On August 22-24, Kirk Mann from Mitsubishi HC Capital America, Inc. and Steve Tam from ACT Research attended the "Market Vitals: The Current and Future Health of the Market" seminar hosted by ACT Research. They had a chance to reflect on various key topics including economics, clean technology development, the dealer market, pent-up demand and prebuy activity, and the used and medium-duty truck sectors. Keep reading to discover their insights from the event.
Below are the main takeaways from their conversation with Steve Tam, highlighting the most important discussions from the seminar.
1. Economics
During the session, David Teolis, former Deputy Chief Economist, Michael Zimm from BMO, and Jim Meil from ACT Research presented their unique perspectives on the current economic landscape.
Steve noted, “It’s amazing how different people can look at the same data and come up with completely different conclusions. This economy is really unpredictable.†Kirk added, “There was a lot of confusion in the room. About half the audience raised their hands when asked if they thought a recession was likely.â€
Kirk emphasized, “We may not be able to control the market indicators, but we can control our next move. No matter what happens, we’ll adapt and keep moving forward.â€
2. Clean Technology Development
Kirk was particularly impressed with Rick Dauch from Workhorse, who brought a refreshing level of transparency to the EV market discussion. “It’s great to see someone being honest about the challenges,†he said.
Steve added, “There's been a lot of hype around electric vehicles over the past few years, which isn’t entirely bad. It has driven investment and attention, which is essential for developing this technology. But there are still many pieces that need to fall into place. The key is understanding the challenges and knowing what needs to be done.â€
Kirk stressed the importance of lenders getting involved early. “If they're at these seminars, they'll get a clear picture of what the future might look like over the next five to ten years. Start planning now and adjust as needed,†he advised.
3. Dealer Market
A panel featuring Laura Perrotta from ATD, Jodie Teuton from Kenworth of Louisiana, and Maria Sherwood from Sherwood Trucks discussed how the industry has evolved, how dealers have adapted, and what the customer experience looks like today.
Kirk called the session “eye-opening.†He said, “There were so many different perspectives on what’s happening in the market. I’d strongly recommend anyone to attend if they can.â€
Regarding demand, Kirk pointed out, “Getting equipment is tough right now, but there’s a noticeable year-over-year improvement. That suggests there are a lot of people wanting to buy trucks but can’t yet.â€
Steve agreed, “The supply chain issues over the past few years have constrained the industry. There’s always a core level of demand—trucks wear out and need to be replaced. Many fleets haven’t been able to replace at full levels, leading to a buildup of pent-up demand. That’s exactly what dealers are talking about.â€
He added, “Not all the challenges are behind us, but progress is being made. However, it won’t happen overnight. It depends on the business cycles of the fleets. If freight growth slows or contracts, so will revenues and profits. Everything will sort itself out eventually, just not immediately.â€
4. Pent-Up Demand + Prebuy
Kirk highlighted the upcoming changes in emissions standards in 2027 and how OEMs will need to prepare. “It could lead to historic prebuy years in 2025 and 2026. But they’ll need to ramp up production to meet the demand,†he said.
Steve confirmed, “There are already a significant number of units scheduled for prebuy in 2026, and some are even moving into 2025.†He explained that OEMs have more aggressive forecasts for 2024, partly because they want to keep their workforce engaged. “They’re keeping the assembly lines running, which might mean some prebuy units are shifting into 2024,†he added.
5. Used & Medium Duty
When asked what surprised him most about the used and medium-duty truck markets, Steve pointed to the volume of used truck sales. “Inventory is increasing, and prices are starting to drop. It’s a good time to shop for used trucks,†he said.
On the medium-duty side, Steve was impressed by the resilience of the market. “Demand has held up better than expected. There’s always a balance between medium and heavy-duty segments, with trade-offs happening constantly.â€
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