Looking Ahead in Trucking: Plan for Higher Fleet Costs and Poor Availability
If you are planning to be in the market for a new truck in 2022, you may be surprised to hear that most of the Heavy Duty truck manufacturing capacity in North America is sold out.
This means that the remaining availability will come with a high price tag. If you haven’t already, Pad your 2022 Fleet Budget and Pricing Strategies. Do not worry, JX Leasing can help.
It’s no surprise that the Global Supply Chain interruptions over the past 18 months are the primary driver of this situation.
WAIT!! There’s more! 2024 brings with it another Diesel Engine Emission Standard. All engine OE’s are investing heavily in R&D to meet the new EPA standards. R&D plus Engine costs will be passed along to all of us. Estimates for these added costs range from $8,000 to $80,000 as reported by the International Council on Clean Transportation.
YIKES! 2022 New Truck Production is nearly sold out, 2024 will be a budget killer, what else?
- 2023 truck production will be stressed because of added pressure from fleet “PRE-Buy’s” in order to stay ahead of the uncertainty of 2024. This has happened with every EPA Diesel Engine Emission Standard change since 2002.
- Prices for everything have begun to skyrocket compared to the past 10 years.
- The CPI-U year over year as of October has risen by 6.2%
- Visit the US Bureau of Labor Statistics web site and search CPI-U for supporting information
- Supply Chain Shortages are driving up all fleet-related costs
- Equipment downtime due to shortages is at an all-time high
- The CPI-U year over year as of October has risen by 6.2%
- Interest Rates are moving up with the threat of inflation
What should you do?
You need to be proactive about addressing your fleet needs now. It is likely that the 2022 and 2023 manufacturing capacity will be sold out by the end of the first quarter of 2022. There will be some wiggle room in this if you partner with a strong lease.
JX Leasing has made commitments to production build slots. Please call your JX Leasing Sales Representative and set up a time to discuss your requirements so we can help you meet your goals.
