Commercial Vehicle Industry Continues to Face Strong Demand and Capacity Constraints
JAN 4, 2022 - 6:21 am
In the recent release of its Commercial Vehicle Dealer Digest, ACT Research reported that despite rock-solid demand across the spectrum of forward-looking medium and heavy-duty vehicle market indicators, industry capacity remains range-bound across a broad front of supply chain constraints.
“Ripples from pandemic-driven changes to economic relationships (WFH, PCE-goods) are still being felt in the form of constraints that are not localized and are beyond the CV industry’s ability to drive solutions,” Kenny Vieth, president and senior analyst at ACT Research, said “The explosion in demand for goods (semiconductors, steel) during a period of contagion has led to pandemic-driven failures in a globally reliant web of interrelated manufacturing supply chains. Scaling complex global networks when demand is booming during a period of supply constraints globally has proven inadequate to the task pandemic to date.
“Despite green lights, the everything shortage has left industry build rates stuck in neutral on an incline. In October’s round of ACT truck and trailer statistics, aggregated NA Classes 5-8 and U.S. trailer industry build rates slipped 2% from September. That decline continued a trend of incremental build rate contractions through 2021. It appears the industry is likely to begin 2022 with still unfinished 2021 units. If you have parts on all those ‘built, but not built’ units, some adjustment will be required to align your 2021-2022 output with reported and forecast data.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!
Being a leader in today’s equipment finance industry takes a sense of purpose, advocating for oneself and being flexible. Amy Gross, executive vice president of the commercial vendor and government divisions at Key Equipment Finance, says being a parent while... read more
Joe Nachbin’s passion for equipment finance was so strong, he remained dedicated to his work until two hours before he passed away in July 2022, according to his wife, Ruby Nachbin. Attorney and investment banker, Paul Bent, senior managing director... read more