In the release of its Commercial Vehicle Dealer Digest, ACT Research reported that there is much to like about the current state of the US economy, as well as from both freight and commercial vehicle demand perspectives.
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.
“From an economic standpoint, GDP growth is strong, consumers continue to spend at a relatively higher rate on goods, and other freight-intensive sectors remain the primary drivers of economic activity,” said Kenny Vieth, ACT’s President and Senior Analyst. He continued, “This leads to the view we have from our freight-perspective glasses: Spot freight rates continue to post new record levels and are currently inverted above contract rates, a clear signal that contract rates will continue to rise. Additionally, low business inventories and backed-up ports on both coasts have created a backlog of freight, providing excellent forward visibility of ongoing strong demand for freight services.”
Vieth elaborated about how these two considerations impact commercial vehicle demand, “Combining record levels of freight demand with the constrained ability to bring supply to bear, carrier profitability is projected to rise to record levels in the coming quarters, and as we’ve often opined, fleets buy, or at least order, equipment when they are making money.” He concluded, “Orders for medium-duty trucks, heavy-duty tractors, and trailers remain elevated, and with demand hot and production constrained, backlogs are extended beyond traditional ranges.”
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.
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