COLUMBUS, Ind. – Commercial vehicle demand will remain strong heading into 2021, according to ACT Research, which cited the arrival of a vaccine, the likelihood of stimulus spending, and healthy freight rates.
“With vaccine distribution starting this week and the likelihood that Congress will finally provide assistance to those left in Covid’s wake, we are more optimistic that we are nearing the end of the pandemic tunnel and are on the cusp of a better 2021,” said Kenny Vieth, ACT Research’s president and senior Aanalyst.
“Of course, with Americans now dying at a 100,000 per-month clip, these positive developments are tinged with the recognition that considerable misery remains. With freight rates in record territory since September boosting profits and a freight-heavy 2021 economic outlook, the rule of thumb oft-heard at ACT, ‘truckers buy trucks when they make money,’ again passes the test.”
By commercial vehicle segment, Vieth added, “It seems that everyone is ordering in the Class 8 segment, but the tractor market is rising at a considerably more rapid clip, against easier year-ago comparisons, than the truck market. Despite the uptick in orders and build, we do caution that the growing steel shortage and potential for Covid to still wreak havoc on the supply chain could impact build rates into early 2021.”