ACT Research: CV Industry Continues to Face Strong Demand and Capacity Constraints

ACT Research: CV Industry Continues to Face Strong Demand and Capacity ConstraintsIn the release of its Commercial Vehicle Dealer Digest, ACT Research reported that despite rock-solid demand across the spectrum of forward-looking medium and heavy-duty vehicle market indicators, industry capacity remains range-bound across a broad front of supply-chain constraints.

The report, which combines ACT’s proprietary data analysis from a wide variety of industry sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report includes a relevant but high-level forecast summary, complete with transportation insights for use by commercial vehicle dealer executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the total US trailer market, used truck sales information, and a review of the US macro economy.

Regarding industry constraints, Kenny Vieth, ACT’s President and Senior Analyst, noted, “Ripples from pandemic-driven changes to economic relationships (WFH, PCE-goods) are still being felt in the form of constraints that are not localized and are beyond the CV industry’s ability to drive solutions.” He added, “The explosion in demand for goods (semiconductors, steel) during a period of contagion has led to pandemic-driven failures in a globally reliant web of interrelated manufacturing supply chains. Scaling complex global networks when demand is booming during a period of supply constraints, globally, has proven inadequate to the task pandemic-to-date.”

About how these constraints have impacted industry build and ACT’s forecasts, Vieth commented, “Despite green lights, the everything shortage has left industry build rates stuck in neutral - on an incline. In October’s round of ACT truck and trailer statistics, aggregated NA Classes 5-8 and US trailer industry build rates slipped 2% from September. That decline continued a trend of incremental build rate contractions through 2021.” He added, “It appears the industry is likely to begin 2022 with still unfinished 2021 units. If you have parts on all those ‘built, but not built’ units, some adjustment will be required to align your 2021-2022 output with reported and forecast data.”

ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.

ACT’s 66th Seminar is scheduled for February 22-24, 2022. Focused on the continuous evolution and advancement of autonomous and powertrain technologies in the transportation and commercial vehicle markets, OUTLOOK Seminar 66 will feature key industry leaders from Ford, Transplace, TuSimple, and the EPA, with more being added to the agenda. February’s event features three panels (US Economics, Trucker & Transportation, and Autonomous Ecosystem), as well as a fireside chat with the EPA, discussions about fleet decarbonization, electric vehicle forecasts, and reviews of freight/transportation, Class 8, Classes 5-7, the US used truck and new US trailer markets. For information about OUTLOOK Seminar 66, click here

ACT’s commercial electric vehicle study, Charging Forward: 2020-2024 BEV & FCEV Forecast & Analysis, was published on March 31, 2021, after months of extensive research. Utilizing industry expertise and analysis, as well as the input from a comprehensive list of key industry study participants, ACT Research has developed a critical guide for battery electric and fuel cell electric unit build and sales forecasts over the next two decades. With coverage of Classes 4-8 commercial vehicles, ACT has identified 14 market subsegments and more than 20 application types; this one-of-a-kind report is a must-have for those investing or investigating electric power opportunities. To learn more or to purchase this report, click here

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