Summer did not turn the tide for the Commercial Motor Vehicle Consulting (CMVC) CV Parts Aftermarket Sales Leading Indicator (PLI), which fell once again in July.
Down 0.7% from June, the PLI has now fallen for 17 consecutive months, and signals still falling parts aftermarket sales in the coming months (excluding changes in parts prices).
“The rationalization of capacity in line haul applications has reduced the number of trucks operating in the line haul segment and increased the supply of idled trucks on the used truck market,” says Chris Brady, president at CMVC. “The line haul segment makes up a large share of the Class 8 truck population, so a decrease in the number of trucks depreciating in line haul applications coupled with line haul trucks generally deprecate at faster rates than trucks in vocational and local/regional applications is weighing on parts aftermarket sales.
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“In addition, an increase in supplies of idled trucks on the used truck market, not depreciating and consuming parts, is also weighing on parts aftermarket sales.”
Brady adds a recovery for commercial vehicle aftermarket parts sales will require a boost in utilization for line haul applications that accelerates the rate at which trucks depreciate and decreases excess capacity, “thereby putting upward pressure on fleets to expand capacity, resulting in increasing numbers of trucks operating line haul applications.”
