December 2019 | June 2020 | December 2020 | June 2021 | December 2021 | June 2022 | December 2022 | June 2023
Greetings and welcome to our December 2023 Maxim Messenger Employee Newsletter.
Well, we have seen some unique and interesting times from Covid and the impact that it has had on our business. It wreaked havoc on the supply chain which hugely affected supply and demand. The constant turbulence we are still experiencing today all started way back in March 2020. I lead with that because it might sound somewhat repetitive when I thank our valued employees for going above and beyond to do the best that they can to satisfy the needs of our customers, both internally and externally. The circumstances for some of the challenges have been unprecedented and it makes me extremely proud when I hear stories about how the Maxim Team has stepped up to do what they can to work through the adversity that we are faced with on a day-to-day basis.
We have welcomed many new employees to Maxim this year. At the New Staff Orientation, I always talk about the value of Continuous Improvement and working to “be better today than we were yesterday.” As we continue to navigate the many challenges, it is important to note that we are always looking for opportunities to create efficiencies in our operations and increase sales and revenue to grow our business in the future.
With the cost of business operations continuing to rise, the Senior Leadership Team forecasted a tougher year for our financial results compared to last year. While our sales results were flat through Q1 & Q2, our expenses increased 3.3% higher than forecast and 8.5% higher than the prior year. This combination resulted in our financial results being below forecast for the first half of the year. The outlook for Q3 & Q4 is similar to what we have seen thus far, and our teams will continue to exhaust all opportunities to drive sales and efficiencies for the balance of the year.
We always like to recognize performance and our Top three Branches for financial performance and Top three Branches for year-over-year improvement were:
Top 3 Performing Branches Overall | Top 3 Most Improved Overall |
1. Winnipeg Trucks | 1. Collision & Recycling |
2. Regina | 2. Regina |
3. Edmonton | 3. Vancouver |
I have previously mentioned always being “On the Lookout” for good people and the opportunities available through the Employee Referral Program (ERP) and I would like to thank all those employees that referred good people to Maxim through the first half of the year! There are some referrals that work out and some that don’t, but the fact that you contributed to making a difference for the Maxim team is fantastic! We had a record number of people referred through the ERP and I’m sure Lisa will share more in the People & Culture section of the newsletter.
I am delighted to share that on December 7th we hosted our annual Pancake Breakfast in support of the Christmas Cheer Board. It makes me proud that our event raised $36,495 for a great cause. I am extremely proud of the Maxim team of employees who volunteered (over 70 people) to make this event a success. There are many people required to make this event happen and I would like to thank-you for making a difference and Giving Back to help support people in need. Thank-you!
As you hear and see in the news, Food Insecurity and people in need is at a top priority in our communities. I am proud to share that for a company-wide initiative, we have donated $50,000 to 10 local food banks ($5,000 each) in the cities and communities that we do business in. It is a blessing to be able to contribute to the efforts of the local food banks and those that work tirelessly to help meet the needs of those less fortunate.
And lastly, Maxim is proud of our ongoing relationship and support of the Live Different organization. They are a charity working to give hope and make a difference in the area of youth mental health, including reaching youth in remote First Nations communities. See a recent video HERE for more information.
Wishing all of you and your families a Merry Christmas & Happy New Year!
Sincerely,
The purpose of this memo is to give you all a quick update of how Maxim Service and our Fleet Maintenance Group fared since our last newsletter (in June 2023).
Service Financial Results
Service finished the first half of Fiscal 2023-24 with financial results down from the same period last year by 39%. The majority of this variance is made up by a significant increase in expenses versus the same period last year.
On that note, there are some branches that deserve specific mention due to their financial performance in the first half of the year.
