Reports of the improving economic data may have a dramatic effect on your upcoming capital budgets. Trucking experts are reporting new truck orders are slowly but steadily increasing.
FTR Associates reported February 2013 Class 8 truck net orders for all major North American OEMS exceeded 23,000, a 4 percent increase over both January 2013 and January 2012. The widely respected research firm believes this slow growth has been triggered primarily by fleet replacement purchases, rather than market expansion.
From my perspective, when fleet managers opt to replace old trucks with new trucks, rather than robbing parts, it’s a good sign. But there’s a forewarning here. As we all know, truck manufacturers are very slow to ramp up production lines. So as fleets start to be replaced, new truck delivery periods may have some long lead times built in.
Replacement orders seem to be carrying over into the ready-mixed concrete industry as well. Some producers report they are slowing using up their parked trucks for replacements. Add that to some very limited market growth and there are some indications that purchases of new mixers may be on the rise.
Perhaps the best indication of this new optimism was the news David Rinas, Terex Roadbuilding’s director of sales and marketing, shared at World of Concrete. Things are improving. Rinas reported that from late 2008-11, as the ready-mix market fell 50 percent, ready-mix truck sales plummeted more than 90 percent from peak levels. This market retraction directly hit Terex.
In late 2011, Terex announced a temporary halt to new ready-mix truck and glider truck production. During this shutdown, it updated production facilities, redesigned front-discharge trucks, and renewed the glider truck program. Rinas unveiled Terex’s new truck line at World of Concrete.
The new 2013 truck incorporates three different 11-cubic-yard mixer designs, new frame construction, and two 2013 EPA emission-compliant engine options.
Something seems to be going right. In late 2012, Rinas reported that Terex received several significant truck orders. TCP
Visit www.terex.com for more information.