Demand expected to rise for trucks and trailers, says ACT Research

Citing strong second quarter earnings performances for publicly traded truckload carriers as a driver, increased demand for heavy duty vehicles and trailers is expected, according to ACT Research Inc., a provider of data and analysis for trucks and other commercial vehicles.

By ·

Citing strong second quarter earnings performances for publicly traded truckload carriers as a driver, increased demand for heavy duty vehicles and trailers is expected, according to ACT Research Inc., a provider of data and analysis for trucks and other commercial vehicles.

In ACT’s most recent release of the ACT North American Commercial Vehicle Outlook, the firm is calling for full-year production of Class 8 vehicles to be up 26 percent—at roughly 150,000 vehicles—over 2009, with solid growth into 2011, too. ACT also said that commercial trailer production will increase by 47 percent this year.

“Based on our modeling and anecdotal evidence from truckers, it seems like the supply-demand imbalance, which has been tilted away from truckers for the last four years, has gone back to truckers…and we don’t see that abating,” said Ken Vieth, ACT partner and senior analyst, in an interview. “This makes things worse for shippers and better for truckers in coming quarters.”

At current levels, Vieth said truck and trailer production is positioned to ramp up as fast as demand is. And with capacity still tight and current fleets aging in conjunction with a potential stretch of increased truckload earnings there could be some staying power for future truck production, he said.

ACT reported last month that unit sales for used commercial vehicles were up 43 percent year-over-year in July. ACT noted that average truck prices continued to move slightly higher even though there was a modest increase in average age and miles of sold units.

“The average mileage of used Class 8 trucks sold in July rose above trend due to a higher than average number of older trucks being wholesaled,” said Steve Tam, vice president-commercial vehicle sector with ACT, in a statement. “Anecdotal evidence suggests a shortage of late model, low mileage equipment. This trend will likely continue for several more months until new truck purchases increase and bring in equipment that sat idle during the economic slowdown,” added Tam.

ACT reported last week in its most recent edition of “State of the Industry: U.S. Trailers” that dry van trailers in July were up 134 percent year-over-year, while net orders in July—at 10,688—were 9 percent below June levels.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Running Your Supply Chain with Greater Efficiency
Is your company’s supply chain piled high with more products, suppliers, and trading partners than you can keep track of efficiently?
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....