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Florida Has Biggest Annual Gain in Heavy-Duty Clean Diesel Trucks – Nextran

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Florida Has Biggest Annual Gain in Heavy-Duty Clean Diesel Trucks

Florida continues to dominate as one of the fastest growing states in the heavy-duty trucking market. Florida reported the largest growth rate throughout the U.S. for heavy-duty trucks with clean diesel engines in 2017, noting an 81% increase compared to 2016, according to data from IHS Markit. The increase is strongly attributed to fleet confidence in clean diesel technology and more opportunities for hauling in the U.S.’s fourth-largest state economy.

“In 2017 there were 14.5 million border crossings between Georgia, Alabama and Florida, which far exceeds even pre-recession 2007, and in 2007 the economy was going pretty gangbusters, but the 14.5 million blows that out of the water,” Florida Trucking Association President Ken Armstrong told Transport Topics. This is 500,000 more border crossings than in 2016.

The advancement of technology for clean diesel engines is spurring increased sales of new, more fuel-efficient heavy-duty trucks. With an emphasis on greater driver comfort, advanced safety technologies, increased fuel efficiencies and better uptime, fleets across North America are looking to newer models to accommodate needs and decrease the total cost of ownership.

Jonathan Randall, Mack Trucks senior vice president of North American sales and marketing said that much of the growth in Florida has been spurred by the current economic and business climate in the state. With the Tax Cuts and Jobs Act signed into law in December of 2017,  allowing the full expensing of most equipment placed into service between September 27, 2017 and December 31, 2022, the growth of the trucking economic climate in Florida is no surprise. This law also allows companies to revalue tax-deferred liabilities to reflect the new 21% federal corporate income tax rate instead of the original 35%. The budding new economy and demand for hauling jobs may be playing a role in the expansion of large fleets who have not purchased a significant number of new trucks in recent years.

“It’s obviously too early to know what the 2018 year looks like, but anecdotally everything I hear from [Florida Trucking Association] members is that 2018 is just continuing the straight upward trend from the last two or three years in terms of quantities and demand and the business environment,” Armstrong said.

For more information on how you can save while increasing the growth of your fleet, or to see new and heavy-duty trucks or truck parts, contact your nearest certified dealer, or visit one of the 16 Nextran Truck Centers locations in the Southeast.