Don’t hold your breath on fleet renewal
The automotive industry is improving as an improved economy allows for the replacement of ancient cars and light trucks. In general, the trucking industry also is enjoying an improving economy and living with aging equipment, but heavy truck sales aren’t seeing the same robust growth, according to a report on our sister site, CCJ.
Some reasons for the disparity are obvious. A new Class 8 truck costs multiples of a new automobile. And you only need a truck if you have both freight and a driver to fill the seat, neither of which are guarantees these days. Even if you have freight and drivers, is your freight rate high enough to justify the higher cost?
While business is better today for most operations than it was in 2008-10, a combination of factors conspires to hold back investment.
To read about the factors hindering fleet replacement, click here.