The most recent data continues to reflect improved demand across all segments of the heavy-duty commercial vehicle market, according to ACT Research Co. (ACT).
Fundamentals, including pent-up demand resulting from deferred replacement, tight freight-carrying capacity, improved fleet financial performance and some easing in credit availability, will combine to support an upcycle for the market. Class 8 net orders continue at a strong pace, and commercial trailer orders, after a slight pause in January, have returned to a solid growth trajectory.
The latest release of the ACT North American Commercial Vehicle Oulook reflects the impact of a U.S. economic recovery proceeding at a slow, but self-sustaining pace. This economic outlook, combined with recent market performance, suggests that ACT’s forecasts for rising commercial vehicle production through 2011 and into 2012 are on track.
“While some growing pains are occurring as the industry ramps up to meet the widespread increase in demand, the commercial vehicle market will continue at a solid pace,” said Sam Kahan, ACT’s chief economist. “Our outlook is for 2011 real GDP to grow 3% on a year-over-year basis. While this is slightly less than previously thought, it is in line with most forecasters.”