Trailer price rises are inevitable, says Schmitz Cargobull 27 January 2010
With signs of a gradual improvement in market conditions, Schmitz Cargobull is warning that trailer prices are likely to rise across Europe very soon.
The company claims that spiralling raw material costs – particularly aluminium and plastics – as well as increasing oil prices, will force all semi-trailer manufacturers to revisit their pricing strategies.
Schmitz Cargobull says that to date it has been absorbing price rises by making cost efficiencies – notably at its entirely restructured manufacturing facility in Harelaw, County Durham.
However, with margins falling, the firm says that cannot continue for ever – and it is predicting increases in the list price of new curtainsided and refrigerated trailers as early as the second quarter of this year.
Schmitz Cargobull also suggests that, with a recovery around the corner, used vehicle stocks and leasing return stocks have already "diminished drastically", especially in the temperature-controlled transport sector.
Additionally, the company's sales people report that transport operators that had postponed purchases during 2009 have now started to invest in regular replacements for ageing vehicles.
The implication is clear: there soon won't be so many new trailers sitting in fields from cancelled orders – although if rumours of the scale of those fields are true, 'soon' could mean several months.
Schmitz Cargobull (UK) Ltd
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