Connect with us
Net-Freight-ACT-Research

Technology

ACT Research: Heavy duty markets at the edge of the precipice

ACT Research’s (ACT) latest release of the North American Commercial Vehicle Outlook shows the heavy duty vehicle markets are at the edge of the precipice, the company says.

Advertisement

David Sickels is the Senior Editor of Fleet Equipment. He has a history of working in the media, marketing and automotive industries in both print and online.

Net-Freight-ACT-Research

ACT Research’s (ACT) latest release of the North American Commercial Vehicle Outlook shows the heavy duty vehicle markets are at the edge of the precipice, the company says.

Click Here to Read More
Advertisement

“Since the start of this demand up-cycle in late 2017, we have targeted this year’s third quarter as the point at which the industry was likely to see production rollover,” said Kenny Vieth, ACT’s president and senior analyst. “That targeting was largely derived from historical precedent, with historical peak-level build lasting between 13 and 15 months. For the current cycle, we date peak build rates to June 2018, so August represents the 15th month of peak-level production.”

Regarding heavy vehicle demand, Vieth noted, “At the heart of our cycle duration prediction, carrier profitability and production peaks always lag the freight cycle, so capacity building always accelerates relative to freight growth at exactly the wrong time, every time. Large new inventories and deteriorating freight and rate conditions suggest erring on the side of caution remains the right call, and we are warning those in the industry to be prepared for down weeks starting as early as Q4.”

Advertisement

Regarding ACT’s medium duty forecasts, Vieth said, “Retail sales are tracking the medium duty forecast very well, but 2019 expectations were moderately increased, and owing to order dynamics, our 2020 sales forecast has been reduced.”

Advertisement

POPULAR POSTS

WS-Hendrickson WS-Hendrickson

Sponsored Content

How Hendrickson works with OEMs to deliver hard-working, driver-friendly suspensions

Sponsored Content

Your Last-Mile Delivery Tire Choice

Bosch-Heavy-Duty-Truck-Scan-Tool Bosch-Heavy-Duty-Truck-Scan-Tool

Sponsored Content

Diagnosing codes on heavy-duty vehicles

Sponsored Content

Drastically reduce tank trailer drag and weight for increased ROI

Connect
Fleet Equipment Magazine