The list of things to like from the current economic, freight, and commercial vehicle demand perspectives is long, according to ACT Research’s latest North American Commercial Vehicle Outlook.
The NA CV Outlook report forecasts the future of the industry — looking at the next one to five years — to offer OEMs, Tier 1 and Tier 2 suppliers, and investment firms information to plan accordingly for the future.
“From the freight perspective, spot rates continue to post new record levels and are currently inverted relative to contract rates, a clear signal that contract rates will continue to rise,” Kenny Vieth, ACT’s president and senior analyst, said. “Additionally, low business inventories and backed-up ports on both coasts have created a backlog of freight, providing excellent forward visibility for continued strong demand for freight services.”
The report provides a complete overview of the North American markets, as well as takes a deep dive into relevant, current market activity to highlight orders, production, and backlogs, shedding light on the forecast. The information included in the ACT report covers forecasts and current market conditions for medium- and heavy-duty trucks/tractors, and trailers, the macro economies of the U.S., Canada, and Mexico, publicly traded carrier information, oil and fuel price impacts, freight and intermodal considerations, and regulatory environment impacts.
“From a commercial vehicle demand perspective, orders, from medium-duty trucks to heavy-duty tractors and trailers, remain elevated, and backlogs for tractors and van-type trailers, at current build rates, are beyond 12 months, meaning that overall backlog-to-build ratios extend well beyond traditional ranges,” Vieth added. “Our song remains the same: the current business environment for heavy-duty trucks is about as good as any we have seen in 35 years of monitoring heavy-duty market conditions at ACT Research.”
The NA CV Outlook report is available for purchase through ACT Research.