Top 3 Performing Branches | Top 3 Most Improved Branches |
1. Winnipeg Trailers | 1. Winnipeg Body Shop |
2. Winnipeg Body Shop | 2. Edmonton |
3. Winnipeg Southside | 3. Montreal |
Closing of Branch F (Reimer)
In July 2023, YRC Reimer shuttered their Dorval, Quebec (Montreal) maintenance facility, ending a 25-year business partnership between the trucking company and Maxim. This closure was related to the winding down of the larger, U.S. parent company, and the relationship between YRC Reimer’s Canadian Operations and Maxim remained strong right until the end.
While this is an unfortunate turn of events, Maxim was able to accommodate all impacted employees at its Anjou (East Montreal) facility.
Fleet Maintenance
The combination of a slight improvement in Parts Supply Chains (resulting in less equipment downtime), and our ability to replace some ageing Lease and Rental Units with new trucks, meant that the overall maintenance costs for our fleet came down versus the same period last year.
On top of this, due to an improved technician count at Branch M (Montreal) we were able to do more of our own maintenance work in-house, rather than sending equipment to our service partners in the Montreal area.
Finally, the Central Fleet Maintenance team saw some improvements over the first half of our year with Eddie Bianchi being named the CFM Supervisor, as well as the welcome additions of both Dylan Dunbar and Owee Andres (CFM Advisors).
These additions mean we are heading into the winter months with a full complement of CFM Advisors to support our customers and our fleet.
People
Included below is an update related to retirees, new employees and changes in key positions since our last newsletter:
Retirees
Transfers & Promotions
Truck/Trailer Technicians
Central Fleet Maintenance (CFM)
Mechanic Helpers
Service Writers/Warranty Administrator
Yard Persons/Washbay
Congratulations to all of you and we appreciate you taking on these new challenges within Maxim!
Closing
Maxim continues to be a leader in our industry, and it is only through the dedication and commitment of all of you that this success is possible. For this, I am deeply thankful.
Finally, I hope each of you get a chance to enjoy some time with friends and family over the upcoming holiday period and I look forward to working with you all in the New Year!
Sincerely,
Kyle Cuthbert, Senior Vice President of Service & Operations
For our sales and financial results at the halfway point, Parts finished behind last year’s results, after having three consecutive years of growth. We fell behind the prior two years’ results for profit. Our sales are down year-over-year for the first time since 2020. The shift from covid times has changed and we are now back to a supply and demand situation. Customers are less willing to “stock up” and the supply has not adjusted to the demand yet, which has given our customers more options and has resulted in a loss of sales as well as decreased margins.
Our top three branches for overall performance and our top three branches for year over year improvement are:
Top 3 Performing Branches | Top 3 Most Improved Branches |
1. Winnipeg Main | 1. Prince Albert Trailers |
2. Winnipeg Trailers | 2. Montreal |
3. Regina | 3. Saskatoon |
Staffing
We had an unusual loss of staff and had to fill some roles; in some cases, we can promote from within but in others we must look outside for suitable applicants with relevant experience.
Some of the positions we filled in the past 6 months are:
We also hired new employees for various warehouse/Admin positions throughout our Branches Canada wide:
I would like to thank our whole team for their efforts in the past 6 months and I appreciate everyone putting their best foot forward and making sure we get back on track and making this another successful year for Maxim Parts.
Head Office Warehouse changes in past 6 months
We finalized both phases of the head office warehouse transition which allowed us to gain 224 pallet spaces within our existing footprint. The overall investment, which included a new stand-up forklift, a new sit-down forklift along with all the warehouse racking came to $130,000. We invested in this change as the HQ branch sells an average of $2.35M per month. They also Interbranch about $447,000 per month. That means they are moving around $2.8M a month or $33.6M a year in parts inventory. The average monthly inventory in HQ is around $6.12M. That equals about 46% of the inventory being moved out each month, and then received back in to do it all over again.
Another key piece to this plan was to invest in two additional staff members on the newly developed evening/night shift. These investments will help provide better customer service to both internal and external customers - along with streamlined processes and less clutter in the aisles. Our end goal was to have a safer and more efficient workspace for our employees that allows us to give the best service possible.
