Trailer production expected to increase

Posted on 01/26/2017 by David Radke


New estimates from the Stifel Capital Markets bodes well for the trucking industry.

According to research from Stifel, as cited by Fleet Owner, production of Class 8 semitrailers and medium-duty trucks is expected to increase in the near future. Orders placed during the tail end of 2017 will then translate to higher production levels in 2018.

There are a few reasons why outlook for orders and production is brightening. Michael Baudendistel, vice president of research and logistics at Stifel, told Fleet Owner that an improvement in domestic manufacturing, a pro-energy policy, tax cuts and few regulations will all boost production.

Additionally, future demand for trucks will increase because of the electronic logging device mandate. When this regulation is fully implemented, approximately 3 to 5 percent of current vehicles (mainly from small fleets) will be taken off the road. Baudendistel believes large fleets will capitalize on the loss of trucking capacity by investing in new equipment.

Even though President Trump recently signed an executive freezing all new regulations, Commercial Carrier Journal said the ELD mandate is likely shielded.

However, these are only predictions and assume the economy doesn't suffer a recession. Trucking orders and production will likely dip if economic conditions worsen.

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