C.J. Driscoll & Associates has released a new multi-client study covering interest of U.S. trucking fleet operators in trailer monitoring systems and services. The Trailer Monitoring Systems and Services Study assesses trucking fleet operators' interest in tracking the location and status of fleet trailers and willingness to pay for trailer monitoring equipment and services.

With nearly five million commercial trailers operating in the U.S., many trucking fleets have difficulty keeping track of the location and status of fleet trailers. However, only a small percentage of trucking fleets have invested in GPS-based systems that automatically report trailer locations. The Trailer Monitoring Systems and Services Study determines the willingness of trucking fleets to invest in trailer monitoring systems. It also assesses whether or not trailer monitoring is poised to be a major growth market for GPS and wireless application providers.

The Trailer Monitoring Systems and Services Study was partially funded by seven companies, including most leading U.S. suppliers of trailer monitoring systems. Sponsors of the study included Aether Systems, GE Equipment Services, QUALCOMM, SkyBitz, SkyTel, Terion and Transcore.

This comprehensive study, conducted in the third quarter of 2004, was based on executive interviews of 168 trucking fleet executives. These telephone interviews were conducted by Clem Driscoll and Mike Sheldrick, the principals in the study. The survey evaluates interest of truckload carriers in monitoring trailer location and status, including arrival and departure status, load status, door opening, trailer hooked/unhooked, and geofencing alerts. Fleet operators reported their willingness to pay for trailer monitoring systems and services, and the likelihood that they would purchase trailer monitoring systems in the next 18 months.

Study Provides Answers to the Following Questions

• Are trucking fleet operators aware of any trailer monitoring system suppliers? If so, which suppliers?
• What types of fleets are currently using trailer monitoring systems?
• Why did they purchase the systems?
• How did they select the supplier?
• How satisfied are they with these systems?
• Which trailer-monitoring features are of greatest interest to fleet operators?
• Aside from system cost, what do fleet managers consider the most important factors in the selection of a trailer monitoring system supplier?
• What percentage of trucking fleet operators would pay for trailer monitoring systems and services?
• How much will they pay for equipment and services?
• Will some fleet categories pay more than others?
• What is the likelihood that fleets will purchase trailer monitoring systems in the next 18 months?
• Which types of fleets (i.e. truckload, LTL, private, hazmat carriers, high-value carriers) are most interested in trailer monitoring systems?
• Which fleet segments offer the greatest market opportunity?
• How do factors such as fleet size and the trailer-tractor ratio affect interest in trailer monitoring?
• Do fleet managers prefer "tethered' or "untethered" trailer monitoring?
• Do fleet managers prefer satellite or terrestrial communications for trailer monitoring?
• Are trucking fleets that use vehicle tracking systems for their tractors more interested in trailer monitoring than other fleets?
• Do these fleets favor their current vehicle tracking system supplier for trailer monitoring?
  
• Are fleet managers tied to legacy suppliers or are they open to products from newer entrants?
• How important do fleet operators consider the capability to integrate their trailer monitoring system with their fleet management or dispatch software application?
• Which fleet management or dispatch software applications do they use?
• How often do trucking fleet operators want to receive information from a trailer monitoring system?
• Is real-time data necessary, or are periodic updates sufficient?

Nationwide Telephone Survey

The telephone interviews of 168 U.S. trucking fleet operators were conducted by principals in the study. The survey questionnaire was drafted by C.J. Driscoll & Associates and also incorporated questions submitted by charter subscribers to the study. Fleet manager interviews were 30-40 minutes in length, and included many open-ended questions designed to determine the reason behind the respondent's answers. Each respondent received a $50 gratuity for participating in the study.

Participants included a broad cross-section of trucking fleet operators throughout the U.S. The survey included a representative sample of large fleets with 500 or more trailers, as well as mid-size and smaller trucking fleets. Truckload carriers, less-than-truckload (LTL) carriers and private fleet operators provided their opinions on the value of trailer monitoring systems for their fleet operations. Fleets transporting hazardous materials, high-value goods and perishable (refrigerated) goods reported on the potential benefits of trailer monitoring systems for protecting their cargo.

As shown in the following chart, 60% of the survey participants stated that they would be willing to pay for trailer monitoring equipment and over two-thirds (70%) reported that they would pay a monthly fee to monitor the location and status of fleet trailers. These respondents also stated the amount they would pay for monitoring equipment and services. Many of those who did not confirm a willingness to pay stated that they would have to study the potential return on investment, or confer with other members of management, before deciding how much they would pay for equipment and services. The report includes the specific amounts fleet operators indicated they would pay for trailer monitoring equipment and services. It also compares willingness to pay based on criteria such as fleet size, fleet category, types of goods transported (e.g. hazmat or high-value goods) and current use of vehicle tracking systems for fleet tractors.

The following chart shows the percentage of survey participants that indicated strong interest in monitoring the location of trailers, arrival/departure alerts, geofencing for security, or remote monitoring of trailer tire condition. Among a total of eleven trailer monitoring system features tested, monitoring the location of trailers was the highest- rated feature, with 86% of the sample rating this feature a "4" or a "5" on a scale of 1-5. (On the 5-point scale, a rating of "5" indicates extremely interested and a rating of "4" indicates very interested).

The report includes interest ratings for other trailer monitoring system features including load status, door open/closed, hooked/unhooked, tractor ID, and trailer temperature.

Other key findings of the report include:

• Both aided and unaided testing showed that trucking fleet operator awareness of most trailer monitoring suppliers is low
• Among surveyed fleets currently using a trailer monitoring system, the satisfaction level is high (3.7 on a 5-point scale).
• Over half the survey participants (60%) stated that they would be willing to pay a higher price for a trailer monitoring system that will monitor untethered trailers as well as trailers that are hooked to the power unit (tractor). The need for untethered trailer monitoring is particularly prevalent among large truckload carriers that "drop" trailers in customer yards and other locations.
• Among the 168 trucking fleets participating in the survey, those that plan to purchase a trailer monitoring system in the next 18 months reported that they will install monitoring equipment on nearly 100,000 trailers.

Detailed Report

The 85-page report of the research findings includes the following sections:

• Overview of the study, including objectives and methodology
• Executive summary of the key findings
• Conclusions of the research
• Detailed report on the findings of the nationwide survey

Subscribers may purchase a complete package of the survey findings, including the detailed report (paper and electronic copies) and an Excel spreadsheet listing all survey participants and their responses to each question. Alternatively, the detailed report may be purchased separately.

Optionally, subscribers to this study may schedule an Executive Presentation of the findings, given by one of the authors of the study.

C.J. Driscoll & Associates, formed in 1993, is a leading marketing consulting and research firm with broad experience in fleet vehicle location, consumer telematics and other wireless location-based products and services. In 2003, C.J. Driscoll & Associates released the U.S. Fleet AVL Market Study, which is among the most widely used industry studies on the current and projected market for fleet vehicle location systems. The Commercial Telematics Systems and Services, released in September 2003, confirmed U.S. fleet operator interest in a wide range of telematic services and in new ways to access services, such as GPS-capable cellular phones. The company's affiliate, Driscoll-Wolfe Marketing & Research Consulting, recently released its seventh multi-client study on U.S. consumer interest in location-based services and telematics, sponsored by leading auto manufacturers, cellular carriers and technology companies.