The Vanishing Distribution Channel: A Candid Look at Dealer Challenges

Learning Without Scars

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Troy Ottmer brings a unique perspective to the equipment and commercial truck industry that few consultants can match. Having started as an automotive technician in 1987, Troy deliberately worked across every dealership department, developing a comprehensive understanding of how each function impacts the whole. This hands-on experience across automotive, construction equipment, forestry, ag, medium and heavy-duty trucks gives him insight that's increasingly rare in today's leadership landscape.
What makes this conversation particularly valuable is Troy's analysis of the fundamental shifts reshaping the distribution channel. He highlights how the medium-duty truck segment is booming while industry analysts remain fixated on Class 8 freight tonnage - a blind spot creating both challenges and opportunities. Troy's description of Amazon's strategy to place multiple distribution centers within minutes of population centers reveals how last-mile delivery is transforming logistics networks.
Perhaps most provocative is Troy's challenge to conventional industry metrics. While dealerships have traditionally targeted 100% absorption rates, Troy argues that return on assets (ROA) represents a more meaningful measure of business health. His benchmark of 50% ROA - achieved by turning assets five times annually - provides a revealing contrast with rental companies who consistently hit this target while many dealerships struggle.
The conversation takes a concerning turn when discussing workforce development. With reading comprehension at grade level for only 32% of fourth-graders and America facing a projected shortage of 3.8 million employees by 2033, the industry confronts a looming crisis that technological advances alone cannot solve. Troy's work with high schools and OEMs to develop vocational education programs represents an essential response to this challenge.
Whether you're a dealer principal, department manager, manufacturer representative, or customer, Troy's insights offer valuable perspective on navigating industry transformation. His practical experience combined with strategic vision provides a roadmap for those willing to evolve rather than cling to "we've always done it this way" thinking. How might your organization benefit from this kind of candid, experienced-based assessment?

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Chapters

1. The Vanishing Distribution Channel: A Candid Look at Dealer Challenges (00:00:00)

2. Meeting Troy Otmer: Industry Veteran (00:00:40)

3. Career Journey Through Different Departments (00:03:36)

4. Medium-Duty Trucks and Market Evolution (00:07:04)

5. Change in Distribution Channel Models (00:10:33)

6. Customer Service Failures and Priorities (00:16:41)

7. Return on Assets vs. Absorption Rate (00:25:03)

8. Salespeople as PR Clerks (00:34:21)

9. Human Assets on the Balance Sheet (00:43:02)

10. Workforce Education Crisis and Future (00:53:13)