Letters to the Editor: Economic Outlook
The following is a sample of the letters to the editor received by Transport Topics after recently asking Web readers about the direction of the U.S. economy.
Is the economy growing? We don’t think so.
Our small company has barely been able to stay steady, let alone busy, for the last year or so. The slightest bit of economic bad news means that our freight for the week will be light. Better news means we might fill all our trucks.
We may have to redefine growth in increments of 1/10% instead of 1% to 2%.
Roberta Davis
I>Manager
isconsin Protein Carriers
ackson, Wis.
B>If it is true that the health of the trucking industry reflects the overall health of the economy, then we are in for a pretty rough ride in the next eight to 12 months.
While truck manufacturers and some truck dealers are enjoying “full” order boards up through this October, the looming shortage of orders from roughly November forward provides little hope of keeping the current momentum going.
Truck dealers can hope to survive the coming slump with their parts and service departments, but truck manufacturers must be wondering just what they can do to weather the storm.
While “pre-buy” has been a shot in the arm for our industry, I’m very afraid of a significant relapse. This is primarily due to the underlying weaknesses in the trucking industry, most acutely experienced by owner-operators. Fuel prices, steep rate competition, predatory brokers, stringent credit guidelines and low (but firming) used truck values are all still dampening demand for new heavy trucks. Until we see a significant improvement in several of these areas, we may as well get ready for the “double-dip.”
Alex Sykes
I>Vice President, Sales
ooper Kenworth Inc.
urham, N.C.
B>Thanks largely to a few corporate scandals, consumer spending and the stock market have put the recovery on temporary hold. But we will soon be on the path to recovery again.
Why? Let’s stay focused on the positive signs: Recent job market data show that pink slips are declining, while the housing sector remains strong and incomes solid for those still holding jobs. Once American consumers are assured that most companies and financial institution are actually very financially sound, they will start spending again. The economy will grow and truck freight volumes will increase.
Jeff Glatus
I>Vice President, Business
evelopment
WA Creative Communications
exington, N.C.
These letters appeared in the Aug. 26 print edition of Transport Topics. Subscribe today.
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