Show Truck Production Outlook Brighter The nations nation's truck manufacturers manufacturers manu- manu J wrote off calendar 1970 as a P poor r year f for r them In ln 1969 the industry established established 1 i its time all-time high output output out- out ut put record with nearly y 2 n million trucks built HOWEVER IN 1970 many adverse exacted the toll k upon the industry Sales lagged I 1 early in the year the labor labora a difficulties of the teamsters curtailed inflow of materials el and shipments of assembled units economic conditions were uninspiring commercial borrowing cost remained high until late in the year and finally there was the UA W strike against General Motors Hence truck production for lor 1970 ran close to 15 million t. t units the lowest calendar total since 1963 L The Research Staff of 11 Babson's Reports forecasts s that companies involved in truck manufacturing and reI related re re- re- re I I- I dated fields trailer and container container container con con- manufacturing will experience a return to more profitable operations this g year This reflects several favorable factors including newer equipment to handle and fishy-back fishy piggy-back piggy container aspects of the in- in transportation system tern tem further additions to the massive interstate highway program and liberalization by some states of weight and length maximums governing truckers FROM A fundamental standpoint another favorable factor for domestic heavy duty truck manufacturers i is that they are not plagued by stiff foreign competition Amo Among g the leading truck equipment manufacturers are General Motors and Detroit Diesel Ford Chrysler Chrys Chrys- ler Signal Companies Mack Trucks White Motor lot or i o Cummins Engine Fruehauf and International Harvester The Detroit Big Three M G-M Ford Chrysler have the lions lion's share of the smaller light- light duty truck market PickuPs Pickups Pick Pick- 1 ups or light-duty light trucks account for over half of total u lef y truck output l IN the heavy-duty heavy segment a I of the market however the independents have historically made their mark presently holding a shade more than half of the domestic market Also it should be noted that approximately 80 percent of heavy-duty heavy trucks are powered by diesel Sales in the heavy-duty heavy segment were off in 1970 but aided relief re by tax cent marked increases in trucks for the recreational market campers etc lead leadus us to believe that more of the smaller truck sales are going in this direction A PARALLEL can be be- drawn between heavy-duty heavy truck sales and Gross National Product Increased demand for shipments of goods and services results in improved truck sales Hence we look for greater demand for these trucks in 1971 Also the labor difficulties of the teamsters and the soft economy deferred many 1970 heavy-duty heavy truck sales hence we anticipate a generally better climate in 1971 for both light-and light heavy-duty heavy segments of the market The term long-term growth outlook is favorable fa for the heavies owing ving to larger pay loads and more liberal length regulations TRUCKS like autos contribute contribute contribute con con- tribute to the pollution problem in proportion to their numbers The same effort expended to reduce pollution by cars will be directed also alsoto to the truck manufacturers since they both fall under federal government and state supervision We feel that turbines will willbe willbe willbe be used in large trucks and buses beginning in the present present present pre pre- sent decade Additionally what is now an international concept concept concept con con- of containerization should produce more growth in the which manufacture this type of equipment Because Because Because Be Be- cause of the larger pay payloads payloads payloads loads of operating units we also anticipate that better braking qualities will be built in by the manufacturers ers possibly with the addition of operated computer-operated skid con con- |