FCC Equipment Financing Inc., a subsidiary of Caterpillar Financial Services Corp., has released a report designed to provide a number of views on the current status of the trucking industry and future forecasts,
along with customer insights.
The report, titled "North American On-Highway Market Issues: Current Status and Future Outlook," provides overviews of the North American truck market broken out by heavy duty and mid-range sectors, along with an on-highway finance market overview.
While numerous industry resources were consulted in the development of this report, a fleet customer survey designed to track industry trends and growth factors and how they impact the acquisition of class 6-8 vehicles provided key information. Highlights of this survey include the following:
• More than 95 percent said business will be as good or better in 2006 than 2005.
• More than 50 percent said the volume of freight they planned to haul increased in 2005 over 2004.
• 81 percent indicated their capital budgets would be the same or better, with more than 25 percent saying new equipment budgets will increase for 2006.
• 75 percent expect truck pricing to increase in 2006 versus 2005, with 25 percent saying the increase would be significant.
• 62 percent said trailer pricing would increase in 2006 versus 2005, but only 12 percent thought the increase would be significant.
• 82 percent of fleets surveyed stated they are implementing fuel surcharges to offset the rising cost of diesel fuel.
• Fleets indicated that the most important cost factors impacting their businesses were fuel costs (64 percent) and driver costs (23 percent).
An in-depth understanding of the transportation business and a significant amount of available funding capacity enables FCC to deliver personalized service to fit a fleet's individual needs, according to Lee Kermode, national sales manager for fleet financing, FCC Equipment Financing.
"In addition to extensive non-captive end user financing experience, we have specialists that are focused entirely on the transportation industry. This enables us to provide an unequaled level of customer service," Kermode said.
Serving primarily mid-sized and large private fleets and common carriers throughout the U.S. that rely on medium or heavy-duty trucks (Classes 6, 7, and 8), trailers and related transportation equipment, FCC delivers a variety of options by financing both new and used equipment, multiple brands and mixed equipment fleets. Other services provided by FCC include financing for equipment leasing, tax leasing, revolving lines of credit, debt consolidation and restructuring, and pre-approved lines of credit.
More information is available at www.fccequipmentfinancing.com.