Every industry faces changing times, but with new investments in U.S. manufacturing along with regulations aimed to make the roads safer, the commercial trucking industry is expected to see some new trends in 2018 that could have wide-reaching effects for not only trucking companies but also those that provide financing to the trucking industry. The Electronic Logging Device
The Electronic Logging Device (ELD) is a device aimed at limiting the time drivers spend behind the wheel. It will ensure that drivers spend no more than 50 hours in service each week, and they must take a mandated two days off afterward. The hope is that the roads will be safer with less exhausted drivers on the road, but it will have wide-ranging effects on the industry as a whole. Carriers will no longer be allowed to haul as many loads as before, and many predict that the added costs of new equipment and administrative duties from ELD will be passed to the consumers in the nation. Increased Demand for the Last Mile E-commerce has blown up over the last decade and is expected to increase even more in 2018. With this rise in demand, many expect to see an increase in the last mile deliveries to businesses and residential neighborhoods. Most heavy trucking companies will need to find a way to add smaller vehicles to its fleet to accommodate these demands in hopes to compete. Cross-Border Competition Hauling freight from Canada and Mexico into the U.S. increased in 2017; however many carriers still rely on American companies to complete the drive after they've crossed the border because of government scrutiny. To counter this, in 2018 we might see more Canadian companies forming partnerships or forming their own U.S. entities to complete the shipment as they haul goods back to Canada. This new competition could result in more liability for them as they uphold U.S. safety standards and regulations. Keeping Up with Technology In addition to ELD, carriers will have to consider the other tech advancements seen in more advanced trailers and trucks. Refrigeration, fuel efficiency software, and other technologies are becoming required under U.S. regulations, so fleet managers must ensure they remain compliant. How Will These Changes Affect Financing? With all of these trends in mind, many still predict the commercial trucking industry to continue to rise in 2018. Last year in December, the industry saw a 37-month high according to research firm ACT. Also, trailer orders were also on the rise with FTR noting 47,000 trailer orders were placed in December. Not all trucks come in equal demand, and in 2017, Class 8 trucks were the clear favorites among buyers according to research firm EDA. Here is the complete breakdown: EQUIPMENT TYPE UNITS BUYERS CLASS 8 TRUCK 849,681 252,705 MECHANIC 171,994 161,832 CLASS 7 TRUCK 92,711 38,064 CLASS 6 TRUCK 64,438 34,300 SVC VEHICLE BODY 9,763 4,989 CLASS 5 TRUCK 1,452 852 BUS 454 200 CLASS 4 TRUCK 439 303 CLASS 3 TRUCK 167 152 CLASS 2 TRUCK 137 106 Moving Forward Many expect to see the commercial trucking industry to grow by 3.4% in 2018 which is great news for the U.S. economy and the manufacturing sector as a whole. If firms can adapt to new mandates and technology, it should be a successful year all around. Comments are closed.
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