S. states and territories are eligible to apply. In addition to applying for the EIDL loan, when submitting their EIDL application, applicants can also apply for a $10,000 loan advance. This “loan advance” is paid out within three days of a successfully submitted application and does not need to be repaid, even if the pending EIDL application is subsequently denied.

These loans are administered directly through the SBA, not through your bank. The application can be found here.

About Towing and Recovery Association of America, Inc.

Founded in 1979 in Kansas City, Missouri TRAA is the umbrella trade group and national voice of the towing and recovery industry, which is estimated to include more than 35,000 towing businesses in the United States. TRAA’s membership includes professionals from the United States, Canada, Japan and New Zealand. TRAA is a 501 (c)(6) nonprofit membership national towing association, governed by a representative board of directors whose officers are elected from the membership.

TRAA represents the interests of the towing and recovery industry on Capitol Hill, sponsoring annual events and meetings that are attended by members as well as state association officers and leaders. TRAA also produces an array of educational products supporting professionalism in towing and recovery and in business management.

For more information, visit traaonline.com

Golight’s Stryker ST Series Offers an Enhanced Feature Set That Meets and Exceeds Industry Demands

Darian Weaver

Founded in 1994, Golight, Inc. continues to set the industry standard in remote-controlled lighting today. Based in Culbertson, NE, the company has lights in service around the world. New technologies and new models are constantly under development, and Golight remains committed to delivering durable, versatile performance guaranteed. The company pledges to keep its eye on the future while embracing innovations in the lighting industry, to design and manufacture the highest quality products in the marketplace, and to stand behind its products with unparalleled warranties and service. Golight Inc. is proud to announce the New Stryker ST Series.

The Stryker ST Series is the culmination of continuous field studies and voice-of-the-customer research that identified desired functional enhancements across the company’s broad land and marine markets. Some new features in the Stryker ST line include:

Multiple Unit Selector Function: Allows for independent control of 2 units with 1 remote
Home Position Function: On-Command return to 0° home
New Wireless Technology Benefits including: Simultaneous Pan + Tilt; Multiple users can operate lights in close proximity without interference.
Smart Programming Logic: Quick and simple pairing without dipswitches
Fluorescent Remote Buttons

The Stryker ST’s newly designed remote-control unit is as simple to operate as it is intelligent. Large buttons are easy to access even with gloved hands, and fluorescent iconography makes the controller buttons legible in dark or low-light conditions. Now powered by two regular AAA batteries, the controller is more convenient to maintain than ever.

The Stryker ST comes standard with 12-volt electrical system compatibility and is available with 24-volt compatibility. The lamps come with either LED or halogen light sources.

The LED Stryker ST lamp employs 10 high-flux LEDs, producing an industry-leading 544,000-candela beam projecting to a maximum distance of 4,839 feet. The halogen Stryker ST lamp produces a 225,000-candela beam projecting to a maximum distance of 3,113 feet.

The Stryker ST is available in a permanent-mount model with a stainless-steel mounting bracket and a portable model with a magnetic base. There is also a magnetic base adapter kit that allows users to install a Stryker ST with a magnetic base to a non-magnetic surface, such as aluminum. An optional remote-control holster is also available.

Both LED and halogen lamps come with a five-year unlimited warranty. Like all its products, the Stryker ST Series lamps are supported by Golight’s unparalleled customer service department, which prides itself on accessibility and effectiveness.

For more information, please visit http://www.golight.com.

Industry Report Highlights Adoption of Emergency Lighting In Response to Increasing Roadway Fatalities

Darian Weaver

A 2019 Emergency Responder Safety Institute (ERSI) report stressed the importance of elevating scene lighting.

In the first two weeks of 2020, seven roadway responders were struck and killed by vehicles. That’s seven lives in 14 days with three of those lives belonging to tow truck drivers.

