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Indianapolis-based Palmer Trucks moved a dealership about a mile closer to a core set of interstates.
The third-generation family-owned business has moved its business to Kenworth of Fremont at 6503 Old US 27, adjacent to an interchange of I-69 and I-80/90, the company announced last week.
“There are a lot of trucks that run this corridor, and we’re happy to serve them even better now,” Co-President and Chief Human Resources Officer Jacob Nichols told Trucking Dive in an interview Monday.
The business has 12 full-service dealerships, four parts and service locations, and multiple leasing and rental divisions, primarily concentrated in the Midwest.
The business was founded in 1965 by Eldon Palmer, Nichols’ grandfather, and the company’s operations have moved to different locations over the years. The recent move was aimed at taking advantage of the increased yield.
Changes to an existing location are contingent on the real estate market, and Palmer Trucks leases the property, which has yards, an extensive service shop, mobile diagnostics and repair, and aftermarket parts.
“Having parts on hand with increased service bay capacity maximizes truck uptime for local and transient customers along I-69 and the Indiana Tollway,” General Manager JD Miller said in a press release.
The shift comes as the overall vacancy rate in the Indianapolis area rose to 9.3% on an annual basis, according to an industry report by real estate services firm JLL. This is significantly higher than the national vacancy rate of 4.9% and an average application rate that is increasing 15.3% on an annual basisaccording to a third-quarter JLL report.
Carriers meanwhile are considering different strategies amid slowing demand. Nichols said those strategies include longer trading cycles, renovation and new equipment.
Despite the difficulties in the market, the carriers were able to release equipment. The average age of trucks peaked at 5.7 years in 2021 before falling up to 4.7 years in 2022, according to the American Transportation Research Institute. However, many smaller carriers avoided the cost of new equipment because of higher prices, ATRI said in its 2023 Trucking Cost Report.
Despite fluctuations in demand, Palmer Trucks sees its efforts in a broader perspective. “This business is a long-term business,” Nichols said. “And we’re going to invest in it.”