While the economy seems to be turning around for the trucking industry (most sources estimate that tonnage is again approaching the same levels as those seen in 2006), future growth may be limited for many trucking operations as the industry rebounds from economic crisis that began in 2007. Reports of driver shortages from organizations such as the American Trucking Association have been making headlines for months, but now industry economists warn that equipment shortages may accompany personnel shortages as shipping demands increase, according to an article published in American Shipper.
During the economic downturn, demand for new trucks dropped significantly. Operations needing to adjust for dwindling shipping demands reduced fleet sizes, which lead to more used trucks on the market for those looking to buy; the replacement of old equipment with new was indefinitely postponed by many operations; countless small carriers went out of business; and more stringent emissions and maintenance regulations increased costs of operation. While demand for new trucks has increased since the worst of the downturn, manufacturers are still hesitant to increase production due to the unpredictability of the current market.
At the present time, industry economists estimate that supply and demand for new commercial vehicles are at an equilibrium; however, any improvement in the economy could quickly lead to a truck shortage.
To read more on this subject, visit:
No comments:
Post a Comment