According to ACT Research’s recently released Transportation Digest, motor carriers, especially, are enjoying a period of volume growth and pricing power that would have been considered nearly impossible to achieve, though welcome, from an April 2020 vantage point.
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.
“While we were even then projecting a second half 2020 rebound, the slope of the upward trajectory that started in May has been as unexpected as it has been exponential,” said Kenny Vieth, ACT’s President and Senior Analyst. He added, “Final confirmation will come as we make our way through Q3 earnings season, but even now many aspects of the rebound continue to deliver upside surprises.”
Vieth explained, “While severe, the 2020 recession was short-lived for some sectors of the US economy, particularly transportation.” He continued, “The voluntary and mandatory shutdowns of March and April triggered a downturn of unprecedented severity, but the corresponding relaxation has brought a strong revival. Other aspects of this very unique business downturn include easy credit, a substitution of spending on services to goods, lower energy costs, robust e-commerce, and a home sales boom.”
In conclusion, Vieth noted, “It is fair to question whether some of these trends will have legs that stretch beyond COVID and its cure or mitigation, but for now they are influential for commercial vehicle markets.”
Additionally, ACT Research recently announced plans for a new multi-client study focusing on electrification of the commercial vehicle industry to be released in 2021. The scope of the study will include unit sales for the US and Canada, annually from 2020 to 2030, with single-year outlooks for 2035 and 2040. Class 8 truck and Classes 4-7 truck and bus segments will be considered, with additional segmentation encompassing step vans, conventional and low cab forward trucks, RV, school bus, yard spotter, transit bus categories, as well as the Class 8 straight, day cab, and sleeper subcategories. Our research will compare purchase and operational costs for diesel, battery, fuel cell, and hybrid powertrains in a rigorous comparative total cost of ownership (TCO) framework. It will also take into account concerns, such as infrastructure requirements and costs, regulation, and issues including maintenance, range, durability and vehicle and component replacement. For more details about how to participate in this study, including a full prospectus, contact Ian McGriff at firstname.lastname@example.org or click here to let us know of your interest.
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 64th Seminar is scheduled for February 23-25, 2021. Focused on the continuous evolution and advancement of power and energy changes in the transportation and commercial vehicle markets, OUTLOOK Seminar 64 will feature key industry leaders such as Ryan Reed of Wabash National, John Bennett from Meritor, Lance Riegel of Marvin Johnson, and Dominick Beckman from Hino Motors. Look for more details on this event over the coming months and save the date for February’s event. Click here for seminar information.
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