2024 was marked by a number of trends that Ken Martin, managing director of First Citizens Bank Equipment Finance, believes will influence the future of trucks and trailers. “Overall freight volumes continue to be pressured amid falling trucking capacity, but positive signs are emerging as demand for goods rebounds after falling considerably when the country emerged from the pandemic,” Martin says.

In the next few years, Martin expects a turnaround of the trucks and trailer market as it both stabilizes and grows. “Of course, we anticipate volatility to continue in the market as we look for a bottom, but we expect an up cycle in the next 18 months,” Martin says. Seeing larger players order multiple trucks at a time is typically an indication that the market is ready to turn from a down cycle.

Currently, Martin has a watchful eye on electric vehicle (EV) technology and the Fed rate cuts. He expects to see some notable shifts caused by EVs, with regulations and mandates having an effect on consumers’ buying habits. “It is still early days, and while volatility remains and we’ve been in a down cycle for a bit, players should get ready for the market to round the corner,” Martin says. He also predicts trucking and trailer organizations will increasingly look to special financing for equipment loans and leases if rates continue improving as anticipated.

Looking forward, Martin is closely monitoring freight rates and expected demanding from trucking vendor populations, as he expects these will have a dramatic impact on all major players in the market.
“Freight rates have started to flatten in recent months, albeit at low overall levels, and year-over-year declines have almost reached parity,” Martin says. “We’re seeing 60% to 70% of the expected demand from an applications standpoint from our trucking vendor populations.” •