Market for Heavy-Duty Trucks Poised for Rebound
For years, the market for heavy-duty truck manufacturers has been difficult. With questionable economic conditions and the end-of-the-line for many old technologies coming at once, the market has been strained to say the least.
All of that may change, however, as new data shows that conditions are aligning in the industry’s favor. US Xpress reached a $200 million deal with Navistar for over 1,5000 International LT semi-tractors.
Several factors may have led to the major market changes. Economic conditions are slowly improving, and this has provided trucking with additional demand. With rising shipping rates coinciding with a period of technological improvement in the industry, heavy-duty trucks are seeing a return to prominence.
Fuel-efficient models provide greater value, as do the technological upgrades designed for improve safety and logistical management. The rebounding demand levels have given carriers the much-needed resources to upgrade their aging equipment, effectively optimizing their supply of vehicles to meet consumer needs.
US Xpress executive chairman Max Fuller was especially impressed by the fuel economy in one of Navistar’s 2018 models. After tests showed the best performance in class, the company was even more confident in their massive decision.
The company also said they looked for other things in making their choice. Good support systems, holistic warranties, proper access to parts, and many other post-sale perks influenced the call.
For Navistar, it represents a major turn of favor. US Xpress is known to be a major buyer of semi-tractors from Freightliner Cascadia. The current industry numbers indicate more large orders may be likely for the future, with carriers of all sizes looking to take advantage of the rare combination of emerging technologies and consistently improving economic activity.
Navistar is using the boost in business to recover from some problems with inventories crowded up by older engines and used trucks. The new deal is a major boost for them just as it is for US Xpress.
According to the American Trucking Associations, freight volume will increase by 2.8 percent in 2017 and grow 3.4 percent each year until 2023. Trucking will continue moving the majority of America’s freight, with the mode covering about two-thirds of all goods transported within the country.