Please disable your Ad Blocker in your browser's extentions.

Economic expansion expected to continue through 2016, boosting trucking economy 

dieli

Dieli speaking at HDAW.

The economy is enjoying its 80th month of economic expansion and doesn’t show any signs of slowing, at least through this year, says Bob Dieli, president and founder of RDLB inc.

Dieli, speaking at the Heavy Duty Aftermarket Dialogue in Las Vegas Monday, benchmarked Truckable Economic Activity (TEA) at $10.6 trillion, calling the odds for a recession through September of this year “very low.”

Class 8 truck sales, often an economic indicator, have fallen off dramatically in the past three months. But Bill Strauss, senior economist and economic adviser, Federal Reserve Bank of Chicago, said recently he doesn’t foresee an “economic event horizon” in the foreseeable future.

Indicators: Tonnage, freight demand rise, conditions for carriers poised for take off

Indicators: Tonnage, freight demand rise, conditions for carriers poised for take off

Monthly truck tonnage is hovering near an all-time high, and conditions for 2016 appear strong for carriers, barring potential threats to freight demand. Here are ...

“I continue to think you have to distinguish between (OEMs),” Dieli adds. “There have been some issues on supply.”

Additionally, Dieli says it’s logical to assume that buyers who have pushed truck orders over the past 2 years simply have all the trucks they can use.

“The question becomes this far into the expansion, having had several strong years (of Class 8 truck sales), how many people are still out there that want to buy a truck,” he says. “You can only sell them so many trucks.”

Dieli says economic expansion is always followed by a period of “boom,” which he calls the area where the economy starts showing instability and is followed by recession. He adds he doesn’t foresee a shift from expansion to boom in 2016.

Trucking outlook through spring 2016 is ‘somewhat not awful’

New trucks are beginning to stack up on dealership lots and capacity is outpacing freight in the pipeline. That doesn't sound like a recipe for ...

“We are getting into a position where we will have a boom,” he says, “but I don’t see it happening in 2016.”

TEA, Dieli predicted, will continue to expand this year at a pace similar to 2015, cautioning the industry not read too much into employee cutbacks from OEMs and the trucking industry as a whole.

“The fact that economy is growing doesn’t mean everybody is growing, first, and growing at the same pace, second,” Deili says.

Truck supply surpassing demand as capacity, freight fall further out of balance

Truck supply surpassing demand as capacity, freight fall further out of balance

Steve Tam, ACT’s vice president, commercial vehicle sector, says carriers have caught on to the fact that there is excess freight hauling capacity in the ...

AD

There are no comments

Your email address will not be published. Required fields are marked *

Jason Cannon is the Equipment Editor for Commercial Carrier Journal and Overdrive, and is a Class A CDL holder. Reach him at jasoncannon@randallreilly.com.