Bendix expects Class 8 truck orders to keep climbing this year

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Trucking News / March 25, 2015

Strong Class 8 truck demand is expected to continue through 2015, with production climbing 15-20% over 2014’s healthy volumes.

That was the rosy outlook from Joe McAleese, chairman, president and CEO of Bendix. However, he also predicted this year will mark the cyclical market peak, with a drop of 5-15% to follow in 2016.

“So we will not have a dramatic drop, just a little softening,” McAleese said during his press address at the Mid-America Trucking Show.

Every economic indicator Bendix looks to for hints of future Class 8 truck demand are currently in positive territory.

“The overall economic climate our fleets are operating in is a very good economic climate,” McAleese said.

The pullback McAleese projects for 2016 is based on the fact 2014 orders finished the year strong, putting pressure on truck production.

Despite his upbeat market outlook, McAleese said there are three things keeping him awake at night. These include: the worsening driver shortage, with no end in sight; the impact regulatory changes will have on fleet operating costs and the acquisition costs of new vehicles; and the slow pace of the industry’s acceptance of new safety technologies.

Still, McAleese concluded, “2014 was one heckuva year and 2015 is shaping up to be more of the same.”

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IT’LL BE A GOOD YEAR FOR TRUCK SALES, CEOs PREDICT

Truck News / March 31, 2015

CEOs speaking at the Mid-America Trucking Show last week were universally upbeat about the year ahead. Strong Class 8 truck demand is expected to continue through 2015, with production climbing 15-20% over 2014’s healthy volumes, according to Bendix CEO Joe McAleese.

However, he also predicted this year will mark the cyclical market peak, with a drop of 5-15% to follow in 2016.

“So we will not have a dramatic drop, just a little softening,” he said during his press address.

Every economic indicator Bendix looks to for hints of future Class 8 truck demand are currently in positive territory.

The pullback Joe projects for 2016 is based on the fact 2014 orders finished the year strong, putting pressure on truck production.

Despite his upbeat market outlook, he said there are three things keeping him awake at night. These include: the worsening driver shortage, with no end in sight; the impact regulatory changes will have on fleet operating costs and the acquisition costs of new vehicles; and the slow pace of the industry’s acceptance of new safety technologies.

Still, Joe concluded, “2014 was one heckuva year and 2015 is shaping up to be more of the same.”

Preston Feight, Kenworth general manager, suggested 2015 could be the second best year on record for Class 8 orders.

Daimler Trucks North America CEO Martin Daum, speaking to truck journalists at a roundtable event, predicted NAFTA Classes 6-8 truck demand will grow about 10% this year. This means between 411,000 and 453,000 new vehicles could be required.

However, he acknowledged there’s a lot of uncertainty in the Canadian market, due to the poor exchange rate and the slowdown in the oil and gas market.

To meet the anticipated demand, Daimler has increased production by 16%, and is still in the process of training and deploying 2,300 additional workers since last summer. The company is planning to build 27,000 more trucks this year.

“I have absolutely no fear those production slots will go empty,” the Daimler boss said. “In fact, I have a feeling it might not be enough and we might do some more.”