Outside Sales Team
I would like to highlight our top 3 outside sales people for the first half of this year:
Our Outside Parts sales team has accounted for 52.7% of our overall sales, this is the highest percentage that has been attributed to our outside sales since we started keeping track. If we want to have future success, we will have to continually improve and grow this number. We know having people out there asking for sales is the easiest way for us to grow overall.
We have switched our GPS and Route optimization into the SYNNRG platform. I am very pleased to have an in-house program that will allow our Outside Parts Sales team to optimize their time with our customers and grow their relationships. Now that we have a year’ experience behind us, I feel we better understand the capabilities, but we need to ensure we are continually improving the use of this program and utilizing all the information available to us. This tool helps us better manage the day-to-day activities and make the best use of our programs and more importantly our people.
I would like to thank our entire Parts team for your professionalism, commitment, and dedication to our customer’s day in and day out.
Thank you and I wish you all a great holiday season.
Steve Young, Vice President of Parts
The Sales, Lease and Rental Division’s (SLR) first half financial results are ahead of forecast but behind the previous year’s results. Last year’s results were an historical high for SLR and going into this year we knew it would be very difficult to repeat that considering the market was facing some slow down. Nevertheless, our sold on-order boards continue to remain strong and the demand for used equipment continues to create good gross profit as new equipment is still difficult to get and wait times have not improved from the past year – especially for new trucks.
Our sales team across the country continues to do a great job selling equipment as production delays and supply chain constraints continue to disrupt our industry on the new equipment side.
Our top three branches for overall performance and our top three branches for year over year improvement are:
Top 3 Performing Branches | Top 3 Most Improved Branches |
1. Edmonton | 1. Winnipeg |
2. Regina | 2. Edmonton |
3. Thunder Bay | 3. Vancouver |
Truck sales
First half results are 36% ahead of forecast and 15% behind last year. The top three segments leading the way are Used, Severe and Medium duty trucks. Used truck results are currently 34% ahead of forecast and 11% ahead of the prior year.
Maxim has been a Navistar Certified Electric Vehicle dealer for over a year now. Some of the highlights since last year have been the sale of two eMV units to Sask Power (see photo of one of the fully electric bucket trucks below) and a completed 12-month customer pilot demo with Gardewine Transport. The demo truck at Gardewine performed very well through some tough Manitoba conditions, both hot and cold. The feedback from the customer was positive. We are currently in the process of reviewing the data collected to help us learn more and to show our customers the value and performance of battery electric vehicle (BEV) technology.
Trailer sales
First half results are right on forecast and 6% above the prior year. The trailer division has seen the biggest change year-over-year with the current market. The division went from having very limited inventory production available, which created a very strong order board, to now having inventory levels that are a top priority to sell due to equipment cost and increased floor plan expense. We had a strong first half, and we will be diligent in the second half to create opportunities to sell, sell, sell, and reduce our new trailer inventory.
I spoke to you last year about Maxim adding Deloupe trailers to our trailer product offering and we have seen a strong demand and our sales teams have done a great job in marketing it to our customers and creating good awareness and energy which has given us a great start with our current sales being above forecast for the first half of the year.
Rental
Margin results continue to remain strong at 47% ahead of forecast but behind the prior year by 22%. We have slowly seen some new units arrive to replace older, higher mileage units that have been in service longer than we had anticipated but we still have more to come, and production delays continue to slow that process down.
Full-Service Lease
Strong margin results have the Leasing division 85% ahead of forecast and ahead of the prior year by 30%. The past year’s production delays have caused a lot of frustration with our customers and with our account managers. This year’s first half results saw eleven more units delivered than forecast, which has improved the overall results year over year. Are we happy with the results, YES, but at the same time we still have more units to order and deliver when the production becomes available.
