Truck Makers Slashing Jobs As Orders Drop
Unfortunately, the predictions analysts made for the trucking industry of the US are seemingly coming true. The start of the year 2016 has already seen a sharp drop in the truck manufacturing job market as no new orders for semi-tractor trucks have been made as of yet. This is putting pressure on many manufacturing companies since they are forced to cut down on their number of employees. This is a highly alarming state which can put direct impacts on the slowing of US’s economy.
Experts believe that this shortage for demand will be putting the companies in a slick position where they will have to cut off any new jobs and even lay off some employees. Because the demands for no new vehicles are being made lately, investing in monthly salaries of employees when the company had no current or future projects to look for doesn’t balance the equation. As per the statistics, the demand for truck vehicles dropped to a 22% in 2015 and has seen a 48% downfall since January 2014. The boom the industry enjoyed before 2014 unfortunately didn’t set a trend. As a result, all those companies who had invested in purchasing more vehicles were left with piling maintenance costs and no profits.
When talking to the press Steve Tam, the vice president of ACT Research which keeps a track of all truck-related statics was reported saying, “Everyone expected the growth of 2014 to continue and unfortunately, it didn’t. With so many trucks on hand and a slowing demand for freight shipping, many companies are taking a wait-and-see approach before buying more equipment.
Freightliner, a renowned German automaker name in the trucking industry, is one of the most recent truck manufacturing companies who announced job cuts. The company announced it will be laying off 1,250 employees from its two plants in North Carolina. Just last month, the company had slashed off about 938 employees from one of its manufacturing facility.
But they aren’t the only ones who are looking at this tactic as a strategic way to deal with the situation. These companies include Paccar, Volvo Trucks and Navistar, which recently reduced 10% of their staff (14,000 employees) in October 2015.
Other companies are devoting all their efforts in slimming down their fleets and are not dealing in any new purchases. David Jackson, the CEO of Knight Transportation, believes the trucking industry will remain flat for the next year or so. – See more at: http://truckernews.com/truck-makers-slashing-jobs-as-orders-drop-p709-90.htm#sthash.qTHITTRy.dpuf