Truck Sales Lagging

http://fleetowner.com/management/news/truck-sales-long-recovery-0618/

It appears that if you are in the business of making trucks, domestic business is not good and getting worse. Utilization of capacity is at 75% which is not enough to drive sales. Top that with 2,000 trucking companies going out of business last year with another 2,000 expected to do the same this year.

Economic pressures are creating havoc that eventually leads to reduced demand and reduction of the needed logistics. The one silver lining is that some emerging economies such as Brazil, India and China have kept up the pace of demand. So if you make trucks for international markets it should help keep your company from going in the red.

The fall off in demand mirrors the greater economy and its struggle to get itself going again. Until we see growth that is driven by the consumer and the private sector, we will not have enough momentum for trucking companies to begin expanding and updating their fleets.