Experts Predict Continued Economic Growth in 2007 During the NTEA’s Summit

The prediction was the overall conclusion of the economic expert speakers at the National Truck Equipment Association’s 2007 Business and Market Planning Summit, held in Rosemont, Ill.

Published October 10, 2006

In 2007, there will be continued economic growth; however the growth will be significantly slower than in 2006. That was the overall conclusion of the economic expert speakers during the National Truck Equipment Association’s (NTEA) 2007 Business and Market Planning Summit, held Oct. 3–4, 2006, in Rosemont, Ill.

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For the work truck and trailer industry, the pre-buy this year will cause a short recession in 2007 with an upturn in 2008, said Stephen Latin-Kasper, NTEA market data and research director. Latin-Kasper also pointed out that the utility industries in the U.S. and some abroad will remain good markets for the work truck and trailer industry sales in 2007.

Other forecasts during the Summit included:

  • U.S. retail sales of Class 8 trucks and tractors will range between 283,000 and 360,000 for 2006 and 187,000 and 205,000 for 2007.
  • The state and local government end-use markets will do well due to increased tax revenues and funds for internal service that will lead to more truck purchases from state fleets.
  • Truck and truck equipment companies that sell to highway and street contractors should have a good year, while demand for trucks from most other end-use markets will be down next year.
  • U.S. gross domestic product will vary from 3.3 to 3.4 percent in 2006 to 2.2 to 2.9 percent in 2007.
  • Top economists participating in the Summit included Latin-Kasper; James Meil, chief economist, Eaton Corp. (Cleveland, Ohio); Kenneth Kremar, principal, Industry Forecast Practices Group, Global Insight (Eddystone, Pa.); Eli Lustgarten, senior vice president, Longbow Research (Cleveland, Ohio), and principal, ESL Consultants (St. Louis, Mo.); Don Johnson, chief economist, Caterpillar, Inc. (Peoria, Ill.); and Joe O’Neill, vice president, Chanticleer, Inc. (Litchfield Park, Ariz.).

During the first day of the Summit, Doyle Sumrall, NTEA director of strategic opportunities, discussed “Using the NTEA Application Market Survey Report as a Planning Tool;” L. Fred Yetka, president and CEO, and Frank Schimberg, vice president of Career Transition, both of Yetka Management Group (Richfield, Ohio), presented “Improving Sales Results through Innovative Communications;” and Albert Bates, Ph.D., chairman and president of Profit Planning Group (Boulder, Colo.), discussed “The New Drivers of Profitability.”

For additional information, visit www.ntea.com.

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