RECRUITING SOFTWARE CAN INCREASE TRUCK DEALER VALUE

 CHICAGO, May 5, 2022 /PRNewswire/ -- Chicago technology company Celectiv has started adding heavy-duty truck dealers in the United States as users of its recruitment software.

"The war for talent is fought market by market," Greg Carrott, Celectiv's CEO, said.

Celectiv software focuses hiring decisions on metrics that drive performance. "It guides clients to think critically about their business and the talent required for success, now and in the future," Carrott said.

Celectiv uses Madison, Wisconsin, as an example. The average American commutes 16 miles one-way to work, making it unlikely a dealer can attract technicians from outside Madison.

There are at least six heavy-duty truck dealers in the Madison MSA, 12 farm and construction equipment dealers, four diesel-engine dealers, and six technical colleges.

"That's a well-defined market of 500 technicians, and Celectiv provides the tools to cherry-pick the best talent," Celectiv's Alex Farrell said.

"31 percent of service technicians turnover each year with even higher turnover among younger technicians. It is the ability to make the best decision quickly that matters," he added.

Celectiv software assesses candidates on culture fit, conscientiousness, and mental ability. The platform uses a drag-and-drop dashboard to manage searches.                          

There's a patent pending for the software, including a proprietary database. Celectiv provides behavior-based interviews that leverage work Nobel laureate Daniel Kahneman first did for the Israeli Defense Forces.

According to the National Automobile Dealers Association (NADA) truck division, parts and service account for one-third of a dealer's revenues but 80 percent of its gross profits. Capacity utilization of the service bays drives dealer performance.

NADA numbers suggest that lost revenues from the average six-week search for a service technician amount to $111,262.

The franchise's value depends upon capacity utilization, Carrott and Farrell emphasized. Service bays now run at approximately 80 percent utilization at best. An NYU study found dealers selling at 13 times EBITDA. Therefore, there could be $1 million of foregone valuation when dealers do not reach their full potential.

"Decisions add up as dealers battle for talent. We are agnostic as to the badge on the dealer but offer a dealer exclusivity in its geography. We can only serve one dealer in a market, and we want them to thrive," Carrott said.

SOURCE Celectiv