The parts business slipped again in September and October as a soft freight environment continues to limit parts sales opportunities, Commercial Vehicle Motor Consulting (CMVC) reports.
CMVC announced Tuesday its CV Parts Aftermarket Sales Leading Indicator (PLI) decreased 0.6% in October following a decline of 0.7% in September. The reading signal lower parts aftermarket sales in the coming months, excluding changes in parts prices.
CMVC President Chris Brady says the continued negative direction of the PLI — which has now fallen for 19 straight months — can be attributed to continued softness in the line haul freight market and a reduction in line haul units in operation as carriers bring their fleets in equilibrium with freight demand.
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“A reduction in the number of trucks depreciating in line haul applications is weighing on commercial vehicle parts aftermarket sales,” he says. “The downward trend in parts aftermarket sales is nearing its trough as line haul capacity has been brought in equilibrium with the freight environment, but the line haul truck population will remain relatively stable due to a continual soft-to-sluggish freight environment.”
Looking ahead, Brady says a turnaround in aftermarket parts sales “depends on a freight recovery in line haul applications resulting in higher truck utilization, causing the rate at which trucks depreciate to accelerate. In the near, the freight environment will remain soft-to-sluggish as inflation and high interest rates continue to weigh on final sales, so fleets will keep capacity relatively stable in the near term.”
