Transportation forecasting company FTR Associates continues to forecast demand for Class 8 vehicles for 2010 and 2011 at the same levels as was forecast by the firm one year ago. FTR predicts that 2010 demand for Class 8 vehicles will increase just 3% over 2009, and projects that this will be followed by considerably more significant improvement of over 50% in 2011.
FTR’s forecast considers that although the overall economic environment is improving, there are still negative conditions such as soft consumer spending and weak housing demand that indicate a slow recovery. New truck demand will be further hurt by the continuing large overhang in underutilized and idle trucks as well as the new EPA-mandated engine technology.
Eric Starks, president of FTR, says, “Our forecast from February 2009—13 turbulent months ago—is being confirmed by current market conditions and remains unchanged. Everyone in the industry would have been glad to see improvement in demand before now, but our forecast models showed us that wasn’t likely until 2011.”