Outlook Points to Higher Truck and Trailer Sales in 2011

Accelerating economic activity has led FTR Associates to increase its estimates of the amount of truck freight that was moving at year-end 2009. If sustained, the stronger freight picture will result in higher truck rates and better financial results for truckers in 2010 and higher truck and trailer sales in 2011. Meanwhile, 2010 tractor sales will be affected by the new EPA mandate, with higher sales in the first half and a second-half slowdown likely.

According to Eric Starks, president of FTR, “Higher freight demand will cause the existing large overhang of surplus equipment to be worked down more quickly, translating into the potential for more units to be sold in 2011. While freight demand will increase throughout 2010, actual build numbers for Class 8 vehicles will likely be higher in the first part of the year because of the late pre-buy activity for vehicles with pre-2010 emission engines. Our 2010 production forecast remains unchanged but this demand for 2009 vehicles will pull ahead and build to the first half of 2010 at a corresponding decline in second-half numbers.”

FTR Associates is a transportation forecasting company that collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups.

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