In an era of distracted drivers, tow companies are adopting new emergency lighting and vehicle conspicuity practices to better alert drivers and divert oncoming traffic away from the scene. The Emergency Responder Safety Institute (ERSI) recently released a report summarizing 44 struck-by fatalities of U.S. roadway responders in 2019, the first report of its kind to include mobile mechanics and tow truck drivers among first responders. Another study, analyzing data from the Bureau of Labor Statistics, found that 191 tow workers were killed between 2011 and 2016 with 64 percent of those deaths being attributed to motor vehicle incidents. So, what can be done? As part of the 35-page report, the ERSI suggested several mitigation strategies:

THE IMPLEMENTATION OF APPARATUS TRAFFIC ADVISORS

The ERSI documented a number of organizations that have adopted traffic advisors, lit amber/yellow arrows sticks that improve visibility and give clear direction to approaching motorists. Additionally, the report recommended multi-level or high-rise light systems above obstructing views and to create visibility farther away from the scene. While some advisors utilized directional pulsing light bars, the study found that large arrow boards were especially effective at diverting motorists away from the scene.

Command Light, an industry leader in emergency scene lighting for more than 25 years, manufactures a series of Traffic Flow Boards that can rotate up to 360 degrees, giving drivers the ability to direct the advisor toward oncoming traffic as they position the rig for recovery operations. When not in use, these Traffic Flow Boards fold down for a low-profile design. Command Light offers three different traffic pattern variations powered by 12V DC.

THE USE OF LIGHT TOWERS FURTHER ENHANCE ROADSIDE SAFETY

Traffic flow boards can help divert traffic away from responders.

The report also addressed bright white lights, which often cause glare and visibility problems for crews and motorists when these LEDs are not properly elevated. The report strongly suggests elevating and positioning white light to illuminate only work areas. Light towers are one of the most effective ways to control lighting.

In fact, these towers offer up to 360 degrees of rotation, while the light tower clusters and elevates the light, much like sports stadium lighting, to improve illumination for recovery teams while creating non-glaring light that alerts motorists of the incident ahead. To illuminate dual work areas, Command Light offers optional backlight that enables the bottom row of lamp heads to rotate 180 degrees, and Command Light’s design allows the tower to overhang the vehicle in a streetlight position, directing the light down as suggested by the ERSI report.

Command Light offers more than 20 different DC-powered light towers in varying heights and eight different fixture choices. To see the full tow industry catalog, visit bit.ly/tow-catalog. And to ensure more companies can equip their trucks with a light tower, Command Light commissioned HiViz LED Lighting, a FireTech brand, to create an economical fixture for its Knight Series, Shadow Series, and Straight Shadow models. This LED shaves the cost of a new light tower by 33% while delivering a 14,000-lumen output per fixture.

“We can’t say enough about elevating scene lighting, whether your crew is deploying a traffic advisor or a light tower,” said Roger Weinmeister, Command Light President. “Seven lives in 14 days. It’s unacceptable. The ResponderSafety Team said it best after releasing its ERSI report, ‘We simply cannot wait another day to make this a top priority.’”

The ERSI has made its tracking of 2020 struck-by-vehicle deaths to date available to the public at www.respondersafety.com/FatalityReports. The ERSI also produces ResponderSafety.com and the ResponderSafety Learning Network (learning.respondersafety.com), which offer online training and traffic safety certification programs.

[alert-success]A BLEAK START TO 2020

In just nine days, three tow truck drivers were killed while aiding the public.

In Maywood, Ill., Andre Dove-Ferdere, a 23-year-old tow truck driver, was struck and killed while assisting state police in towing two cars from a crash. He died on the scene. His emergency lights were activated. The incident happened at 6:03 a.m.
In Millani, Hawaii, Aaron Malama, a 43-year-old tow truck driver, was struck while standing next to a stalled vehicle on the freeway. He was transported to the hospital where he later died.
In Watertown, S.D., a vehicle struck and killed Dales Jones, 47, while he was trying to remove another vehicle from a ditch. The incident happened at 8:35 am.[/alert-success]

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