Heavy-duty: 2023 HDAW event theme is ‘Shift. Adapt. Grow.’
According to ACT Research’s latest release of the North American Commercial Vehicle Outlook, 2021 is being forecast as the transition year, as the global economies and North American commercial vehicle demand move from COVID-19’s negative impacts into a meaningfully better situation in 2022.
Additionally, ACT Research has created a COVID-19 Market Watch webpage to track noteworthy high frequency macroeconomic and transportation-specific market indicators, which can be found at https://pages.actresearch.net/covid-19.
“Without clear forward visibility on the COVID-19 endgame, the crystal ball is particularly opaque, as the economy begins to reemerge from its medically-induced coma,” said Kenny Vieth, ACT’s president and senior analyst. “Even as we work through the logic and implications of bigger picture issues, more practical considerations for 2021 forecasts arise. History shows that even from the lowest lows, the manufacturers can’t snap their collective fingers and bring production up immediately. Returning to normalized production levels is a process that is hard to rush.”
He continued, “Coupling an otherwise structurally sound pre-COVID economy, with strong governmental support and rising pent-up demand, there is a case for the economy to rebound into 2021. We believe maturing millennials will be the key to pushing the economy forward as they resume their transition to marriages, kids, and mortgages.”
Regarding NA commercial vehicle demand, Vieth commented, “Underlying fundamentals for the medium-duty market took a direct hit from COVID-19, as it impacted the consumer portion of the economy severely. The heavy Class 8 and trailer markets are seeing falling orders, rising cancellations, and backlogs getting pushed to later build dates. When the economy ultimately rebounds, accessible capacity is likely to be short, leading to strong rebounds in freight rates, carrier profitability, and ultimately unsated vehicle replacement demand.”