Changeover dynamics pulling truck demand forward: FTR

NASHVILLE, Ind. — Current truck and trailer production is much more robust than over the last year, but, warns market analysts FTR Associates, a significant portion of that is a short-run surge being created by the imminent onset of new EPA-compliant 2010 engines.

In its April North American Commercial Truck and Trailer Outlook, FTR notes that fleets appear to be taking advantage of build slots for power units with pre-2010 EPA engines while they are still available, pulling demand forward from the second half of the year.

"The current production numbers will not be sustained once the remaining stock of pre-2010 engines is exhausted," says Eric Starks, President of FTR Associates. "The basic issue affecting overall 2010 demand — the still large inventory of underutilized and idle trucks — remains. Pulling ahead orders now to avoid 2010 engine technology will be at the expense of second half production."

The full report will be available to FTR subscribers later this month.