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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