Maxim Excellence Club
We currently have thirteen sales reps on pace to achieve Maxim Excellence Club status. All account managers need to continue to stay in front of your customers and provide great service and solution needs. I am looking forward to seeing all of you achieve MEC by the year’s end.
After wrapping up a record year for SLR last year and with a solid start we had this year, now more than ever we need all our sales teams engaged, energized and in front of our customers, ready to finish the year strong. There will be some challenges ahead but let’s not forget the success we have had when we all work together as a team. We set the stage with a good start and now we need to continue to push for a strong finish. I thank you all for your efforts and I am excited for the back half of the year.
I want to wish you and your families a safe and happy holiday season and nothing but health and happiness in the new year.
Take care,
Ryan Sapach, Vice President of Sales/Lease/Rentals
In the first six months of this fiscal year, we have seen a marked decline in the number of inbound and outbound leads that the Marketing group was able to generate on behalf of the outside sales team. This was in contrast to 2021 and 2022, when we experienced an all-time high of leads as low supply and high demand collided to create the perfect environment for a full sales funnel. While it was prudent to reduce our advertising spend during the peak demand period, we are now ramping up our advertising to generate more leads as we once again fight for customer attention.
On a more positive note, the very pronounced spike in our website traffic we saw starting in late 2020 has been and continues to be a real highlight. While the massive growth in organic traffic has leveled off, we are not seeing any decline. When we compare our traffic to the websites of virtually every other heavy-duty dealer in Canada (and many in the US), we are head and shoulders above the vast majority when it comes to visitors to our website. This affirms our strategy to focus on digital marketing.
Our decision in 2020 to add virtually our entire Parts inventory to our website has played a big part in our rise in web traffic. While the parts ecommerce from our website is still a very, very small portion of our overall parts sales, it is profitable and growing. And the Google search success we’re enjoying because of our parts pages has a significant spillover effect to all our other divisions.
Still with online, our YouTube channel now has over 2,200 subscribers and in just the past six months, we’ve had over 60,000 YouTube views and 1,500 watch time hours of the videos created and posted on our channel. The vast majority of the videos on our YouTube are filmed, edited and voiced by our very own Matt Alcock who is closing in on Mr. Beast’s YouTube popularity.
And lastly, I want to give a heartfelt thank you to Bob Milton who officially retired in November of this year due to health reasons. Bob was the founding member of Maxim’s Call Centre way back in 2012. He was also the first Maxim employee to use, test and help train other employees on what is today our Synnrg CRM platform. Over the course of his 11+ years at Maxim, Bob made over 100,000 customer calls that resulted in thousands of sales leads and hundreds of sales. These are very significant contributions to Maxim. For anyone who knows Bob, you’ll likely know that he ended most of his calls with his signature, “I’ll let you get back to being busy” closing line. So that’s a good way to close this update. Enjoy your retirement Bob.
Wishing you all health and happiness this holiday season,
Harry Dornn, Vice President of Marketing
With nearly 500 employees spread across 17 branches from Vancouver to Montreal, it's hard to know everyone at Maxim. For each issue we feature two employees answering our fun Lightning Round questions so you can get to know Maxim employees from other branches. Be ready for when your turn comes for the Lightning Round.
Lightning-fast questions and answers coming from Kurt Pepper in Winnipeg
Lightning-fast questions and answers coming from Boyd Melko in Regina.
Cybersecurity threats are evolving and increasing in sophistication. We are adapting mitigation strategies in response to this evolution. We sincerely appreciate the effort Maxim employees have put in reporting potential cyber threats. We need to be more vigilant than ever! People sometimes think they are wasting IT resources by reporting borderline cyber events. Please never feel embarrassed or afraid to report any potential threats. The most effective phishing emails are dangerous precisely because they appear benign. If you have even the slightest concern about the validity of any email, website , embedded link or any other perceived threat - please do not hesitate to contact the IT department.
