ACT Research: Strong Freight Rates Driving New Commercial Vehicle Demand
DEC 11, 2020 - 6:50 am
According to ACT Research’s latest release of the North American Commercial Vehicle OUTLOOK, the strength in new commercial vehicle demand is a direct result of strength in freight rates.
“This year started with a whimper, and in spite of the pandemic pause in Q2, is going out with a bang,” Kenny Vieth, president and senior analyst at ACT Research, said. “Comparing October’s order rate to 12-month order totals generates some impressive comparisons and highlights the across-the-board order surge that began in September. Additionally, on a preliminary basis, November orders are at or above recent levels. An ACT-favorite axiom is, ‘fleets buy equipment when they make money,’ and truckers are going to make a lot of money in 2021. A strong freight pipeline and structural and regulatory challenges surrounding driver recruiting suggest an unprecedented level of intractability in the supply-demand balance. Barring an exogenous event, the data suggest strong carrier profits are likely to extend through 2021 and well into 2022.”
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