Commercial Motor Vehicle Consulting (CMVC) reported Wednesday its Parts Aftermarket Sales Leading Indicator (PLI) decreased by 0.7 percent in July — its seventh consecutive month with a negative reading.
CMVC says this trend continues to signal a soft parts aftermarket sales environment in the coming months.
“The re-opening of the economy has spurred trucking activity, which is a stimulus to parts aftermarket sales, but the recovery in trucking activity is from the trough of the recession and many industries sales remain below pre-recession levels, so fleets are rationalizing capacity,” says Chris Brady, president, CMVC.
Brady says the process of bringing fleet capacity in equilibrium with freight volumes/business sales limits the upside potential in parts aftermarket sales from higher trucking activity.
“Two opposing forces at work in the parts aftermarket, higher truck utilization (+) and fleets rationalizing capacity resulting in a lower truck population (-),” he says.