The average age of fleet vehicles in Canada and the U.S. continues to rise, driving up demand for equipment, according to Gary Meteer, director of commercial vehicle solutions for IHS Automotive, which provides research and analysis services.
As reported by Fleet Owner, registrations for used trucks still outnumber those for new ones, but overall demand for commercial vehicles in both the U.S. and Canada continues to strengthen, Meteer said at the Automotive Aftermarket Products Expo in Las Vegas.
Specifically, Meteer said that Class 8 vehicles continue to dominate both the U.S. and Canadian markets,” accounting for more than a 50% share of new registrations in the U.S. and over 60% in Canada.
On the other hand, he stressed that “with the overall market recovery, Class 5 straight trucks and chassis-cabs have been in high demand for modifications and use in the wholesale, retail and service industries. “In the current calendar year, the demand for these vehicles is at record levels.”
As Meteer put it, it’s “not surprising” that the recovery in the commercial vehicle market in both countries is being “largely driven by the business community.”
According to IHS Automotive, the south and central regions of the U.S. stand out as the strongest markets for trucks, representing more than 62% of new vehicle registrations so far this year. In Canada, the four provinces of Alberta, British Columbia, Ontario and Quebec “account for more than 87% of new commercial vehicle registrations and additional growth is expected.”
Metter said “the average age of commercial vehicles in the fleet is shifting.” IHS Automotive has determined that while the average age for Class 4-8 vehicles was 12.5 years in 2007, that figure now stands at 14.7 years
What’s more, the subset of Class 6 vehicles is averaging 20.9 years — the highest in the fleet. Conversely, the average age of Class 5 is just 11.9 years— making them the youngest in the fleet. Meteer noted that is due to this GVW segment’s “historical low demand.”
IHS Automotive has also determined the leasing and rental of new trucks has gone up “substantially since 2000,” especially for Class 4 and Class 6 trucks.
Meteer advised that “just over 40% of Class 6 vehicles are leased today, compared to less than 30% in the 2000-2013 time frame. Leasing rates for GVW 4 vehicles have also substantially increased, from less than 20% in 2000-2013 to more than 30%.”
On the other hand, he said that Class 7 leasing is up only “marginally, from 15.1% in 2000-2013 to 19.5% in 2014.” As for Class 5 and 8, leasing activity in those segments has “remained relatively flat” over the same time period.
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