ACT Research: Motor Carriers Experience Growth in Volume and Pricing Power
NOV 9, 2020 - 7:26 am
According to ACT Research’s Transportation Digest, motor carriers are experiencing a period of volume growth and pricing power that would have been considered nearly impossible to achieve from an April 2020 vantage point.
The report, which combines proprietary ACT data and analysis from a variety of sources, paints a picture of trends impacting transportation and commercial vehicle markets.
“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,” Kenny Vieth, president and senior analyst for ACT Research, said. “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.”
“While severe, the 2020 recession was short-lived for some sectors of the U.S. economy, particularly transportation. 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.
“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.”
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