Aftermarket sales indicator falls for seventh consecutive month

CMVC PLI chart for July 2020Commercial 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.

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