What Will 2018 Bring for Commercial Trucking?

When the commercial trucking industry is doing well, chances are the U.S. manufacturing sector is doing well too. They work hand in hand, and with 70% of all U.S. freight moved across the country on trucks, the manufacturing sector will continue to lean on this industry for years to come.

With the current administration pushing a renewed demand in U.S. manufacturing and many companies promising to bring jobs back to the U.S., most analysts predict the trucking industry will grow by 3.4% in 2018. So, what does this mean for the commercial fleet leasing market? Let's take a look at 2017's numbers to understand these predictions better.

The Top Equipment in 2017

Leading industry research firm EDA recently released their list of the top equipment finance numbers from 2017 by popularity. According to their research, these are the most popular truck types from 2017:

    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

From this list, we can see that Class 8 trucks were by far the most popular option for most companies. They provide a flexible opportunity for their fleets while remaining highly capable of hauling heavy loads.

Because of this boom in demand, experts predict there will be more buyers in 2018 seeking commercial fleet financing options as carriers continue to build up their fleets. In December 2017, equipment purchases in both trucks and trailers set records unseen for years.

A Record-Setting Month

Leading research firm ACT reported that orders for Class 8 trucks in North America rose to a new 37-month high in December 2017 as more manufacturers and carriers sought new vehicles to haul their goods as their fleet expanded. Truck purchases weren't the only thing to see a boost in 2017 as trailers also set records.

Continued Demand for Trailers

A commercial fleet isn't complete without an inventory of highly capable trailers. Along with the rise of truck purchases, research firm FTR reported that trailer orders rose to 47,000 in December of last year. This was great news as this was the highest purchase record since October of 2014.

Bracing for New Regulations

Driver safety is a top concern for most carriers; however, the government feels there is a need to better track, and manage the time drivers spend behind the wheel. Starting in 2018, carriers will be required to install an Electronic Logging Device (ELD) on all vehicles to ensure drivers aren't over exhausting themselves. Under the new mandate, drivers can't exceed 50 hours each week and must take two full days off the rest and recover. The ELD will force carriers to reduce the workload of drivers, and they won't be able to haul as much as they used to.

Where is the Industry Headed?

The commercial trucking industry is expected to still be a prominent component of logistics even with these new regulations. Manufacturers rely heavily on commercial freight haulers to get their products from point A to point B so the demand won't decrease anytime soon.