Bergey’s Truck Centers Acquires Cumberland Truck
Bergey’s Truck Centers Acquires Cumberland Truck
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Looking back on 2022, it was an improvement from recent years past. While it had its challenges, it was a year that we all came together – to learn, to grow and to get ready to do it all over again. Now it’s time to look forward. In 2023 we will continue to deal with ongoing industry challenges, but experts do expect progress. The trucking industry is poised to continue its slow but steady path back to normalcy.
Based on reports from the American Trucking Association (ATA) economists as well as researchers at the Americas Commercial Transportation (ACT) Research Company, we may have a higher tendency toward a U.S. economic recession in 2023, but they are hopeful it is short and mild. This provides hope as we move through 2023. Here are a few nuggets of positive trends for the coming year when it comes to the trucking industry:
OEM Production: Both medium-duty (class 6-7) and heavy-duty (class 8) equipment production is looking positive for 2023. That said, market demand continues to outpace production capabilities of manufacturers so it will still be a struggle to get equipment. This is due to the many fleets that have missed replacement cycles in the last year or two. We hope to see improvements into 2024 and beyond, as the industry preps for the coming 2027 federal emissions changes affecting class 8 tractors, which will come at a considerable cost.-
Electric Vehicles: If you have considered electric vehicles (EVs) for your fleet, availability is expected to be good for 2023 and moving forward. You could benefit from government subsidies available for not only the vehicles, but also the investment in the necessary infrastructure to support an EV fleet. Check out our EV blogs to learn about EVs and if EV is right for your fleet. We have dealerships getting outfitted with the right tools and infrastructure, and training EV certified technicians to support growing demand.
Parts & Tires: Supply chain for needed commercial truck parts and tires continues to improve and comes with an easing of price increases. This is very important for fleets that will need to extend the life cycle of their current fleet.
Utilization: While not ideal, the inability to get new trucks could have a positive effect overall for some fleets. The softening of freight tonnage in the last few months means fleets that have fewer trucks than usual could see improved utilization, adding to a much-needed stronger bottom line.
Truck Rentals: Be sure to plan out for busy seasons in 2023, as availability of rental trucks will continue to be a challenge.
Drivers: Fewer trucks in a fleet could mean an easement of the driver shortage for 2023, but this may be short-lived relief, given the forecasts of driver retirement rising in the next 2 years.
Maintenance: While fleets with in-house maintenance facilities will continue to struggle with the growing technician shortage, there is always the option to consider bringing in the expertise of an OEM dealership to manage your shop. Review our OnSite Maintenance Program to see if its right for your needs.
Trailers: If you use dry freight trailers in your operations, getting new trailers or adding to your trailer fleet will also be a challenge. Spot rates are down, and this could mean smaller fleets running dry van trailers will potentially struggle.
Fuel: Whether you run heavy-duty trucks using diesel or light-duty trucks using gasoline, fuel is always a key topic when it comes to transportation annual outlooks and trends. The good news is that fuel prices are expected to continue to decrease in 2023. Yes, they will still be historically high, but there are strong indications that prices could be positively affected in part due to higher refinery utilization, pumping higher supplies into fuel markets, and lower demand.
Economic Factors: Trucking is an integral part of a healthy economy in the U.S. That’s why we look at metrics outside of trucking to see how they will affect trucking.
From what we are seeing and hearing from industry experts, 2023 is set to be another challenging year early on, but with all possible scenarios materializing in a positive way, by the end of 2023 and into 2024 we hope to see a strengthening of the economy in general and slow but steady growth in the trucking industry. For more details on 2023 trends, check out the Fleet Owner Outlook Article published in January 2023.
BUZZNERD TRUCKS