Executive Briefings

Greater Demand Seen for Commercial Trucks Due to Economy Looking Up and Capacity Evening Out

Improving trends in the economy and the onset of capacity tightening in the truckload sector continue to point to stronger demand for commercial vehicles late in 2010 and into 2011, according to ACT Research Co., a leading independent source of analysis in the market for trucks and other commercial vehicles.

In the latest release of the North American Commercial Vehicle Outlook, ACT continues to project heavy-duty (Class 8) vehicle production will grow 19 percent year-over-year in the second half of 2010 before ramping up significantly to 77 percent growth in 2011. Medium-duty vehicle (Classes 5-7) production, which is largely tied to the health of housing and construction, is expected to see a more steady and gradual increase in production, growing 20 percent in 2010 and 30 percent in 2011.

"The sequence of events required to put commercial vehicle production on more solid footing continues to advance as expected," says John Burton, vice president-transportation sector with ACT Research. "Our trucking surveys are showing improving trends in volumes and pricing and our used-truck analysis has shown modestly firming values for several months. All indications point to capacity tightening in the truckload sector by mid-year, which will drive improved profitability and lead to replacing an aging fleet," added Burton.

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Improving trends in the economy and the onset of capacity tightening in the truckload sector continue to point to stronger demand for commercial vehicles late in 2010 and into 2011, according to ACT Research Co., a leading independent source of analysis in the market for trucks and other commercial vehicles.

In the latest release of the North American Commercial Vehicle Outlook, ACT continues to project heavy-duty (Class 8) vehicle production will grow 19 percent year-over-year in the second half of 2010 before ramping up significantly to 77 percent growth in 2011. Medium-duty vehicle (Classes 5-7) production, which is largely tied to the health of housing and construction, is expected to see a more steady and gradual increase in production, growing 20 percent in 2010 and 30 percent in 2011.

"The sequence of events required to put commercial vehicle production on more solid footing continues to advance as expected," says John Burton, vice president-transportation sector with ACT Research. "Our trucking surveys are showing improving trends in volumes and pricing and our used-truck analysis has shown modestly firming values for several months. All indications point to capacity tightening in the truckload sector by mid-year, which will drive improved profitability and lead to replacing an aging fleet," added Burton.

Read Full Article