728 banner ad
220 banner ad

Class 8 Supply, Not Demand, Concern for 2021 CV Markets

| February 15, 2021

ACT Research reports that supply chain’s ability to respond to demand will be the key determinant of Class 8 and van trailer production

According to ACT’s latest release of the North American Commercial Vehicle OUTLOOK, the demand story for commercial vehicles remains unchanged this year, but the supply chain’s ability to respond to demand will be the key determinant of Class 8 and van trailer production in 2021.

According to Kenny Vieth, ACT’s President and Senior Analyst, “Because of the global surge for resources that began in the last half of 2020, the added challenges of ramping the supply chain rapidly in a pandemic, and other exogenous factors bubbling up, we are comfortable taking a cautious approach to our full-year 2021 calls.”

He continued, “As we start 2021, the high points for CV demand include strength in key freight generating economic sectors, carrier profitability that is expected to rise to record levels this year, strong orders and rapidly-filling backlogs.” Vieth concluded, “While demand is strong, supply chain impediments are accumulating, from steel production constraints created by global economic reengagement during a pandemic, to silicon chip shortages, and in late January the Mexican government ordering oxygen producers to give medical demand precedence over industrial supplies.”

Category: Cab, Trailer & Body New, Featured, General Update, News, Vehicles

Comments are closed.