Commercial Motor Vehicle Consulting’s (CMVC) CV Parts Aftermarket Sales Leading Indicator (PLI) fell 0.9 percent in May, which was the fifth consecutive monthly decrease in PLI, signaling a weak parts aftermarket sales environment.
“With the gradually re-opening of the economy stimulating trucking activity, one would think a strong rebound in the parts aftermarket sales,” says CMVC President Chris Brady. “PLI, however, is signaling the parts aftermarket sales environment will remain soft in the near term.”
Though trucking activity is increasing, it remains below levels before the coronavirus closed segments of the economy, Brady says.
“The economy is re-opening but fleets are still struggling with business sales below the pre-coronavirus period, implying truck utilization remains below pre-coronavirus levels. Utilization of the truck population determines the rate at which trucks depreciate, thereby consume parts,” he says.
PLI was designed by CMVC to be a short-term forecasting indicator of U.S. commercial vehicle parts aftermarket sales by signaling peaks and troughs as well as inflection and turning points in parts aftermarket retail sales due to changes in the fleet business environment.