Increased Manufacturing Across US Drives Up Demand for Freight
Transportation
Location: Woodland Hills
Author: Laura
Drummond
Date: Friday, February 24, 2012
Analysts with Great American Group (OTCBB: GAMR) believe that the
continued growth in the manufacturing sector, and subsequent growth in
freight transportation, will continue to boost demand in the rolling
stock and intermodal sectors.
“The demand for freight transportation has been a boon to both the
rolling stock and intermodal industries”
Freight tonnage in December 2011 hit a 13-year high, up 10.5 percent
compared to December 2010.
“The demand for freight transportation has been a boon to both the
rolling stock and intermodal industries,” said Michael Petruski, Great
American Group executive vice president and heavy mobile equipment (HME)
industry specialist. “New truck sales rose drastically at the end of
2011 as trucking fleet operators expanded fleets to keep up with demand.
While sales had previously been driven by replacement demand stemming
from aging units, forecasts indicate a shift toward the expansion of
existing fleets through 2012.”
New Class 8 truck sales increased 78 percent in December 2011 from
December 2010 as a result of increased demand in the marketplace,
marking the industry’s best December sales figure since 2006.
Great American Group also notes that the oilfield and gas industry
continues to be a large driver of demand for equipment in the HME space.
Construction equipment used in site preparation and clean-up in drilling
regions, as well as infrastructure equipment, has experienced growth in
the secondary marketplace due to the growing demand for oil and natural
gas. Equipment related to drilling itself, including well services
equipment, waste disposal equipment and rental tools, also continues to
show a strong return in the secondary marketplace.
For more information about industry trends in
heavy mobile equipment, download Great American Group’s newest quarterly
Heavy Mobile Equipment Monitor – available on the company’s website at
http://www.greatamerican.com/news_media/downloads/Feb_Monitor_HME.pdf.
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