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ACT Research: COVID-19 Impacting CV Markets, but What’s Next?

Posted by Jennifer McNealy on Apr 24, 2020 9:33:06 AM

According to ACT Research’s recently released Transportation Digest, the pervasive negative impact of the COVID-19 pandemic has forced a major downward shift on ACT’s views of the heavy duty market for 2020. However, the report also discusses what might happen next for the economy and by extension, the transportation industry.

special offerIn recognition of the virus’ impact, ACT Research has created an easily accessible COVID-19 MARKET WATCH webpage to track noteworthy high frequency macroeconomic and transportation-specific market indicators, which can be found at https://pages.actresearch.net/covid-19.

The report, which combines proprietary ACT data and analysis from a wide variety of sources, paints a comprehensive picture of trends impacting transportation and commercial vehicle markets. This monthly report is designed as a quick look at transportation insights for use by fleet and trucking executives, reviewing top-level considerations such as for-hire indices, freight, heavy and medium duty segments, the US trailer market, used truck sales information, and an overview of the US macro economy.

animation (36)“While we believe activity will reach bottom sometime in the second half of 2020 and be followed by recovery, that view is tentative and tenuous, as any scenario is dependent on the trajectory of the disease,” said Kenny Vieth, ACT’s President and Senior Analyst. He added, “The timing and slope of a recovery process is highly uncertain and while services took the hardest initial hits in early March, the shutdowns have spread into freight-intensive goods-producing sectors, like energy, manufacturing, and construction.”

Vieth continued, “Low-margin necessities crowded out higher margin items during the pantry-stocking phenomenon we saw in March, supporting transportation volumes and freight rates during that logistics scramble to fill channels, but that was last month.” He further explained, “ACT believes rising unemployment, falling profits and incomes, and COVID-triggered risk-aversion will determine consumer and business behavior. If so, we are on the threshold of a steep fall that will mark the second quarter as the worst for the North American economy since the Great Depression of the 1930s.”

Vieth is, however, cautiously optimistic, noting, “While a sharp decline can be followed by a sharp rise thanks to pent-up demand, it is also important to note that reviving shuttered production and recalling the labor force will require unprecedented steps to ensure safety.”

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 63rd seminar is scheduled for August 11-13, 2020, and will feature dealer, alternative power, and economic panels, as well as discussions on near-term demand of North American commercial vehicle markets and the pending impact of alternative power on the market in the near future. Both in-person and livestream options are available for those who wish to participate.

Click below to:

Get seminar information.

Access information about ACT’s Transportation Digest.

Get more information about additional ACT’s Transportation Publications and Services.

Access the previous Transportation Digest Press Release. 

Access ACT's COVID-19 Market Watch.

Access In the News Page.

Topics: freight, Press Releases, Transportation Digest, medium duty truck, commercial vehicle sales data, north american trucking, american truck and trailer, commercial truck and trailer, transportation industry news, trucking, heavy duty truck

About ACT Research

We're the leading publisher of industry data, market analysis, and economic forecasting services for the commercial vehicle and transportation industries.

2019 Lawrence R. Klein Award Winner: Most Accurate Economic Forecast 2015-2019

  Partner to LMC Automotive and the Chinese State Information Center

  Contributor to the Blue Chip Financial and Wall Street Journal Consensus Economic Forecast


 

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