December 5, 2011

Resources

FTR Sees First Y/Y Drop in Net Class 8 Orders

Fleet Owner Magazine
According to FTR Associates, preliminary data indicates November’s Class 8 total net orders for all major North American OEMs fell 27 percent from October’s total to 20,400 units. Orders were down 22 percent from the same month a year ago - the first such drop seen in over a year.

Order activity for the prior three-month period of August, September and October averaged 24,100 units per month, noted the research firm.

FTR’s Trucking Conditions Index Declines for October

CCJ Magazine
FTR Associates on Friday, Dec. 2, announced that its Trucking Conditions Index declined to a reading of 3.4 in October. The environment for truckers as measured by the TCI softened primarily due to further delay in the issuance of revised hours-of-service regulations, which is affecting the near-term outlook for capacity and therefore the current ability of carriers to gain rate increases. The TCI is projected to increase as capacity conditions tighten, but the peak has been moved back from April to October of next year, reflecting the regulatory delay.

The Trucking Conditions Index is a compilation of factors affecting trucking companies and has remained in positive territory for the past eight months. Any reading above zero indicates an adequate trucking environment, with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.

Fleets See Solid Truck Demand for 2012

FleetOwner
According to the Annual Fleet Study published by CK Commercial Vehicle Research, 84 percent of those fleets operating Class 8 vehicles and 33 percent operating medium-duty trucks intend to purchase new equipment in 2012. What’s more, the expected average order size equates to 16 percent of the current fleet population for both Class 8 and medium-duty orders. The report also shows one in four of the respondents plan to add some capacity with new equipment.

Along with addressing planned equipment demand for next year, the respondents answered questions about equipment and engine choices for 2012; new specifications and technology; maintenance sourcing and CSA effect, and the major challenges they expect to face in the coming year.

Execs Say HOS Cut Adds Costs, Aggravates Shortage of Drivers

Transport Topics Magazine
A federal move to cut truck drivers’ working hours would be very costly and exacerbate a shortage of drivers, while putting more trucks on the road, a panel of industry executives told Congress last week.

Ed Nagle, CEO of Nagle Cos., a Toledo, Ohio-based refrigerated carrier, said two provisions of the proposed hours-of-service rule — one that calls for cutting driver hours to 10 from 11 and another modifying the 34-hour restart provision — would cut his company’s ability to generate revenues by 17 percent.

BP Chairman Svanberg Attacked Over Chairman Role at Volvo Truck

The Daily Telegraph - London
THE chairman of BP is poised to add the same role at truck maker Volvo to his working week, sparking criticism that he risks being distracted as the oil giant struggles to recover from its disastrous Gulf of Mexico spill.

Carl–Henric Svanberg, who was slammed over his handling of the crisis, is likely to join the Swedish company as chairman in addition to his current role at BP. It is understood he would then drop a non–executive directorship at telecoms company Ericsson.

MEMA Weighs in with Washington State on Preliminary Copper Regulations

On November 30, the Motor & Equipment Manufacturers Association (MEMA), on behalf of its affiliate associations Automotive Aftermarket Suppliers Association (AASA); Heavy Duty Manufacturers Association (HDMA); Motor & Equipment Remanufacturers Association (MERA); and Original Equipment Suppliers Association (OESA) as well as the Brake Manufacturers Council (BMC), a product council of the AASA, filed comments with Washington State regarding its Preliminary Better Brakes Rule.

“Overall, we believe these draft regulations provide a balanced approach to the vast majority of issues,” stated Ann Wilson, MEMA’s senior vice president of government affairs. “We are particularly supportive of the certification requirements.” However, Wilson cautioned that it is necessary to implement a fair and transparent system to ensure compliance by all parties and urged the State to carefully consider industry’s comments.

The Global Economic Landscape to be Analyzed and Discussed at Industry Conferenc

Distinguished economist, Dr. Jeffrey Rosensweig, Director of the Global Perspectives program for the Goizueta School of Business at Emory University and founder of Globalguru.com will lay a foundation for the day's discussions by opening with a discussion on global, macro-economics. He will cover facts, forecasts and outlooks pertinent to the rest of the conference program, as a benchmark for data that will impact the commercial vehicle industry, as well as manufacturing and transportation.

From a global macro-economic discussion, to strategic considerations on the future of the On and Off Highway, Heavy Duty Commercial Vehicle Industry; Heavy Duty Dialogue will include rare appearences from highly sought after thought-leaders with advanced forecasts, predictions and trends for the industry for the next three to five years.

ACT: Trailer Orders Rise, Used Truck Sales Fall

ETrucker.com
New and net trailer orders in October rose to the highest level since April and May at 19,408 units and 17,384 units, respectively, ACT Research said.

Seasonally adjusted, October’s backlog rose 1.5 percent month over month. “With orders and production in line, there is nothing to suggest an upwards move from current production levels, at least not until we know the outcome of peak season orders,” said Frank Maly, director CV Transportation Analysis and Research with ACT.

Demand for Reman Truck Parts Increases

Fleet Equipment Magazine
With older vehicles in the fleet, looking for new parts and remanufactured parts for older vehicles right now can be a challenge. Even though new truck sales are ramping up with vehicle orders, there are still a number of used trucks in service.

Andreas Renschler, the Daimler board of management member responsible for Daimler Trucks and Daimler Buses, commented recently that in the coming years, the [new truck sales] prospects for the U.S. market remain promising because, “…the average age of truck fleets here has now reached the highest level in about 30 years. So there’s a great demand for replacements.”

US Manufacturing Gains in Transportation and Motor Vehicle Parts Cites by NAM

National Association of Manufacturers – Chief Economist
Americans received a number of good economic reports last week. On the all-important topic of jobs, the unemployment rate fell to 8.6 percent – its lowest level since March 2009 – with 120,000 net employees hired in the month of November. This unemployment rate was much lower than many analysts had forecast which could be due in part to an increase in discouraged workers. Nonetheless, much of the employment news was positive. For manufacturers, though, the latest news also suggests that jobs in the sector continue to grow more slowly, with an increase of just 2,000 for the month.

I believe that the manufacturing jobs picture will improve as we move into 2012. A number of areas of activity have improved in recent months, and employment – a lagging indicator – will soon follow. The Federal Reserve Board's Beige Book noted that manufacturers mostly saw increases in new orders, shipments and production, with a few exceptions. This trend also was observed in various regional sentiment surveys, including ones from Chicago and Dallas released last week. Most importantly, these same studies suggest higher confidence over the coming six months, including additional hiring and capital spending.

FMCSA Shuts Down Maryland Trucking Firm for ‘Out of Service’ Violations

Overdrive Magazine
The Federal Motor Carrier Safety Administration said it has issued an imminent hazard out-of-service order against Clock Transport, which the agency said had been set up to avoid a previous shutdown order against Gunthers Transport.

Maryland-based Gunthers had been ordered to cease operations for a number of safety violations and seven crashes in the past year.

MEMA Annual Government Affairs Issues Priority Survey Closes Today

HDMA members should not miss the chance to participate in MEMA’s annual Legislative and Regulatory Priority Issues Survey to give MEMA’s Washington office your input on what the legislative and regulatory priorities of supplier industry should be as we head into 2012. Please click here to begin the survey, which should take less than 15 minutes to finish.

NLRB actions, tax issues, regulatory overreach, technology funding, energy and transportation are all issues that will be in front of Congress next year. Additionally, 2011 brought unprecedented regulatory activity at the federal level. State legislatures and regulatory agencies have also become much more active given the gridlock in Washington. These trends are expected to continue and your input is needed on these critical issues.

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