FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


ACT Research: Life in the Commercial Vehicle Trenches Is a Jungle

June 01, 2021, 07:00 AM
Filed Under: Trucking

According to ACT Research’s recently released Transportation Digest, the aggregate prosperity seen currently in the commercial vehicle industry, and in the U.S. economy as a whole, is a welcome contrast to the situation that existed a year ago. However, the report explains, there is a downside.

“Our heavy-duty forecast continues to reflect the current ‘perfect storm’ of upbeat economic, freight and trucking indicators, with most at, or on the verge of reaching, all-time record levels,” said Kenny Vieth, ACT’s President and Senior Analyst. “And, it’s easy, if not particularly pleasant, to remember the business environment of 2020’s second quarter, with significant uncertainties in not knowing the extent of the virus and how deep the downside could be.”

Vieth added, “All that said, good times and good numbers at a macro level obscure an uncomfortable truth – life in the trenches is a jungle right now.”

He elaborated, “For purchasing managers in the equipment manufacturing chain, the struggle is obtaining supplies in a capacity-strained world, while for financial managers, it’s a battle to protect margins against rapidly rising costs. Fleet managers always have the driver shortage headache, but are now stressed because the queue for heavy-duty vehicles stretches past year-end, even as many operators need new trucks today.”

Vieth concluded, “The management skillset is really being tested to make the best of current good times, if this is really ‘as good as it gets’.”

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.