EPA2010 Dynamics Pulling Demand Forward, FTR says

In the April North American Commercial Truck and Trailer Outlook update, FTR Associates reports strong current production but cautions that a significant portion of current demand is a short-run surge being created by the imminent onset of new EPA-compliant 2010 engines.

Fleets appear to be taking advantage of build slots for power units with pre-2010 EPA engines while they are still available, pulling demand forward from the second half of the year.

“The current production numbers will not be sustained once the remaining stock of pre-2010 engines is exhausted,” said Eric Starks, President of FTR Associates. “The basic issue affecting overall 2010 demand – the still large inventory of underutilized and idle trucks - remains. Pulling ahead orders now to avoid 2010 engine technology will be at the expense of second-half production.”

The full North American Commercial Truck and Trailer Outlook Report will be available to subscribers later this month. In addition to FTR’s regular freight, equipment, trucking environment and economic forecasts, the current issue contains the first of a two-part series looking at regulatory changes affecting trucking. April’s part one commentary presents the effects of collection of data-oriented regulations, especially the safety data in CSA 2010. For more information, please contact Eric Starks at 888-988-1699 ext. 45 or make an inquiry to [email protected].

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