Reducing downtime, optimizing production, and addressing labor shortages are essential for the trucking industry’s ongoing recovery.
The industry saw progress in 2024 as it emerged from a prolonged recession, aided by stabilized prices, economic improvements, and dealers reducing excess inventory. Notably, used Class 8 retail sales jumped 56% year over year and 16% month over month in January, as reported by ACT Research.
Some truck lenders have adopted a “full throttle” strategy heading into 2025 as fleet owners aim for significant growth in an anticipated business-friendly environment under President Donald Trump.
To sustain this recovery, quick service and repairs at dealerships are crucial, stated Jim Murray, client development manager at fleet management service provider Merchants Fleet. Timely maintenance ensures freight remains on the move, generating revenue for fleet companies, he added.
“The primary issue we discuss with clients is downtime. Clients often have employees in vehicles needing to install, service, or sell. If those vehicles are out of commission, it significantly hampers revenue generation.”
— Jim Murray, Merchants Fleet
Original Equipment Manufacturers (OEMs) and dealers can help reduce downtime by ensuring parts are readily available and having “the right technician at the right time,” remarked Fernando Mahaluf, senior manager of aftersales at ZM Trucks in Fontana, California. He emphasized that this approach builds long-term trust, encouraging clients to invest in additional vehicles.
Addressing Economic Challenges
Labor shortages pose a significant challenge for both fleet companies and dealers, with the trucking industry facing a shortfall of around 80,000 drivers and 41,000 technicians, according to the American Trucking Associations.
OEMs and service providers are concentrating on efficiency to tackle this issue, explained Ismael Daneluz, vice president of sales and service for North America at work truck manufacturer Palfinger. “Our fleet of over 100 mobile service units and technicians offer onsite support, and we are strategically investing in spare parts distribution centers throughout North America to ensure faster access to critical components,” he said. “We also offer flexible financing options for businesses to access our premium solutions as needed.”
Additionally, the trucking sector may need to navigate ongoing economic and political uncertainties, factoring in the potential implications of tariffs and policy changes under Trump’s administration. As economic conditions shift, OEMs must adapt their production strategies, noted Dave Sowers, director of operations at Ram Professional. “Monitoring the wider economy is crucial, as it influences our forecasts, production schedules, and business strategies. Ultimately, it’s about executing actions that support our customers,” he added.
The third annual Equipment Finance Connect event will take place at the JW Marriott Nashville on May 14-15, 2025, serving both equipment dealers and finance providers. For more details and registration, click here.
