Economy
Trump vows “America first” approach to trade
WASHINGTON, DC - Canada's largest trading partner has inaugurated a president who pledges "America first" policies on everything from trade to security. "From this day forward, it's going to be only America first. America first. Every decision on trade, on taxes, on immigration, on foreign affairs will be made to benefit American workers and American families," U.S. President Donald Trump said in his inaugural address on Friday. "We must protect our borders from the ravages of other countries making our products, stealing our companies and destroying our jobs."We will bring back our jobs. We will bring back our borders. We will bring back our wealth and we will bring back our dreams," he added.
Driver shortage and the demographic cliff
Discussions about a driver shortage tend to fade away when the economy struggles, but there is no escaping the fact that Canada needs to attract a new generation of drivers. A 2016 study - Understanding the Truck Driver Demand and Supply Gap - determined that for-hire fleets will need 34,000 more drivers by 2024, many of whom will be needed to fill seats once held by drivers who retire or quit. Solutions will involve reaching out to underrepresented groups like millennials and women. In the meantime, limits on Temporary Foreign Workers have effectively eliminated another option.
Struggles in oil country
Low oil values have calmed prices at the pump, but they have also hit fleets and owner-operators who serve Canada's famed oil patch. Ritchie Bros. Auctioneers hosted a record-breaking sale in Edmonton this April, reselling about 10,600 pieces of equipment. That is clearly the sign of a struggling industry, especially when you consider that just 46% of the purchased equipment stayed in the province.
Mexico a “land of opportunity”, says Daimler’s Kurschner
PUERTO VALLARTA, MX - In a year when dealers in Canada and the U.S. face a dramatic downturn in truck sales, Mexico is a world apart. As of November the market for Class 4-8 vehicles was up 18.5%, and Daimler Trucks North America accounted for 36% of it -- up 7.8% over last year. But Stefan Kurschner, president and Chief Executive Officer of Daimler Vehiculos Comerciales Mexico, says there's room for more.
Hurricane relief boosts spot market freight
PORTLAND, OR - October represented the year's strongest month for available freight this year, with the exception of a seasonal peak in June, the DAT North American Freight Index shows. And post-hurricane reconstruction efforts may be responsible for some of the shift. The October volume was up 1.8% when compared to September, largely thanks to an 11% increase in flatbed freight. In contrast, van volume was down 0.6%. Reefers dropped 4%. "Flatbed freight is associated with energy exploration, as well as construction, which may have gotten a boost in October due to post-hurricane relief and rebuilding in the southeast," DAT Solutions reports.
Continental Tire breaks ground for Mississippi plant
Output from the Clinton, Mississippi plant will eventually supplement existing truck tire production from Continental's Mt. Vernon, Illinois facility, which is now at capacity of 3.2 million tires per year. Construction will formally begin in 2018, with the first tires coming off the line in late 2019.
Daimler CEO talks growing share, struggling market
LAS VEGAS, NV - It's a tough market for truck sales these days, but Daimler Trucks North America president and Chief Executive Officer Martin Daum still sees a "light at the end of the tunnel" - and is setting firm goals for the year to come. Where Canadian Class 8 sales were up 6% in 2014 and 3% in 2015, they are down 24% this year. Daum expects 360,000 Class 6-8 trucks to be sold in the NAFTA region this year, down dramatically from 424,000 units last year, and even the 384,000 in 2014.
Truck numbers bottoming out, but has the economy?
LAS VEGAS, NV - Several indicators suggest that the U.S. trucking industry is approaching the end of an economic downturn. But broader economic growth is still being slowed by uncertainty around the U.S. election -- and the global rise in populism, nationalism and isolationism, a leading U.S. economist says.
Want a trouble-free rental or lease? It’s in the details
Every piece of equipment comes at a price. Look no further than your accounts -payable department or the bank account for proof. But decisions around renting, leasing or financing involve far more than payment values alone. Those who work with unique equipment spec's or hold onto trucks and trailers for extended periods of time are prime candidates for purchase financing. Every year of service after an asset has fully depreciated is a bonus. Leasing tends to be the strategy of choice for those with shorter trade-in cycles or other plans for business capital. Then there are the rentals to address seasonal or short-term surges in freight volumes, or even temporary storage.
