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Improved trucking margins point to higher equipment orders

COLUMBUS, Ind. -- Improving net margins for publicly-traded trucking companies point to further improvements i...


COLUMBUS, Ind. — Improving net margins for publicly-traded trucking companies point to further improvements in the Class 8 truck market, according to the latest report from ACT Research.

In its North American Commercial Vehicle Outlook report, ACT projected full-year production of Class 8 trucks to be up 26% compared to 2009 and to accelerate into 2011.

Production of commercial trailers is projected to increase 47% this year over last and to post strong growth in 2011. ACT also reported the medium-duty segment will continue to recovery slowly, because it’s tied so closely to the housing sector.

“Trucker profitability rebounded sharply in the second quarter, fueled by tightening capacity and rising freight rates,” said John Burton, vice-president, transportation sector with ACT Research. “Even with modest economic growth, commercial vehicle demand should continue to rise as carriers appear to be replacing an aging fleet but not adding capacity. Demand for new heavy-duty vehicles continues to be well below normal replacement levels, meaning overall fleet capacity is shrinking due to scrappage and export of used tractors. This will allow truckers to retain pricing leverage and profits.”

 

 


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