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Is the Economy Destroying the Trucking Industry?

March 13, 2019
trucking economy

INDIANAPOLIS, IN – The trucking industry will continue to grow as long as the economy itself is growing. But what can the trucking industry expect for itself and OEMs (this describes a company’s relationship with computers and IT producers) in 2019? OEMs, or Original Equipment Manufacturers, are producers of goods that resell another company’s product under their brand name or company name. So, what can we expect for 2019?

Within the trucking industry, the trade is completely dependent on the economy. One trucking influencer, John Walsh, decided to comment on this fact at the World Truck Show last weekend. John Walsh is the vice president of marketing at Mack Trucks. He stated that since 90% of all their products are sold within the US and Canada. Thus, their economies are crucial for the trucking industry. He also announced that the U.S. economy is solely “chugging along.” Therefore, even though the GDP will be somewhat lower within the trucking industry, it will have generally good levels. This GDP, or gross domestic product, is the approximate monetary measure of the market worth of goods and services produced annually.

So, what does this mean?

Since the economy is “chugging along” many individuals suspect that the GDP will be similar for the next few years in the U.S. and Canada. Regardless of the little amount of change in GDP, it will still be a good year for Class 8 trucks.

One main component of the success of the Class 8 truck market is construction spending. More construction in a multi-family region means more construction Class 8 trucks. Currently, the industry orders for Class 8 trucks dipped. Although, Walsh believes that this is just part of the fluctuating trends that will continue throughout the year.

For the future…

There are high hopes for the trucking industry for the remainder of 2019. As retail sales grew 18% in 2018, the economy displays signs of improvement. Hopefully, the economy will improve, so the trucking industry can thrive as well.

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