The long-awaited trucking recovery has delivered for the transportation manufacturing sector. Truck orders for Class 8 trucks hit a 5 year high in March with net orders up almost 160% y/y. Truck maker Daimler’s (manufacturer of Freightliner trucks) Q1 sales rose over 25% and profit tripled.
Volvo recently announced that it to will be recalling 700 employees to ramp up Class 8 truck production and tank trailer manufacturer Polar Corporation is also planning to hire 500 employees to increase US production. Paccar & Eaton also saw strong rebounds in Q1.
All the deferred CapEx spending in the transport sector over the last couple of years points to better years ahead for equipment makers.
Ted Morandin
410 349 9002
Morprop (www.morprop.com) provides advice to investors and their advisors regarding industrial transportation real estate. In addition to real estate expertise, Morprop’s directors include former senior transportation executives from Yellow Corporation (now YRCW), Purolator, Conway, FedEx Freight and Vitran. Morprop also provides research and management services to the ITPN (www.itpnetwork.com), the largest transportation real estate network in North America. Network brokers have an average of approximately 20 years of industrial real estate brokerage experience in their local markets and a deep understanding of transportation real estate. The brokers in the network have moved hundreds of transportation real estate assets and have significant liquidation experience in the sector.