The IT/Systems team is increasing our commitment to combating cyber security threats. Cyber-attacks are evolving at an alarming pace and increasing in sophistication. In addition to adapting mitigation strategies in response to this evolution, we will be implementing a new cyber security training program for all Maxim staff. This new program will begin in the new year.
The training platform will be interactive with simulations of actual cyber threats. Certifications will be provided. There will also be supplemental recurring training & certification. We are excited to be engaging with this platform and look forward to helping our staff help us mitigate the impact of cyber security events.
On a happier note, we are pleased to announce that Stefany Bicerra has returned to her role as Systems Support Specialist. She was on maternity leave and returned in September 2023. Welcome back Stefany!
Alan Sealey, Chief Information Officer
HR Team
The HR Department is here to help you with processes, questions and concerns related to: Recruitment, Employee Relations, Employment Legislation, Performance Management, Policy Development, Disability Management, Training & Development and Compensation.
See our HR Personnel Contact list HERE.
Recruitment
Maxim is currently looking for approximately 20 employees at various branches across Canada. We are always looking to hire great people and Maxim is committed to the process of finding the best talent and skill set for the available position.
In January 2023 the Employee Referral program was expanded to include all Maxim positions (previously it just applied to Technician positions). I’m pleased to share this format is here to stay! Refer a candidate for ANY vacant role to Maxim – if they are hired and stay at least six months, YOU will receive up to $1,500! There have been 13 new employees referred so far this fiscal year. So if you know someone who would be a fit for the Maxim team, please let your manager know.
Find open positions at: www.maximinc.com/jobs
Retirements
The individual reports in this Newsletter have mentioned a number of employees who have retired in the past six months. In addition to these, I'd like to acknowledge Barb Harris our Senior Credit Analyst who recently retired after 22 years at Maxim.
Long Term Service Awards
72 employees were recognized with their years of service. Click below to see this year’s list.
Interesting Stats
The average tenure of a Maxim employee is 9.1 years.
The average age of Maxim employees is 43.6 years.
Outstanding Service Awards
Have you noticed excellent internal or external customer service from a fellow employee? Did they go the extra mile, and you’d like to recognize and thank them? Forward your monthly nomination to maximhr@dlhgroup.ca. All nominees receive a $25 gift card, and one will receive a $100 gift card through random draw.
For more details and to see a list recent winners, please visit click here
You will need to be on the Maxim network to view this link.
Employee Assistance Plan (EAP)
The Holiday Season is approaching which can be joyous and fun for many. Some may also experience this as a time of need. If you want to talk to someone that can support you and your family’s well-being, our EAP can help.
EAP is a confidential, short-term, 24/7 counselling service. Masters-trained professionals offer FREE advice and guidance on a variety of topics such as work-life stress, finances, relationships, retirement, and health concerns issues.
Please don’t hesitate to reach out for help.
Call: 877-207-8833 English or 877-307-1080 French
Online: login.lifeworks.com User ID: dlhgroup Password: eap
Have a warm and safe holiday season,
Lisa Parent, Director, People & Culture
COVID-19 update
As we collectively emerge from the challenges posed by the COVID-19 pandemic, the importance of prioritizing our health has never been clearer. At Maxim Truck and Trailer, we believe that a healthy future begins with mindful choices today.
Here are a few simple reminders to guide you on your path to wellness:
Remember, the journey to a healthy post-COVID life is unique to each of us. Small, consistent steps can lead to significant positive changes. As we move forward, let's embrace the opportunity to create a future filled with vitality, resilience, and well-being.
Driving Safely
As the holiday season approaches, we want to emphasize the importance of prioritizing health and safety, especially when it comes to drinking and driving. Celebrations are meant to be joyous occasions, and we encourage everyone to make responsible choices to ensure the safety of themselves and others on the roads.
Here are a few key reminders:
https://www.operationnezrouge.com/en
https://www.operationnezrouge.com/fr/accueil
Safe travels and best regards,
Sincerely,
Jeff West, Health and Safety Manager