Private fleets and for-hire carriers are looking to replace older trucks with newer, more efficient units. However, several factors are forcing longer wait times from OEMs to complete orders for new trucks and move them into service.
by BRIAN HOLLAND
The trucking industry is facing an interesting dilemma as 2018 matures into the second quarter. Many private fleets and for-hire carriers are now looking to replace older trucks with newer, more efficient units. However, several factors are reaching a boiling point forcing longer wait times from Original Equipment Manufacturers (OEMs) to complete orders for new trucks and ultimately move them into service.
Freight volumes are near all-time high levels, particularly as retailers look to restock shelves after a healthy holiday shopping season and online shopping continues its heated pace. According to the Federal Reserve in a report by The Wall Street Journal, industrial production had the largest year-over-year gain since 2010 this past December, meaning there’s more demand to ship goods across the country.
According to ACT Research, sales of Class-8 trucks jumped 59 percent to 296,440 vehicles in 2017. The firm estimated that manufacturers will receive orders for 305,000 Class-8 trucks in 2018, which would be a 19 percent gain. However, transportation intelligence provider, FTR Transportation Intelligence has raised its 2018 production forecast to 330,000 vehicles. Along with the healthy economy, recent changes to the corporate tax rate have incentivized firms further to replace trucks.
For the complete article click here: